1. No category

Honing Performance;
Growing Margins
NYSE: EXK TSX: EDR
1
October 2014
Cautionary Note
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 forward-looking statements and
information herein include, but are not limited to, statements regarding Endeavour’s anticipated performance in 2014 and future years,
including revenue, cash cost and capital cost forecasts, silver and gold production, timing and expenditures to develop new silver mines and
mineralized zones, silver and gold grades and recoveries, cash costs per ounce, capital expenditures and sustaining capital and the use of the
Company’s working capital. The Company does not intend to, and does not assume any obligation to update such forward-looking statements
or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such
statements. Such factors include, among others: fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly
the Mexican peso, Canadian dollar and U.S. dollar); fluctuations in the price of consumed commodities, changes in national and local
governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; operating or technical
difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining
(including environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures, cave-ins and flooding);
inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs and labour; the speculative
nature of mineral exploration and development, reliability of calculation of mineral reserves and resources and precious metal recoveries,
diminishing quantities or grades of mineral reserves as properties are mined; risks in obtaining necessary licenses and permits, global market
events and conditions and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors”
contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued
operation of the Company’s mining operations, no material adverse change in the market price of commodities, mining operations will operate
and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and
such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in
forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated,
described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be
accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly,
readers should not place undue reliance on forward-looking statements or information.
2
Introduction
Endeavour Silver Corp.
Unhedged, low-cost silver-gold producer
Core Assets
Three high grade silver-gold mines in Mexico
Operational Excellence
We turn around and expand mines to unlock
their full potential
Exploration Expertise
Emerging new high-grade discovery in Mexico
Organic Growth
Ten consecutive years of organic growth
Near-term Goal
Build a premier senior silver producer
3
Market Snapshot
EXK Shares: Leverage to Precious Metals
Shares Issued:
101.5 million
Fully Diluted:
108.6 million
Recent Price (Oct 8/14):
US$4.54
Market Cap (Oct 8/14): US$461 million
52-week high-low:
US$6.44-$3.12
Exchange Listings:
NYSE:EXK
TSX:EDR
Daily Volume:
1.6 million shares
Cash Position (June 30/14): $44 million
LOC Debt (June 30/14):
$29 million
4
Core Assets
Exploration
Mines
Guanaceví
Bolañitos
El Cubo
Three producing mines and six exploration projects
5
San Sebastián
Parral
Guadalupe y Calvo
El Inca
Arroyo Seco
Lourdes
Strategic Acquisitions
Guanaceví
2004
• Acquired Guanaceví in 2004
• Processing 100 tpd of old
tailings into a 600 tpd plant
• Discovered six orebodies to date
• Rebuilt and expanded the plant
• Developed five new mines,
Milache ready for development
• Today produces 1,200 tpd of
high grade ore
Bolañitos
2007
• Acquired Bolañitos in 2007
• Processing 50 tpd of old minefill
into a 500 tpd plant
• Discovered six orebodies to date
• Upgraded and expanded plant
• Developed one new mine, three
old mines, including Asuncion
• Today produces 1,600 tpd of
high grade ore
6
El Cubo
2012
• Acquired El Cubo in 2012
• Processing 1,100 tpd of low
grade ore into a leased plant
• Discovered one orebody to date
• Rebuilt and expanded the plant
• Turned around operations and
developing V-Asuncion mine
• Today produces 1,200 tpd of
medium grade ore – ramping up
to 1,550 tpd by year end
Organic Resource Growth
Silver and Silver Equivalent Reserves and Resources (million oz)
250
206
150
142
123
121
2007
Acquired
Bolañitos
100
50
0
191
2012
Acquired
El Cubo
2004
Acquired
Guanaceví
4.7 5.4
2004
41
46
53
41
90
76
62
Silver
Silver Equivalents
Millions
200
88
71
59
47
14 16
Other
2005
2006
2007
2008
Note: Silver equivalents based on 50:1 silver:gold ratio; no base metals
7
2009
2010
2011
2012
2013
Consistent Production Growth
Silver and Silver Equivalent Annual Production
12
11.3
2012
Acquired
El Cubo
6.4
6.8
6
4.9
4
2
0
4.3
2007
Acquired
Bolañitos
2004
Acquired
Guanaceví
2.15
0.95 1.1
2.5 2.35
2.8
2.6
3.3
3.3
4.5
3.7
1.35 1.5
0.35 0.4
2004
2005
2006
2007
2008
Note: Silver equivalents based on 50:1 silver:gold ratio; no base metals
8
2009
2010
2011
2012
Silver Equivalents
8
Silver
millions of ounces
10
2013
Strong Financial Performance
Operating Cash Flow per Share(1)
Revenue per Share
$2.77
$3.00
$2.50
$0.66
$0.80 $0.84
$0.20
$0.50
$0.00
$0.00
-$0.20
2007
2008
2009
2010
2011
2012
$0.37 $0.43
$0.20
2008
2009
2010
2011
2012
$10.00
Endeavour Cash Costs
Peer Group Cash Costs
$8.90
$9.03
-$0.27
-$0.60
2007
$8.00
$0.29 (2)
$7.50
$6.83
$6.00
$7.92
$7.33
$6.04
$5.71
$/oz
$0.11
-$0.09
-$0.20
2013
Cash Costs net of By-products(3)
$0.03
$0.00
1.
