Slide 1: Right Company, Right Time
RIGHT COMPANY, RIGHT TIME May 2015 Corporate Presentation SSRI:NDAQ | SSO: TSX 1
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively
Slide 3: Why Silver Standard?
Why Silver Standard? ASSETS CAPITAL MANAGEMENT Free cash flow $176M in cash Experienced team Two large mines ~$100M in marketable In-country expertise securities Focused portfolio Deliver to plan Strong balance sheet Strong operating performance & free cash flow SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX
Slide 4: Strong Start to 2015
Strong Start to 2015 Delivered strong production at lower costs in Q1 Marigold: 56Koz gold at $612/oz cash cost Pirquitas: Record 2.7Moz silver at $11.25/oz cash cost $30.8M of cash generated by operating activities $9.1M net income Cost improvements from Operational Excellence programs
Slide 5: Strong Production and Cost Profile
Strong Production and Cost Profile 8.0 $16 $14.34 $14.29 6.9 6.8 $12.36 6.8Moz AgEq Cash Costs per payable oz sold 6.0 $10.78 $12 5.1 AgEq Production (Moz) Silver Eq. Production in 1Q15 $9.57 4.0 $8 3.5 1.9 2.0 $4 $9.57/oz 0.0 $0 Silver Eq. Cash Costs in 1Q15 Q1 Q2 Q3 Q4 Q1 2014 2014 2014 2014 2015
Slide 6: Strong Liquidity Position
Strong Liquidity Position Cash & Marketable Securities as Percentage of Market Capitalization 99% 60% 53% 49% 40% 37% 26% 25% 24% 19% 20% 17% 16% 15% 12% 10% 9% 8% 0% IAG SSRI ASR AGI AR GSS CDE PAAS MND HL FSM EXK AUQ PPP AG $267M CASH & MARKETABLE SECURITIES $265M CONVERTIBLE NOTES Note: Cash and
Slide 7: Undervalued Relative to Peers
Undervalued Relative to Peers 15.00x 12.00x HL AG PAAS CDE 2015E EV/EBITDA 9.00x FSM PPP 6.00x GSS 3.00x AR SSRI ASR 0.00x 0.50x 1.00x 1.50x 2.00x 2.50x 2015E P/NAV (5% at Spot Price) Source: Scotiabank GBM estimates; FactSet. As at May 14, 2015. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 7
Slide 8: Compelling Value Opportunity
Compelling Value Opportunity 2015E Price to Cash Flow 50.2x 23.2x 21.1x 20.0x 14.4x 10.5x 10.4x 10.0x 7.5x 2015E Median 6.6x 6.5x 6.0x 5.9x 5.5x 3.9x 0.0X CDE PAAS AGI AUQ HL FSM AG MND PPP EXK ASR SSRI AR SSRI is undervalued compared to peer group Source: BMO Capital Markets. As at May 11, 2015. SS
Slide 9: Properties, Projects and Production
Properties, Projects and Production 10 1 8 7 7. Candelaria 11 3 9 1. Marigold 8. Maverick Springs 5. Diablillos 3. Pitarrilla 9. San Marcial 2. Pirquitas 6. Berenguela 4 4. San Luis 6 10. Sunrise Lake 2 5 11. Parral + $570M SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 9
Slide 10: Marigold
MARIGOLD ESTABLISHED GOLD MINE SSRI:NDAQ | SSO: TSX 10
Slide 11: Improved Operating and Political Profile
Improved Operating and Political Profile Open pit, run-of-mine heap leach gold operation Continuous production since 1988 Strong safety and environmental practices Twin Creeks Goldstrike MARIGOLD Maverick Springs Phoenix Excellent infrastructure Cortez Carlin Trend Probable Mineral Reserve
Slide 12: Invested $160M in 2012 and 2013
Invested $160M in 2012 and 2013 Shovel Capacity Hauling Capacity Haul Truck Maintenance (Cubic Yards) (Tonnes) (Hours) 150 5,000 20 Maintain Wash 18 Trucks 100 3 Shovels 12 Trucks 2,500 2 Shovels 10 50 0 0 0 2012 2014 2012 2014 2012 2014 Increases Efficiency Lowers Costs SSRI:NASDAQ SSRI:NDAQ ||SSO:
Slide 13: Operational Excellence: Loading Capacity
Operational Excellence: Loading Capacity Rope Shovel Availability +41% Rope Shovel Utilization 100% 90% +18% 90% 80% 80% 70% 70% 60% 60% 50% 50% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Tonnes Moved per Day Rope Shovel Cost per Tonne 210 +16% $0.20 Loaded 190 $0.16 (37)% 170 $
Slide 14: Operational Excellence: Long-term Cost Savings
Operational Excellence: Long-term Cost Savings $1,103 $1.92 $997 Cash costs per payable $1.74 Cost per tonne mined $1.70 $725 - $800 ounce of gold sold $1.61 $1.62 $1.57 $665 $612 2013 Q1 Q2 Q3 Q4 Q1 2015 Q2 Q3 Q4 Q1 2015 2015 Guidance 2014 2014 Savings of 1₵ cost per tonne mined = $700,000 annually
Slide 15: Improving Core Business Year-on-Year
Improving Core Business Year-on-Year Gold Production Cash Cost per Ounce Capital ($M) (Koz) of Gold Sold ($/oz) 160 - 175 $838 $900 $725 - $800 $40 150 130 $20 $11 $600 100 $20 $300 $25 $25 50 $0 0 $0 2014 2015 2014 2015 2014 2015 Guidance Guidance Guidance Capital Capitalized Stripping Increasing m
Slide 16: Marigold Going Forward
Marigold Going Forward Operational excellence to drive costs down Add oxide Mineral Reserves through drilling Explore depth for sulphide mineralization Focused on lowering costs and increasing reserves SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 16
Slide 17: Reserve Conversion and Resource Discovery
Reserve Conversion and Resource Discovery W Reserve Pit E Added Mineral Reserves in the Resource Shell Mackay pit area in 2014 … (2 ) expect trend to continue 8 South: Goal to convert mineralization to Reserves 4Q15 500 feet Cross-section A – A’ Highlighted drill results: Reserve Pits Mined ou
