Santacruz Silver Mining Ltd. · TSX:SCZ
Santacruz Silver Mining — Investor Presentation (March 2022)
21 slides from Santacruz Silver Mining's investor presentation, March 2022
Slide 1: Creating a New Latin American Senior Silver Producer
TSXV: SCZ OTC: SZSMF FSE: 1SZ Creating a New Latin American Senior Silver Producer SANTACRUZSILVER.COM MARCH 2022
Slide 2: Disclaimer
Disclaimer IMPORTANT CAUTIONARY NOTES The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Santacruz Silver Mining Ltd. (the “Company”). It should be read in conjunction with all other disclosure documents of the Compan
Slide 3: Disclaimer: Historical Resource Estimates
Disclaimer HISTORICAL RESOURCES ESTIMATES All statements in this presentation related to the mineral resource or reserves on the Bolivian Assets are historical in nature and are as originally reported by Glencore. Glencore reports resources and reserves in accordance with the 2012 edition of the Aus
Slide 4: Transformational and Accretive Transaction
Transformational and Accretive Transaction 5 Mines & US$0 Ore Trading Co. 59.6MMoz(2) Consideration Paid Upfront Diversification of Operations Silver Equivalent Reserve ► Adjustments to working capital ► Acquires 5 producing mines in Bolivia ► Addition of 3.5MM tonnes of 2P resulted in zero upfront
Slide 5: Transaction Summary
Transaction Summary ► Santacruz acquires Glencore’s portfolio of Bolivian mines and infrastructure assets (the “Bolivian Assets”) ► The Bolivian Assets are comprised of the following: – 45% interest in the Illapa JV which includes the Bolivar and Porco operations – Caballo Blanco Complex – Comprised
Slide 6: Increasing Operational Scale
Increasing Operational Scale 2021 Peer Production (MMoz AgEq) 38.2 36.1 28.7 26.9 26.8 Bolivian asset production significantly elevates the Company’s overall production capabilities with 5 additional operating mines. 18.0 13.2 12.3 10.5 10.0 9.4 8.0 5.8 3.2 (3) Hecla Coeur Hochschild Fortuna First M
Slide 7: Diversified Latin America Focused Producer
Diversified Latin America Focused Producer 6 Operations 7 1 Bolivar Mine 2 Caballo Blanco Complex 1 5 3 Porco Mine 2 3 4 Soracaya Development Asset 5 San Lucas Ore Trading 4 6 Zimapan Mine and Santa Gorgonia Exploration Project 7 Corporate Office SANTACRUZSILVER.COM / TSXV: SCZ / OTC: SZSMF / FSE: 1
Slide 8: Operating Structure of Bolivian Assets
Operating Structure of Bolivian Assets Bolivian Assets Illapa Joint Venture Caballo Blanco Group San Lucas (45%)(1) ► Comprised of the Bolivar and Porco operations, the Illapa Joint Venture was formed in 2013 ► The JV is 55% owned by the Bolivian government through the Corporacion Mineral de Bolivia
Slide 9: Bolivar
Bolivar Overview Location ► Underground silver-zinc-lead mine located in Antequera near Oruro City, which was first mined in 1810 ► Located on the western edge of the Eastern Cordillera, in a sequence of folded and reverse-faulted sediments ► Mine site infrastructure: 465 kt plant (expanded from 364
Slide 10: Porco
Porco Overview Location ► Located 50 km southwest of Potosí City in Antonio Quijarro province comprised of two underground mining sectors: Central and Hundimiento ► 45% interest in Porco through the Illapa JV with Comibol (55%) ► The Porco deposit is a typical narrow vein, polymetallic and structura
Slide 11: Caballo Blanco
Caballo Blanco Overview Location ► Underground mining complex located in Potosi comprised of three operating mines: o Colquechaquita: mechanized and conventional mine targeting both high silver and zinc grades o Tres Amigos: conventional mine with high silver grades with potential for resource expan
Slide 12: Soracaya Project
Soracaya Project Overview Location ► Greenfield project in Potosi, Bolivia, 7 km south of the town of San Ramon and 293 km from the city of Potosi ► Situated on a 8,325 ha land package with mineral rights grandfathered under Bolivian law ► Mineralization occurs in reactivated faults filled with repl
Slide 13: San Lucas
San Lucas Overview San Lucas Network Map ► Formally established in 2017, San Lucas is a third party ore sourcing business ► San Lucas generates most of its income by sourcing ore from third parties before processing it through plants at Bolivar, Porco and Caballo Blanco (Don Diego Plant), and then s
Slide 14: Zimapan Mines
Zimapan Mines Overview Location ► Discovered by Spanish miners in 1575, production across 18 mines between 1632 to 1920, including the El Monte and Carrizal Mines ► Zimapan is a 39 mining concessions covering 5,139ha. And is located 7km from the municipality of Zimapan in Hidalgo State, Mexico ► The
Slide 15: Future Opportunities
Future Opportunities ► Ability to finance existing exploration and development activities with existing working Funded Growth capital ► No need to raise financing to fund current acquisition of Bolivian Assets ► Focus by Glencore has been on existing mining optimizations and not further exploration
Slide 16: Capital Structure
Capital Structure Share Structure and Liquidity (as at September 30, 2021) Top Shareholders Basic Issued & Outstanding 330.3MM Management and Insiders (13%) Options(1) 9.5MM Palisades Goldcorp Warrants(2) 120.3MM Sprott Asset Management Fully Diluted Shares Outstanding 460.1MM U.S. Global Investors
Slide 17: Management and Board of Directors
Management and Board of Directors Management Independent Directors Arturo Préstamo Elizondo Roland Löhner Executive Chairman and Interim CFO ► Former Senior Partner and Managing Director of The Boston ► Over 20+ years of executive & operational experience in the Consulting Group, including MD for La
Slide 18: Company Highlights
Company Highlights Zimapan Zero Dilution Acquisition Benefiting Shareholders ► Ability to add a suite of assets, fully fund the acquisition through future cash flows and circumvent the need for dilution to existing shareholders Attractive Diversified Production Profile ► Production spread out across
Slide 19: For more Information
For more Information: INVESTOR RELATIONS Mars Investor Relations TSXV: SCZ SCZ@marsinvestorrelations.com 778-999-4653 OTC: SZSMF or info@santacruzsilver.com FSE: 1SZ SANTACRUZSILVER.COM
Slide 20: Appendix
Fm SANTACRUZ Appendix. 20
Slide 21: Bolivian Assets Reserves & Resources
Bolivian Assets Reserves & Resources Silver Contained Contained Total Tonnes Silver Zinc Lead Equivalent Silver Base Metals Contained (MM) (g/t) (%) (%) (g/t) (Ag MMoz) (AgEq MMoz) (AgEq MMoz) P&P Reserves Bolivar 1.6 234 9.0% 1.0% 564 12.0 17.0 29.0 Porco 0.3 85 8.4% 0.4% 378 0.8 2.8 3.6 Caballo Bl
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