Slide 1: Corporate Presentation May 2010
NYSE: SVM Corporate Presentation May 2010
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 Highlights for FY2010 NYSE: SVM; TSX: SVM Revenue: US$107.2 Million 52-Week Hi/Low: US$9.05/$2.66 Net Income: US$38.5 Million Shares Outstanding: 163.6 Million Cash Flow: US$66.0 Million 3-mo Avg. Daily Vol.: 2.2 Million
Slide 4: Industry Leading Profitability
NYSE: SVM Industry Leading Profitability Lowest cost producer of silver among Cash Cost per Oz Silver Adjusted for By-Product Credits - Latest Quarter* industry peers: cash cost was -$5.64 per ounce of silver in Q4/2010 $9.00 $4.35 $4.04 (FY2010: -$6.22) $4.00 -$3.03 -$5.64 U S$ -$1.00 Highest g
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 Interim Chief Financial Officer Lorne Waldman, MBA, LL.B. Board of Directors Corporate Secretary Rui Feng Myles J. Gao Sh
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 Ying Mining District, Henan Province, China Silvertip Project, To produce ~5.3Moz silver British Columbia, Canada from four mines in FY2011 GC Development Project, Guangdong Province, China Head Office, Vancouver, . Canada . . 6
Slide 8: Silver Production History & Forecast
NYSE: SVM Silver Production History & Forecast 9.00 8.5E Silvertip Silver Production - Actual and Forecast* 8.00 GC 1.00 7.00 HPG+TLP+LM 6.6E Ounces of Silver 2.00 6.00 Ying 5.5E 1.00 5.3E 4.62 Millions 5.00 0.93 1.43 1.40 1.45 3.96 4.20 0.46 4.00 0.55 0.50 3.00 2.00 1.94 4.16 4.35 4.10 4.17 4.04 3.
Slide 9: Reserve & Resource Growth
NYSE: SVM Reserve & Resource Growth History 275 Reserve & Resources: FY2004 - FY2010 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) 200 September 2007: Resource expansio
Slide 10: Operations: Ying Mining District, Henan Province
NYSE: SVM Operations: Ying Mining District, Henan Province Milling Capacity: 2,500 tpd Mining Capacity: 1,500 tpd 1,000 tpd Mill YING MINE HPG Mine New 1,500 tpd Mill TLP Mine LM Mine Mill Office 9
Slide 11: Ying Mining District – Summary of Mines
NYSE: SVM Ying Mining District – Summary of Mines • 90% of total production & profits in FY2010 • Produced 4.16Moz Ag, 54.5Mlb Pb & 14.1Mlb Zn in FY2010 Ying • Head grades of 15 oz/t Ag, 8.5% Pb & 3.1% Zn in FY2010 Mine • Cash cost of -$6.66 in FY2010 • 77.5% JV with Henan Geological Bureau • Acquir
Slide 12: GC Development Project – 2nd Base for Growth
NYSE: SVM GC Development Project – 2nd Base for Growth Acquired June 2008; 95% JV with Private Chinese Company M&I Resource of 28.5Moz Silver, 95K tonnes Lead and 214K tonnes Zinc Inferred Resource of 30.8Moz Silver, 115K tonnes Lead and 213K tonnes Zinc Under mining permit application proce
Slide 13: GC Development Project – High Growth Potential
NYSE: SVM GC Development Project – High Growth Potential Drill Program 12
Slide 14: Silvertip Project – Upcoming High-Grade Silver Mine in BC
NYSE: SVM Silvertip Project – Upcoming High-Grade Silver Mine in BC 100% owned project; Acquired February 2010 High-grade silver-lead-zinc Carbonate Replacement Deposit (CRD) surrounded by ~800 km2 mineral rights in mining friendly BC, Canada Only 1 km2 has been explored Æ great potential to g
Slide 15: Silvertip Project – Current Development Status
NYSE: SVM Silvertip Project – Current Development Status Over $40 million already spent on exploration: work included 2.4 km of tunnel development and 71,472 m of surface/underground drilling in 491 holes from 1955 - 2000 Project was put on hold since 2000 High-grade starter pockets (>1,000 g/
Slide 16: Extremely High-Grade Intercepts
NYSE: SVM Extremely High-Grade Intercepts 15
Slide 17: Silvertip – Production and Exploration Plan
NYSE: SVM Silvertip – Production and Exploration Plan “We will apply the same successful strategy we used at our Ying mine in China to the Silvertip Project…” Early Production: apply for Small Mine Permit to mine high-grade starter pockets accessed from existing tunnels (see slide 10). At curren
Slide 18: Strong Resource Growth Potential
Strong Resource Growth Potential NYSE: SVM 17
Slide 19: Capital Expenditure Budget
NYSE: SVM Capital Expenditure Budget Project/Mines Description FY2011 Exploration, Development and Ying Mine $7 Million Mill Development and Remaining TLP, LM & HPG Mines $6 Million Acquisition Cost Permitting & Mine/Mill Pending Receipt of Mining GC Project Construction Permit Permitting, Explorati
Slide 20: 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 21: 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: ir@silvercorp.ca Website: www.silvercorpmetals.com China Offices Silvercorp’s disclosure Suite 601 – Building 1, China Vie