Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Merger or Acquisition (August 2023)
25 slides from Silvercorp Metals's merger presentation, August 2023
Slide 1: Creating a Diversified, High Growth Precious Metals Company
+ CREATING A DIVERSIFIED, HIGH GROWTH PRECIOUS METALS COMPANY Joint Presentation AUGUST 2023 TSX: SVM | NYSE AMERICAN SVM ASX: ORR TSX: SVM | NYSE AMERICAN SVM ASX: ORR 1
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Information and Forward-Looking Statements The forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this presentation, and other than as required by applicable secur
Slide 3: Transaction Rationale
TRANSACTION RATIONALE Silvercorp to Acquire All of the Fully-Paid Ordinary Shares of OreCorp via an Australian Scheme of Arrangement for Total Consideration with an implied value of A$0.601 per OreCorp Share Create a diversified, highly Present an opportunity for a Enable OreCorp and Silvercorp has
Slide 4: Transaction Details
TRANSACTION DETAILS • Silvercorp to acquire 100% of the shares of OreCorp by way of a Scheme of Arrangement (the “Scheme”) Proposed Transaction under the Australian Corporations Act 2001 (Cth) • For each OreCorp Share held, OreCorp shareholders to receive A$0.15 in cash and 0.0967 of a Silvercorp co
Slide 5: Benefits to Shareholders
BENEFITS TO SHAREHOLDERS BENEFITS TO ORECORP SHAREHOLDERS BENEFITS TO SILVERCORP SHAREHOLDERS • Offer price of A$0.60 per share (A$0.15 per share in cash and 0.0967 of • Accretive transaction on a NAV basis a Silvercorp common share for each OreCorp share)1 ‒ Significant and immediate premium of 41.
Slide 6: Pro Forma Capitalization
PRO FORMA CAPITALIZATION Exchanges TSX/NYSE ASX TSX/NYSE/ASX1 FDITM Shares Outstanding (M) 179.7 403.1 218.7 FDITM Market Cap2 (US$M) $517.6 $115.7 $629.9 Avg. Daily Trading Value (LTM)3 (US$M) $5.0 $0.1 $5.1 Cash4 (US$M) $201.1 $8.9 $170.4 Debt4 (US$M) - - - Net Cash (US$M) $201.1 $8.9 $170.4 Sourc
Slide 7: Pro Forma Global Asset Portfolio
PRO FORMA GLOBAL ASSET PORTFOLIO Robust Mineral Reserves and Resources Profile Proven & Probable Reserves1,2 Total Resources1,2 (Contained Metal Moz) (Contained Metal Moz) 116.3 13.0 215.2 347.9 41.7 50.0 3.3 103.3 2.6 256.2 Silvercorp AgEq (Moz) OreCorp Au (Moz) Silvercorp Direct Exposure Silvercor
Slide 8: Pro Forma Resource & Production Profile
PRO FORMA RESOURCE & PRODUCTION PROFILE The Transaction Significantly Diversifies Silvercorp’s Resource and Production Profile Silvercorp Production Silver Profile (Moz AgEq) Gold (Based on Value at Consensus Prices)2 4.15 Moz 281 Moz Silver Gold Total Contained Gold1 Total Contained Silver1 8.9 9.1
Slide 9: Overview of Tanzania & Lake Victoria Goldfields
OVERVIEW OF TANZANIA & LAKE VICTORIA GOLDFIELDS Tanzania Overview Lake Victoria Goldfields • Tanzania has seen major recent investment by majors including: Barrick, BHP, AngloGold Ashanti, TotalEnergies and Shell Plc • Hydro power will deliver >70% of Tanzania’s electricity upon completion of major
Slide 10: Overview of the Nyanzaga Gold Project
OVERVIEW OF THE NYANZAGA GOLD PROJECT Asset Snapshot Definitive Feasibility Study (August 2022)1 Description • Open pit and underground Au mine Mine Life (years) 10.7 • 84% owned by OreCorp LOM Ore Mined (Mt) 42.5 Ownership • Government of Tanzania has a 16% free carried interest Head Grade (g/t Au)
Slide 11: Overview of the Nyanzaga Gold Project
OVERVIEW OF THE NYANZAGA GOLD PROJECT LOM Production Profile (koz Au)¹ Nyanzaga Reserves & Resources (100% basis)² UG Production (koz Au) OP Production (koz Au) Category Tonnes Grade Contained Metal 400 (Mt) (g/t Au) (koz Au) 300 Proven - - - Probable 40.1 2.02 2,600 200 Reserves 40.1 2.02 2,600 100
Slide 12: Nyanzaga Development Plan
NYANZAGA DEVELOPMENT PLAN Silvercorp has Identified a Number of Opportunities in the Nyanzaga Development Plan that have Potential to Enhance the Operation Resettlement Increased mineral Reduction of initial capex action plan reserve profile and life of mine G&A • The A$28 million placement • Greate
Slide 13: Overview of Silvercorp