2.
3.
-$0.05 -$0.09
$9.38
$0.40
-$0.40
$0.20
2007
2013
Adjusted Earnings per Share
$0.60
$0.40
$0.40
$1.07
$0.82
$0.54
$0.60
$1.46
$1.50
$1.00
$0.80
$2.23
$2.00
$0.89
$1.00
$5.08
$4.85
$4.00
$4.13
-$0.37
2008
2009
2010
2011
2012
2013
Before changes in working capital
Includes $0.18 per share for deferred Mexican tax liability
Peers include: AXR, CDE, FR, FVI, GPR, HL, PAA, SSO and SVM; for 2013 does not include AXR
$2.59
$2.44
2007
2008
$2.00
$-
9
2009
2010
2011
2012
2013
Attractive Peer Comparisons
P/E (adjusted; trailing 4Q)
nmf nmf
100
80
60
40
20
0
P/CF (trailing 4Q)
40
30
20
10
0
nmf = not meaningful
300
EV/oz 2013 Production (Ag Eq.)
5
4
200
3
2
100
1
0
0
10
EV/oz Resources
(Ag Eq., excluding base metals)
nmf
Sector Leading Leverage to Silver
One-year beta
Three-year beta
Five-year beta
Endeavour
2.23
1.37
1.31
Fortuna
2.19
1.36
1.19
Silver Standard
1.71
1.20
1.00
First Majestic
1.65
1.18
1.22
Coeur
1.45
1.05
1.03
Fresnillo
1.38
0.94
0.85
Silver Wheaton
1.33
1.10
1.02
Hochschild
1.30
0.73
0.74
Hecla
1.24
1.04
1.03
Pan American
1.22
0.81
0.78
Source: Bloomberg (as of August 26, 2014)
11
EBITDA Leverage to Silver Price 2014
Precious metal price
assumptions
Change (+/-) from
current spot prices (1)
Impact on
cash costs
($/oz Ag)
Impact on annual
EBITDA (2)
$21 silver/$1,260 gold
$1silver/$60 gold
$0.61
$11.4 million
(1) Silver equivalents based on 60:1 silver:gold ratio
(2) Assuming 2014 production guidance
$25.00
Cash Costs, net gold by-product
All In Sustaining Costs
140
Annual EBITDA
120
$20.00
100
$15.00
80
60
$10.00
40
$5.00
20
$-
$18
$19
$20
$21
$22
$23
12
$24
$25
$26
$27
$28
Millions
Consolidated EBITDA (includes new Mexican Taxes), Cash Costs
and AISC Sensitivities Using 60:1 Silver:Gold Ratio
Focus on Margin Growth in 2014
2014 Guidance
Operating
2014
Silver production
6.5-6.9 million oz
Gold production
65,000-69,000 oz
Silver equivalent production (1)
10.4-11.0 million oz
Financial
Cash costs – by-product
Cash costs – co-product – silver
Cash costs – by-product – gold
$9-10 per oz Ag
$13-14 per oz Ag
$800-850 per oz Au
All-in sustaining costs (AISC)(2) – by-product
$19 per oz Ag
AISC – co-product – silver
$19 per oz Ag
AISC – co-product – gold
$1,166 per oz Au
Capital budget
$43.9 million
Exploration budget
$10.7 million
(1)
(2)
Silver equivalents based on 60:1 silver:gold ratio
All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site
exploration, share-based compensation, reclamation and sustaining capital
13
Steady 2014 Performance
Financial Performance
H1 2013
H1 2014
Revenue
$141.1 M
$107.8 M
EBITDA
$47.6 M
$32.7 M
Operating cash flow(1)
$37.7 M
$30.2 M
Adjusted net earnings(2)
$10.2 M
$5.2 M
Cash costs(3)
$10.29 per oz Ag
$7.21 per oz Ag
All-in sustaining costs(4)
$25.78 per oz Ag $16.05 per oz Ag
Capital invested
Exploration expenditures
$56.8 million
$20.0 million
$9.2 million
$5.0 million
Nine months
2013
Nine months
2014
4,881,435 oz
5,202,902 oz
57,894 oz
47,768 oz
8,355,075 oz
8,068,982 oz
Operating Performance
Silver production
Gold production
Silver equivalent production (5)
(1)
(2)
(3)
(4)
(5)
Before changes in working capital
Adjusted earnings are calculated by adding back the mark-to-market impact of derivative equities held as a
liability on the Company’s balance sheet. Refer to the MD&A for details.
