2007 annual report - golden mineralsgoldenminerals.com/pdfs/annual...
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07 A
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APEX SILVER MINES LIMITED
Platform for Growth2007 ANNUAL REPORT
2007apex silver mines limited
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*Between Apex Silver Mines Limited, The S&P 500 Index and Hemscott Group Index
$0
$50
$100
$150
$200
$250
$300
12/02 12/03 12/04 12/05 12/06 12/07
Apex Silver Mines Ltd. S&P 500 Hemscott Group Index
*ThegraphabovecomparesthecumulativetotalshareholderreturnasofDecember31,2007on$100investedinourordinarysharesasofDecember31,2002,inthestockscomprisingtheHemscottGroupIndex,whichincludesonlycompanieswithsilvermininginvestments,andinthestockscomprisingtheS&P500Index,as-sumingthereinvestmentofalldividends.
ApexSilverMinesLimitedisamining,explorationanddevelopmentcompany
andinthefirstquarterof2008becameasignificantproducerofsilver,zincand
leadconcentrates.Itsflagshipassetisthe65%-ownedSanCristóbalsilver-zinc-lead
minelocatedinsouthwesternBolivia(35%isownedbySumitomoCorporation).
SanCristóbalisexpectedtobeamongtheworld’slargestproducersofsilver,zinc
andlead.Theminecommencedproductionduringthethirdquarterof2007and
planstobeinfullproductionduringthesecondquarter2008.During2008,the
mineisexpectedtoproducepayablemetaloutputofapproximately16million
ouncesofsilver,235,000tonnesofzincand80,000tonnesoflead,witha16-year
lifebasedontheexistingprovenandprobablereserves.Inadditiontoitsinterest
inSanCristóbal,ApexSilverholdsanextensiveportfolioofhighlyprospective
explorationpropertieslocatedprimarilyinthetraditionalpreciousmetals-
producingregionsofMexico,Peru,BoliviaandArgentina.
1
Note:Provenandprobablereservesarecalculatedonthebasisofathree-yearrollingpriceaverageforsilver,zincandlead.(1) Amountsareshownascontainedmetalsinoreandthereforedonotreflectlossesintherecoveryprocess.Sulfideorereservesare
expectedtohaveanapproximateaveragerecoveryof70%forsilver,89%forzincand87%forlead.Oxideorereservesareexpectedtohaveanaveragerecoveryof60%forsilverand50%forlead.Theestimatedstripratioofthemineis2.20:1.
San Cristóbal Proven and Probable Reserves
Parameter Units
Proven & Probable Reserves
(Dec. 31, 2007)
Proven & Probable Reserves
(Dec. 31, 2006)
Proven & Probable Reserves
(Dec. 31, 2005)Basis:
SilverPrice $/Oz. 10.76 8.51 6.28
ZincPrice $/Tonne 2,623.50 1,895.96 1,084.63
LeadPrice $/Tonne 1,609.38 1,036.16 782.64
Reserves Tonnes 250,089,000 250,773,000 230,570,000
Grade:
Silver Grams/Tonne 55.10 55.30 63.10
Zinc % 1.53 1.54 1.59
Lead % 0.53 0.53 0.58
Contained Metal(1):
Silver Ounces 443,000,000 446,000,000 467,656,000
Zinc Tonnes 3,826,000 3,870,000 3,652,000
Lead Tonnes 1,323,000 1,324,000 1,342,000
San Cristóbal 2008 Plan Parameters
Parameter Units 2008
OreThroughput Tonnes/day 40,000
Payable Metal Production:
Silver Ounces/Year 16,000,000
Zinc Tonnes/Year 235,000
Lead Tonnes/Year 80,000
Cash Operating Cost*:
Silver $/Oz. ($3.50)-($3.00)
Zinc $/Lb. $0.65-$0.75
