Silvercorp Metals Inc. · TSX:SVM

Silvercorp Metals — Investor Presentation (April 2023)

34 slides from Silvercorp Metals's investor presentation, April 2023

  1. Slide 1: Profitable Silver Producer Positioned to Grow

    PROFITABLE SILVER PRODUCER POSITIONED TO GROW Corporate Presentation TSX: SVM | NYSE AMERICAN: SVM April 2023 1

  2. Slide 2: Cautionary Statements

    CAUTIONARY STATEMENTS TSX: SVM | NYSE AMERICAN SVM Cautionary Note Regarding Forward-Looking Information and Forward-Looking Statements This presentation includes statements concerning future operations, prospects, strategies, plans, projections, forecasts, financial conditions and economic performa

  3. Slide 3: Compelling Value for Profitable and Growing Silver Producer

    COMPELLING VALUE FOR PROFITABLE AND GROWING SILVER PRODUCER TSX: SVM | NYSE AMERICAN SVM Market Cap $699M* • $0 debt, no financing since 2010 • Strategy – worldwide M&A targeting >$50M annual FCF • High margin/long mine life with reasonable capital Cash expenditures and timelines $210M • US$0.025/sh

  4. Slide 4: Stable & Profitable Silver Producer Positioned to Grow

    STABLE & PROFITABLE SILVER PRODUCER POSITIONED TO GROW TSX: SVM | NYSE AMERICAN SVM Historical Production (April 2006 – December 2022) Ying Mining District, Henan Province (SGX, HPG, HZG, TLP, LME, LMW and DCG mines) • Silver: +87 Moz. • Lead + Zinc: +1.2 Blbs. • Profit Distribution: >US$520M • +15

  5. Slide 5: Margins Consistently Outperform Industry Averages

    MARGINS CONSISTENTLY OUTPERFORM INDUSTRY AVERAGES TSX: SVM | NYSE AMERICAN SVM EBITDA Margin Return on Equity CY 2022 CY 2022 41% 8.3% Silvercorp Silvercorp VS. VS. 21% 30% 12% -1.0% NAM Non-Energy NAM Industrials Peer Avg. Peer Avg. Materials Avg. Avg. 80 30 60 40.9% 20 40 8.3% 10 20 0 0 -10 -20 -4

  6. Slide 6: Management Focus on Generating Free Cash Flow

    MANAGEMENT FOCUS ON GENERATING FREE CASH FLOW TSX: SVM | NYSE AMERICAN SVM Calendar Year Calendar Year Adjusted net income = adjusted for one-time non-cash items, FX gain(loss), Free cash flow = operating cash flow less capital expenditures, less capital lease investment in associates gain(loss), eq

  7. Slide 7: Attractive Valuation Versus Peers

    ATTRACTIVE VALUATION VERSUS PEERS TSX: SVM | NYSE AMERICAN SVM EV / EBITDA P / Adj E P / OCF TTM TTM TTM 5.8x VS. 18.2x 17.1x VS. 122.8x 7.7x VS. 59.3x Peer Avg. Peer Avg. Peer Avg. Silvercorp Silvercorp Silvercorp Fortuna 5.5x Silvercorp 17.1x Fortuna 6.0x Silvercorp 5.8x Fortuna 27.8x Silvercorp 7

  8. Slide 8: Ying District – Growth Through Drilling, Optimization, Expansion & Consolidation

    YING DISTRICT – GROWTH THROUGH DRILLING, OPTIMIZATION, EXPANSION, & CONSOLIDATION TSX: SVM | NYSE AMERICAN SVM Drilled ~1,000,000 m in 2020-2022 • 270,000+ metres planned in FY2024 • Extensions of known mineralization & newly discovered Au veins in resource area Mine optimization in progress • Impro

  9. Slide 9: Building Silver Inventory While Growing Low Cost Production

    BUILDING SILVER INVENTORY WHILE GROWING LOW COST PRODUCTION TSX: SVM | NYSE AMERICAN SVM 400 350 P&P Reserves M&I Resources (not in P&P) Inferred Resources Ag & AgEq. Ounces (M) 1 300 152 155 126 250 121 115 108 200 102 102 102 141 86 86 121 120 96 97 95 150 119 65 75 57 57 57 62 50 50 100 77 63 34

  10. Slide 10: Incubating World Class Opportunities – 28.2% New Pacific Metals Investment

    INCUBATING WORLD CLASS OPPORTUNITIES – 28.2% NEW PACIFIC METALS INVESTMENT TSX: SVM | NYSE AMERICAN SVM Silver Sand Project Carangas Project Silverstrike Project A large silver deposit to be An extensive silver horizon 200 m thick near surface mined by open pit & tank above a thick gold deposit oxid

  11. Slide 11: Catalysts

    CATALYSTS TSX: SVM | NYSE AMERICAN SVM 1) Increased production for FY2024 2) Additional drilling to upgrade resources to reserves and make new discoveries 3) Mine optimization programs 4) Advance Kuanping to construction status with updated plan and cost estimates 5) Constructing a new TSF and mill

