Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (December 2017)
35 slides from Silvercorp Metals's investor presentation, Dec 14, 2017
Slide 1: Corporate Presentation
SVM:TSX/NYSE AMERICAN Corporate Presentation December 14, 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Li
Slide 3: China's Premier Silver Producer
CHINA’S PREMIER SILVER PRODUCER Historical Production (April 2006- March 2017) Ying Mining District, Henan Province Silver: 52.6 Million Ounces Lead+Zinc: 773 Million lbs Net Profit: US$360 million Fiscal 2017 (April 2016-March 2017) BYP Mine, Silver: 6.5 Million Ounces Hunan Province (On Care and M
Slide 4: 52.6 Million Ounces Silver Produced Over 11 Years
52.6 MILLION OUNCES SILVER PRODUCED OVER 11 YEARS *Silvercorp’s fiscal year is ended on March 31 **F2018E equals actual production from April – September 2017 plus production guidance from October 2017 – March 2018 SVM:TSX/NYSE AMERICAN 4
Slide 5: 773 Million Pounds Lead and Zinc Produced Over 11 Years
773 MILLION POUNDS LEAD AND ZINC PRODUCED OVER 11 YEARS *Silvercorp’s fiscal year is ended on March 31 **F2018E equals actual production from April – September 2017 plus production guidance from October 2017 – March 2018 SVM:TSX/NYSE AMERICAN 5
Slide 6: Recent Financial Performance
RECENT FINANCIAL PERFORMANCE ▸ Cash + short-term investments: US$98.6 Million (as at Sep. 30, 2017) ▸ Reinstatement of dividend US$0.02/year ▸ No Receivables (Smelters pay for concentrate in advance) ▸ No Debt *Silvercorp’s fiscal year is ended on March 31 SVM:TSX/NYSE AMERICAN 6
Slide 7: Profitability Performance
PROFITABILITY PERFORMANCE SVM:TSX/NYSE AMERICAN 7
Slide 8: Silver Price Impact on the Value & Profit of Per Tonne Ore
SILVER PRICE IMPACT ON THE VALUE & PROFIT OF PER TONNE ORE SVM:TSX/NYSE AMERICAN 8
Slide 9: Sales Mix by Metals
SALES MIX BY METALS ▸ GC Project contributed increased revenue for Lead and Zinc since Q3 2014 ▸ Recent Lead and Zinc price increases boosted Lead and Zinc revenues SVM:TSX/NYSE AMERICAN 9
Slide 10: Improved and Steady Head Grades at Ying Mining District
IMPROVED AND STEADY HEAD GRADES AT YING MINING DISTRICT SVM:TSX/NYSE AMERICAN 10
Slide 11: Quarterly Free Cash Flow
QUARTERLY FREE CASH FLOW SVM:TSX/NYSE AMERICAN 11
Slide 12: Quarterly Revenue vs Realized Silver Price
QUARTERLY REVENUE VS REALIZED SILVER PRICE SVM:TSX/NYSE AMERICAN 12
Slide 13: Quarterly Adjusted Net Income (Loss)
QUARTERLY ADJUSTED NET INCOME (LOSS) SVM:TSX/NYSE AMERICAN 13
Slide 14: Steady & Reduced Shares Outstanding
STEADY & REDUCED SHARES OUTSTANDING SVM:TSX/NYSE AMERICAN 14
Slide 15: Comparison with Peers: Free Cash Flow per Share and Multiples
COMPARISON WITH PEERS: FREE CASH FLOW PER SHARE AND MULTIPLES SVM:TSX/NYSE AMERICAN 15
Slide 16: Comparison with Peers: All-In Sustaining Cost
COMPARISON WITH PEERS: ALL- IN SUSTAINING COST * All-in sustaining cost per ounce of silver, net of by-product credits. SVM:TSX/NYSE AMERICAN 16
Slide 17: Comparison with Peers: Return on Equity
COMPARISON WITH PEERS: RETURN ON EQUITY SVM:TSX/NYSE AMERICAN 17
Slide 18: Comparison with Peers: Gross Profit Margin
COMPARISON WITH PEERS: GROSS PROFIT MARGIN SVM:TSX/NYSE AMERICAN 18
Slide 19: Growth: Grow Shares Outstanding or Free Cash Flow?