*Theterm“averagecashoperatingcost”isusedonaper-ounceofpayablesilverandper-poundofpayablezincbasis.Ourestimatedcashoperatingcostsincludeestimatedmining,millingandotherminerelatedoverheadcosts.Theper-ounceofsilvercostalsoincludesoff-sitecostsrelatedtoprojectedsilverrefiningcharges.Theper-poundofzinccostalsoincludeschargesrelatedtotransportationofzincconcentratesandtheirprojectedtreatmentandsmeltingcharges.Allcashoperatingcostsexcludetaxes,depreciation,amortizationandprovisionsforreclamation.Theaveragecashoperatingcostper-ounceofsilverisequaltothepro-ratashareofestimatedaverageoperatingcostsfortheperiodreducedbytheestimatedvalueofleadby-productcreditsfortheperioddividedbythenumberof“payableounces.”Theleadby-productcreditsarenetofchargesrelatedtotransportationofleadconcentratesandtheirprojectedtreatmentandsmeltingcharges.The“payableounces”aretheestimatednumberofouncesofsilvertobeproducedduringtheperiodreducedbytheouncesrequiredtocoverestimatedrefining,treatmentandtransportationlossesfortheperiod.Averagecashoperatingcostperpoundofzincisequaltothepro-ratashareofestimatedaverageoperatingcostsfortheperioddividedbythenumberof“payablepounds.”The“payablepounds”aretheestimatednumberofpoundsofzinctobeproducedduringtheperiodreducedbythepoundsrequiredtocoverestimatedrefining,treatmentandtransportationlossesfortheperiod.WehaveincludedestimatedaveragecashoperatingcostinformationtoprovideinvestorswithinformationaboutthecashgeneratingcapabilitiesoftheSanCristóbalproject.ThisinformationmaydifferfrommeasuresofperformancedeterminedinaccordancewithGenerallyAcceptedAccountingPrinciples(GAAP)andshouldnotbeconsideredinisolationorasasubstituteformeasuresofperformancethatwillbepreparedinaccordancewithGAAP.ThesemeasuresarenotnecessarilyindicativeofoperatingprofitorcashflowfromoperationstobedeterminedunderGAAPandmaynotbecomparabletosimilarlytitledmeasuresofothercompanies.
2
ApexSilver’s2007front-pagestoryiswithout
questionthecompletionandstartofproduction
atourflagshipproject—theSanCristóbalmine
insouthwesternBolivia.Productionfrom
theSanCristóbalplantbeganinAugust,and
firstshipmentsofconcentratelefttheplant
inSeptember.Wehave
successfullydemonstrated
thecapabilityofour
planttoprocessoreatthe
designcapacityof40,000
tonnesperdayaswe
havecontinuedtowork
throughtypicalstart-up
issues.Plantthroughput
andconcentrate
productionhaveimproved
eachmonthaswe
movetowardssustained
fulldesigncapacity
production,anticipatedbymid-year2008.
ThesheermagnitudeoftheSanCristóbal
projectwasunprecedentedforayoung,
growingcompany,representingamassive
undertakinginaremote,undevelopedarea
atthecenteroflocalAndeanculture.After
adozenyearsofpreparationandhardwork,
todaythecompanybenefitsfromourstate-of-
the-artminingandoreprocessingoperation
thatwebelievewillsetthenewglobalstandard
forenvironmentallyandsociallyresponsible
mining.Weareparticularlyproudofthehard
workanddedicationdemonstratedbyallofour
employeesinmakingthispossible.
TomaketheSanCristóbalmineareality,we
constructedover180kilometersofelectrical
lines,engineeredand
installeddrinking
andirrigationwater
systems,builtover
230kilometersof
roads,2bridges,64
kilometersofrail
lines,established
acellularphone
communication
networkandhired
andprovided
trainingfora
localconstruction
workforceincludingapproximately3,500
Boliviancitizenswhoconstructedthemine
andbuilttheplant.Wemaintainandcontinue
totrainanoperatingworkforceincluding
approximately800Boliviancitizenswhooperate
themineandtheplant.Theresultisathriving
localeconomyandasolidpartnershipwiththe
localcommunities.
Astheworld’slargestdevelopmentinsilver,zincandlead,SanCristóbalservesasasolidplatformfromwhichourcompanyplanstoworktoachievediversifiedglobalgrowth.
