SilverCrest Mines | Corporate Presentation | October 2013

867 views

Published on

SilverCrest Mines Inc. (TSX‐V: SVL; NYSE MKT: SVLC) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%‐owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, México. The mine is a high‐grade, epithermal gold and silver producer, with an estimated life of mine cash cost of US$8 per ounce of silver equivalent (55:1 Ag: Au). SilverCrest anticipates that the 2,500 tonnes per day open pit heap leach facility at the Santa Elena mine should recover approximately 625,000 ounces of silver and 33,000 ounces of gold in 2013. An expansion plan is well underway to nearly double the annual metals production in 2014 at the Santa Elena Mine (open pit and underground). Exploration programs have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State with stated resources nearing 200 million ounces of Ag equivalent.

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
867
On SlideShare
0
From Embeds
0
Number of Embeds
535
Actions
Shares
0
Downloads
3
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

SilverCrest Mines | Corporate Presentation | October 2013

  1. 1. Corporate Presentation October 2013
  2. 2. Disclaimer The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. FORWARD-LOOKING STATEMENTS This presentation contains “forward‐looking statements” within the meaning of Canadian securities legislation and the United States Securities Litigation Reform Act of 1995. Such forward‐looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including silver and gold production and planned work programs. Statements concerning reserves and mineral resource estimates may also constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed and, in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Forward‐looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward‐looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company’s ability to raise financing and fund the exploration and development of its mineral properties; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in profitable mining operations; risks related to reserves and mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral reserves as properties are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being subject to environmental laws and regulations which may increase costs of doing business and restrict our operations; risks related to mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy; risks related to the Company’s status as a foreign private issuer in the United States; risks related to all of the Company’s properties being located in Mexico and El Salvador, including political, economic, social and regulatory instability; and risks related to officers and directors becoming associated with other natural resource companies which may give rise to conflicts of interests. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those describedi n the forward‐looking statements. The Company’s forward‐looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward‐looking statements. he information contained herein is nota a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. All monetary figures are expressed in United States dollars unless otherwise specified. Qualified Person Under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects, the Qualified Person for this presentation is N. Eric Fier, CPG, P.Eng., President & Chief Operating Officer for SilverCrest Mines Inc., who has reviewed and approved its contents. 2
  3. 3. 3 SilverCrest – Building The Next Mid-Tier Producer •Building the next mid-tier silver-gold producer in Mexico SIMPLE & PROVEN BUSINESS MODEL •Attractive profit margins; fully funded ROBUST FINANCIAL POSITION •Expertise to develop and operate mining projectsSEASONED MANAGEMENT •Santa Elena: Producing silver gold mine expanding to 3.5 Moz AgEq in 2014 •La Joya: Development Stage Project •Organic Growth Through Low Cost Acquisitions WELL POSITIONED FOR GROWTH •Build prime silver-gold producer (+10 Moz AgEq.) through disciplined business strategyMAIN OBJECTIVE