GROWTH： GROW SHARES OUTSTANDING OR FREE CASH FLOW? * Silvercorp announced a Normal Course Issuer Bid to acquire up to 8,409,712, common shares, representing approximately 5% the 168,194,254 common shares issued and outstanding as of November 16, 2017. The repurchase program will run from November 27
Slide 20: Adopt New Information Tool "Enterprise Blog" in Operation
ADOPT NEW INFORMATION TOOL “ENTERPRISE BLOG” IN OPERATION REDUCES DILUTION & IMPROVES SAFETY Improvement in the head grades of metals can be attributed in part to an internal “Enterprise Blog” (EB) system in the management of Mine Production and Safety Information. “EB” system is an internet social
Slide 21: Ying Mining District in Henan: Silvercorp's Flagship Asset
YING MINING DISTRICT IN HENAN: SILVERCORP’S FLAGSHIP ASSET ▸ Flagship Ying District consists of underground mines (SGX, TLP, LM, and HPG) –over 200 veins identified ▸ On-going drilling has increased ▸ 68.74km2 land package mine life to 20 years after 10 year’s production ▸ produced 50.7 million Oz s
Slide 22: GC Mine in Guangdong: The Second Mine
GC MINE IN GUANGDONG: THE SECOND MINE Our Newest Mine ▸ Commercial production commenced in 2014 ▸ Underground silver/zinc mine ▸ Excellent infrastructure and access ▸ Profitable operations Main Access Ramp SVM:TSX/NYSE AMERICAN 22
Slide 23: BYP Gold Mine: Preparing for Production
BYP GOLD MINE : PREPARING FOR PRODUCTION Status: ▸ Suspended mining operations in August 2014 ▸ Capital requirements for upgrades to sustain ongoing production are being considered ▸ Continues to review alternatives for this project ▸ To bring it back to production may cost US$10 million 500 tpd Mil
Slide 24: Growing Reserves & Resources
GROWING RESERVES & RESOURCES 1 Excludes Lead and Zinc. Gold was converted to Silver equivalent at a rate of 65:1. 2 Measured & Indicated Resources Inclusive of Reserves. See Appendix III, IV and V for breakout of Measured, Indicated and Inferred, Proven and Probable categories. SVM:TSX/NYSE AMERICAN
Slide 25: Steady Production and Cost Control Support "Quality Growth"
STEADY PRODUCTION AND COST CONTROL SUPPORT “QUALITY GROWTH” Current Production: ▸ Maintain steady production, with stable or reduced cost Growth: ▸ Grow existing assets organically through drilling ▸ Bring BYP back to production ▸ Acquired ~29.9% equity interest in New Pacific Metals Corp. (TSX-V: N
Slide 26: FY 2018 Production Guidance
FY 2018 PRODUCTION GUIDANCE FY2018 Guidance + 6 Month Actual* Ying Mining District GC Mine Grand Total Project 6 Month 6 Month 6 Month FY2018E FY2018E FY2018E Actual Actual Actual Ore processed (tonnes) 650,000 333,701 250,000 130,677 900,000 464,378 Head Grades Silver (gram per tonne) 275 299 90 10
Slide 27: FY2018 Capital Expenditure Guidance
FY2018 CAPITAL EXPENDITURE GUIDANCE (CURRENT FISCAL YEAR ENDING MAR 31, 2018)* Facilities/ Mine Development and Tunneling** Land Usage/ Equipment*** Total US$million Mines/ Projects Amount work Amount (US$million) (meters) (US$million) 6 Month 6 Month 6 Month 6 Month FY2018 FY2018 FY2018 FY2018 Actu
Slide 28: Appendices
APPENDICES SVM:TSX/NYSE AMERICAN 28
Slide 29: Appendix I: Ownership and Coverage
APPENDIX I: OWNERSHIP AND COVERAGE Top 10 Institutional Investors % O/S Analyst Coverage 1 Van Eck Associates Corporation 7.34 Chris Thompson Raymond James 2 Old Mutual Global Investors (UK), LTD 2.32 Joe Reagor Roth Capital 3 Global X Management Company, LLC 1.23 Bhakti Pavani Euro Pacific 4 AMG Fo
Slide 30: Appendix II: Management & Board
APPENDIX II MANAGEMENT & BOARD Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng Marina Katusa Chairman and CEO, Director Yikang Liu Paul Simpson Derek Liu, MBA, CGA, CPA Chief Financial Officer David Kong Luke Liu, M. Eng. PhD (Mining Eng.) Vice President China Operations Lorne Waldma
Slide 31: Appendix III: Summary of Reserves
APPENDIX III: SUMMARY OF RESERVES1 Average Grades Contained Metal Reserves Reserve Tonnes Project Category (Million) Silver (g/t) Lead (%) Lead (%) Silver (Moz) Lead (t) Zinc (t) Proven 4.67 252 4.15 1.55 37.85 193,950 72,240 Ying Mining District Probable 7.63 233 3.50 1.09 57.16 267,010 83,450 Prov
Slide 32: Appendix IV: Summary of Resources
APPENDIX IV: SUMMARY OF RESOURCES1 Contained Metal Resources Resource Tonnes Average Grades Project (Inclusive of Reserves) Category (Million) Silver (g/t) Lead (%) Zinc (%) Silver (Moz) Lead (t) Zinc (t) Measured 5.91 266 4.36 1.64 50.55 257,600 96,690 Ying Mining Indicated 10.40 233 3.59 1.13 77.7
Slide 33: Appendix V: BYP Mine Resource
APPENDIX V: BYP MINE RESOURCE Mineral Resources for Gold Zones as of December 31, 2011: Contained Metal Cut-off Grades Resource Grades CLASS Resources (g/t) (tonne) Gold (g/t) Gold (oz) Indicated 1.0 3,510,000 2.59 292,000 Inferred 1.0 2,470,000 1.84 146,000 Mineral Resources for Lead and Zinc Zones
Slide 34: Endnotes and Cautionary Statements
ENDNOTES AND CAUTIONARY STATEMENTS Alex Zhang, P. Geo., is the 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 Silvercorp included in this pres
Slide 35: Head Office
HEAD OFFICE Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4 Tel: 604-669-9397 Fax: 604-669-9387 Toll-Free: 1-888-224-1881 investor@silvercorp.ca www.silvercorp.ca SVM:TSX/NYSE AMERICAN Silvercorp’s disclosure documents are available from the System for Electronic Document Analysis and
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