Silvercorp Metals Inc. · TSX:SVM

Silvercorp Metals — Investor Presentation (June 2012)

27 slides from Silvercorp Metals's investor presentation, June 2012

  1. Slide 1: The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow

    The Premier Primary Silver Producer in China Today… A Global Producer Tomorrow. Corporate Presentation June 2012

  2. Slide 2: Cautionary Statements

    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 Securities Litigat

  3. Slide 3: Capital Structure & Financial Highlights

    Capital Structure & Financial Highlights Capital Structure Financial Highlights2 NYSE: SVM; TSX: SVM Fiscal Year Fiscal Year 2012 2011 52-Week Hi/Low: US$12.12/$4.89 Revenue US$238.0 M US$167.3 M Shares Outstanding1: 170.7 Million Net Income US$73.8 M US$67.7 M 3-mo Avg. Daily Vol.: ~1.8 Million (NY

  4. Slide 4: Silvercorp’s Exciting Pipeline of Projects

    Silvercorp’s Exciting Pipeline of Projects Ying Mining Camp, Henan Province FY2012:~5.6Moz Ag/FY2013:~5.9 Moz Ag from four mines Expansion is Underway! Silvercorp Beijing Office China X Mine Projects, Henan Province Silvertip Project, FY2013: Development ores only British Columbia BYP Project, Canad

  5. Slide 5: Industry Leading Profitability

    Industry Leading Profitability Peer Comparison of Cash Costs  Lowest cost producer of silver among per oz silver adjusted for by-product credits* industry peers: cash cost was -$4.22 Pan First Endeavour Hecla Silvercorp per ounce of silver in Q4/FY2012 American Majestic $11.50 $10.49  Highest gros

  6. Slide 6: The China Advantage

    The China Advantage Low Capital & Low-cost mining equipment and Yongning Smelter (100,000 t/y Lead) Operating Costs experienced labour. Rapid Construction All supplies sourced locally and hard Times working labour force. Close to End Market Several smelters located 200 km or closer to Silvercorp’s p

  7. Slide 7: Management & Board

    Management & Board Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng Myles J. Gao Chairman & CEO, Director Earl Drake Robert Gayton Myles J. Gao, P.Geo. President & COO, Director David Kong Yikang Liu Maria Tang, CA, CPA Paul Simpson Chief Financial Officer Lorne Waldman, MBA, LL.B. Co

  8. Slide 8: Silvercorp’s Strategic Vision

    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 potential is fully

  9. Slide 9: Consecutive Years of Silver Production Growth

    Consecutive Years of Silver Production Growth Silver and Gold (at Ag Eq.) Production - Actual and Forecast * 10.2E 10.0 GC 9.7E 1.4 BYP 1.5 X-Mines** 0.7 8.0 TLP/HZG/HPG/LM 7.6E 0.7 0.2 0.6 0.2 Ying 6.1 0.7 Ounces of Silver 6.0 0.2 5.5 0.3 3.8 (Millions) 3.1 4.3 4.7 1.1 1.3 2.1 4.1 0.5 4.0 0.4 0.9 2

  10. Slide 10: Reserve & Resource Growth

    Reserve & Resource Growth 1 Only Gold was converted to Silver equivalent at a rate of 50:1. Reserves & Resources: FY2005 - FY2012 1,2 2 Measured & Indicated Resources Inclusive of Reserves 200 Proven & Probable Reserves 174.5 Ounces of Silver and Gold (at Ag.Eq.*) 180 160 Measured & Indicated Resour

  11. Slide 11: FY2013 - Capital Expenditures

    FY2013 - Capital Expenditures Mine Development Mill, Surface Exploration Total Facilities & Permitting Projects Cost Tunnel * Cost Cost Drilling Cost ($million) (metre) ($million) ($million) (metre) ($million) Ying 15.7 38,000 8.2 3.3 80,800 27.2 Ying Mining TLP, HPG & LM 17.1 72,790 - 2.3 63,400 19

  12. Slide 12: FY2013: Production Guidance

    FY2013: Production Guidance 7th Consecutive Year of Silver Production Growth: Head Grade Metal Production Ores Projects Processed Silver Gold Ag Eq Lead Zinc Silver Gold Lead Zinc (‘000 tonne) (‘000 (‘000 (‘000 (mil (mil (g/t) (g/t) (%) (%) oz) oz) oz)2 lbs) lbs) Ying 300 460 - 8.5 2.7 4,002 - 4,002

  13. Slide 13: Consolidation of the Ying Mining Camp: Next Step for Growth

    Consolidation of the Ying Mining Camp: Next Step for Growth 12 12

  14. Slide 14: Ying Mining Camp: Exploration to Grow Resources and Reserves

    Milling Capacity:3,200 tpd YING MINING CAMP: Exploration Mining Capacity:~2,000 tpd to Grow Resources and Reserves  Goal at the Ying Mining Camp is New 2,200 tpd Mill 1,000 tpd Mill to expand the mining capacity from current 2,000 tonnes per day to match the milling capacity of 3,200 tonnes per day