WORLD CLASS ASSET: UP AND RUNNING
“The sheer magnitude of the San Cristóbal project was unprecedented for a young,
growing company.”
to our shareholders
3
BEYOND COMPLIANCE: THE SAN CRISTÓBAL MODEL
DuringconstructionoftheSanCristóbal
mine,plantandportfacilities,we
setaworldwideminingindustry
safetyrecordofanunprecedented
12millionman-hourswithoutalost
timeaccident.Weimplementedan
environmentalandsafetymanagement
systemthatgoesbeyondcompliance,
andwehavedevelopedstrongand
lastingrelationships
atthelocal,regional
andnationallevelsof
government.Tothatend
wecontinuetoworkvery
closelywithBolivia’s
citizensandgovernment
officialstoensuretheir
supportatalllevels.
Extensiveon-the-ground
researchandplanning,
agenuinerespectfor
theculturalheritageof
thelocalcommunities,
andstrongleadership
inenvironmental
stewardshipand
sustainabilityhaveall
playedasignificantrolein
thesuccessfulconstruction
andstart-upofoperations
atSanCristóbal.
Itisourintentiontoexportour
successfulmodelforsustainable
developmentasweadvanceother
projectsworldwide.
GLOBAL DIVERSIFICATION
Asanestablishedoperator,ApexSilver
planstomovetowardsournextgoalof
growthandgeopoliticaldiversification.
Wewillaccomplishthisutilizingour
analyticalskillstoevaluatemining
opportunitiesthatenhanceshareholder
valueandthroughanaggressive
explorationprogram.
Wehavestrong,activeexploration
programs,representingadiversityof
locationsinArgentina,Mexico,Peru,
BoliviaandEcuador.Thereare58
professionalsinourexplorationgroup
whooverseethiseffort.Ourexploration
teamhasbeenworkinghardthispast
yearwithafocusonfourprojectsof
particularinterestintheAmericas.
Weinitiateddrillingprogramsat12
projectsduring2007.Thisincreased
efforthasresultedinthediscoveryof
significantmineralizationinArgentina,
MexicoandPeru,representedbyfour
projectsthatwehaveidentifiedfor
advancement.Tosupportthiseffort,we
plantoincreaseour2008exploration
spendingtoapproximately$21million.
“As an established operator, Apex Silver plans to move towards our next goal of growth and geopolitical diversification.”
4
• ARGENTINA
InnorthwesternArgentina,wehave
identifiedtwoimportantprojectsthatwe
plantoaggressivelyadvance—theElQuevar
andChinchillaprojects.Bothprojectsexhibit
characteristicsofmineraldepositsthatwe
believecouldaddsignificantvaluetoApex.
Primarilyasilverdeposit,ElQuevarhas
beenidentifiedforanexpandedexploration
effortin2008.Weplantodrillatleast50
additionalholes,initiateenvironmentaland
engineeringstudiesandconductfurther
metallurgicalwork.Itisimportanttonote
thatcomparedtoourcornerstoneproject
atSanCristóbal,theElQuevarproject
wouldrequireasmallerinfrastructure
investmentthanwasrequiredtobringSan
Cristóbalintoproduction,dueprimarilyto
theproximityofroadandenergysupply
infrastructure.ApexSilverisan80%owner
andtheoperatorofElQuevarasajoint
venturepartnerwithMineraHochschild.
TheChinchillaproject,northofElQuevar,
wasidentifiedinmid-2007.Theprojectisat
amuchearlierstageofexplorationthanEl
Quevar,butourteamhasseenencouraging
earlyindicationsthatChinchillamay
containapotentiallylargesilver-zinc-lead
deposit.WehaveselectedChinchillafor
furtherexplorationandhavescheduled
adrillingprogramtobegininthesecond
quarterof2008.Theprojectis100%owned
byApexSilver.
• MEXICO
InMexicowehaveidentifiedseveraltargets
intheZacatecasminingdistrict,aworld
classsilverdistrictwhereminingofsilver
andgolddatesbackmorethan500years.