Net of by-product credits
All-in Sustaining Costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site
exploration, share-based compensation, reclamation and sustaining capital, net of gold credits
Silver equivalents are calculated on a 60:1 silver:gold ratio
14
GUANACEVÍ
A High Grade, Underground, Silver-Gold Vein Mine
15
Guanaceví: A Top Five Mexican Silver District
District Highlights:
Location:
Durango, Mexico
Property:
4,076 hectares
Infrastructure:
State highway,
power grid,
local labour
Past Production: 450 million oz Ag
Deposit Type:
Low sulfidation
epithermal veins
Operating Mines:
Porvenir Norte
Porvenir Cuatro
Santa Cruz
New Discovery:
Milache
Future Potential:
District poorly
explored, five main
veins up to eight km long
over 5x10 km area
16
Guanaceví: Producing +2.5 Million Oz Ag/Year
2013 Reserves and Resources(1):
Proven and Probable:
Measured and Indicated:
Inferred:
3.3 million oz Ag
14.0 million oz Ag
9.4 million oz Ag
Nine Months 2014 Production
Production(2):
2,562,877 oz Ag
5,556 oz Au
2,896,237 oz Ag Eq.
Throughput:
1,175 tpd
Grades:
300 gpt Ag
0.63 gpt Au
338 gpt Ag Eq.
Recoveries:
Costs
Cash costs(3):
All-in sustaining costs(4):
(1)
(2)
(3)
(4)
82.8% Ag
85.5% Au
H1 2013
H1 2014
$16.65/oz Ag $10.16/oz Ag
$28.89/oz Ag $15.12/oz Ag
See page 40 for details
Silver equivalents based on 60:1 silver:gold ratio
Net of by-product credits
All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, onsite exploration, share-based compensation, reclamation, and sustaining capital net of gold
credits
17
Guanaceví: New High-Grade Discovery at Milache
INGENIERIA
INGENIERIA
ENDEAVOUR
SILVER
New Resources Added
Indicated:
Inferred:
• 6.2 million oz Ag
• 0.6 million oz Ag
• 17,000 oz Au
• 1,800 oz Au
18
BOLAÑITOS
A High Grade, Underground, Silver-Gold Vein Mine
19
Bolañitos: Second Largest Mexico Silver District
District Highlights:
Location:
Guanajuato, Mexico
Property:
2,538 hectares
Infrastructure:
State road,
power grid,
local labour
Past Production:1.2 billion oz Ag
5 million oz Au
Deposit Type:
Low sulfidation
epithermal veins
Operating Mines:
Lucero
Bolañitos
Karina
Fernanda, Daniela
New Discoveries:
Asuncion, La
Luz, Plateros
Future Potential: District poorly
explored, multiple veins up to
five km long over 3x9 km area
20
Bolañitos: Producing +2.5 Million Oz Ag /Year
2013 Reserves and Resources(1):
Proven and Probable:
Measured and Indicated:
Inferred:
2.3 million oz Ag
4.6 million oz Ag
9.6 million oz Ag
Nine Months 2014 Production
Production(2):
1,784,908 oz Ag
29,208 oz Au
3,537,388 oz Ag Eq.
Throughput:
1,548 tpd
Grades:
148 gpt Ag
2.47 gpt Au
296 gpt Ag Eq.
