Slide 1: The Premier Primary Silver Producer in China Today
NYSE: SVM The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow. Corporate Presentation May 26, 2011
Slide 2: Cautionary Statements
NYSE: SVM Cautionary Statements Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securiti
Slide 3: Capital Structure & Financial Highlights
NYSE: SVM Capital Structure & Financial Highlights Capital Structure Financial Highlights2 NYSE: SVM; TSX: SVM Fiscal Year Fiscal Year 2011 2010 52-Week Hi/Low: US$16.32/$5.86 Revenue US$167.3 M US$107.2 M Shares Outstanding1: 174.9 Million Net Income US$68.8 M US$38.5 M 3-mo Avg. Daily Vol.: 3.7 Mi
Slide 4: Industry Leading Profitability
NYSE: SVM Industry Leading Profitability Gross Profit Margin Cash Cost per oz Silver Most recent full year* adjusted for by-product credits – Quarter ended Mar/2011 First Pan Silver Hecla Silvercorp Majestic American Wheaton 75% 80% 67% $8.26 $7.83 60% 47% 51% $7.50 38% $4.07 40% $3.50 $1.03 20% -$0
Slide 5: Management & Board
NYSE: SVM Management & Board Management Rui Feng, Ph.D., Geology Chairman & CEO, Director Myles J. Gao, P.Geo. President & COO, Director Maria Tang, CA, CPA Dr. Feng & Yikang Liu Chief Financial Officer Lorne Waldman, MBA, LL.B. Corporate Secretary Board of Directors Shaoyang Shen, MBA, CMA Rui Feng
Slide 6: Silvercorp's Strategic Vision
NYSE: SVM Silvercorp’s Strategic Vision Silvercorp’s strategy is to focus on generating cash flows early on by developing high grade projects that may be too small for large companies and too large for junior companies: 1) Develop mine operations and generate cash flows before the project’s potentia
Slide 7: Silvercorp Operations & Development Projects
NYSE: SVM Silvercorp Operations & Development Projects Silvertip Project, British Columbia FY2014: ~1 Moz Ag BYP Project, Hunan China Province FY2012: ~26,000 oz Au Canada GC Project, Guangdong Silvercorp Head Office Province FY2013: ~1.0 Moz Ag, Ying Mining District, Henan Province FY2014: ~2.0 Moz
Slide 8: Silver Production History & Forecast
NYSE: SVM Silver Production History & Forecast Silver and Gold (at Ag Eq) Production - Actual and Forecast1,2 12.00 Silvertip 10.6E 10.00 GC 1.00 BYP 8.3E Ounces of Silver 2.00 8.00 HPG+TLP+LM 7.1E 1.00 1.30 1.50 1.90 6.00 5.46 Millions 4.07 4.29 4.70 1.12 1.30 1.40 1.45 0.51 4.00 0.37 0.88 1.95 4.5
Slide 9: Reserve & Resource Growth
NYSE: SVM Reserve & Resource Growth History Reserve & Resources: FY2004 - FY2010 275 April 2005: Resource defined at Ying 250 P&P Reserves 245.9 May 2006: Drilling doubles Ying 225 M&I Resources resources 63.4 Inferred Resources 194.7 Ounces of Silver (Millions) September 2007: Resource expansion at
Slide 10: FY2012: Another Year of Production Growth
NYSE: SVM FY2012: Another Year of Production Growth Ores Head Grade Metal Production Processed Projects (‘000 Silver Gold Ag Eq Lead Zinc Silver Gold Lead Zinc tonne) (‘000 (‘000 (‘000 (mil (mil (g/t) (g/t) (%) (%) oz) oz) oz)* lbs) lbs) Ying 325 460 8.3 3.0 4,300 4 4,500 56 15 Ying TLP 165 145 2.8
Slide 11: FY2012: Capital Expenditure
NYSE: SVM FY2012: Capital Expenditure Mine Development Mill Construction & Exploration & Permitting Total Surface Facilities Projects Cost Tunnel * Cost Cost Drilling Cost ($million) (metre) ($million) ($million) (metre) ($million) Ying $6.8 22,830 $3.3 $4.5 85,000 $14.6 Ying TLP $2.7 11,684 $0.9 $1
Slide 12: The China Advantage
NYSE: SVM The China Advantage Low Capital & Low-cost mining equipment and Operating Costs experienced labour. Rapid Construction All supplies sourced locally and hard Times working labour force. Close to End Market Several smelters located 200 km or closer to Silvercorp’s projects. Third Largest Sil
Slide 13: Ying Mining Camp: Exploration to Grow Resources and Reserve