Asaresultofouracquisitionprogram,
ApexSilvernowcontrolsabout60%of
thedistrict.A30-holedrillingprogram
wasinitiatedin2007,withafocusonthe
Mulerostarget,amultipleveinswarm
withmorethanfivekilometersofveins.
Webelieveweareintheupperportionof
asignificantveinsystemthatmayberich
insilverwithgoldandbasemetals.Our
explorationteamwillfurtherassessthe
potentialofthisprojectduring2008.
• PERU
Our2007explorationprogramatthe
Joncojircaprojectinnorth-centralPeru,now
ajointventurewithourpartnerSumitomo,
hasproducedencouragingresultsandour
explorationteamhasselectedtheprojectfor
furtherexplorationincludinganadditional
drillingprogramin2008.
Inadditiontoourworkontheseprojects
andothersinourAmericasexploration
portfolio,wecontinuetolookforand
evaluateexplorationopportunitiesinother
partsoftheworld.
• AUSTRALIA
WeareexploringtwoprojectsinAustralia.
TheIronhurst–WarrigalCreektargetsin
northwesternQueenslandarezinc-gold-
silverbrecciabodiesthataresimilarto
knowndepositsintheregion.Wehavethe
righttoearn-intoa65%interestoverfour
yearsfromajuniorAustraliancompany.
Wehaveconductedageophysicalsurvey
andidentifiedseveraltargetsthatweplan
todrilltestin2008.Wearealsoexploring
forzinc,copperandgoldnortheastof
AliceSprings.Fieldworkisunderwayin
preparationforadrilltestlaterthisyear.
Wehavetherighttoearna70%interestin
thisproject.
FOCUS ON EXPLORATION
5
Duringthestart-upandramp-uptofull
operationsoftheSanCristóbalMine,
weandSumitomoCorporation,which
owns35%ofthemine,havecontinued
toprovidecashfundingforitsoperations.
Wearefundingourshareofthese
amounts,plusourgeneralcorporatecosts
andexplorationprogram,fromexisting
unrestrictedcashandinvestments,interest
andotherincome,andSumitomo’s
deferredpaymentstousonSanCristóbal
silverandzincproduction.During2008
weplantoseekadditionalfinancing
throughdebt,equityorothermeans.
PaulSorosretiredfromtheApexSilver
BoardofDirectorsinearly2008.Paul
servedasaDirectorofApexSilversinceits
founding,andIwouldliketothankPaulfor
themanyyearsofguidanceandleadership
hehasprovidedtoourcompany.Joining
theBoardduring2007wereRodDrakeand
IanHume.Mr.Drakeisacorporatedirector
andformerchiefexecutiveofficerwith
morethan30yearsofdiverseconsulting
andexecutivemanagementexperience.
Mr.Humeisacorporatedirectorwith
approximately30yearsofexperiencein
corporatefinanceandinvestmentmanagement
andconsulting,primarilyinthenaturalresources
andtelecommunicationsindustries.Bothofthese
gentlemencomewithconsiderableexperience
andexpertiseandareactivelycontributingtothe
successofourcompany.
Mostimportantly,Iwouldliketothankour
shareholdersandourmanyotherpartnersand
stakeholdersforyourloyalsupportduringthe
yearsofhardworkthathave
broughtustothisexcitingpoint
inourcompany’sdevelopment.
Commodityfundamentals
continuetoremainstrong
andglobalconditionsremain
favorableforcontinuedgrowth
inthesector.Ourtiming
couldnothavebeenbetterfor
launchingSanCristóbal,and
forusingSanCristóbalasthe
platformtogrowApexSilver.
JeffreyG.Clevenger
President,ChiefExecutiveOfficerandDirector
March31,2008
“Production from the San Cristóbal plant began in August, and first shipments of concentrate left the plant in September.”