Recoveries:
88.8% Ag
87.1% Au
Costs
Cash costs(3):
All-in sustaining costs(4):
(1)
(2)
(3)
(4)
H1 2013
H1 2014
$(1.61)/oz Ag $(0.43)/oz Ag
$13.99/oz Ag $6.84/oz Ag
See page 40 for details
Silver equivalents based on 60:1 silver:gold ratio
Net of by-product credits
All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A, on-site
exploration, share-based compensation, reclamation, and sustaining capital net of gold credits
21
Bolañitos: Exploration Targets 2013-2015
Socorro
22
Bolañitos: Discovery at La Luz-Asuncion
Hole
LZ15-1
LZ15-2
LZ16-4
LZ16-5
LZ17-3
LZ17-4
LZ18-3
LZ19-2
LZ21-1
LZ22-3
23
From
True
Width
Au
Ag
Ag Eq
(m)
(m)
(gpt)
(gpt)
(gpt)
294.85
297.10
342.30
346.65
267.60
269.25
330.80
332.65
430.80
431.95
249.40
253.70
309.50
310.75
349.15
350.95
374.95
376.60
312.55
313.00
2.45
0.58
3.51
0.23
1.81
0.34
1.84
0.17
3.05
0.22
4.60
0.13
2.58
0.19
3.23
0.43
1.59
0.21
1.60
0.41
11.01
19.15
6.24
14.15
1.89
3.79
2.33
8.21
5.56
8.84
4.75
9.44
3.08
2.60
11.41
40.80
3.84
27.10
2.35
3.85
550.7
846.0
325.0
729.0
89.8
295.0
85.4
243.0
121.8
525.0
328.8
1,530.0
33.3
263.0
67.8
149.0
434.7
2,580.0
404.6
865.0
1,211
1,995
699
1,578
203
522
225
736
456
1,055
614
2,096
218
419
752
2,597
665
4,206
546
1,096
structure
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
La Luz
Including
EL CUBO
24
El Cubo: A Great Fit for Endeavour in Guanajuato
El Cubo Highlights:
Location:
Guanajuato, Mexico
Property:
8,144 hectares
Infrastructure:
Past Production:
Deposit Type:
State roads,
power grid,
local labour
80 million oz Ag
2 million oz Au
Low sulfidation
epithermal veins
Operating Mines:
San Nicolas
Dolores
Villalpando
Peregrina
New Discoveries:
Drilling under way
Future Potential: District poorly explored
16 separate drill targets
over nine km length
25
El Cubo: Turn-Around Nearing Completion
2013 Reserves and Resources(1):
Proven and Probable:
Measured and Indicated:
Inferred:
5.9 million oz Ag
10.6 million oz Ag
6.0 million oz Ag
Nine Months 2014 Production
Production(2):
Throughput:
Grades:
Recoveries:
Cash costs(3):
All-in sustaining
costs(4):
(1)
(2)
(3)
(4)
855,117 oz Ag
13.004 oz Au
1,635,357 oz Ag Eq.
1,051 tpd
107 gpt Ag
1.73 gpt Au
211 gpt Ag Eq.
88.3% Ag
86.5% Au
Costs
H1 2013
H1 2014
$29.37/oz Ag $13.50/oz Ag
$53.48/oz Ag $38.37/oz Ag
See page 40 for details
Silver equivalents based on 60:1 silver:gold ratio
Net of by-product credits
All-in sustaining costs (AISC) include mining, processing, direct overhead, corporate G&A,
on-site exploration, share-based compensation, reclamation, and sustaining capital net of
gold credits
26
El Cubo: Exploration Targets 2013-2015
27
El Cubo: Discovery at Villalpando-Asuncion
Hole
CAS-39
CAS-41
CAS-42
Structure
Villalpando
Including
Villalpando
Including
Villalpando
Including
From
(m)
285.10
288.35
440.05
440.70
202.30
202.75
True
Width
(m)
4.80
0.77
1.52
0.74
1.51
0.75
Au
Ag
AgEq
(gpt)
1.59
2.68
2.85
3.87
4.35
8.20
(gpt)
268
476
179
231
692
1225
(gpt)
363
637
350
463
953
1717
Hole
CAS-43
CAS-44
CAS-47
CAS-48
28
Structure
Villalpando
Including
Villalpando
Including
Villalpando
Including
Villalpando
Including
From
(m)
233.95
234.50
264.10
265.00
188.40
189.95
228.80
228.80
True
Width
(m)
5.94
0.57
13.56
0.15
1.50
0.24
3.95
0.27
Au
Ag
AgEq
(gpt)
1.34
6.05
2.89
99.20
0.87
0.94
1.30
2.61
(gpt)
144
373
194
10843
181
465
143
275
(gpt)
224
736
368
16795
234
521
221
432
SAN SEBASTIÁN
29
San Sebastián: Historic Silver-Gold District
Property Highlights
•
Discovered in 1542, mined for
centuries, largely unexplored
•
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 andesites
•
Located 40 km northeast of Puerto
Vallarta in Jalisco State
•
One small mine (La Quiteria)
operates in the district
•
Recent grab samples assay up to
11,824 gpt Ag, 40.3 gpt Au
•
New discovery in Terronera vein
30
San Sebastián: Emerging High-Grade Discovery
Hole
TR4S-1
TR17-2
TR17-3
TR18-2
TR20-1