  12. Slide 12: Strong Corporate Culture of Responsible Mining

    STRONG CORPORATE CULTURE OF RESPONSIBLE MINING TSX: SVM | NYSE AMERICAN SVM Highlights of Our Sustainable Practices for All Stakeholders ENVIRONMENT ✓ EMS ISO 14001 certification and investments in environmental protection ✓ Recycled 83.5% of the 4,486,404 m³ of water used in our processing plants l

  13. Slide 13: We Construct Green Mines That Generate Sustainable Value

    WE CONSTRUCT GREEN MINES THAT GENERATE SUSTAINABLE VALUE TSX: SVM | NYSE AMERICAN SVM TAILINGS DRY STACKING TAILINGS BACK FILL FACILITY GC MINE GC MINE ➢ The most favorable method ➢ Further waste reduction SGX MINE WASTE WATER TREATMENT SYSTEM 1M T/Y WASTE ROCK AGGREGATE PLANT YING MINES YING MINES

  14. Slide 14: Ownership & Coverage

    OWNERSHIP & COVERAGE TSX: SVM | NYSE AMERICAN SVM Top 10 Institutional Investors % O/S Analyst Coverage 1 Van Eck Associates 4.74 Canada Felix Shafigullin Eight Capital 2 Global X Management 2.73 Justin Stevens PI Financial 3 ETF Managers Group 2.51 Dalton Baretto Canaccord Genuity 4 Renaissance Tec

  15. Slide 15: Head Office

    HEAD OFFICE Suite #1750 1066 West Hastings St. Vancouver, BC, Canada V6E 3X1 Tel: 604-669-9397 Fax: 604-669-9387 Toll-Free: 1-888-224-1881 Investor@silvercorp.ca www.silvercorp.ca Watch The Most Recent Interview Silvercorp’s disclosure documents are available from the System for Electronic Document

  16. Slide 16: Appendices

    APPENDICES TSX: SVM 16 NYSE AMERICAN: SVM

  17. Slide 17: Leadership: A Solid History of Value Creation

    LEADERSHIP: A SOLID HISTORY OF VALUE CREATION TSX: SVM | NYSE AMERICAN SVM Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng, Ph.D., Geology Chairman and CEO Derek Liu, MBA, CGA, CPA David Kong, CA, CPA, Former Ernst & Chief Financial Officer Young LLP Partner; over 30 years PubCo. exp

  18. Slide 18: Fiscal 2023 Production and Capex

    FISCAL 2023 PRODUCTION AND CAPEX TSX: SVM | NYSE AMERICAN SVM FY2023 Production Head grades Metal production Production costs Ore processed Silver Lead Zinc Silver Gold Lead Zinc Cash cost AISC* (tonnes) (g/t) (%) (%) (Koz) (Koz) (Klbs) (Klbs) ($/t) ($/t) Nine months ended December 31, 2022 Actual Y

  19. Slide 19: Fiscal 2024 Production and Capital Expenditure Guidance

    FISCAL 2024 PRODUCTION AND CAPITAL EXPENDITURE GUIDANCE TSX: SVM | NYSE AMERICAN SVM FY2024 Production Guidance FY2024 Capital Expenditure Guidance 19

  20. Slide 20: Ying Mining District, Henan

    YING MINING DISTRICT, HENAN TSX: SVM | NYSE AMERICAN SVM • SGX, TLP, LME, LMW, HPG, HZG and DCG underground mines have Ying Mining District: 4 mining permits 68.59km² identified over 300 veins • 2 mills of 3,200 tpd capacity produce silver-lead and zinc concentrates • 6 smelters within 200 km ² • Pr

  21. Slide 21: Extensive Exploration for Organic Growth

    EXTENSIVE EXPLORATION FOR ORGANIC GROWTH TSX: SVM | NYSE AMERICAN SVM Silvercorp’s extensive drilling & tunnelling Ying: 2,210 km of drilling and 735 km of tunnelling since 2004 GC: 395 km of drilling and 100 km of tunnelling since 2004 KM Calendar Year Benefits of drilling: 1) Made new discoveries,

  22. Slide 22: Extensive Exploration for Organic Growth

    EXTENSIVE EXPLORATION FOR ORGANIC GROWTH TSX: SVM | NYSE AMERICAN SVM Development System & 3D Models at Ying One of Eight Core Logging Warehouses Tunnels and Drill Holes Seven Core Storage Facilities 22

  23. Slide 23: Making New Discoveries - Finding Gold Deposits in Silver Mines

    EXTENSIVE EXPLORATION FOR ORGANIC GROWTH TSX: SVM | NYSE AMERICAN SVM Making new discoveries - Finding Gold Deposits in Silver Mines Drilling at HPG Mine discovered a new “Rhyolitic Breccia Dyke” type of broad Au-Ag zone: Breccia dyke (extends along a 2 km NW trend, up to 200 m thick and over 1 km d

