Slide 1: Corporate Presentation
CORPORATE PRESENTATION May 2014 SSRI:NDAQ | SSO: TSX 1
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of Canadian securities laws (collectively
Slide 3: Our Business Portfolio
Our Business Portfolio 10 1 8 1. Marigold 7 8. Maverick 6. Berenguela 5. Diablillos Springs 3 3. Pitarrilla 9 Exploration Development Production 2. Pirquitas 9. San Marcial 4. San Luis 4 6 10. Sunrise Lake 7. Candelaria 2 5 San Agustin Challacollo Snowfield Bowdens Brucejack Balanced growth portfoli
Slide 4: Marigold: Established Gold Mine
MARIGOLD ESTABLISHED GOLD MINE SSRI:NDAQ | SSO: TSX 4
Slide 5: Marigold Mine: Upgrades our Portfolio
Marigold Mine: Upgrades our Portfolio Acquisition for $275M in cash, April 2014 Continuous production since 1988 Open pit, run-of-mine heap leach operation Twin Creeks Goldstrike MARIGOLD Maverick Springs Phoenix Adds operating cash flow and reserves Cortez Improves operating and political
Slide 6: Marigold Mine: Roadmap
Marigold Mine: Roadmap Q1 2014 Q2 2014 Q3 2014 Q4 2014 Integration Transaction completed April 4 Guidance Close Transaction Drilling Campaign NI 43-101 Announce File Report Resource Estimate NI 43-101 Announce File Report Technical Report Analyst Tour Planned approach to integration and future SSRI:
Slide 7: Marigold Mine: Guidance
Marigold Mine: Guidance Mine optimization plan Utilize large scale mining April 4 – December 31, 2014 equipment for lowest cost material mined Gold production 105,000 – 115,000 ozs Cash costs per payable Mine plan adjustments $1,000 – $1,100 / oz ounce of gold sold * for lower strip, higher gr
Slide 8: New large-scale equipment at Marigold
New large-scale equipment at Marigold SSRI:NDAQ | SSO: TSX 8
Slide 9: Long-life mine operated to world-class standards
Long-life mine operated to world-class standards SSRI:NDAQ | SSO: TSX 9
Slide 10: Pirquitas: Large Open-Pit Silver Mine
PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NDAQ | SSO: TSX 10
Slide 11: Pirquitas Mine: Performance Update
Pirquitas Mine: Performance Update (1) First Quarter 2014 2014 Guidance Deliver consistent performance 8.2 – 8.6M oz Ag production Focused on operational excellence 25 – 30M lb Zn production $12.50 – $13.50 / oz cash cost (2) Produced 1.9M oz Ag (per payable ounce of silver sold) Produ
Slide 12: Pitarrilla: Going Forward
Pitarrilla: Going Forward Defining best way forward for the Pitarrilla project Option evaluation continues Re-prioritized Pitarrilla Durango, Mexico SSRI:NASDAQ SSRI:NDAQ | |SSO: SSO:TSX TSX 12
Slide 13: San Luis: Dual Option to Value
San Luis: Dual Option to Value Going forward N Ecash community agreement pursued Drilling the Bonita Zone (2014) Ecash Community Cochabamba agreement extended (2Q13) Ayelén Vein EIA approved (3Q12) Consolidated interest (3Q11) San Simon Vein Feasibility study (2Q10) Bonita Zone Cochaba
Slide 14: Silver Standard: Pro Forma Liquidity
Silver Standard: Pro Forma Liquidity Cash $396 Plus: Marketable Securities $159 Total Cash and Marketable Securities $555 Less: Marigold Purchase Price ($275) Less: Acquisition Costs ($4) Total Costs ($279) Available Liquidity $276 All figures are in millions of U.S. dollars. Financial capacity for
Slide 15: Strong Technical and Commercial Experience
Strong Technical and Commercial Experience Management Team John Smith Gregory Martin Alan Pangbourne John DeCooman President, CEO SVP and Chief SVP, Projects VP, Business Development and Director Financial Officer and Strategy Andrew Sharp Ed Kirwan Kelly Stark-Anderson Bruce Huber VP, Technical VP,
Slide 16: Key Goals for 2014
Key Goals for 2014 Successfully integrate and optimize Marigold Advance operational excellence at Pirquitas Define pathways for San Luis and Pitarrilla Maintain strong balance sheet and cost discipline Focus on growth opportunities Elements for Growth SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX T
Slide 17: SSRI:NASDAQ SSRI:NDAQ | | SSO: SSO:TSX
SSRI:NASDAQ SSRI:NDAQ | |SSO: SSO:TSX TSX 17
Slide 18: Silver Standard: Enhanced Reserve Profile
Silver Standard: Enhanced Reserve Profile Silver Equivalent (3) Pro Forma Silver Equivalent Mineral Reserves Mineral Reserves Argentina Peru 9% 4% Argentina 14% USA 34% Peru 3% Mexico 54% Mexico 82% Total: 583M AgEq oz Total: 879M AgEq oz Lower geopolitical risk Note: Silver equivalent mineral reser