Slide 18: Pirquitas
PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NDAQ | SSO: TSX 18
Slide 19: Proven Capability and Delivery
Proven Capability and Delivery 100% owned and operated silver and zinc mine 2010: Invested capital 2011/12: Delivered predictable production 2013: Improved cost structure, completed push back Pirquitas Mine Jujuy, Argentina 2014: Repositioned on cost curve, record annual production Diablil
Slide 20: Exploration Emphasis at Pirquitas
Exploration Emphasis at Pirquitas 2015 Exploration Goals Upgrade San Miguel UG Mineral Resources San Miguel Open Pit Drilling surface targets Permit additional properties Highlighted drill results 6.9 meters at 1,038 g/t silver Acquired exploration 18 meters at 517 g/t silver access in 2
Slide 21: Actively Managing Costs Down for Long Term
Actively Managing Costs Down for Long Term $19.70 Cash costs per payable $16.88 ounce of silver sold $12.87 $11.50 - $12.50 $12.08 $11.25 2011 2012 2013 2014 Q1 2015 2015 Guidance Note: Cash costs are a non-GAAP financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures” in this pres
Slide 22: Strong Cash Flow Generation in 2015
Strong Cash Flow Generation in 2015 Silver Production Cash Cost per Ounce Capital ($M) (Moz) of Silver Sold ($/oz) 9.0 - 10.0 $11.50 - $12.50 $12.08 8.7 $20 8.0 $10 $11 $10 4.0 $5 $10 $10 $0 0.0 $0 2014 2015 2014 2015 2014 2015 Guidance Guidance Guidance Capital Capitalized Stripping Increased produ
Slide 23: San Luis: Dual Option to Value
San Luis: Dual Option to Value Ancash Region, Peru Going forward N Pursuing community agreements Already secured Ecash EIA Community Feasibility study Ayelén Vein San Simon Vein Bonita Zone Cochabamba 3 km Community SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 23
Slide 24: Pitarrilla: Large Option
Pitarrilla: Large Option Parral Mining District Open pit project Chihuahua Conventional flotation and leaching Pitarrilla Project Durango 695 Moz silver Mineral Resources Mexico (Measured and Indicated) Redefining way forward Continued exploration of land position Water moratorium One of
Slide 25: Strong Technical and Commercial Experience
Strong Technical and Commercial Experience Management Team John Smith Gregory Martin Alan Pangbourne John DeCooman President, CEO SVP and Chief SVP, Operations VP, Business Development and Director Financial Officer and Strategy Nadine Block Kelly Stark-Anderson Jon Gilligan Ed Kirwan Bruce Huber VP
Slide 26: Why Silver Standard in 2015
Why Silver Standard in 2015 Management team Corporate level that delivers free cash flow Focus on operational Strong balance excellence sheet Cost discipline Strategy for growth SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 26
Slide 27: Authentic
(2) Authentic SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 27
Slide 28: Mineral Reserves
Mineral Reserves (as at December 31, 2014) Mineral Reserves Location Tonnes Silver Gold Zinc Silver Gold millions g/t g/t % million oz million oz Proven Mineral Reserves San Luis Peru 0.06 604.5 28.3 1.1 0.05 Total 1.1 0.05 Probable Mineral Reserves Pirquitas Argentina 5.37 220.10 0.47 38.0 Pirquita
Slide 29: Mineral Resources: Measured and Indicated
Mineral Resources: Measured and Indicated (as at December 31, 2014) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Measured Mineral Resources (Inclusive of Proven Mineral Reserves) Pitarrilla Mexico 20.30 95.40 62.3 San Luis Pe
Slide 30: Mineral Resources: Inferred
Mineral Resources: Inferred (as at December 31, 2014) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Inferred Mineral Resources Pirquitas UG Argentina 2.85 174.0 3.61 15.9 Marigold U.S. 18.20 0.44 0.26 Pitarrilla Mexico 22.10 6
Slide 31: Reserves & Resources: Notes to Tables
Reserves & Resources: Notes to Tables All estimates set forth in the Mineral Reserves and Mineral Resources tables have been prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). The estimates of Mineral Reserves and Mineral Resources fo
Slide 32: San Luis Project
San Luis Project San Luis Feasibility Study Results (June 2010) 3.5-year life: Underground mine Avg. annual 1.9M oz Ag production: 78,000 oz Au Cash cost: $313 / oz Au Resources (M+I): 9.0M oz Ag at 578.1 g/t 0.35M oz Au at 22.4 g/t Capital: $90 -$100M Mill throughput: 400 tpd NPV: $39
Slide 33: Marigold Site Overview
Marigold Site Overview Plant and Administrative Facilities N (2) Leach Pads Terry Pit Mackay Pit Target Pit Basalt – Antler Backfilled Pit 1 km SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 33
Slide 34: Notes
Notes SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 34
Slide 35: Notes
Notes SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 35
Slide 36: Corporate Presentation
CORPORATE PRESENTATION SSRI:NDAQ | SSO: TSX 36