Silvermet Presentation – AGM, June 25, 2014

Silvermet Inc.
Annual Meeting of Shareholders
June 25, 2014
Forward Looking Statements
Certain statements in this presentation may constitute “forward looking” statements which involve known and
unknown risks, uncertainties and other factors which may cause actual results, performance or achievements in
the Company to be materially different from any future results, performance or achievements expressed or
implied by such forward looking statements. When used in this presentation, such statements use such words
as “may,” “will,” “expect,” “anticipate,” “project,” “believe,” “plan” and other similar terminology. The risks and
uncertainties are detailed from time to time in reports filed by the Company with the securities regulatory
authorities, to which viewers of this presentation are referred for additional information concerning the
Company, its prospects and the risks and uncertainties relating to the Company and its prospects. New risk
factors may arise from time to time, and it is not possible for management to predict all of those risk factors or
the extent to which any factor or combination of factors may cause actual rests, performance and achievements
of the Company to be materially different from those contained in forward looking statements. Given these
risks and uncertainties, investors should not place undue reliance on forward looking statements as a prediction
of actual results. There should not be an expectation that forward looking information will, in all
circumstances, be updated, supplemented or revised, whether as a result of new information, changing
circumstances, future events or otherwise.
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Silvermet Inc.
• Stock Exchange
TSX-V
• Symbol
SYI
• Principal business activity
Electric Arc Furnace Dust
(“EAFD”) recycling to recover
zinc concentrate
3
Shareholders
BEFESA
SILVERMET INC.
Silvermet (Malta)
49%
51%
Befesa-Silvermet
Turkey (BST)
100%
Befesa-Silvermet
Adana
Befesa-Silvermet
Iskenderun
Befesa-Silvermet
Izmir
4
Capitalization
(Number of shares as of May 31, 2014)
Common Shares
Options (at $0.15)
Fully Diluted
154,108,216
. 9,650,000
163,758,216
5
Management & Directors
•
•
•
•
•
•
•
•
•
Stephen G. Roman, B.A. – Chairman, President & CEO
Ian D. Atacan, CPA, CMA, MBA – Chief Financial Officer
Rein A. Lehari, CPA, CA – Director & VP Corporate Development
Asier Zarraonandia, B.Sc. – Director & CEO Befesa Zinc
Keith Spurr – Director
Richard Faucher, P.Eng. – Director
Douglas Scharf, CPA, CA – Director
Derek Rance, P.Eng. – Director
Terence Ortslan, P.Eng. – Director
6
Recent Developments
• 2013 – Q1
$49 million project finance facility (EBRD)
• 2013 – Q2
Received EIA Certificate
• 2012 – to date Purchased 7.2 million shares under NCIB
(at avg. $0.08/share)
• 2013 – Q4
Purchased plant site in Adana
• 2014 – Q1
Long-term supply contracts and letters of intent
signed with five steel mills
• 2014 – Q2
Iskenderun expansion engineering underway
• 2014
Depressed steel markets continue – Limited EAFD
7
supply
Major Steel Producing Countries
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
2008
China
512.3
Japan
118.7
United States
91.4
India
57.8
Russia
68.5
South Korea
53.6
Germany
45.8
Turkey
26.8
Brazil
33.7
Ukraine
37.3
Italy
30.6
Taiwan
19.9
Mexico
17.2
France
17.9
Iran
10.0
Other EU
103.9
Other Countries
95.8
Total World
1,341.2
Total Steel Produced (Mt)
2009
2010
2011
2012
2013
577.1
638.7
694.8
731.0
779.0
87.5
109.6
107.6
107.2
110.6
58.2
80.5
86.4
88.7
86.9
63.5
69.0
73.6
77.3
81.2
60.0
66.9
68.9
70.4
68.7
48.6
58.9
68.5
69.1
66.1
32.7
43.8
44.3
42.7
42.6
25.3
29.1
34.1
35.9
34.7
26.5
32.9
35.2
34.5
34.2
29.9
33.4
35.3
33.0
32.8