OVERVIEW OF SILVERCORP Vancouver-based Canadian company listed on the TSX and NYSE American with market capitalization of US$518 million1 A leading silver producer with over 90 Moz of silver produced over the past 17 years with 2 mining operations and remaining mine life of over 15 years Strong bala
Slide 14: Silvercorp: Stable & Profitable Silver Producer Positioned to Grow
SILVERCORP: STABLE & PROFITABLE SILVER PRODUCER POSITIONED TO GROW Historical Production (April 2006 – June 2023) Ying Mining District, Henan Province (SGX, HPG, HZG, TLP, LME, LMW and DCG mines) • Silver: >90 Moz. • Lead + Zinc: >1.3 Billion LBS • Profit Distribution: >US$520M • +15 year mine life
Slide 15: Silvercorp: Building Silver Inventory While Growing Low Cost Production
SILVERCORP: BUILDING SILVER INVENTORY WHILE GROWING LOW COST PRODUCTION P&P Reserves M&I Resources (not in P&P) Inferred Resources Ag & AgEq. Ounces1 152 155 126 121 115 108 102 102 102 141 86 86 (M) 121 120 65 96 97 95 119 57 57 57 62 75 50 50 77 34 63 57 115 108 109 114 115 115 81 102 99 99 103 10
Slide 16: Ying Mining District, Henan
YING MINING DISTRICT, HENAN Ying Mining District: 4 mining permits 68.59km² • SGX, TLP, LME, LMW, HPG, HZG and DCG underground mines have identified over 300 veins • 2 mills of 3,200 tpd capacity produce silver-lead and zinc concentrates ² ¹ • 6 smelters within 200 km • Produced over 85 Moz of silve
Slide 17: Management Focus on Generating Free Cash Flow
MANAGEMENT FOCUS ON GENERATING FREE CASH FLOW Adjusted Net Income (US$M) Free Cash Flow (US$M) 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 investment in associates gain(los
Slide 18: Strong Corporate Culture of Responsible Mining
STRONG CORPORATE CULTURE OF RESPONSIBLE MINING Highlights of Silvercorp’s Sustainable Practices for All Stakeholders ENVIRONMENT SOCIAL GOVERNANCE • EMS ISO 14001 certification and • 100% of operations are ISO • Formed Sustainability Committee investments in environmental 45001 certified and ESG Man
Slide 19: Ownership & Coverage
OWNERSHIP & COVERAGE Top 10 Institutional Investors % O/S Analyst Coverage 1 Van Eck Associates 5.53 Canada Felix Shafigullin Eight Capital 2 ETF Managers Group 2.87 Justin Stevens PI Financial 3 Global X Management 2.64 Dalton Baretto Canaccord Genuity Craig Stanley Raymond James 4 Renaissance Tech
Slide 20: Leadership: A Solid History of Value Creation
LEADERSHIP: A SOLID HISTORY OF VALUE CREATION 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 & Young LLP Partner; over 30 years Chief Financial Officer PubCo. experience Lon Shaver, CFA Yikan
Slide 21: Joint Webcast Participants
JOINT WEBCAST PARTICIPANTS Lon Shaver • Finance professional with 25 years of capital markets and corporate finance experience Vice President • Former investment banker at Raymond James and Merrill Lynch • B.Comm. Degree (finance), and CFA charterholder • Geologist with 30 years of exploration and d
Slide 22: Transaction Key Events / Timeline
TRANSACTION KEY EVENTS / TIMELINE Key Events • Silvercorp and OreCorp shareholders are encouraged to participate in the joint webcast that is to be held Monday 7 August at 8:00am AWST (10:00am AEST) 2023 An indicative timeline is set out below: Action Estimated Date First Court Date Early-mid Octobe
Slide 23: Contact Information
+ CONTACT INFORMATION Silvercorp Metals Inc. OreCorp Limited. Media. Lon Shaver Henk Diederichs Nathan Ryan Vice President CEO and Managing Director Investor Relations Phone: (604) 669-9397 Phone: +61 8 9381 9997 Phone: +61 420 582 887 Toll Free: 1(888) 224-1881 Email: orecorp@orecorp.com.au Email:
Slide 24: TSX:SVM NYSE American:SVM
$6 TSX:SVM NYSE American:SVM >565,000 >1,070,000 30-Day Avg Daily Volume 30-Day Avg Daily Volume $5 $4 $3 $2 $1 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 TSX: SVM | NYSE AMERICAN SVM ASX: ORR 24
Slide 25: Endnotes
ENDNOTES Qualified Persons Standards (2014). For further details please see section 12 of the technical report for statements from the QPs on data verification and a description of how the data was verified The scientific and technical information relating to Silvercorp's projects contained herein h
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