TR20-2
Structure
Terronera
Including
Terronera
Including
Terronera
Including
Terronera
Including
Hw Terronera
Including
Terronera
Including
Hw Terronera
Including
Terronera
Including
From
(m)
198.25
201.40
139.35
139.35
222.20
231.20
240.75
246.40
115.90
126.25
182.20
184.25
155.65
155.65
207.80
207.80
True Width
(m)
1.93
0.08
6.62
0.61
5.58
0.51
4.09
0.33
9.69
0.57
5.08
0.80
2.64
0.90
3.03
0.90
Au
(gpt)
0.14
2.86
0.59
2.15
3.60
10.50
5.47
18.55
3.02
12.35
3.58
8.01
2.94
3.56
8.48
15.20
Ag
(gpt)
432.1
9,720.0
434.8
3,620.0
139.9
167.0
96.6
197.0
75.5
229.0
77.2
121.0
60.9
80.0
271.0
222.0
AgEq
(gpt)
441
9,892
470
3,749
356
797
425
1,310
256
970
292
602
237
294
780
1,134
Hole
TR20-3
TR20-4
TR21-1
TR22-2
TR23-1
31
Structure
Hw Terronera
Including
Terronera
Hw Terronera
Including
Hw Terronera
Including
Terronera
Hw Terronera
Including
Terronera
Including
Terronera
Including
From
(m)
188.30
189.75
86.10
86.10
57.65
62.50
43.45
45.75
72.15
79.30
77.85
91.00
True Width
Au
(m)
(gpt)
1.93
1.89
0.51
2.91
Old Working
2.16
1.68
1.41
2.00
7.46
4.22
0.94
11.60
Old Working
6.93
3.67
2.16
6.38
6.09
3.26
0.61
14.30
12.76
4.02
0.90
12.25
Ag
(gpt)
74.3
106.0
AgEq
(gpt)
188
281
519.0
767.0
99.0
263.0
620
887
352
959
82.9
115.0
78.9
322.0
125.8
213.0
303
498
274
1180
367
948
San Sebastián: Mine Engineering Under Way
2013 Resource Estimate
Indicated :
• 18.2 million oz Ag
• 86,300 oz Au
Inferred:
• 13.4 million oz Ag
• 126,800 oz Au
Conceptual Plan
2014
•
•
•
•
Complete initial economic evaluation
Complete new resource estimate
Complete mine permitting
Engineering under way
2015
•
•
•
•
Complete infill drilling
Make production decision
Complete project construction
Commence commercial production
32
Growth Plan
Targeting 60% Production Growth
16m oz
10m oz
10m oz
Ag Eq.
Ag
6m oz
Ag
2013
2014
Ag Eq.
2015
2016
Construction
Production
San Sebastián
Exploration
Permitting
El Cubo
Turn around
operations
Expand
production
1,500 tpd
Discover
resources
Expand
mine life
Bolañitos
Expand
production
Develop
Asuncion
Discover
resources
Expand
mine life
Guanaceví
Optimize
plant
Discover
resources
Develop
Milache
Expand
mine life
Discover, Develop, Expand, Optimize – Our formula for growing production and reducing costs
33
2014 Highlights and Catalysts
H1 2014 Highlights
 Silver production up to 18% to 3.57 million oz (H1 2014 vs. H1 2013)
 Cash cost down 30% to $7.21 per oz Ag (net Au by-product) (H1 2014 vs. H1 2013)
 Added $14.5 million to balance sheet
 Sector leading leverage to silver (one-year beta 2.23)
 Positive drill results extended ore-bodies at Bolañitos and El Cubo
 Received Certificates of Social Responsibility for all three mines
H2 2014 Catalysts
* On track to meet or beat our production and cost guidance for 2014
* Anticipate San Sebastián drill results, resource update, mine permit
* Anticipate Milache mine permit by year-end
* Expect La Luz ramp permit by year-end
* Positive drill results at all three mines
34
Why Endeavour?
Experienced Board
and Management:
400+ years in mining
industry
Proven Track Record:
Nine consecutive years of
organic production
growth
Low political risk, large
districts, big veins, high
grades, low cash costs
Listed on the NYSE, TSX
~1.6 million shares/day
El Cubo mine in
Guanajuato, same district
as Bolañitos mine
Compelling Organic
Growth:
Quality Assets:
Good Liquidity:
Accretive
Acquisitions:
Additional expansion
potential at three mines;
new high-grade discovery
at San Sebastián
Strong Financials:
Cash position US$44
million (June 30, 2014);
no long-term debt
35
Pure Silver/Gold
Leverage:
60/40 silver/gold bullion
producer; no base metals;
no hedging
Contact Us
Endeavour Silver Corp.
Suite 301-700 West Pender Street
Vancouver, BC, V6C 1G8
Canada
[email protected]
www.edrsilver.com
Phone: 1-604-685-9775 Fax: 1-604-685-9744
Canada and US Toll-Free: 1-877-685-9775
36
Appendix
37
Why Silver?
