Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (November 2011)
21 slides from Silvercorp Metals's investor presentation, Nov 21, 2011
Slide 1: Corporate Presentation
Corporate Presentation November 21, 2011
Slide 2: Cautionary Statements
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 Securities Litigat
Slide 3: Capital Structure & Financial Highlights
Capital Structure & Financial Highlights Capital Structure Financial Highlights2 NYSE: SVM; TSX: SVM Fiscal Year H1 FY2012 2011 52-Week Hi/Low: US$16.32/$5.86 Revenue US$131.8 M US$167.3 M Net Income US$44.1 M US$68.8 M Shares Outstanding1: 170.6 Million Operating Cash Flow US$69.1 M US$104.2 M 3-mo
Slide 4: Industry Leading Profitability
Industry Leading Profitability Peer Comparison of Cash Costs Lowest cost producer of silver among per oz silver adjusted for by-product credits* industry peers: cash cost was -$4.55 Pan First Silver Hecla Silvercorp per ounce of silver in Q2/FY2012 American Majestic Wheaton $9.58 $10.00 $8.39 Hi
Slide 5: Silvercorp's exciting pipeline of projects
Silvercorp’s exciting pipeline of projects Ying Mining Camp, Henan Province FY2012: ~5.6Moz Ag & 4,000 oz Au from four mines China Canada XBG & XHP Projects, Silvertip Project, Henan Province British Columbia BYP Project, Hunan Province GC Project, Silvercorp Head Office Guangdong Province 4 4
Slide 6: Reserve & Resource Growth
Reserve & Resource Growth 1, 2 History Reserves & Resources: FY2004 - FY2011 300 April 2005: Resource defined at Ying 58.7 Ounces of Silver and Silver Eq.* (Millions) May 2006: Drilling doubles Ying resources 250 September 2007: Resource expansion at Ying and addition of HPG mine 64.1 200 152.9 May
Slide 7: FY2012: Capital Expenditures
FY2012: Capital Expenditures Mine Development Mill Construction & Exploration & Permitting Total Surface Facilities Projects Cost Tunnel * Cost Cost Drilling Cost ($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 $1.7 36,000
Slide 8: FY2012: Production Guidance
FY2012: Production Guidance Ores Head Grade Metal Production Processed Silver Gold Ag Eq Lead Zinc Projects (‘000 Silver Gold Lead Zinc (‘000 (‘000 (‘000 (mil (mil tonne) (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 0.6 670 - 670 8.6 0.9 Mi
Slide 9: The China Advantage
The China Advantage Low Capital & Low-cost mining equipment and Yongning Smelter (100,000 t/y Lead) 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 p
Slide 10: Consolidation of the Ying Mining Camp: Next Step for Growth
Consolidation of the Ying Mining Camp: Next Step for Growth 9 9
Slide 11: Ying Mining Camp: Exploration to Grow Resources and Reserve
Milling Capacity:3,200 tpd YING MINING CAMP: Exploration Mining Capacity: ~2,000 tpd to Grow Resources and Reserve Goal at the Ying Mining Camp is New 2,200 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 per day to ma
Slide 12: The Newest Additions: XBG and XHP Projects
The Newest Additions: XBG and XHP Projects 350 tpd Floatation Mill at XBG Located within a 3 hour drive of the Ying Mining District and just 6 km from each other Self-finance exploration programs at both projects with cash-flow generated from continuing mining activities XBG Acquisition XBG si
Slide 13: GC Development Project: 2nd Base for Growth in China
GC Development Project: 2nd Base for Growth in China Construction of 1,600 tpd mine and mill underway 1,600 tpd floatation mill Ying Mining District expected to be completed by China July 2012 ($17 MM) FY2012 capital expenditure: XBG + XHP Projects BYP Project $22.5 MM GC Project 30 year min
Slide 14: GC Development Project: Resource Growth Potential
GC Development Project: Resource Growth Potential Mine Development – Jumbo Operating Mine Development – Portal Under Construction 13 13
Slide 15: BYP Project: 3rd Production Base in China
BYP Project: 3rd Production Base in China for Growth and Diversification Acquired 70% interest in February 2011 by paying US$24 million cash and contributing US$9 million to the JV company. 3.67 km2 mining permit, safety production permit and 500 tonne per day floatation mill 500 tpd Mill at the
Slide 16: BYP Project: Exploration to Grow Resources and Reserve
BYP Project: Exploration to Grow Resources and Reserve NI 43-101 resource of 225,400 oz of Gold in the Indicated category; 208,000 oz Gold, 395,236 tonnes of Lead & Zinc in the Inferred category 50,000m surface and underground drilling program to upgrade/expand current resource ($3MM) in FY2012
Slide 17: BYP Project: Exploration to Grow Resources and Reserve
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; and; Sever
Slide 18: Silvertip Project: Upcoming Silver Mine in BC
Silvertip Project: Upcoming Silver Mine in BC >$40 million spent on exploration including 2.4 km of tunnels and 71,472 m of surface/underground drilling in 491 holes before year 2000. 35 million oz silver resource in the Indicated category, 8 million oz silver resource in the Inferred category (
Slide 19: Summary of Resources
Summary of Resources RESERVE Resource Contained Metal Reserves CATEGORY (Tonnes) Ag (oz) Au (oz) Pb (t) Zn (t) Ag Equiv.* (oz) Proven 1,263,450 12,440,080 3,916 75,413 19,787 23,111,814 Probable 5,342,412 45,539,882 12,968 234,080 67,173 78,931,497 Total 6,596,983 57,905,171 16,885 309,338 86,920 10
Slide 20: Endnotes and Cautionary Statements
Endnotes and Cautionary Statements Myles Gao, P.Geo, Silvercorp’s President & COO, is the “Qualified Person” within the meaning of National Instrument 43-101 – Standards Of Disclosure for Mineral Projects (“NI 43-101”) who supervised the preparation of the scientific and technical information of Sil
Slide 21: Contact Information
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 disclosur
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