  15. Slide 15: The Newest Additions: X Mine Projects

    The Newest Additions: X Mine Projects X Mine Projects: XBG + XHP  Located within a 3 hour drive of the Ying Mining District  Self-finance exploration programs at both projects with cash-flow generated from continuing mining activities  FY2013 mine and mill development budget: $3.9MM 350 tpd Flota

  16. Slide 16: Further Consolidations: X Mine Projects

    Further Consolidations: X Mine Projects XHP Acquisition (77.5%)  XHP silver-gold-lead-zinc mine, 14km2 mining permit, 500 tpd flotation/CIL mill, plus 4.45km2 HGDG gold exploration permit and 51% interest in PLS gold exploration permit (3km2). 500 tpd Flotation/CIL Mill at XHP  44 historical drill

  17. Slide 17: GC Development Project: Progress towards production

    GC Development Project: Progress towards production Office &  Construction of 1,600 tpd mine Dormitory Core Shack and mill underway Mill Site Ying Mining District  1,600 tpd flotation mill China expected to be operational in Sept 2012 ($17 MM) X Mine Projects BYP Project  Initial production expec

  18. Slide 18: GC Development Project: Resource Growth Potential

    GC Development Project: Resource Growth Potential GC Cross Section on Line 24  While constructing the mine and mill at GC, exploration to expand resources continues to carry on.  FY2013 drilling plan: 26,400 m ($1.9MM) 17 17

  19. Slide 19: BYP Project: 3rd Provincial Base in China for Growth and Diversification

    BYP Project: 3rd Provincial Base in China for Growth and Diversification  Acquired 70% interest in January 2011  3.67 km2 mining permit, safety production permit and 500 tonne per day flotation mill  Production commenced Q1FY2012  Construction of 800t/d backfill facility to fill 500 tpd Mill at

  20. Slide 20: BYP Project: Exploration to Grow Resources and Reserves

    BYP Project: Exploration to Grow Resources and Reserves  NI 43-101 Resources Estimates: RESOURCE Resource Head Grades Contained Metal Resources CATEGORY (tonne) Au (g/t) Pb(%) Zn (%) Au (oz) Pb (t) Zn (t) Au Zone 2,141,750 3.27 - - 225,400 - - Indicated Au Zone 2,819,830 2.29 - - 208,000 - - Inferr

  21. Slide 21: Silvertip Project: Upcoming Silver Mine in British Columbia, Canada

    Silvertip Project: Upcoming Silver Mine in British Columbia, Canada  NI 43-101 Resource Estimates: RESOURCE Resource Head Grades Contained Metal Resources CATEGORY (tonne) Ag (g/t) Pb(%) Zn (%) Ag (oz) Pb (t) Zn (t) Indicated 4,168,557 261 4.87 8.5 35,013,681 203,050 354,327 Inferred 907,830 278 4.

  22. Slide 22: Price to NPV per share (0% Discount)

    Price to NPV per share (0% Discount) 150% Average Price/NPV: 76% 114% 115% 108% 100% 54% 55% 52% 50% 34% 0% Silver Standard Hecla Mining Silvercorp Pam American Hochschild Endeavour Silver Fresnillo Mining Source: Compiled by Silvercorp from 2012 BMO Silver Pages data, June 18, 2012 21 21

  23. Slide 23: Summary of Reserves

    Summary of Reserves1,2,3 Resource Head Grades Contained Metal Reserves Project Reserve Category (Tonnes) Ag (g/t) Pb (%) Zn (%) Ag (Moz) Pb (t) Zn (t) Ying Mining Proven 2,620,000 274 5.08 2.17 23.1 133,100 56,800 District Probable 7,170,000 242 3.67 1.12 55.8 263,300 80,300 Proven 464,000 199 1.12

  24. Slide 24: Summary of Silver Project Resources

    Summary of Silver Project Resources1,2,3 Contained Metal Resources RESOURCE Resource Head Grades Project (Inclusive of Reserves) CATEGORY (Tonnes) Ag (g/t) Pb(%) Zn (%) Ag (Moz) Pb (t) Zn (t) Measured 2,420,000 369 6.9 3.2 28.0 161,600 67,700 Ying Mining Indicated 6,790,000 311 4.6 1.5 67.9 311,600

  25. Slide 25: The Silvercorp Advantage

    The Silvercorp Advantage  Industry leading profitability with the lowest cash costs  Goal of becoming a 10 million ounce silver producer by 2015  Aggressive 206,000 metre drilling program planned for current year on China assets  Bring GC into production in Q2 F2013  $154.5 million in cash and

  26. Slide 26: Endnotes and Cautionary Statements

    Endnotes and Cautionary Statements Myles Gao, P.Geo, Silvercorp’s President & COO, is the “Qualified Person” within the meaning of National Instrument 43-101 – Standards Of Disclosure for Mineral Projects (“NI 43-101”) who supervised the preparation of the scientific and technical information of Sil

  27. Slide 27: Contact Information

    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 INVESTOR RELATIONS: investor@silvercorp.ca China Offices Silvercorp’s disclosur

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