• Silver is an industrial metal:
unlike gold, silver is
consumed and the number
of industrial uses is
multiplying
• Silver is a precious metal:
like gold, silver is money
and its role as a store of
value and a hedge against
monetary inflation is
growing
Denarius % Silver
• Currency debasement is not
new – governments
throughout history have
“printed” money eg. falling
silver % in the Roman
Denarius coin
38
Silver vs Gold
39
Management and Board
Management
Bradford Cooke, M.Sc., P.Geo. – Founder and CEO
Godfrey Walton, M.Sc., P.Geo. – President and COO
Dan Dickson, CA – CFO
Terry Chandler, B.Sc., P.Geo. – VP Corporate Development
David Howe, M.Sc. – VP Operations and Mexico Country Manager
Luis Castro, Ing. Geo. – VP Exploration
Miguel Ordaz, Ing. Geo. – Mexico Projects Director and Legal Representative
Meghan Brown, BA, MBA – Director Investor Relations
Board of Directors
Geoff Handley, B.Sc. – Chair (1)(2)(3)
Rex McLennan, B.Sc., MBA (1)(3)(4)
Ricardo Campoy, B.Sc. (1)(2)
Ken Pickering, P.Eng. (2)(4)
Mario Szotlender, B.IR (1)(2)(3)(4)
Bradford Cooke, M.Sc., P.Geo. – Company CEO
Godfrey Walton, M.Sc., P.Geo. – Company President and COO
(1)
(2)
(3)
(4)
Audit Committee
Compensation Committee
Corporate Governance and Nominating Committee
Sustainability Committee
40
Institutional Investors, Analyst Coverage
• Van Eck Associates
• Ash Guglani, Salman Partners
• Fresnillo PLC
• Matt O’Keefe, Dundee
• Global X Management
• Polar Securities
• Royce & Associates
• Ben Asuncion, Haywood
• Andrew Kaip, BMO
• Profund Advisors
• Chris Thompson, Raymond James
• AMG Fondsverwaltung
• Ian Parkinson, GMP Securities
• Norges Bank
• Portola Group
• Renaissance Technologies
• Leon Esterhuizen, CIBC
• Daniel Earle, TD
• Vanguard Group
• Christos Doulis, PI Financial
• CPP
• Bhakti Pavani, Euro Pacific Capital
41
Reserves and Resources (Dec 31, 2013)
Proven
Total Proven
Probable
Total Probable
Total P&P
Measured
Total Measured
Indicated
Guanaceví
Bolañitos
El Cubo
Guanaceví
Bolañitos
El Cubo
Guanaceví
Bolañitos
El Cubo
Guanaceví
Bolañitos
El Cubo
San Sebastian
Guadalupe y Calvo
Total Indicated
Total M&I
Inferred
Guanaceví
Bolañitos
El Cubo
San Sebastian
Guadalupe y Calvo
Total Inferred
Silver-Gold Reserves and Resources
Tonnes
Ag g/t
Au g/t
327,711
281
0.51
380,522
156
2.50
752,534
138
2.16
1,460,766
175
1.87
34,480
342
0.46
98,300
134
2.17
615,407
131
2.23
748,188
141
2.14
2,208,954
163
1.96
132,003
183
0.29
75,900
132
1.39
660,097
158
2.87
868,000
160
2.35
1,701,230
242
0.57
1,191,800
111
1.95
1,570,476
144
2.06
2,476,000
229
1.08
1,861,000
119
2.38
8,800,506
177
1.55
Ag oz
2,961,100
1,910,300
3,330,400
8,201,800
379,400
424,200
2,595,700
3,399,300
11,601,100
777,200
322,800
3,357,800
4,457,800
13,221,600
4,263,300
7,263,000
18,216,200
7,147,300
50,111,400
Au oz
5,300
30,500
52,200
88,000
500
6,800
44,100
51,400
139,400
1,300
3,400
60,800
65,500
31,500
74,700
104,200
86,300
142,500
439,200
Aq Eq
3,279,100
3,740,300
6,462,400
13,481,800
409,400
832,200
11,160,200
12,401,800
25,883,600
855,200
526,800
7,005,800
8,387,800
15,111,600
8,745,300
13,515,000
23,394,200
15,697,300
76,463,400
9,668,506
1,155,035
2,145,128
1,477,844
2,376,000
154,000
7,308,007
54,569,200
9,384,300
9,642,100
7,729,500
13,390,600
464,600
40,611,100
504,700
17,100
111,720
130,100
126,800
10,600
396,320