  4. 4. Experienced & Successful Management Team J. Scott Drever, BSc., Chairman & CEO (45 years experience) Strategic Planning, Mergers & Acquisitions. Management and operational experience with several production companies, including Placer Dome and Blackdome Mining. N. Eric Fier, CPG, P.Eng., President & COO (25 years experience) Operations, Project Evaluation & Management. Previously with Newmont Mining, Eldorado Gold, Pegasus Gold Corp. Involvement in construction and operations of 4 successful mines, including Santa Elena. Several major international discoveries. Barney Magnusson, CA, CFO (35 years experience) Served as an Officer and Director of 6 mining (Dayton Mines, High River Gold Mines) companies that developed, constructed or operated 8 precious metals mines in North and South America. Brent McFarlane, BSc., VP Operations (25 years experience) Managed all phases of open pit and underground mining projects and instrumental in leading Mexican and Int’l projects through feasibility, construction, and production while working for Minefinders, Kappes Cassiday, TVI Pacific, Marston, and Pegasus Gold. Marcio Fonseca, P.Geo., VP Corporate Development (20 years experience) Served as Division Director at Macquarie Metals & Energy Capital with focus on equity and debt financing for the mining sector over the last 9 years. Prior to that, he held corporate positions in business development, project development, operations and exploration with Vale and Phelps Dodge in Latin America. Graham C. Thody, CA, Director (30 years experience) Corp. finance and public company management. Director and President of UEX Corp., Chairman of the Board of Geologix. George W. Sanders, Director (30 years experience) Experience in mining and exploration finance. Previously with Canaccord Capital Corp., Richmont Mines Inc., Consolidated Cinola Mines Ltd., and Shore Gold Inc. Ross Glanville, P.Eng., CGA, Director (40 years experience) Experience in mining, exploration finance, valuations and fairness opinions. Director of Archon Minerals Limited, Clifton Star Resources Inc. and Starfield Resources Inc. 4 FOUNDERS
  5. 5. 5 Overview of SilverCrest BUILDING THE NEXT MID-TIER SILVER-GOLD PRODUCER IN MEXICO •1,222,351 million Ag Eq oz •347.5K oz Ag | 14.7K oz Au H1 2013 Production •$ 7.74 per Ag Eq oz ($425 Au Eq) •$14.56 per Ag Eq oz (ALL IN) H1 2013 Cash Cost •$ 28.3 million (Revenues) •$ 8.8 million (Net Earnings) •31% H1 2013 Revenues, Earnings, Margin •19.7 million Ag oz •327,430 Au oz •open pit, underground, leach pads Reserves Santa Elena (April 30,2013) •Santa Elena (Underground): •Indicated: 7.9 mill Ag oz, 116,000 Au oz •La Joya: •Inferred: 198.6 million Ag Eq oz Resources* (April 30, 2013) •1 Operating (Santa Elena) •1 Development – PEA (La Joya) •Exploration properties in Mexico Asset Stages •2013: 2.49 million Ag Eq oz •2014: 3.5 million Ag Eq oz Estimated Production •Mexico: Sonora & Durango Geographic Location *Additional details on Resources on slide 10 & 11NOTE: Ag Eq based on 55:1 ratio
  6. 6. Capital Structure & Trading History SVL SHARE STRUCTURE Issued & Outstanding: 108,843,205 Options: 6,325,000 Fully Diluted Shares: 115,168,205 Average Option Price: CAD $1.41 TSX.V NYSE MKT 90 - Day Avg. Daily Volume: 326,249 273,977 52 Week High / Low: $2.96 / $1.19 $2.96/$1.13 Share Price (Oct. 010, 2013): CAD $1.70 Market Cap: CAD $185 M Working Capital (June 30, 2013): $41.6 M Line of Credit (Scotiabank; LIBOR +3%; undrawn) $40 M 6 SHAREHOLDER DISTRIBUTIONS Fully Diluted (as of October 10, 2013) 8% 31% 61% Management & Directors Institutions Retail $1.20 $2.24 (See slide 24) $32 $26 $20 AgPrice
  7. 7. 7 Financial Performance Revenue & Cash Flow Cash Flow per Month in H1 of $2.3 M Strong Working Capital of $41.6 M ¹ Higher grade areas were mined in this quarter. ¹ Higher working capital due to bought deal financing and cash flow from operations. - 5.00 10.00 15.00 20.00 25.00 Q32011 Q42011 Q12012¹ Q22012 Q32012 Q42012 Q12013 Q22013 USD($millions) Revenue Cash flow 0 10 20 30 40 50 60 Q32011 Q42011 Q12012 Q22012 Q32012 Q42012¹ Q12013 Q22013 USD($millions) Working Capital Working Capital 0.00 0.05 0.10 0.15 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Quarterly Cash Flow Per Share - $ 0.00 0.05 0.10 0.15 0.20 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Quarterly Earnings Per Share (Basic) - $ Cash Flow Per Share Earnings Per Share June 30, 2013
  8. 8. 8 Cash Operating Cost & ALL IN Cash Operating Cost 2013 EST Budget 2012 Cash operating cost ¹ $ 19,822,454 18,307,681 General and Admin expenses $ 7,273,798 5,568,582 Santa Elena Reserve & Resource definition drilling $ 4,705,000 5,644,469 Santa Elena Sustaining capital $ 901,540 1,703,919 Total 2013 est. expense $ 32,702,792 31,224,651 Ag equiv. ounces sold 2,432,136 2,477,623 Cash Cost per Ag equiv. ounce sold $ 8.15 7.39 ALL IN cash cost per Ag equiv. ounce sold ² $ 13.45 12.60 ¹ 2013 EST does not reflect inventory adjustments ² ALL IN” includes total direct costs + sustaining capital + corporate G&A expense + exploration expense.
