Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Investor Presentation (March 2012)
33 slides from Endeavour Silver's investor presentation, March 2012
Slide 1: Delivering Our 8th Consecutive Year of Organic Growth
Delivering Our 8th Consecutive Year of Organic Growth Corporate Presentation March 2012 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: Why Silver?
Why Silver? • Silver is an Industrial Metal: Demand 2010 unlike gold, silver is consumed & the number of industrial uses is multiplying • Silver is a Precious Metal: like gold, silver is money & its role as a store of value and a hedge against monetary inflation is Denarius % Silver growing • Curren
Slide 4: Introduction
Introduction • One of North America’s fastest growing silver mining Endeavour Silver Corp: companies • Two high grade silver-gold operations in Mexico; Producing Assets: Guanacevi Mines in Durango, Guanajuato Mines in Guanajuato • Cash-flow and earnings growth amongst the best in Growing Margins: th
Slide 5: Investor Highlights
Investor Highlights Proven Track Compelling Additional Acquisition Record: Organic Growth: Growth: 842% production 60% expansion at Looking to find or buy growth in last 7 years Guanajuato in 2012 operation #3 Experienced Quality Assets: Management: Large districts, big 200+ years in mining veins, h
Slide 6: Share Capital
Share Capital • EXK: NYSE EDR: TSX EJD: Frankfurt • 87.7 Million • 5.4 Million (adds $22.1 Million) • 93.1 Million • CDN $10.29 • CDN$903 Million • 2.07 Million Shares (TSX & NYSE) • Fresnillo Plc 3.2% 6
Slide 7: Record Performance 2011
Record Performance 2011 Record Financial Performance (Sept. 30, 2011): • Sales Revenues: US$110.5 million, Up 90% • Mine Op. Cash Flow: US$75.3 million, Up 171% • Operating Cash Flow: US$50.2 million, Up 367% • Adjusted Net Earnings: US$33.9 million (US$0.40 per share) • Production Cash Cost: US$5.5
Slide 8: Core Assets
Core Assets 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 then mines • Consolidate district land-holdings and expand silver resources, reserves
Slide 9: Guanacevi Mines
ENDEAVOUR 9 FOCUSED ON GROWTH SILVER
Slide 10: 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 • Excellent infrastr
Slide 11: Guanacevi: Four Underground Mines
Guanacevi: Four Underground Mines 2010 Reserves/Resources: P+P: 12.0 million oz Ag M+I: 17.2 million oz Ag Inf: 14.5 million oz Ag 2011 Production Production: 2,682,035 oz Ag 6,866 oz Au Throughput: 995 tpd Grades: 311 gpt Ag 0.69 gpt Au Recoveries: 74% Ag 85% Au Mines: Porvenir Norte Porvenir Dos P
Slide 12: Guanacevi: Upgrading the Mines & Plant
Guanacevi: Upgrading the Mines & Plant 2012 Capital Projects: Total: $21.3 million Plant: Upgrading conveyors, concentrate handling, crushing, expanding fine ore bins Mine: New underground development Surface: New 115 Kv power line Mine: New underground Plant Currently Operating at 1000 tonnes per d
Slide 13: Guanacevi: Reserves and Resources
Guanacevi: Reserves and Resources Endeavour Discovered Five New Silver Deposits In Five Years 13
Slide 14: Guanajuato Mines
srOP F . ett oa zt — . ENDEAVOUR 14 FOCUSED ON GROWTH
Slide 15: Guanajuato: 2nd Largest Mexico Silver District
Guanajuato: 2nd Largest Mexico Silver District District Highlights: • Located in the Sierra Madre silver-gold belt • Produced over 1.2 billion oz silver historically and 5 million oz gold • Three main vein systems span 20 km x 20 km area • Classic epithermal ore-bodies in Lower Tertiary andesites •
Slide 16: Guanajuato: Three Underground Mines
Guanajuato: Three Underground Mines 2010 Reserves/Resources: P+P: 1.4 Million Oz Ag M+I: 7.6 Million Oz Ag Inf: 7.3 Million Oz Ag 2011 Production Production: 1,048,093 Oz Ag 14,943 Oz Au Throughput: 655 tpd Grades: 183 gpt Ag 2.51 gpt Au Recoveries: 75% Ag 78% Au Mines: Bolanitos/Lucero/ Cebada View
Slide 17: Guanajuato: Expanding the Mines & Plant
Guanajuato: Expanding the Mines & Plant 2012 Capital Projects: Total: $20.6 million Plant: Completing tailings piping & pumps, expanding flotation cells & concentrate handling Mine: New underground development Mine: New underground equipment Plant currently operating at 1000 tpd; expanding to 1600 t
Slide 18: Guanajuato: New Discoveries At Bolanitos
Guanajuato: New Discoveries At Bolanitos Recent Drill Results • 250 gpt Ag, 5.35 gpt Au / 9.35 m • 404 gpt Ag, 6.50 gpt Au / 7.35 m • 448 gpt Ag, 14.0 gpt Au / 4.61 m • 170 gpt Ag, 7.73 gpt Au / 7.14 m 2012 Exploration Targets • Daniela-Karina • La Joya- Puertocito • La Luz- Asuncion • Belen-Ericka
Slide 19: Guanajuato: Lucero Vein Long. Section