84,851,200
10,410,300
16,345,300
15,535,500
20,998,600
1,100,600
64,390,300
Tonnes
Indicated
Parral
Buena Fe
Total Indicated
Inferred
Guanaceví
Parral
Arroyo Seco
Total Inferred
176
253
140
163
175
94
173
1.62
0.46
1.62
3.40
1.66
2.14
1.69
Silver-Gold-Lead-Zinc Resources
Ag g/t
Au g/t
1,631,000
49
Ag oz
0.90
2,589,900
Au oz
Aq Eq
47,200
5,421,900
655,000
166
0.21
3,495,700
4,400
3,759,700
2,286,000
83
0.70
6,085,600
51,600
9,181,600
646,000
129
0.15
2,687,300
3,100
2,873,300
1,303,000
63
0.88
2,658,900
36,900
4,872,900
738,000
220
0.07
5,220,000
1,700
5,322,000
2,687,000
122
0.48
10,566,200
41,700
13,068,200
42
Consolidated Mine Operations Table
Comparative Table of Consolidated Mine Operations
Period
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Total 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Total 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Total 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Total 2014
Plant t’put
(tonnes)
141,942
136,958
138,592
184,381
601,873
193,759
202,987
306,164
362,779
1,065,689
376,344
393,070
389,090
379,480
1,537,984
346,525
339,276
344,393
Ore grades (g/t)
Recovered ounces
Recoveries (%)
Silver
Gold
Silver
Gold
Silver
Gold
263
266
263
252
260
229
208
161
151
179
154
165
171
181
168
198
178
175
1.36
1.36
1.47
1.45
1.41
1.33
1.47
1.49
1.55
1.48
1.51
1.96
1.89
1.78
1.78
1.92
1.59
1.48
900,133
850,476
858,738
1,120,781
3,730,128
1,072,491
1,040,026
1,137,933
1,235,026
4,485,476
1,489,746
1,535,396
1,855,846
1,931,717
6,813,069
1,898,999
1,669,609
1,634,294
5,008
4,831
4,926
7,045
21,810
6,321
7,695
11,754
12,917
38,687
15,032
22,212
22,946
17,686
75,578
18,519
15,131
14,118
75.0
72.7
73.4
75.0
74.1
75.2
76.5
71.8
70.1
73.2
79.9
73.6
86.7
87.3
82.1
86.1
86.1
84.5
81.0
80.6
75.2
82.0
79.8
76.2
80.3
80.1
71.7
76.5
82.3
80.4
96.9
81.6
85.6
86.6
87.4
86.3
(1) Net of by-product credits
43
Cash costs(1)
($/oz Ag)
4.62
6.98
5.03
4.05
5.08
6.26
5.46
4.70
12.25
7.33
10.04
10.53
5.14
7.46
7.92
4.87
9.87
Direct costs
($/tonne)
79.30
96.69
91.47
84.14
87.55
92.44
86.32
97.04
92.86
92.74
99.63
96.45
104.06
90.72
97.00
92.93
103.58
Guanaceví Mine Operations Table
Comparative Table of Guanaceví Mine Operations
Period
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Total 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Total 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Total 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Total 2014
Plant t’put
(tonnes)
91,104
85,594
87,662
98,716
363,076
98,963
100,208
108,343
110,763
418,277
106,653
100,781
107,480
121,008
435,922
106,813
108,822
105,241
Ore grades (g/t)
Recovered ounces
Recoveries (%)
Silver
Gold
Silver
Silver
Gold
307
310
305
320
311
292
269
227
215
249
233
240
265
272
253
350
272
278
0.70
0.69
0.83
0.56
0.69
0.60
0.87
0.87
0.69
0.76
0.34
0.68
0.70
0.69
0.60
0.77
0.55
0.59
663,202
618,083
647,397
753,353
2,682,035
726,697
669,754
598,285
518,207
2,512,943
640,616
555,036
715,080
861,495
2,772,227
1,005,781
795,824
761,272
73.8
72.5
75.3
74.2
73.9
78.2
77.4
75.7
67.7
74.6
80.2
71.3
78.0
81.5
78.2
83.7
83.6
80.9
85.4
86.0
82.6
87.2
85.4
85.3
89.2
88.0
44.3
76.1
80.8
72.6
82.1
85.2
80.7
86.0
86.1
81.5
(1) Net of by-product credits
44
Gold
1,750
1,633
1,933
1,550
6,866
1,620
2,499
2,667
1,088
7,874
942
1,590
1,978
2,275
6,784
2,273
1,656
1,627