NYSE: SVM Milling Capacity: 2,500 tpd YING MINING CAMP: Exploration Mining Capacity: ~2,000 tpd to Grow Resources and Reserve Goal at the Ying Mining Camp is New 1,500 tpd Mill 1,000 tpd Mill to extend the current mine life of 10 years and to expand the mining capacity from current 2,000 tonnes pe
Slide 14: GC Development Project: 2nd Base for Growth in China
NYSE: SVM GC Development Project: 2nd Base for Growth in China Construction of 1,500 tonne per day mine and mill has commenced FY2012 capital expenditure: $22.5 MM Initial 700 tonnes per day production by end of FY2012 to produce 1 Moz Silver Ying Mining District At full mining capacity of 1
Slide 15: GC Development Project: Resource Growth Potential
NYSE: SVM GC Development Project: Resource Growth Potential Drill Program 14
Slide 16: BYP Project: 3rd Production Base in China
NYSE: SVM BYP Project: 3rd Production Base in China for Growth and Diversification Acquired 70% interest by paying US$24 million cash and contributing US$9 million to the JV company. 500 tpd Mill 3.67 km2 mining permit, safety production permit and 500 tonne per day floatation mill Mine and pr
Slide 17: BYP Project: Exploration to Grow Resources and Reserve
NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve Non NI 43-101 historic resource of 482,000 oz of Gold, plus 3.1 MM tonnes of 2.45% Lead and 5.26% Zinc* Complete a NI 43-101 report 50,000m surface and underground drilling program to upgrade/expand current resource ($3MM) in FY2
Slide 18: BYP Project: Exploration to Grow Resources and Reserve
NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve The 50,000m drilling program will target: To upgrade the main, #3 gold mineralization zone To extend along the strike and down dip of the F5 fault, where #XII lead-zinc-gold mineralization and #1 gold mineralization zones occur; an
Slide 19: BYP Project: Exploration to Grow Resources and Reserve
NYSE: SVM BYP Project: Exploration to Grow Resources and Reserve To extend along the strike and down dip of the F5 fault, where #XII lead-zinc-gold mineralization and #1 gold mineralization zones occur 18
Slide 20: Silvertip Project: Upcoming High-Grade Silver Mine in BC
NYSE: SVM Silvertip Project: Upcoming High-Grade Silver Mine in BC >$40 million spent on exploration including 2.4 km of tunnel and 71,472 m of surface/underground drilling in 491 holes before year 2000. 30 million oz silver resource includes High-grade starter pockets (>1,000 grams per tonne Si
Slide 21: Silvertip: Positive Preliminary Economic Assessment
NYSE: SVM Silvertip: Positive Preliminary Economic Assessment PA Study Highlight 500 t/d seasonal operation or 72,000 t/year For the upside case (prices: Ag=$25/oz; Pb=$1/lb; and Zn=$1/lb), the undiscounted pretax NPV is $311-million, with a pretax IRR of 49%. Capital cost: $49 MM with sustain
Slide 22: Strong Resource Growth Potential at Silvertip
Strong Resource Growth Potential at Silvertip NYSE: SVM 21
Slide 23: Summary of Reserves/Resources
NYSE: SVM Summary of Reserves/Resources Resource Contained Metal Reserves RESERVE CATEGORY (Tonnes) Ag (oz) Pb (t) Zn (t) Ag Equiv.* (oz) Proven 1,322,201 17,182,882 101,532 30,093 32,347,159 Probable 4,820,408 46,171,138 283,305 87,466 89,224,423 Total 6,142,609 63,354,020 384,837 117,559 121,571,5
Slide 24: The Silvercorp Advantage
NYSE: SVM The Silvercorp Advantage Industry leading profitability with the lowest cash costs Plan to double production over next 3 years Aggressive 241,000 metre drilling program planned for current year, while also advancing the BYP, GC and Silvertip properties towards production $206 milli
Slide 25: Contact Information
NYSE: SVM Contact Information Head Office Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4 Tel: 604-669-9397 | Fax: 604-669-9387 | Toll-Free: 1-888-224-1881 Email: info@silvercorp.ca Website: www.silvercorpmetals.com INVESTOR RELATIONS: investor@silvercorp.ca China Offices Silvercorp’s