Kuya Silver Corporation · CSE:KUYA
Kuya Silver — Investor Presentation (February 2021)
18 slides from Kuya Silver's investor presentation, February 2021
Slide 1: Building A Responsible High-Margin Silver Mining Company
Building A Responsible High-Margin Silver Mining Company CSE: KUYA | OCTQB: KUYAF | FRA: 6MR1 HIGH GRADE | GROWING | SILVER PRODUCTION | AMERICAS FEBRUARY 2021
Slide 2: Important Disclosures - Please Read Carefully
IMPORTANT DISCLOSURES - PLEASE READ CAREFULLY This presentation is being provided for information purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell or any solicitation of any offer to purchase or subscribe for any securities of Kuya
Slide 3: Kuya is a simplified form of the Quechuan word Qhuya which means a mine
KUYA IS A SIMPLIFIED FORM OF THE QUECHUAN WORD “QHUYA” WHICH MEANS A MINE This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securitie
Slide 4: Well-run silver mines command a market premium
WELL-RUN SILVER MINES COMMAND A MARKET PREMIUM Bethania is a great first asset Recent Past Present (2020-2021) Future Vision (2021+) • Producing silver mine until 2016 – now on care • RTO Q3 2020 (June-Sept) • Commission/Production and maintenance. • Raised C$12.3M (June-July) • Produce at industry
Slide 5: Share Structure
Significant Shareholders SHARE STRUCTURE Management 29% Erika Soria (S&L Andes) 10% Commodity Capital 8% Eric Sprott 5% Shares Outstanding 34,271,908 Other Instituitional Shareholders Shares Issued in Bethania Acquisition 3,929,288 Sprott Asset Management <5% Crescat Capital <5% Total Shares (16-Feb
Slide 6: Silver companies - very small sector
SILVER COMPANIES - VERY SMALL SECTOR Pivoting to Gold Silver Equities Universe • Lack of good investment choices drives valuations higher • The investable silver universe is very small • Significant value increase for production • Production and/or significant exploration projects valued at C$100M+
Slide 7: What do these successful silver companies have in common?
WHAT DO THESE SUCCESSFUL SILVER COMPANIES HAVE IN COMMON? Start small Fortuna Silver (2006) and grow First Majestic (2005) First Year Production: 0.5Moz First Year Production: 0.3Moz Today: C$1.7M market cap through Today: C$3.3B market cap (gold-focused) production and Silver acquisition Endeavour
Slide 8: Following a successful proven strategy
FOLLOWING A SUCCESSFUL PROVEN STRATEGY The Bethania Mine will Launch the 4 Market’s Next Silver Mining Company 3 2 Lower risk: predictable 1 Benefit from by-product geology, low capital intensity, well-established Acquire small-scale mines sales: base metals and mining methods, off-the- from local o
Slide 9: Great access and history
GREAT ACCESS AND HISTORY • Located in major silver-lead-zinc mining district in Central Peru • Access mine by road from Huancayo (major city) • Daily flights from Lima to Jauja (near Huancayo) • Mine located near mining village of Bethania • The Bethania Mine opened in 1977 after discovery of two ve
Slide 10: Dual-track value creation
DUAL - TRACK VALUE CREATION Phase 1: 43-101 District Phase 2: Step-Out Drill Program Resource Exploration & Resource Growth Drill Temiskaming Kerr Program Regional Resource Detailed Start Plant Underground Commissioning Engineering Construction Development CSE:KUYA 10
Slide 11: Leading low-cost production
LEADING LOW-COST PRODUCTION Silver Industry Comparable in Latin America (2019) Low Cost Profile $30.00 • High grades, higher recoveries • No royalties or streams $22.50 • Mining near surface (lower haulage, mining costs vs. $15.00 deep mines) Target • Low non-discretionary $7.50 { AISC sustaining ca
Slide 12: Proposed expansion to reduce costs
PROPOSED EXPANSION TO REDUCE COSTS AISC NEW TREATMENT/ AISC REFINING PROCESSING - improved market - no toll milling TRANSPORT OTHER conditions costs - improved market - greater recoveries - eliminate long position with greater haul trucking 2015 FY production POST EXPANSION (most recent full year -
Slide 13: Simple mining - well understood orebody
SIMPLE MINING – WELL UNDERSTOOD OREBODY Excellent Exploration Potential • Drifting exploration/production adits from several adits on east and west side • Swarm of high-grade veins trending NE-SW • Mined by underhand cut and fill • 6 veins – source of historical production + non 43-101 resources • 1
Slide 14: Low-risk exploration
LOW-RISK EXPLORATION Bethania Mine Long Section Española 2 Historical workings Current Mine Area (no resources) N 7 sub-parallel veins with development Mercedes vein (surface showing) Unexplored Vein sample Vein sample Vein sample Open 31.2 oz/t Ag over 1.40 206 oz/t Ag over 0.12 m 52.3 oz/t Ag over
Slide 15: Social Responsibility
SOCIAL RESPONSIBILITY Kuya Silver is actively engaged in building on a strong legacy of working cooperatively with the local Poroche community to develop a mutually beneficial, safe and sustainable mining business in the region The Company is committed to: 1. Providing a safe and sustainable work en
Slide 16: Kerr Assets, Cobalt Camp (LOI with First Cobalt)
KERR ASSETS, COBALT CAMP (LOI WITH FIRST COBALT) In December 2020, Kuya signed a Letter of Intent with First Cobalt Corp., to acquire the Kerr Project and an option to enter a joint venture to earn up to 70% of its remaining Cobalt area claims. The Kerr Assets (Northeastern Ontario) • Includes eight
Slide 17: Management & Team
MANAGEMENT & TEAM David Stein, MSc (Geo), CFA – President and CEO, Director Dr. Quinton Hennigh – Chairman Mr. Stein founded Kuya Silver in 2017 to acquire the high grade Bethania Silver Mine and develop the Dr. Hennigh is an economic geologist with more than 25 years of exploration experience with
Slide 18: www.kuyasilver.com @KuyaSilver 217 Queen Street, Suite 401
www.kuyasilver.com @KuyaSilver KuyaSilverCorp 217 Queen Street, Suite 401 Toronto, Ontario, Canada M5V 0R2 Follow Kuya Silver Kuya-Silver CSE:KUYA