  24. Slide 24: LMW Mine: Low Angle Au or Au-Cu Veins

    EXTENSIVE EXPLORATION FOR ORGANIC GROWTH TSX: SVM | NYSE AMERICAN SVM LMW Mine: Low Angle Au or Au-Cu Veins, Wide Ag-Pb-Cu Zone, New High-Grade Ag-Pb-Zn Veins Discovered Vein LM50: Hole ZKX0796 intercepted 2.74 m true width @ 11.82 g/t Au Hole ZKX0423 intercepted 1.62 m true width @ 10.53 g/t Au Hol

  25. Slide 25: Revenue Percentage by Metal

    REVENUE PERCENTAGE BY METAL TSX: SVM | NYSE AMERICAN SVM Base Metals: 43% Gold: 3% Silver: 54% Calendar Quarters 25

  26. Slide 26: Realized Metal Price Examples

    REALIZED METAL PRICE EXAMPLES TSX: SVM | NYSE AMERICAN SVM Silver Lead Zinc US$ Per Ounce US$ Per Pound US$ Per Pound * Net of value added tax Shanghai Metal Exchange quoted prices on February 14, 2023: Silver=4.910 RMB/gram, lead=15,125 RMB/tonne, Zinc=23,110 RMB/tonne, all including 13% VAT. Conve

  27. Slide 27: GC Mine

    GC MINE TSX: SVM | NYSE AMERICAN SVM Updated MRE NI 43-101 March 2021: • P&P Reserves up 8% from the last Resource Estimate Report, despite 2 years mine production depletion • Measured and indicated resources up 11% and inferred resource up 17% • Projected LOM has the potential to go beyond 2034 GC

  28. Slide 28: BYP Gold Mine

    BYP GOLD MINE TSX: SVM | NYSE AMERICAN SVM Preparing for production: • Lead-Zinc mine suspended August 2014 • 2019 NI 43-101 gold resource identified 421,000 oz M&I and 110,000 oz inferred • Applied for a new gold mining permit 500 tpd Mill at the BYP Mine 28

  29. Slide 29: Building Lead & Zinc Inventory While Growing Production

    BUILDING LEAD & ZINC INVENTORY WHILE GROWING PRODUCTION TSX: SVM | NYSE AMERICAN SVM 7,000 P&P Reserves M&I Resources (not in P&P) Inferred Resources 6,000 Pb + Zn Pounds (M) 5,000 2,738 2,818 2,471 2,381 2,313 2,367 4,000 1,894 1,894 2,020 2,020 2,020 2,885 3,000 2,420 2,209 1,393 1,340 1,172 1,471

  30. Slide 30: Management Focus on Generating Free Cash Flow

    MANAGEMENT FOCUS ON GENERATING FREE CASH FLOW TSX: SVM | NYSE AMERICAN SVM Profit (Green Line Below) on every tonne of ore mined Silver Price (US$ per ounce) Per Tonne Value (US$) Calendar Period • Realized silver price is calculated using the Shanghai Metal Exchange price, less smelter deduction an

  31. Slide 31: China Investment Considerations

    CHINA INVESTMENT CONSIDERATIONS TSX: SVM | NYSE AMERICAN SVM 1) Silvercorp operations are held through Chinese entities • Significant employers, taxpayers and contributors to the local economies • We supply necessary raw materials for manufacturing exporters 2) Many companies depend on China for man

  32. Slide 32: Summary of Reserves

    SUMMARY OF RESERVES1,2 TSX: SVM | NYSE AMERICAN SVM Average Grades Contained Metal Reserves Reserve Tonnes Project Silver Gold Lead Zinc Silver Gold AgEq3 Lead Zinc Category (Million) (g/t) (g/t) (%) (%) (Moz) (Koz) (Moz) (Kt) (Kt) Proven 5.78 255 0.18 3.75 1.22 47 34 50 217 70 Ying Mining Probable

  33. Slide 33: Summary of Resources

    SUMMARY OF RESOURCES1,2 TSX: SVM | NYSE AMERICAN SVM Contained Metal Resources Average Grades Resource Tonnes (Inclusive of Reserves) Project Category (Million) Silver Gold Lead Zinc Silver Gold AgEq3 Lead Zinc (g/t) (g/t) (%) (%) (Moz) (Koz) (Moz) (Kt) (Kt) Measured 8.78 262 0.21 3.98 1.25 74 60 78

  34. Slide 34: Endnotes

    ENDNOTES TSX: SVM | NYSE AMERICAN SVM • Qualified Persons • Guoliang Ma, P. Geo., is a Qualified Person within the meaning of National Instrument 43-101 – Standards Of Disclosure for Mineral Projects (“NI 43-101”) who supervised the preparation of the scientific and technical information of Silverco

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