6
SAN CRISTÓBAL PRODUCTIONOur65%-ownedSanCristóbalmineinsouthwesternBoliviaconsistsofan
openpitmineandconcentratorwithadesignedcapacityof40,000tonnes
perday.Oreisextractedfromtheopenpitbyaconventionaltruckand
shoveloperationandthencrushed.Thecrushedoreisgroundinasemi-
autogenous(SAG)andballmillcircuit,andundergoesafrothflotationprocess
thatproduceslead-silverandzinc-silverconcentrates.Theconcentratesare
transportedinsealedcontainerstoApex’sstate-of-the-artconcentrate-handling
Open pit mine. Over 250 million tonnes of ore in proven and probable reserves.
21 Caterpillar trucks with load capacities ranging from 150 to 180 tonnes are mining at a rate of 150,000 tonnes per day.
Conveyor belt moves crushed ore a distance of 1.7 kilometers at a speed of 4 meters per second.
Gyratory crusher fed with approximately 40,000 tonnes of ore per day.
7
facilityattheportofMejillones,Chile.Attheportfacility,thetrainentersa
sealedbuildingwheretheconcentrateisunloadedontoaspecialconveyor
thatrollsupintoatubeforcontaineddeliverytotheship.Apexbelievesits
ore-handlingoperationsattheMejillonesportfacilityrepresentanewworld
standardfortheenvironmentalhandlingofleadconcentrates.Oncethe
concentrateisloadedintotheships,itissenttosmeltersaroundtheworld.
“Apex believes its concentrate-
handling operations at
the Mejillones port facility
represent a new world standard
for the safe-handling of lead
concentrates.”
More than 90 cells used for the differential froth flotation process with separate zinc and lead circuits.
Port facility. Storage of concentrates and facility to load material into ships.
1 SAG mill (36 foot diameter) and 2 ball mills (22 foot diameter).
Concentrates are transported approximately 650 kilometers by train in sealed containers from San Cristóbal to the port of Mejillones.
8
ApexSilveriscommittedtoitsroleasaleaderincorporatesocialresponsibilityand
sustainabledevelopment.Webelievethatthisisnotonlytherightthingtodo;itis
partandparcelofthewaywemustrunourbusinessinordertoultimatelysucceed.
Aswelookforward,webelievethemost
successfuloperatorswilltaketheinitiativeto
createprocessesthatallowthemtodothings
better,cleanerandmoreefficiently,while
atthesametimeactivelyimprovinglifefor
thepeopleandcommunitiesthataremost
closelyinvolvedwitheachproject.Weare
closelylinkedwiththelocalcommunities
whereweoperatenotonlybecausetheyrepresentourmainsourceoflabor,butalso
becausewehavedevelopedprojects,independentfromthemine,thatprovidethe
communitieswithsustainablesocio-economicgrowth.
Ourcommitmenttoresponsibledevelopmenthasproventobeastrongcompetitive
advantage.WecangointodiversecountriessuchasArgentina,MexicoandPeruand
establishcredibilityfromdayonebecauseofourreputationforimplementingthese
programs.SocialresponsibilityisacorebusinessvalueofApexSilver.
SOCIAL RESPONSIBILITY
“Social responsibility is part and parcel of the way we must run our business in order to ultimately succeed.”
9
GLOBAL EXPLORATIONApexSilvercurrentlyhasnumerousexploration
propertiesinPeru,Argentina,Mexico,Ecuador,Bolivia
andAustralia.Theprojectsofprimaryinteresttousare
inareaswherewebelievetheopportunityforlowcost
miningcouldresultinveryattractivemargins.In2007
wecompleteddrillingprogramsat12projects.Weplan
toadvanceatleastfourprojectsin2008,includingthe
ElQuevarandChinchillaprojectsinArgentina,the
ZacatecasprojectinMexicoandtheJoncojircaproject
inPeru.Weplantoexpandourexplorationefforts
againin2008andtoincreaseourexplorationbudget
to$21milliontosupporttheexpandedprogram.
“We plan to expand our exploration
efforts again in 2008 and
to increase our exploration
budget to $21 million
to support the expanded
program.”