19.8
25.8
28.7
27.3
24.1
15.8
19.8
20.2
20.7
22.3
14.1
16.9
18.1
18.1
18.2
12.8
15.4
15.8
15.6
15.7
10.9
12.0
13.2
14.5
15.4
74.0
87.8
89.0
82.9
83.5
78.4
91.1
95.6
90.3
90.0
1,235.1 1,431.7 1,529.2 1,559.2 1,606.0
(1) Based on 2013 statistics
(2) Estimated based on 16 kg EAFD per tonne steel produced
EAF Production ('000 T)
%(1)
Mt
EAFD(2)
10%
74.0
1,184
23%
24.9
398
61%
52.7
843
68%
55.5
887
30%
20.7
332
39%
25.8
412
32%
13.5
215
71%
24.7
396
25%
8.6
137
6%
2.0
31
72%
17.3
277
46%
10.3
166
71%
12.9
206
35%
5.5
88
87%
13.4
214
36%
29.8
476
68%
61.4
983
29%
452.9
7,246
Source: World Steel Association
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Turkish Steel Production
Turkish Steel Production (000 tonnes):
Total Steel Produced
Blast Furnace Production
Electric Arc Furnace Production
Percentage change vs. previous year
2008
2009
2010
2011
2012
2013
26,806
(7,034)
19,772
25,304
(7,562)
17,742
29,143
(8,238)
20,905
34,107
(8,832)
25,275
35,885
(9,325)
26,560
34,654
(9,931)
24,723
-10%
18%
21%
5%
-7%
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Zinc Price Forecast
Zinc Price
($/lb)
$1.20
$1.00
$0.80
$0.88
$1.03
$1.04
$1.02
$1.02
2015
2016
2017
2018
$0.94
$0.87
$0.60
$0.40
$0.20
$-
2012
2013
2014
Source: for 2014-2015, Reuters, April 2014. For 2016-2018, LME, TEX Report, McCloskey, Platts, CRU, Metal Bulletin, Macquarie
Research, April 2013.
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Iskenderun Plant Expansion
• Processing Capacity
• Production
• Total Cost
• Financing (100%)
• Commissioning
110,000 (tonnes/yr. EAFD)
35,000 (tonnes/yr. zinc concentrate)
52,000,000 (pounds/yr. zinc)
approx. US$ 23 million
EBRD/Local Bank US$ 14 million
Lines of Credit
US$ 4 million
Cash on hand
US$ 5 million
Q3 2015
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Iskenderun Plant Expansion
• Raw Material Preparation
Modernized
• Waelz Kiln Unit
New Kiln & Settling Chamber
New Filter application
• Washing Unit
Minor changes
• Waste Water Treatment
No changes
• Auxiliary Equipment
New equipment added
(Firefighting system, scale, etc.)
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Iskenderun Plant - Current Layout
13
Iskenderun Plant
14
Iskenderun Plant - Waelz Kiln
15
Iskenderun Plant – New Layout
16
Iskenderun Plant Elevation
17
Iskenderun Plant Expansion - Schedule
Timeline
Item
Start
Completion
2014
Detailed Engineering and
Supply Agreements
Q2 2014
Q3 2014
2014
Permits, Procurement
Q3 2014
Q4 2014
2014-2015
Fabrication & Supply
Q3 2014
Q1 2015
2014-2015
Construction & Installation
Q4 2014
Q2 2015
2015
Commissioning
Q2 2015
Beginning Q3 2015
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EAFD Processed
Iskenderun Plant
(thousand DMT/year, 100%)
120
110
100
80
60
52
40
20
57
58
2011
2012
53
53
55
2013
2014
2015
22.5
0
2009
2010
2016
19
Waelz Oxide Production
Iskenderun Plant
40
(thousand DMT/year, 100%)
35
35
30
25
20
20
15
10
15
7
17
16
17
2013
2014
2015
12
5
0
2009
2010
2011
2012
2016
20
Zinc Sales
(million lbs./year)
60
Million lbs.
50
52
40
30
30
20
25
22
23
25
19
10
6
-
2009
2010
2011
2012
2013
2014
2015
2016
21
Net Revenue after Smelter
Iskenderun Plant
(million $ at 100%)
35
33
Million $
30
25
20
18
15
10
5
11
13
15
15
2013
2014
17
2
0
2009
2010
2011
2012
2015
2016
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Summary
•
•
•
•
Short-term headwinds due to depressed steel industry
Zinc shortage forecast for 2015 through 2020
Iskenderun plant modernization completed in 2015
Net Revenue (after smelter charges) increasing to $33
million by 2016 (Iskenderun)*
*100% (Silvermet’s share 49%)
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Thank You for Your Support!
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