  9. 9. Reserve and Resource Growth (AgEq oz*) (Includes Santa Elena, La Joya and Cruz de Mayo) 9 2006 2007 2008 2009 2010 2011 2012 2013 Reserve 0 0 30,605 30,605 30,605 27,032 21,695 37,743 Indicated 13,805 43,548 10,994 24,782 24,782 39,436 9,163 16,779 Inferred 17,565 25,418 28,005 28,069 28,069 32,866 125,952 223,712 0 50,000 100,000 150,000 200,000 250,000 300,000 AgEqoz*(000) Reserve Indicated Inferred Note: (*) Silver equivalency is based on Ag:Au 55:1 for Santa Elena (Ag Au dore producer);for La Joya it includes silver, copper and gold :Ag:Au is 50:1, Ag:Cu is 86:1 (La Joya is a silver copper concentrate with gold credits project at the PEA stage); all numbers are rounded. All Mineral Resources and Reserves conform to NI 43-101, 43-101CP, and CIM definitions for Resources and Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Indicated Resources. Open Pit and Leach Pad Probable Reserves were classified by SilverCrest. Underground Reserves and Resources were classified by EBA, a Tetra Tech Company.
  10. 10. Mexico Properties Santa Elena Property 10
  11. 11. Santa Elena Mine Expansion 1. SANTA ELENA HIGH GRADE OPEN PIT 11 Access Road to Site; 7km from National HIghway Access road to Underground Portal 3-stage Crusher Waste Dumps Crusher Screen Decks And Conveyors Process Plant Construction Merrill Crowe Processing Plant And Laboratories Ore Reclamation Tunnels 4 Hour Drive to Tuscon, AZ2 Hour Drive to Hermosillo and International Airport Excellent Infrastructure and Access Future 2nd Underground Access Portal
  12. 12. 12 Santa Elena Mine Expansion Plan Capex Schedule ($ Millions) TOTAL 2013 (Budget) 2012 2011 Mill Complex 58.7 53.2 5.5 - Underground Development 12.6 8.1 3.5 1.0 Drilling & Pre-Feasibility 10.7 4.7 5.0 1.0 (*) Excludes $5 M contingency included in PFS 82.0 ⁽*⁾ 66.0 14.0 2.0  Pre Feasibility released in July 2013  Decline ramp, UG development and drilling in process  Construct, 3,000 tonnes per day conventional mill by Q1 2014  Mill feed from Open Pit and Underground/Leach Pads in 2014
  13. 13. Santa Elena Mine Expansion – Pre-Feasibility Study, April 2013 1. SANTA ELENA HIGH GRADE OPEN PIT 13 Item Base Case Spot Price Gold Price (US$/oz.) $ 1,450 $ 1,250 Silver price (US$/oz.) $ 28 $ 19.5 IRR (%) 88% 49% DCF NPV @ 5% in millions $223.7 $108.7 Payback (production years) 1.1 1.7 Base Case Economic Analysis Results ¹ Production Gold Ounces Sold - post refiner 262,739 Silver Ounces Sold - post refiner 12,118,926 Revenue US$(000) Gross Sales $684,931 Operating Expenses Total Operating Costs ² $282,223 Freight & Refining $5,579 Capital Expenses Total Capital Costs ³ $87,813 Pre-Tax Cash Flow Total Cash Flow ⁴ $302,481 1 The economic analysis considers SilverCrest delivering a remaining 31,000 ounces of gold at a price of US$350/oz. under the Sandstorm Agreement. It does not include the effect of the option held by Sandstorm to participate in the future underground mine production. 2 Operating cost per AgEQ oz. sold varies between $9.6 and $12.6 over the life of mine 3 Excludes sunk costs ,of 24.3 million up to April 30, 2013, closure costs and working capital, including contingency 4 Includes deductions of $5 million for closure costs and $1.8 million for working capital - Life of Mine US$(000)