Guanajuato: Lucero Vein Long. Section Lucero Discovery is 800 m long x 150 m vertical x 3-5 m thick 19
Slide 20: Guanajuato: Daniela Vein Long. Section
Guanajuato: Daniela Vein Long. Section Daniela Discovery is 800m long x150m vertical x 3-10m thick 20
Slide 21: San Sebastian: Historic High Grade Silver Vein District
San Sebastian: Historic High Grade Silver Vein District Property Highlights • Discovered in 1542, mined for centuries, largely un-explored • Four large silver-gold vein systems each 3 km long • Covers +50 small historic mines on +20 separate veins • Classic epithermal ore-bodies in Lower Tertiary an
Slide 22: Parral: Historic Silver District, Significant New Resource
Parral: Historic Silver District, Significant New Resource Property Highlights • Located adjacent to city of Hidalgo de Parral in Chihuahua State • Discovered in 1631, district produced over 250 million oz Ag • Esmeralda vein 5 km long, Esmeralda Mine 2 km to south • Esmeralda mine produced 4 millio
Slide 23: La Brisa: Multiple New Veins Near Guanacevi
La Brisa: Multiple New Veins Near Guanacevi Property Highlights • 2,662 hectare La Brisa property located 10 km south of Guanacevi plant • Five main quartz veins with anomalous Ag-As-Sb-Hg up to 3 meters wide over 4 km long trend • Hosted by Tertiary rhyolites outcropping well above the target “bona
Slide 24: Reserves/Resources: Continue to Grow
Reserves/Resources: Continue to Grow Silver Equivalent Reserves and Resources (million oz’s) 120 110 100 100 GJTO 90 80 76 GCVI 62 60 53 46 40 20 16 0 2004 2005 2006 2007 2008 2009 2010 2011 E 2012 Target Note: 2010 Silver equivalents based on 50:1 silver: gold ratio, base metals are not included 24
Slide 25: Silver Production: 842% Growth Last Years
Silver Production: 842% Growth Last 7 Years Annual Silver Production 4.50 4.30 GJTO 4.00 3.73 3.50 3.30 3.00 2.60 GCVI 2.50 2.35 Millions 2.15 2.00 1.50 1.35 1.00 0.95 0.50 0.35 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 Target 25
Slide 26: Revenues & Cash Flows: Up for 6th Consecutive Year
Revenues & Cash Flows: Up for 6th Consecutive Year $140 $128.0 Operating Cash Flow $120 Revenues $100 $86.5 $80 Millions $60 $50.0 $50.8 $39.3 $40 $32.3 $32.7 $20 $15.6 $12.2 $1.8 $-2.4 $-4.6 $0 2006 2007 2008 2009 2010 2011 -$20 Projected 26
Slide 27: Gross Margin: Up for 4th Consecutive Year
Gross Margin: Up for 4th Consecutive Year $37.50 Cash Costs Gross Margin Realized Silver Price $35.61 $32.50 $27.50 $22.50 $19.62 $/oz $30.11 $17.50 $15.49 $13.38 $14.51 $11.55 $12.50 $5.48 $13.91 $2.17 $9.48 $6.83 $7.50 $9.38 $9.03 $6.55 $6.04 $5.71 $5.50 $2.50 2006 2007 2008 2009 2010 2011 (EST) 2
Slide 28: Experienced Management Team
Experienced Management Team Bradford Cooke Godfrey Walton Dan Dickson M.Sc., P.Geo. M.Sc., P.Geo. CA, Chairman & CEO President & COO CFO David Howe Barry Devlin Hugh Clarke Miguel Ordaz M.Sc. M.Sc., P.Geo. VP, Corporate Ing.-Mexico Projects VP, Operations VP, Exploration Communications Director 28
Slide 29: Board of Directors
Board of Directors Len Harris Geoff Handley B.Sc. Rex McLennan P. Eng. Retired Lead Independent B.Sc., M.B.A Director CFO Viterra Mario Szotlender Ricardo Campoy Bradford Cooke Godfrey Walton B.IR B.Sc. Man. Director M.Sc., P.Geo. M.Sc., P.Geo. Businessman Headwaters MB Chairman & CEO President & CO
Slide 30: Institutional Investors, Analysts Coverage
Institutional Investors, Analysts Coverage • Van Eck Associates • Ash Guglani, Salman Partners • Connor Clark & Lunn • Brian Quast, CIBC •Renaissance Technologies • Chris Thompson, Haywood •CPP Investment Board • Andrew Kaip, BMO •NPC of America • Heiko Ihle, Euro Pacific Capital •Royce & Associates
Slide 31: Social Responsibility 2011 Highlights
Social Responsibility 2011 Highlights • Endeavour Silver strives to improve the quality of life for every employee & each community in which it works by operating in the most socially responsible manner • Placed 2nd out of 20 teams in First Aid & 3rd out of 27 teams in Mine Rescue at recent Mexico N
Slide 32: Near Term Catalysts For Growth
Near Term Catalysts For Growth • Targeting 8th consecutive year of growing revenues, cash flow, production, reserves & resources • Targeting 5th consecutive year of falling cash costs of production & growing gross profit margin • Planning 60% mine expansion at Guanajuato to 1600 tpd • Planning 20% m
Slide 33: Contact Us
Contact Us Endeavour Silver Corp. Suite 301-700 West Pender Street Vancouver, BC, V6C 1G8 Canada hugh@edrsilver.com lmccray@edrsilver.com www.edrsilver.com Phone: 1-604-685-9775 Fax: 1-604-685-9744 Canada and US Toll-Free: 1-877-685-9775 33
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