10
El Quevar, Argentina •
TheElQuevarpropertyin
northwesternArgentinaisprimarily
asilverdepositthatourexplorationteambelieves
iscurrentlyourmostpromisingprospect.Drilling
in2007hasestablishedthepresenceofhigh-grade
silver-leadmineralizationinparallelstructuresoveramile
longandasmuchas30to40feetwide.Earlyresultsfrom
drillingin2007indicateathickeningofthemineralizedzone
atdepth.Weexpecttocompletesignificantadditionalanalysis
oftheElQuevarprojectin2008withthegoalofestablishinga
mineralresourcesandconductinganeconomicevaluationin2009.
ApexSilverisan80%ownerandtheoperatorofElQuevarasajoint
venturewithMineraHochschild.
Chinchilla, Argentina •
AlsolocatedinnorthwesternArgentina,
theChinchillaprojectcontainswhatwebelieve
tobealargesilver-dominantdepositwith
significantamountsofleadandzinc.Several
cross-cuttingbrecciapipescontaindisseminated
mineralizationoveranextensiveareaaboutone
milelongand1,500to2,000feetwide.Testpits
andtrencheshavebeendugandsampleshave
returnedvaluesintherangeof0.30%to7%
zincandupto400gramspertonsilverandsuggestasignificantmineral
prospectwithapotentialtohostmorethan100milliontonnesof
mineralization.Weareintheprocessofconductingageophysicalsurvey
overtheareaandplantoinitiatedrillingin2008.TheChinchillaproject
hasgoodaccessandinfrastructureandis100%ownedbyApex.
FOUR PROJECTS TO BE ADVANCED
“With continued exploration of 11 target areas in 2008, El Quevar has a potential to be a significant silver deposit.”
11
• Peru
Oftheeightprojectareaswecurrentlyhave
inPeru,theJoncojirca,Cochabamba
andAnitaprospectsarethe
mostpromising.Partofour
explorationjointventure
withSumitomo,the
Joncojircaprojectis
alargezinc,silverand
leadsystemassociated
withvolcanicintrusions.In
Anita,agold-silverprospect
innorthernPeru,weare
currentlynegotiatingsurface
accessandcommunityparticipation
agreementsinpreparationfordrilling.
• Zacatecas, Mexico
InMexicowehaveidentifiedseveralprojectsto
considerforpossibleadvancementintheZacatecas
miningdistrict,aworldclasssilverdistrictwherewe
maintain100%ownershipofapproximately14,500
hectares.Wehaveinterceptedmineralizedveinsat
eachofthe20holeswehavedrilledattheMuleros
target,yieldingevidenceofgoldandsilverdeposits
withvisiblesilver-zincmineralization.Samplinghas
returnedupto700gramspertonsilveroverfivefeetin
theveins.Ourplanin2008istotesttheveinsatgreater
depthoncewehaveidentified
potentialoreshoots.
52°
Sect
ion
MU
-07-
05
2.10m @ 131 g/t Ag
3.30m @ 61 g/t Ag2.00m @ 93.1 g/t Ag
2.00m @ 105 g/t Ag
1.00m @ 91 g/t Ag
1.30m @ 105 g/t Ag
0.60m @ 153 g/t Ag
0.90m @ 136 g/t Ag
1.40m @ 104 g/t Ag
1.50m @ 193 g/t Ag1.20m @ 99 g/t Ag
2.00m @ 264 g/t Ag
1.50m @ 60.2 g/t Ag
1.00m @ 124 g/t Ag
1.00m @ 202 g/t Ag
1.50m @ 77 g/t Ag2.20m @ 113 g/t Ag
2.10m @ 104 g/t Ag
1.20m @ 100 g/t Ag
MU-07-??
San Sab
XXXXXX-XX
MU-07-I
MU-07-H
MU-07-G
MU-07-F
MU-07-E
MU-07-D
MU-07-C?
MU-07-05DRILL HOLEIN PROCESS
“The Chinchilla
Project is a large
breccia-hosted zinc, silver
and lead deposit which
is 100% owned by
Apex.”
All exploration results can be found at www.ApexSilver.com
12
ABOUT THE THEMEThisyear’sannualreportcelebratesthelaunchofoperations
atourflagshipasset,theSanCristóbalsilver-lead-zincminein
southwesternBolivia.
