Slide 1: The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow
NYSE: SVM The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow. Silvercorp Metals Inc. FY2011 Fourth Quarter & Year End Analyst Conference Call Thursday May 12, 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: Fiscal 2011 Year End – Highlights
NYSE: SVM Fiscal 2011 Year End – HIGHLIGHTS Record: → Sales of $167.3 million, up 56% → Net earnings of $68.8 million, up 79% → Cash flow from operations of $104.2 million, up 60% → Silver production of 5.3 million ounces, up 15% Achieved cash costs of -$6.80/oz silver Paid cash dividends tota
Slide 4: Fourth Quarter – Financials
NYSE: SVM Fiscal 2011 Fourth Quarter – FINANCIALS $45 $42.4 $0.08 $40 $35 50% $32.2 $0.07 $30 $28.2 $0.07 $US/share $US Millions $25 67% 17% $20 $19.3 $0.06 $0.06 $15 29% $12.6 $9.8 $10 $5 $0.05 Q4/10 Q4/11 Q4/10 Q4/11 Q4/10 Q4/11 Q4/10 Q4/11 Sales Gross Profit Net Income EPS 3
Slide 5: Fourth Quarter – Cash Flows
NYSE: SVM Fiscal 2011 Fourth Quarter – CASH FLOWS $35 $34.3 $0.20 $0.20 $30 43% $US Millions $US/share 44% $0.15 $0.14 $25 $23.8 $20 $0.10 Q4/10 Q4/11 Q4/10 Q4/11 Cash Flow from Operations CFPS Ended quarter with $206.3 million in Cash and Short-term Investments and no debt 4
Slide 6: Fourth Quarter – Operations
NYSE: SVM Fiscal 2011 Fourth Quarter – OPERATIONS Silver Production Silver & Gold (at Ag. Eq.) Production 1.15 Ounces (Millions) 1.10 1.10 1.10 1.05 1.00 0.95 Q4/2010 Q4/2011 Q4/2010 Q4/2011 Lead Production Zinc Production 14.9 15 4 Pounds (Millions) Pounds (Millions) 14.4 22% 3.3 14 3 2.7 13 12 2 Q
Slide 7: Fourth Quarter – Operations: Cash Costs and Peer Comparison
NYSE: SVM Fiscal 2011 Fourth Quarter – OPERATIONS Silver Cash Cost of Production Peer Comparison of Cash Costs* per oz silver adjusted for by-product credits per oz silver adjusted for by-product credits $8.16 Q4/2010 Q3/2011 Q4/2011 $8.25 $6.61 $4.02 -6.00 ($5.64) $4.25 $/oz $0.25 -7.00 First Pan S
Slide 8: Fourth Quarter – Realized Selling Prices
NYSE: SVM Fiscal 2011 Fourth Quarter – REALIZED SELLING PRICES 25 1.2 1.1 Silver Prices $/oz Lead Prices $/lb 20 1.0 0.9 15 0.8 0.7 10 0.6 5 0.5 Q4/2010 Q1/2011 Q2/2011 Q3/2011 Q4/2011 Realized Silver Prices $/oz Realized Lead Prices $/lb 7
Slide 9: Fourth Quarter Net Earnings up 29%
NYSE: SVM Fiscal 2011 Fourth Quarter Net Earnings up 29% Q4 2011 vs. Q4 2010 Variance Analysis (in millions US$) Q42010 Gross Income Taxes Other G&A FX Loss Misc. Q42011 Net Profit Taxes Expense Net Income Income Due to Due to Rate Higher Change Income $13m $3.1m $1.9m $1.1m $1.7m $1.4m $1.0m $12.6m
Slide 10: Guidance look-back
NYSE: SVM Fiscal 2011 – Guidance look-back Silver Production Lead & Zinc Production 5.5 5.46 72.0 69.0 Ounces (Millions) 5.5 Pounds (Millions) 5.4 5.4 5.3 5.3 5.3 17.0 16.3 5.3 5.2 Guidance Actual Actual Silver Guidance Actual Guidance Actual & Gold (at Lead Zinc Ag. Eq. 50:1) Sales $170 $167 $160 2
Slide 11: Fiscal 2012 – Production Guidance
NYSE: SVM Fiscal 2012 – Production Guidance Ores Head Grade Metal Production Processed Projects (‘000 Silver Gold Ag Eq Lead Zinc Silver Gold Lead Zinc tonne) (‘000 (‘000 (‘000 (mil (mil (g/t) (g/t) (%) (%) oz) oz) oz)* lbs) lbs) Ying 325 460 8.3 3.0 4,300 4 4,500 56 15 Ying TLP 165 145 2.8 0.6 670
Slide 12: Fiscal 2012 – Capital Expenditures Budget
NYSE: SVM Fiscal 2012 – Capital Expenditures Budget Mine Development Mill Construction & Exploration & Permitting Total Surface Facilities Projects Cost Tunnel * Cost Cost Drilling Cost ($million) (metre) ($million) ($million) (metre) ($million) Ying $6.8 22,830 $3.3 $4.5 85,000 $14.6 Ying TLP $2.7
Slide 13: Ying Mining District – Recent development and plans
NYSE: SVM Ying Mining District – Recent development and plans Achieved (FY2011): Completed 1,829m of shafts, declines and raises, 71,000 m of tunnels, and 125,000m of surface & underground drilling ($19.6MM) Ying Mining District, Sustained Ying’s production level & continued growth trend for TLP,
Slide 14: GC Project – Progress towards production
NYSE: SVM GC Project – Progress towards production Achieved (Q4FY2011): Focused on acquiring land usage rights, construction of the access road and power lines, site preparation, negotiation and finalizing mine and mill construction contracts, and completion of a review of safety production measur
Slide 15: BYP Project – Progress Update
NYSE: SVM BYP Project – Progress Update Achieved: Closed acquisition of 70% interest by paying US$24 million cash and contributing US$9 million to the JV company Assembled team of over 25 technical staff Installed a cone crusher and extra floatation cells to improve the operation of the 400 t/
Slide 16: Silvertip Project – Upcoming High-Grade Silver Mine in BC
NYSE: SVM Silvertip Project – Upcoming High-Grade Silver Mine in BC Silvertip Project, British Columbia, Canada Achieved: Completed independent Preliminary Technical Report Completed certain studies and reports for BC Small Mine Permit Application Plan: Complete environmental assessment and feas
Slide 17: Concluding Remarks
NYSE: SVM Concluding Remarks Record annual silver production, sales, net income and cash flow from operations Established additional platforms for growth in China Aggressive drilling planned in FY2012 for China properties, while also advancing BYP, GC and Silvertip properties towards productio
Slide 18: Further Contact Information
NYSE: SVM Further Contact Information: Thank you for listening to Silvercorp’s FY2011 Fourth Quarter Analyst Conference Call For further Information, please contact: Silvercorp’s Investor Relations Department Vancouver: 604-669-9397 or Toll Free (NA) 1-888-224-1881 Email: investor@silvercorp.ca Webs