Investment Highlights

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Low Cash Cost Asset Base

  • Yauricocha mine, Peru: Acquired in 2011, this world-class asset is a highly profitable polymetallic mining operation due to its low cash cost and high head grades. Silver by-product cash cost is USD $(27.28)/oz.1
     
  • Bolivar mine, Mexico: The Bolivar mine is a high-grade, low-cost copper mine with silver and zinc by-products that achieved commercial production in November 2011. The Piedras Verdes mill has a current throughput of 30,000 tpm and has a copper by-product cost of USD $1.40/lb.1
     
  • Cusi mine, Mexico: The Cusi silver mine achieved commercial production in January 2013 and is currently producing from the Santa Eduwiges mine. Exploration drilling has defined an area of 300 metres by 200 metres of high-grade disseminated silver that remains open in all directions with potential to become a large tonnage silver deposit. The Company anticipates releasing an updated NI 43-101 resource calculation study in mid 2013.

Solid Financial Position

  • Strong cash flow generating capacity with EBITDA of $84 million and cash flow from operations of $60 million for the twelve months ended December 31, 2012.
  • Solid balance sheet with cash and cash equivalents of $80 million and net debt2 of $9 million3
  • Announced inaugural $10.0 million annual cash dividend and share buy back program

Well Positioned for Growth

  • Yauricocha mine
    • New NI 43-101 report (September 2012) has tripled proven and probable reserves.
    • Completing exploration and development program to expanded resources at depth and test regional targets.
    • Developed new mining infrastructure at depth to increase production capacity and maximize operating efficiencies.
       
  • Bolivar mine
    • New NI 43-101 report (April 2013) identified 7.5 Mt of proven and probable reserves at Bolivar
    • Double production from 30,000 tpm to 60,000 tpm in 2013
    • Completing exploration program to continue to expand reserves and resources
       
  • Cusi project
    • Expand new disseminated silver discovery with current exploration program
    • Complete updated NI 43-101 compliant resource estimate in 2013
    • Transition into commercial production

Strong Team With Proven Track Record

  • Key Leadership
      • J. Alberto Arias, Founder & Chairman
        • Founder and President of Arias Resource Capital
        • Former Head of Equity Research at Goldman, Sachs & Co. for metals and mining in the U.S., Canada and Latin America
        • Engineering degree in mining and metallurgy from the Colorado School of Mines and MBA from Columbia University
      • Steven Dean, Director, Chair of Corporate Strategy Committee
        • Former President of Teck Cominco (now Teck Resources Ltd.)
        • Founding member of management of Normandy Poseidon Group, the largest Australian gold producer until its sale to Newmont in 2002
        • Founder and Chairman of several junior mining companies
      • Daniel Tellechea, President & CEO
        • B.Sc. in accounting and MBA from the Tecnológico de Monterrey in Mexico
        • Former President and CEO of Asarco LLC (2003 - 2005)
        • Held various leadership positions at Asarco, Southern Peru Copper Corporation and Grupo Mexico from 1994 - 2003
  • Recent Achievements
    • Acquired Yauricocha for $286 million
    • Successfully raised over C$300 million
    • Completed the construction of the Piedras Verdes Mill
    • Commenced commercial production at Bolivar Mine
    • Sold non-core hydroelectric asset for $47 million
    • Completed C$45 million in equity financing
    • Discovered new disseminated silver deposit at Cusi
    • Increased measured and indicated resources at Bolivar
    • Increased proven and probable reserves at Yauricocha and discovered new target at depth

Footnotes

1For the twelve months ended December 31, 2012
2Consolidated debt minus total cash and cash equivalents.