  14. 14. Santa Elena 3D View of Stope Layout – Looking Northwest 1. SANTA ELENA HIGH GRADE OPEN PIT 14 $17/t $17/t $38/t Open Pit 1 km 400 mtr
  15. 15. Santa Elena Expansion Production Profile (3000 tpd Mill) Long Hole Stoping Upfront Long 1. SANTA ELENA HIGH GRADE OPEN PIT 15 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2013 2014 2015 2016 2017 2018 2019 2020 2021 Ounces Au : Ag - 55:1Ag Eq Oz's of Au Produced Ag Oz's Produced NOTE : Production Profile based on “Expansion PFS April 2013” results. An estimated 750,000 tonnes of open pit ore will be placed on the pad in 2013 and accounted for in early 2014 as additional ore for reprocessing during the mine life. Currently-OpenPit POTENTIAL FOR EXTENDING OR INCREASING IN PRODUCTION: A) Additional Santa Elena Resources B) La Joya Coming On Stream
  16. 16. 16 Potential Mill Feed Schedule 2013 - 2024 Source 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Open Pit (until August 2014) Underground (to commence Q3|2014) Heap Leach Reprocessing (to commence Q3|2014) Cruz de Mayo (1) (2) Note (1): Resources (hatched) Note (2): Open pit ore still to be put on pad in 2013 (hatched) as leach pad material Reserves by January 2014
  17. 17. Open Pit Santa Elena Mine – El Cholugo and Tortuga Discoveries A A’ B B’ Underground Ramp Tortuga In Pit Wall El Cholugo In Pit Wall 100m N 17 Tortuga El Cholugo Main Mineralized Zone
  18. 18. *Looking North – Ultimate pit and U/G development: Est. Reserves in pink and Est. Resources in grey. Drill holes: red dots 2005-2011, blue 2012-13, green stars Newly Reported Santa Elena Mine Expansion – MMZ Long Section A-A’ * OPEN OPEN OPEN Current Ramp Original Surface Location El Cholugo & El Cholugo Dos 13.4 m @ 1.8 gpt Au, 207 gpt Ag 1.2 m @ 3.9 gpt Au, 1,239.5 gpt Ag Tortuga 5.3 m @ 10.5 gpt Au, 572.5 gpt Ag Ongoing U/G drilling (1st Production Stopes) 148 152 166 160 181144 175 183 182142 179 180155 171 158 176 145 168 173 161 151 165 OPEN 200m Ultimate Pit 18
  19. 19. La Joya Project 19 Conceptual Starter Pit Geological Model & Completed Phase I & II Drill Program Location: Durango, Mexico Excellent Infrastructure & Access: Highway, Railway and Power Lines nearby 2 Hour Drive From Durango City & International Airport
  20. 20. La Joya Resource Sections A-A’ (Looking NE) 20 “Potential Starter Pit Parameters”:  8-10 year mine life  Low strip ratio  5,000-7,000 tpd throughput  Est. 4 to 5 million Ag Eq oz/year