Slide 19: Silver Standard: Production Profile
Silver Standard: Production Profile 20.0 17.9 18.0 16.0 Silver Equivalent Production (Moz) 14.0 12.0 Marigold 10.0 8.2 Pirquitas 8.0 6.0 4.0 2.0 0.0 2013 2013 Pro Forma (4) Note: Silver equivalent production calculated using only silver and gold ounces produced. Gold production converted to silver e
Slide 20: Marigold Mine: Focused on Margins
Marigold Mine: Focused on Margins $1,600 $1,503 $589 $1,167 $1,200 $253 $914 Cash Costs ($ / oz) $800 $914 $400 $0 Cash Cost Capital Capital (2013) (2013) (Avg. 2008 - 2011) Source: Goldcorp public filings. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 20
Slide 21: Marigold Mine: Production and Financial Profile
Marigold Mine: Production and Financial Profile 180 150% $1,000 $200 162 $914 154 144 $784 $776 137 Earnings from Operations ($M) $750 $150 $678 Total Cash Cost ($ / oz) Gold Ounces Produced (koz) 120 100% Gold Recoveries (%) 73% 73% 73% 73% $101 $500 $92 $100 60 50% $47 $44 $250 $50 0 0% $0 $0 (5)
Slide 22: Pirquitas Mine: Overview and Opportunities
Pirquitas Mine: Overview and Opportunities 100% owned and operated silver and zinc mine In commercial production since December 2009 Focus on operational excellence Contracts, operational performance, people Lower strip ratio going forward Benefitting from Argentine peso devaluation Pirq
Slide 23: Pirquitas Mine: Pit Transition
Pirquitas Mine: Pit Transition Oploca Potosí San Miguel Pit Legend Phase 1 Pit Phase 2 Pit Pit at Sep. 30, 2013 Ore SSRI:NASDAQ SSRI:NDAQ | |SSO: SSO:TSX TSX 23
Slide 24: Development Project Portfolio
Development Project Portfolio Pitarrilla Feasibility Study Results San Luis Feasibility Study Results (December 2012) (June 2010) 32-year life: 479M oz Ag reserves 3.5-year life: Underground mine Avg. production: 15M oz Ag (1st 18 years) Avg. annual 1.9M oz Ag production: 78,000 oz Au Cash
Slide 25: Mineral Reserves
Mineral Reserves (as at December 31, 2013) Mineral Reserves Metal grade Contained metal Tonnes Silver Gold Lead Zinc Silver Gold (mil.) (g/t) (g/t) (%) (%) (mil. oz) (mil. oz) Proven 7.1 208.0 - - 0.55 47.3 - Pirquitas Probable 2.9 179.0 - - 1.28 16.6 - Stockpiles (a) 1.1 125.0 - - 1.39 4.5 - Pitarr
Slide 26: Mineral Resources: Measured & Indicated
Mineral Resources: Measured & Indicated (as at December 31, 2013) Measured & Indicated Mineral Resources (inclusive of Mineral Reserves) Metal grade Contained metal Tonnes Silver Gold Lead Zinc Copper Silver Gold (mil.) (g/t) (g/t) (%) (%) (%) (mil. oz) (mil. oz) Measured 7.9 210.0 - - 0.35 - 53.2 -
Slide 27: Mineral Resources: Inferred
Mineral Resources: Inferred (as at December 31, 2013) Inferred Mineral Resources Metal grade Contained metal Tonnes Silver Gold Lead Zinc Copper Silver Gold (mil.) (g/t) (g/t) (%) (%) (%) (mil. oz) (mil. oz) Pirquitas 5.4 162.0 - - 2.38 - 28.3 - Pitarrilla 22.1 62.1 - 0.21 0.49 - 44.1 - San Luis 0.0
Slide 28: Reserves & Resources: Notes to Tables
Reserves & Resources: Notes to Tables All estimates of Mineral Reserves and Mineral Resources in the Mineral Reserves and Mineral Resources tables have been prepared in accordance with National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”) and have been reviewed and ap
Slide 29: Reserves & Resources: Notes to Tables
Reserves & Resources: Notes to Tables Diablillos Mineral Resources estimate was completed in a technical report entitled “Technical Report on the Diablillos Property-Salta and Catamarca Provinces, Argentina” dated July, 2009. Mineral Resources are reported above a recoverable metal value (“RMV”) cut
Slide 30: Presentation Endnotes
Presentation Endnotes All amounts are in U.S. dollars unless otherwise stated. 1) See news release dated January 14, 2014 for cost guidance. 2) Cash costs guidance for 2014 at Pirquitas is based on $20/oz silver price and $0.85/lb zinc price. 3) Refer to slides entitled “Mineral Reserves”, “Mineral
Slide 31: Notes
Notes SSRI:NASDAQ SSRI:NDAQ | |SSO: SSO:TSX TSX 31
Slide 32: Corporate Presentation
CORPORATE PRESENTATION SSRI:NDAQ | SSO: TSX 32