Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Investor Presentation (November 2009)
28 slides from Endeavour Silver's investor presentation, November 2009
Slide 1: Expanding Silver Production, Reserves & Resources in Mexico
Expanding Silver Production, Reserves & Resources in Mexico November 2009 1
Slide 2: Cautionary Note: Forward Looking Statements
Cautionary Note: Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forwar
Slide 3: Silver vs. Gold
Silver vs. Gold Silver typically lags gold, then plays catch-up, resulting in highly leveraged investment opportunities. Silver: gold ratio - 59:1 3
Slide 4: Introduction: Who is Endeavour?
Introduction: Who is Endeavour? • Endeavour Silver Corp: One of North America’s fastest growing silver mining companies • Core Assets: Two high grade silver-gold mines in Mexico; Guanacevi Mine in Durango State and Guanajuato Mine in Guanajuato State • Goal: Become a top mid-tier (5-10 million oz pe
Slide 5: Highlights: Why Own Endeavour
Highlights: Why Own Endeavour Pure Silver Leverage The Mexico Advantage Quality Core Assets Experienced Management Team Proven Track Record Strong Organic Growth Additional Acquisition Growth Attractive Market Capitalization 5
Slide 6: Share Capital: Leverage To Growth
Share Capital: Leverage To Growth • Exchange Listings: EXK: NYSE-Amex EJD: DB-Frankfurt EDR: TSX EDR.WT: TSX • Shares Issued: 60.1 Million • Warrants/Options/Debt: 20.5 Million • Fully Diluted: 80.6 Million • Share Price: (October 21, 2009) US$3.01 • Market Cap: US$181Million • Daily Volume: 594,000
Slide 7: Company Profile: At A Glance
Company Profile: At A Glance • Working Capital: US$33 Million • Convertible Debt: US$12 Million • Silver Hedge: Nil • Silver Reserves: 7.8 Million Oz • Silver Resources: 39.0 Million Oz • Silver-Equiv. Res-Res: 62.1 Million Oz • 2008 Silver Production: 2.3 Million Oz • 2009 Silver Production: 2.7 Mi
Slide 8: Core Assets: Two Producing Silver Mines, Two Exploration Projects
Core Assets: Two Producing Silver Mines, Two Exploration Projects Business Model: • Acquire under- explored mines in historic silver districts that are built, permitted and about to close • Invest the capital and expertise needed to discover new ore- bodies and re-open the mines • Consolidate distri
Slide 9: Guanacevi: A Top Mexican Silver District
Guanacevi: A Top 5 Mexican Silver District District Highlights: • Located in the Sierra Madre Occidental gold-silver belt • Produced over 450 million oz silver historically • Multiple silver veins span 10 km x 5 km area • Classic epithermal ore-bodies in Lower Tertiary andesites • Accessed by paved
Slide 10: Guanacevi: Underground, Mechanized, Ramp Access Mine
Guanacevi: Underground, Mechanized, Ramp Access Mine 2008 Summary Reserves: P+P: 6.1 million oz Ag Indicated: 16.0 million oz Ag Inferred: 12.7 million oz Ag Production: 1.9 million oz Ag Throughput: 600 tonnes per day Recoveries: 79% Ag 88% Au Development: 4,000m Porvenir is the largest mine operat
Slide 11: Guanacevi: Upgrading the Plant to 1200 TPD Capacity
Guanacevi: Upgrading the Plant to 1200 TPD Capacity Capital Projects: Expand milling circuit Expand leach circuit Re-habilitate flotation circuit New Merrill Crowe circuit New silver refinery New lab, warehouse, security • Expand tailings pond (in progress ) Currently operating at 600 tp
Slide 12: Guanacevi: Reserves/Resources Longitudinal Section
Guanacevi: Reserves/Resources Longitudinal Section Endeavour Discovered Four New Silver Deposits In Three Years December 31, 2008 NI 43-101 Reserves & Resources: Red: P+P Reserves: 0.53 million tonnes @ 353 gpt Ag, 0.49 gpt Au= 6.1 million oz Silver Blue: Ind. Resources: 1.74 million tonnes @ 285 gp
Slide 13: Guanacevi: Recent Discovery At Porvenir Cuatro
Guanacevi: Recent Discovery At Porvenir Cuatro Core True Hole Vein From To Lengt Silver Gold Width h (m) (m) (m) (m) (gpt) (gpt) Santa Cruz 252.6 255. 1.80 297 1.12 Vein 0 15 2.55 PC49-1 254.0 254. Including 0.21 1,070 5.29 0 30 0.30 Santa Cruz 225.7 228. PC50-1 2.42 13 0.06 Vein 5 70 2.95 Santa Cru
Slide 14: Guanajuato: The 2nd Largest Silver District In Mexico
Guanajuato: The 2nd Largest Silver District In Mexico District Highlights: • Located in the Sierra Madre silver belt • Produced over 1.2 billion oz silver historically • Three main silver vein systems span 20 km x10 km area • Classic epithermal ore-bodies in Lower Tertiary andesites • Accessed by al