WithSanCristóbalunderway,wecannowbegintoaddressthe
question,“What’snext?”
“PlatformforGrowth”saysitall:SanCristóbalwillprovide
ApexSilverwiththemeanstoachievediversifiedglobalgrowth.
board of directorsJEFFREYG.CLEvENGERPresidentandChiefExecutiveOfficerApexSilverMinesLimitedAge58
HARRYM.CONGERFormerChairmanHomestakeMiningCompanyAge77
RODMANL.DRAkEMemberoftheAdvisoryBoardResourceCapitalFundsAge65
OvEHOEGHSeniorPartnerHoeghInvestAge71
kEITHR.HULLEYChairmanApexSilverMinesLimitedAge68
IANMASTERTON-HUMEFoundingPartnerSentinelGroupLimitedAge57
kEvINR.MORANOManagingPrincipalkEMCapitalLLCAge54
TERRYM.PALMERFormerPartnerErnst&YoungLLPAge63
CHARLESB.SMITHFormerPresidentandChiefOperatingOfficerSouthernPeruCopperCompanyAge69
Investor Relations ContactJerryW.DanniSeniorvicePresidentCorporateAffairsApexSilverMinesCorporation1700LincolnStreet,Suite3050Denver,CO80203(303)839-5060(888)696-2739Email:[email protected]:(303)839-5907www.ApexSilver.com
Stock Transfer AgentQuestionsregardingyourshareholderaccountshouldbeaddressedto:AmericanStockTransfer59MaidenLaneNewYork,NY10038(718)921-8200(800)937-5449Attn:GeraldineZarbo
Market InformationApexSilverMinesLimitedOrdinarySharestradeontheAmericanStockExchangeunderthesymbol“SIL.”
Independent AccountantsPricewaterhouseCoopersLLP1670Broadway,Suite1000Denver,CO80202
Annual MeetingWednesday,May28,20089:00a.m.(MT)TheBrownPalaceHotelOnyxRoom32117thStreetDenver,CO80202
Shareholder Information
Corporate Headquarters AddressApexSilverMinesLimitedWalkerHouseMaryStreetGeorgeTown,GrandCaymanCaymanIslands,BritishWestIndieswww.ApexSilver.com
Unit Conversion Table1troyounce=31.103grams1(short)ton=0.907(metric)tonnes1(metric)tonne=2,204.62pounds1troyounceper(short)ton=34.286
gramsper(metric)tonne1foot=0.305meters1mile=1.609kilometers1acre=0.405hectares
General Information
Ourcompany’sordinarysharesarelistedontheAmericanStockExchangeunderthesymbol“SIL.”AsofMarch20,2008,wehadapproximately175shareholdersofrecordandanestimated8,600additionalbeneficialholderswhoseordinaryshareswereheldinstreetnamebybrokeragehouses.
Ourcompanyhasneverpaidanydividendsonitsordinarysharesandexpectsfortheforeseeablefuturetoretainallofitsearningsfromoperationsforuseinexpandinganddevelopingitsbusiness.Anyfuturedecisionasto
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thepaymentofdividendswillbeatthediscretionofourBoardofDirectorsandwilldependuponourearnings,receiptofdividendsfromoursubsidiaries,financialposition,capitalrequirements,plansforexpansionandsuchotherfactorsasourBoardofDirectorsdeemsrelevant.
Thefollowingtablesetsforththehighandthelowclosingpricespershareofourordinarysharesfortheperiodsindicated.TheclosingpriceoftheordinarysharesonMarch20,2008was$11.80.
Ordinary Shares
2007 2006
Period High Low High Low
1stQuarter $15.25 $12.68 $25.48 $14.61
2ndQuarter 21.99 13.21 26.00 12.85
3rdQuarter 20.80 16.23 17.65 13.41
4thQuarter 21.00 14.35 17.52 14.10SW-COC-002387
APEX SILVER MINES LIMITEDWalkerHouse
MaryStreet
GeorgeTown,GrandCayman
CaymanIslands,BritishWestIndies
www.ApexSilver.com