Slide 1: Corporate Presentation June 2020
SVM:TSX/NYSE AMERICAN Corporate Presentation June 2020
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 United States Private
Slide 3: China's Premier Silver Producer
CHINA’S PREMIER SILVER PRODUCER Historical Production (April 2006 – March 2020) ▸ Silver: 70 Moz. ▸ Lead+Zinc: 1.01 Blbs. Ying Mining District, Henan Province ▸ Profit Distribution*: US$468M 15+ year mine life remaining BYP Mine, Hunan Province (Care and Maintenance) * Ying Mining District GC Mine,
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Cash Generation vs. Cumulative Expenditures ($million) SVM:TSX/NYSE AMERICAN 4
Slide 5: 69.7 Million Ounces of Silver Over 14 Years
69.7 MILLION OUNCES OF SILVER OVER 14 YEARS 6.1 6.2 * Silvercorp’s fiscal year is April 1-March 31 * Red numbers are fiscal year’s guidance-FY2020 SVM:TSX/NYSE AMERICAN 5
Slide 6: Growing Reserves & Resources - Silver
GROWING RESERVES & RESOURCES - SILVER 1. Measured & Indicated Resources inclusive of Reserves. See Appendix III, IV and V for breakout of Measured, Indicated and Inferred, Proven and Probable categories. 2. Excludes Lead and Zinc. Gold was converted to Silver equivalent at a rate of 65:1. 3. Include
Slide 7: 1 Billion Pounds of Lead & Zinc Over 14 Years
1 BILLION POUNDS OF LEAD & ZINC OVER 14 YEARS 87 91 * Silvercorp’s fiscal year is April 1-March 31 * Red numbers are fiscal year’s guidance-FY2020 SVM:TSX/NYSE AMERICAN 7
Slide 8: Growing Reserves & Resources - Lead & Zinc
GROWING RESERVES & RESOURCES - LEAD & ZINC 1. Measured & Indicated Resources inclusive of Reserves. See Appendix III, IV and V for breakout of Measured, Indicated and Inferred, Proven and Probable categories. 2. Includes production since the last technical reports for Ying and GC, respectively; BYP:
Slide 9: Financial Performance (Value & Profit per Tonne)
FINANCIAL PERFORMANCE (VALUE & PROFIT PER TONNE ORE MINED) Silver Price (US$ per ounce) Per Tonne Value (US$) * Realized silver price is calculated using Shanghai Metal Exchange price, less smelter deduction and Value Added Tax * Indicated in calendar quarters SVM:TSX/NYSE AMERICAN 9
Slide 10: Quarterly Adjusted Net Income & Free Cash Flow
QUARTERLY ADJUSTED NET INCOME & FREE CASH FLOW Adjusted net income = adjusted for one time non-cash items Free cash flow = operating cash flow less capital expenditures less capital lease payments * Indicated in calendar quarters SVM:TSX/NYSE AMERICAN 10
Slide 11: Peer Comparison: Operating Performance
PEER COMPARISON: OPERATING PERFORMANCE (1) (2) (3) (3) (4) 1. Indicated in calendar quarters 2. Net of by-product credits 3. Changed reporting basis to AgEq 4. Only reflects silver segment * EBITDA Margin Data Source: Capital IQ SVM:TSX/NYSE AMERICAN 11
Slide 12: Comparison with Peers: Key Valuation Ratios
COMPARISON WITH PEERS: KEY VALUATION RATIOS 120 * Stock prices as of May 29, 2020; LTM results are most recent reported. EV/EBITDA Data Source: Capital IQ SVM:TSX/NYSE AMERICAN 12
Slide 13: Growth: Grow Free Cash Flow or Shares Outstanding?
GROWTH: GROW FREE CASH FLOW OR SHARES OUTSTANDING? 174M Free cash flow=operating cash flow less capital expenditures less capital lease Silvercorp bought back 5,754,552 common shares of the Company since 2015 payments * Indicated in calendar quarters SVM:TSX/NYSE AMERICAN 13
Slide 14: Our Strategy to Support Quality Growth
OUR STRATEGY TO SUPPORT QUALITY GROWTH Maintain steady production with a focus on cost control Pursue growth opportunities capitalizing on corporate strengths: ▸ Grow existing assets organically through drilling ▸ Bring BYP back into production ▸ Approximate 29% interest in New Pacific Metals (MC: U
Slide 15: New Pacific Metals' Silver Sand Project
NEW PACIFIC METALS’ SILVER SAND PROJECT SVM:TSX/NYSE AMERICAN 15
Slide 16: FY2021 Production Guidance
FY2021 PRODUCTION GUIDANCE Head grades Metal production Production costs Ore processed Silver Lead Zinc Silver Lead Zinc Cash cost AISC (tonnes) (g/t) (%) (%) (Moz) (Mlbs) (Mlbs) ($/t) ($/t) Fiscal 2021 Production and Cash Costs Guidance Ying Mining District 640,000 - 660,000 292 4.3 0.9 5.6 - 5.8 5
Slide 17: Fiscal 2021 Capital Expenditure Guidance
FISCAL 2021 CAPITAL EXPENDITURE GUIDANCE Expensed Expensed Capitalized Development Work and Expenditures Tunneling Drilling Exploration & Equipment & Mining Exploration Ramp Development Total Development Tunnels Facilities Preparation Drilling (Metres) ($ Million) (Metres) ($ Million) ($ Million) (M