  21. 21. La Joya Resource Estimate & Preliminary Metallurgy 21 ZONE Ag Eq* Cut-off gpt Tonnage (000) Ag gpt Au gpt Cu % Ag Eq gpt Ag Oz (000) Au oz (000) Cu lbs (000) Ag Eq* Oz (000) Total 15 126,700 23.5 0.17 0.19 48.7 95,900 716.2 533,200 198,600 30 71,200 34.4 0.22 0.28 69.8 78,700 524.8 436,800 159,800 60 27,900 57.5 0.28 0.48 112.2 51,600 258.8 288,400 100,800 **Classified by EBA, A Tetra Tech Company and conforms to NI 43-101, 43-101CP, and CIM definitions for resources. All numbers are rounded. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources. Mineralization boundaries used in the interpretation of the geological model and resource estimate are based on a cutoff grade of 15 gpt Ag Eq using the metal price ratios described below. Batch Cleaner Flotation Test Results – Baseline Current Resource Estimate (PEA focus on 60 gpt cut-off) Composite Head Assay 3rd Cleaner Concentrate Assay Recovery (%) Cu % Ag gpt Au gpt Ag Eq* gpt Mo % Cu % Ag gpt Au gpt Ag Eq* gpt Mo % Cu Ag Au Mo Manto 0.34 45.0 0.15 81.7 0.004 36.3 4,700 3.40 7,991 0.27 86.7 84.3 18.2 59.6 Structure 0.46 58.0 0.25 110.0 0.003 34.3 3,980 9.45 7,402 0.17 82.7 76.7 42.4 59.7 Contact** 0.07 4.0 0.10 15.0 0.011 16.7 670 17.40 2,976 2.02 83.6 63.7 66.4 65.4Note: all the metal grades are based on weighted average values. * Silver equivalency (Ag Eq) includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. ** Contact composite was collected and analyzed to target tungsten and molybdenum recoveries.
  22. 22. La Joya Exploration Potential 22 • 10,600 hectare land package within the Fresnillo Silver Trend • Operating mines nearby
  23. 23. Investment Highlights  Building The Next Mid-Tier Silver-Gold Producer  Unhedged High Grade, Low Cost Producer  Excellent Profit Margins, Strong Balance Sheet  Strong Earnings And Cash Flow  Significant Increase In Production by 2014  Good Organic Growth Opportunities  Expanding Resources & Reserves Upcoming Catalysts 2013  Quarterly Production Data & Financial Statements  Santa Elena Expansion Updates  Santa Elena Exploration Results  La Joya Preliminary Economic Assessment 23Santa Elena CCD Tank Construction
  24. 24. 24 Institutional Holdings Analyst Coverage Institutional Investors  Sprott Inc  Libra Advisors  Wellington Management  AGF Investments  JP Morgan Chase  I.G. Investment Management  Tocqueville Asset Management  683 Capital Management  Great West Life Assurance  BMO Investments  Ingalls & Snyder Firm Analyst  Canaccord Genuity Nicholas Campbell  Cormark Securities Graeme Jennings  Dundee Capital Chris Lichtenheldt  Euro Pacific Capital Inc. Heiko Ihle  Haywood Securities Benjamin Asuncion  Jennings Capital Kwong-Mun Achong Low  PI Financial Corp Philip Ker  Raymond James  Roth Capital Chris Thompson Joe Reagor  Stonecap Securities Christos Doulis
  25. 25. 25 Peer Comparables – Market Capitalization & Earnings 49.7 97.5 115.6 184.9 226.4 409.8 461.5 -1.90 0.65 -3.80 8.80 15.20 13.90 -3.90 -50 50 150 250 350 450 550 Scorpio Minng Aurcana Silver Great Panther SILVERCREST Timmins Gold Endeavour Silver Fortuna Silver Peer Comparables - October 10, 2013 Market Capitalization H1 2013
  26. 26. Contact Us Tel: (604) 694-1730 Toll Free: 1-866-691-1730 Fax: (604) 694-1761 info@silvercrestmines.com www.silvercrestmines.com Suite 501 - 570 Granville Street Vancouver, BC V6C 3P1 SILVERCRESTMINES.COM MEDIA PRESENTATIONS Scan the QR codes above for more info. Get the FREE mobile app: http://gettag.mobi 26

×