Slide 15: Guanajuato: Underground, Mechanized and Track, Shaft Access Mines
Guanajuato: Underground, Mechanized and Track, Shaft Access Mines 2008 Summary Resources: Probable: 1.7 Million Oz Ag Indicated: 1.9 Million Oz Ag Inferred: 5.8 Million Oz Ag Production : 0.4 Million Oz Ag Throughput: 450 tpd Recoveries: 88% Ag 89% Au Rehabilitation: 4 Production Shafts The Bolanito
Slide 16: Guanajuato: Only Ten Years Old, 500 TPD Plant Capacity
Guanajuato: Only Ten Years Old, 500 TPD Plant Capacity 2008 Capital Projects: Rehabilitate conveyors Rehabilitate cone crusher Re-configure flotation circuit New concentrate load-out Expand tailings pond New assay lab Currently operating at 450 tpd – Targeting 600 tpd New security capa
Slide 17: Guanajuato: Reserves/Resources Longitudinal Sections
Guanajuato: Reserves/Resources Longitudinal Sections Vetas La Luz, Mina Bolanitos Lucero Bolanitos Santa Maria Drill targets Veta Madre, Mina Cebada 3785 Drill targets Drill targets 17
Slide 18: Guanajuato: Several Recent Discoveries in Cebada and Bolanitos Areas
Guanajuato: Several Recent Discoveries in Cebada and Bolanitos Areas 2008 Drill Program: 22,000 m Recent Drill Results Hole Length Silver Gold (#) (m) (gpt) (gpt) MV-1 1.8 312 2.03 SJS-1 9.5 374 3.14 incl. 1.9 1,147 1.33 incl. 0.6 1,160 3.97 incl. 0.6 917 15.6 CE378-1 1.80 194 3.59 CE378-2 1.70 316
Slide 19: Silver Production: Seven-Fold Growth Over Four Years
Silver Production: Seven-Fold Growth Over Four Years Annual Silver Production (millions oz) Capacity 4.5 4.5 GJTO 4 3.5 2.7 est. 3 2.34 2.5 2.14 GCVI 2 1.35 1.5 0.95 1 0.35 0.5 0 2007 2004 2005 2006 2008 2009 19
Slide 20: Reserves/Resources: Ten Year Mine-Life at Plant Capacity
Reserves/Resources: Ten Year Mine-Life at Plant Capacity Total Silver Equivalent Reserves and Resources (millions oz) Target 100 100 90 80 62 70 53 60 46 50 40 30 16 20 10 0 2004 2005 2006 2007 2008 Note: Silver equivalents based on 70:1 silver: gold ratio, base metals are not included 20
Slide 21: Trends: Rising Production, Declining Costs
Trends: Rising Production, Declining Costs 5,000,000 $10.00 Cash Costs (US$ / oz - Net of By-product 4,500,000 4,500,000 $9.38 $8.99 $9.00 4,000,000 3,600,000 Production (oz) 3,500,000 $8.00 2,700,000 3,000,000 $7.50 $7.10 2,350,000 $7.00 2,500,000 $7.00 2,140,000 $6.75 $6.55 2,000,000 $5.90 1,350,0
Slide 22: Cash Costs: Reducing Costs – Four Consecutive Quarters
Cash Costs: Reducing Costs – Four Consecutive Quarters 2008/2009 Cash Costs Cash $15 $15 USA GPR EDR/EXK Costs $10 $10 FR $5 PAA $5 Per CDE $0 $0 HL Ounce Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 22
Slide 23: Social Responsibility
Social Responsibility Endeavour Silver strives to improve Safety: Safety is a priority. We the quality of life in the Mexican operate continuous training communities in which it works. programs, develop active mine rescue teams, and have hired new safety staff plus built a new safety building. Envir
Slide 24: 2008 Highlights: Accomplishments
2008 Highlights: Accomplishments Mineral Sales: Up 22% to $US39.3 million (Q2 2009 = $8.2 million) Mine Oper. Cashflow: Up 44% to US$11.5 million (Q2 2009 = $2.6 million) Cash Costs: Down 4% to US$9.03 per oz (Q2 2009 = $6.95 per oz) Silver Production Up 10% to 2.3 million oz (Q2 2009 = 584,
Slide 25: Management Team: Wealth of Experience
Management Team: Wealth of Experience • Bradford Cooke, M.Sc, P.Geo. - Chairman and CEO - Professional Geologist with 30+ years experience in exploration management and financing including Shell, Chevron, Noranda and Canarc. • Godfrey Walton, M.Sc, P.Geo. - President and COO - Professional Geologist
Slide 26: Value Proposition
Value Proposition • Our goal is to become one of the top mid-tier producers of silver (5-10 million oz per year) • We’ve already grown silver production 7 fold in our first 4 years (2.3 million oz in 2008) • Organic potential to double silver production over next 2 years by expanding the mines to fi
Slide 27: EDR Price Chart – 2004 - 2009
EDR Price Chart – 2004 - 2009 27
Slide 28: Contact Us
Contact Us Endeavour Silver Corp. #301-700 West Pender Street Vancouver, BC, V6C 1G8 Canada hugh@edrsilver.com www.edrsilver.com Phone: 1-604-685-9775 Fax: 1-604-685-9744 Canada and US Toll-Free: 1-877-685-9775 28
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