Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (August 2009)
20 slides from Silvercorp Metals's investor presentation, August 2009
Slide 1: Corporate Presentation August 2009
NYSE Amex: SVM Corporate Presentation August 2009
Slide 2: Cautionary Statements
NYSE Amex: SVM Cautionary Statements Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Certain of the statements made herein may contain forward-looking statements or information within the meaning of Canadian securities laws and the applicable securitie
Slide 3: Silvercorp's Strategic Vision
NYSE Amex: SVM Silvercorp’s Strategic Vision Silvercorp has built a record of success by formulating and executing a distinct long-term strategy characterized by three key steps: 1. Acquire a project and conduct selective exploration to further delineate its potential 2. Develop mine operations and
Slide 4: Management & Board
NYSE Amex: SVM Management & Board Management Rui Feng, Ph.D., Geology Chairman & CEO, Director Myles J. Gao, P.Geo. President & COO, Director Maria Tang, CA, CPA Interim Chief Financial Officer Dr. Rui Feng & Yikang Liu Lorne Waldman, MBA, LL.B. Board of Directors Corporate Secretary Rui Feng Myles
Slide 5: Company Introduction
NYSE Amex: SVM Company Introduction Ying Mining Camp to produce ~ 4.65-5.05M oz silver in FY2010, mainly through flagship Ying Mine (~80% of production). Partial production resumed at the TLP/LM/HPG mines and infrastructure development is ongoing. Mining permit application in progress for the
Slide 6: Corporate Overview
NYSE Amex: SVM Corporate Overview Capital Structure Financial Highlights for Q1/FY2010 NYSE Amex: SVM; TSX: SVM Revenue: $22.6 Million (FY2009: $83.5M) 52-Week Hi/Low: C$4.50/C$1.19 Net Income: $7.5 Million (FY2009: $27.3M*) Shares Outstanding: 161.6 Million Cash Flow: $10.4 Million (FY2009: $47.0M)
Slide 7: Growth in Resources
NYSE Amex: SVM Growth in Resources History 250 Resource Growth: FY2004 - FY2010 April 2005: Silver Resource 225 Measured 217.0 Defined at Ying 16.5 200 Indicated 194.7 May 2006: Drilling doubles Ying Inferred 17.0 Ounces of Silver (Millions) resources 175 163.4 12.9 84.4 September 2007: Resource 150
Slide 8: Robust Operating Cash Flows
NYSE Amex: SVM Robust Operating Cash Flows Silvercorp has generated positive cash flows every quarter since production commenced in April 2006. Cash Flows From Operations: Q1/2007 - Q1/2010 Cash Flow (US$Millions) 30.00 25.00 $23.1 $20.5 $18.9 20.00 $17.2 $15.2 15.00 $11.8 $11.7 $9.9 $10.5 $10.4 $
Slide 9: The China Environment
NYSE Amex: SVM The China Environment Low Capital & Low-cost mining equipment and Operating Costs experienced labour. Rapid Construction All supplies sourced locally and Times hard working labour force. Close to End Market Smelters located within 160 kilometres of Silvercorp’s mills. Third Largest Si
Slide 10: Industry Leading Profitability
NYSE Amex: SVM Industry Leading Profitability Cash Cost per Oz Silver Adjusted for By-Product Credits - Lowest cost producer of silver among Latest Quarter* U S$ industry peers: cash cost was -$5.09 14 $9.61 9 $5.99 $3.99 per ounce of silver in Q1/2010 $3.93 4 (FY2009:-$2.77) -1 -6 -$5.09 Highes
Slide 11: Growth in Production
NYSE Amex: SVM Growth in Production Ounces of Silver Produced 5.00 4.20M Ounces of Silver (Millions) 3.96M 4.00 3.00 1.94M 2.00 1.00 0.00 2006A 2007A 2008A 2009A 10
Slide 12: Silver Production Forecast
NYSE Amex: SVM Silver Production Forecast Silver Production - Actual and Forecast* 8.00 7.50E GC 7.00 HPG+TLP+LM 2.00 6.00 5.50E Ounces of Silver Ying 4.65E 5.00E 5.00 4.20 1.85 1.85 Millions 3.96 1.20 1.35 4.00 0.55 0.50 3.00 1.94 2.00 3.65 3.65 3.65 3.65 3.65 3.42 1.00 1.94 0.00 2007A 2008A 2009A
Slide 13: Significant Achievements
NYSE Amex: SVM Significant Achievements 9 Consolidation at the Ying Mining Camp: acquired three new mines for short-term production growth. 9 13 quarters of positive cash flows from operations. 9 500% growth in silver resources from 43.3M oz in 2005 to 217M oz in 2009. 9 Completion of new 2,000 tpd
Slide 14: Mines & Mills in Ying Mining District
NYSE Amex: SVM Mines & Mills in Ying Mining District Location of Silvercorp’s Mills and Site Office Silvercorp’s Existing 1,000 tpd Mill HPG Mine YING MINE TLP Mine Silvercorp’s New 2,000 tpd Mill LM Mine Silvercorp’s Mill Office 13
Slide 15: Production Forecast for FY2010
NYSE Amex: SVM Production Forecast for FY2010 FY2010 Ying Mine Production Forecast Projected Metal Ores Mined Commodity Grade Recoveries Sales Silver 480 g/t 91% 3.65 Million Oz 260,000 Lead 9.0% 95% 49.0 Million lbs Tonnes Zinc 3.0% 72% 12.0 Million lbs Total Silver Production Forecast for FY2010 E
Slide 16: GC Development Project, Guangdong
NYSE Amex: SVM GC Development Project, Guangdong In 2008, Silvercorp completed a 10,082- meter diamond drill program, discovering 15 mineralized veins (bringing total known veins to 28). NI43-101 Technical Report released June 26, 2009, increases Measured & Indicated Resources by 250% to 25.8M o
Slide 17: GC Project – High Growth Potential
NYSE Amex: SVM GC Project – High Growth Potential SVM Drills 16
Slide 18: Capital Expenditure Forecast FY2010
NYSE Amex: SVM Capital Expenditure Forecast FY2010 Item Description Cost Ying Mine Exploration, Development and Mill $11 Million Development and Remaining Acquisition TLP, LM & HPG Mines $5 Million Cost GC Project Drilling, permitting & Land Usage Rights $4 Million Total: $20 Million • Fully finance
Slide 19: Summary of Projects & Resources
NYSE Amex: SVM Summary of Projects & Resources District Mine/Ownership Status • 77.5% JV with Henan Geological Bureau Full Ying • Avg. head grades of 407 g/t Ag, 7.3% Pb & 2.9% Zn in FY2009 Production Ying Mining • 70% JV with Private Chinese Company District, Henan LM • Avg. head grades of 266.7 g/
Slide 20: Contact Information
NYSE Amex: 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 China Offices Suite 601 – Building 1, China View Mansion, #A2 Ea
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