Slide 18: Ownership and Coverage
OWNERSHIP AND COVERAGE Top 10 Institutional Investors % O/S Analyst Coverage 1 Van Eck Associates 11.60 Canada 2 Renaissance Technologies 4.29 Ryan Thompson BMO Capital Markets 3 Merian Global Investors (UK) 3.90 David Talbot Eight Capital 4 Connor Clark & Lunn 1.70 Justin Stevens PI Financial 5 Glo
Slide 19: 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 SVM:TSX/NYSE AMERICAN Silvercorp’s disclosure documents are available from the System for Electronic Document Analysi
Slide 20: Appendices
APPENDICES SVM:TSX/NYSE AMERICAN 20
Slide 21: Revenue Percentage by Metal
REVENUE PERCENTAGE BY METAL * Indicated in calendar quarters SVM:TSX/NYSE AMERICAN 21
Slide 22: Metals Prices
METALS PRICES Silver Lead Zinc US$ Per Ounce US$ Per Pound US$ Per Pound Shanghai Metal Exchange quoted prices on May 26, 2020: Silver=4.218 RMB/gram, lead=14,400 RMB/tonne, Zinc=16,450 RMB/tonne, all including 13% value added tax (VAT). Conversion to net realized selling prices as follows: Silver i
Slide 23: Ying Mining District in Henan: Silvercorp's Flagship Asset
YING MINING DISTRICT IN HENAN: SILVERCORP’S FLAGSHIP ASSET ▸ SGX, TLP, LME, LMW, HPG and HZG underground mines have identified >300 veins within 68.74km² mining permits HPG ▸ 2 centralized mills of 3,200 tpd capacity to produce silver-lead and SGX zinc concentrates ▸ 6 smelters within 200km ▸ Produc
Slide 24: Improved and Steady Head Grades at Ying Mining District
IMPROVED AND STEADY HEAD GRADES AT YING MINING DISTRICT Dilution Control Improvement Adopted Enterprise Blog (EB) * Per Technical Reports for Ying Mine dated December 31, 2016 & December 31, 2013 - LOM production plans, as revised. SVM:TSX/NYSE AMERICAN 24
Slide 25: Innovation to Reduce Dilution, Improve Safety and Efficiency
INNOVATION TO REDUCE DILUTION, IMPROVE SAFETY AND INCREASE PRODUCTION EFFICIENCY “Enterprise Blog” (EB) - an internet social media system that collects and distributes work- related information more effectively between parties and locations across the organization. Time & date stamp Posted Posted Us
Slide 26: GC Mine in Guangdong
GC MINE IN GUANGDONG ▸ Profitable underground silver/zinc mine commenced production in 2014 ▸ Excellent infrastructure and access ▸ Updated NI 43-101 June 2019; exploration ongoing Main Access Ramp SVM:TSX/NYSE AMERICAN 26
Slide 27: BYP Gold Mine: Preparing for Production
BYP GOLD MINE: PREPARING FOR PRODUCTION Status: ▸ Lead-Zinc mine suspended August 2014 ▸ Reviewing alternatives, including required capital for upgrades to sustain production ▸ 2019 NI 43-101 gold resource identified 421,000 oz M&I and 110,000 oz inferred ▸ Permitting activities to add gold to the m
Slide 28: Steady Shares Outstanding
STEADY SHARES OUTSTANDING * Indicated in calendar quarters SVM:TSX/NYSE AMERICAN 28
Slide 29: Management & Board
MANAGEMENT & BOARD Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng, Ph.D., Geology Chairman and CEO, Director Derek Liu, MBA, CGA, CPA David Kong, CA, CPA (ILLINOIS), Former Chief Financial Officer Ernst & Young LLP Partner; over 30 years PubCo. experience Yong-Jae Kim, LL.B. General
Slide 30: Appendix III: Summary of Reserves
APPENDIX III: SUMMARY OF RESERVES1 Average Grades Contained Metal Reserves Reserve Tonnes Project Category (Million) Silver Lead Gold Zinc Silver Silver²Eq. Lead Zinc (g/t) (%) (g/t) (%) (Moz) (Moz) (t) (t) Proven 4.67 252 4.15 0.11 1.55 37.85 1.07 193,950 72,240 Ying Mining District Probable 7.63 2
Slide 31: Appendix IV: Summary of Resources
APPENDIX IV: SUMMARY OF RESOURCES1 Contained Metal Resources (Inclusive of Average Grades Resource Tonnes Reserves) Project Category (Million) Silver Gold Lead Zinc Silver Silver Eq.² Lead Zinc (g/t) (g/t) (%) (%) (Moz) (Moz) (t) (t) Measured 5.91 266 0.13 4.36 1.64 50.55 1.56 257,600 96,690 Ying Mi
Slide 32: Appendix IV: Summary of Resources - BYP Mine
APPENDIX IV: SUMMARY OF RESOURCES - BYP MINE Au Pb Zn Au Pb Zn Quantity Domain Categories Grade Grade Grade Metal Metal Metal Mt g/t % % koz kt kt Measured 2.8 3 - - 269 - - Indicated 1.5 3.1 - - 149 - - Gold area Measured & 4.3 3.1 - - 418 - - Indicated Inferred 1.3 2.5 - - 109 - - Lead and Zinc In
Slide 33: Endnotes and Cautionary Statements
ENDNOTES AND CAUTIONARY STATEMENTS 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 Silvercorp included in this prese