Cash costs(1)
($/oz Ag)
8.63
10.85
9.61
9.82
9.71
12.38
8.64
10.99
18.20
12.25
16.70
16.59
12.98
13.09
14.32
8.30
12.51
Direct costs
($/tonne)
89.11
106.55
107.05
99.41
100.34
113.69
100.81
101.82
99.70
103.83
113.61
111.21
111.06
114.55
110.93
103.90
109.83
Guanaceví - Operations Overview
45
Bolañitos Mine Operations Table
Comparative Table of Bolañitos Mine Operations
Period
Q1 2011
Q2 2011
Q3 2011
Q4 2011
Total 2011
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Total 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Total 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Total 2014
Plant t’put
(tonnes)
50,838
51,364
50,930
85,665
238,797
94,796
102,779
117,271
161,841
476,687
167,500
202,472
181,442
159,294
710,708
142,412
142,370
137,683
Ore grades (g/t)
Recovered ounces
Recoveries (%)
Silver
Gold
Silver
Gold
Silver
Gold
184
192
190
173
183
163
149
148
140
148
135
160
147
152
149
144
152
149
2.53
2.48
2.57
2.48
2.51
2.10
2.05
2.39
2.20
2.19
2.27
2.84
2.75
2.61
2.63
2.72
2.47
2.20
236,931
232,393
211,341
367,428
1,048,093
345,794
370,272
433,388
518,674
1,668,128
578,654
810,414
794,734
698,098
2,881,816
572,851
623,898
588,159
3,258
3,198
2,993
5,494
14,943
4,701
5,196
7,363
8,660
25,920
9,891
15,751
15,868
10,142
51,652
10,640
9,980
8,588
78.8
73.3
67.9
77.1
74.7
69.5
75.2
77.7
71.3
73.4
79.8
77.8
92.5
89.7
84.6
86.9
89.7
89.2
78.8
78.1
71.1
80.3
77.5
73.6
76.6
81.7
75.8
77.0
81.0
85.2
98.9
75.9
86.0
85.4
88.3
88.2
(1) Net of by-product credits
46
Cash costs(1)
($/oz Ag)
(6.59)
(3.31)
(9.02)
(7.77)
(6.77)
(6.63)
(0.31)
(9.98)
(3.73)
(5.20)
(0.06)
1.75
(8.10)
0.60
(2.87)
(2.21)
1.20
Direct costs
($/tonne)
61.75
80.25
64.66
66.54
68.07
70.26
72.18
77.34
75.66
74.25
85.10
75.50
84.57
72.78
79.47
85.27
93.04
Bolañitos – Operations Overview
47
El Cubo Mine Operations Table
Comparative Table of El Cubo Mine Operations
Period
Q1 2012
Q2 2012
Q3 2012
Q4 2012
Total 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Total 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Total 2014
Ore grades (g/t)
Recovered ounces
Recoveries (%)
Plant t’put
(tonnes)
Silver
Gold
Silver
Gold
Silver
Gold
80,550
90,175
170,725
102,191
89,817
100,168
99,178
391,354
97,300
88,084
101,469
92
96
94
103
93
112
118
107
110
103
102
1.42
1.42
1.42
1.48
1.41
1.62
1.77
1.57
2.01
1.44
1.42
106,260
198,145
304,405
270,446
170,423
346,032
372,124
1,159,026
320,367
249,887
284,863
1,724
3,169
4,893
4,199
2,574
5,101
5,269
17,142
5,606
3,495
3,903
44.6
71.2
58.6
79.9
63.5
95.6
98.9
86.1
93.1
85.7
85.6
46.9
77.0
62.8
86.4
63.2
97.8
93.4
86.8
89.2
85.7
84.3
(1) Net of by-product credits
48
Cash costs(1)
($/oz Ag)
Direct costs
($/tonne)
29.21
38.52
35.27
15.30
31.31
18.61
6.65
18.77
6.27
22.71
119.32
115.25
117.17
108.85
127.11
131.83
90.44
113.31
92.08
112.88
El Cubo – Operations Overview
49
Significant Operating Costs Breakdown
El Cubo
Consolidated
5%
7%
4%
Labour
5%
32%
Re-agents & Grinding
Fuel
2%
11%
17%
3%
4%
3%
38%
27%
Power
21%
Labour
Fuel
Royalties
Power
Contractor
Contractor
Refining
Explosives
Explosives
11%
tolled Ore
3%
Guanaceví
Bolañitos
11%
Re-Agents & Grinding
29%
14%
6%
Labour
8%
Fuel
34%
Power
Contractor
Refining
Refining
12%
17%
2%
Re-agents & Grinding
Power
20%
Contractor
5%
Labour
Fuel
Royalties
20%
Re-agents & Grinding
Explosives
8%
Tolled Ore
18%
50
3%
Explosives