Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (April 2024)
30 slides from Silvercorp Metals's investor presentation, April 2024
Slide 1: Profitable Silver Producer Positioned to Grow
PROFITABLE SILVER PRODUCER POSITIONED TO GROW Corporate Presentation TSX: SVM | NYSE AMERICAN: SVM April 2024 1
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
Slide 3: Profitable Silver Producer with Compelling Value
PROFITABLE SILVER PRODUCER WITH COMPELLING VALUE TSX: SVM | NYSE AMERICAN SVM Consistent profit generation to support growth Market Cap Analysis $550M History (March 22, 2024) • Total production: ~100 Moz silver & ~1.3 B lbs of lead + zinc • Dividends received from mines: >$520M • Dividends to share
Slide 4: Growth Strategy
GROWTH STRATEGY TSX: SVM | NYSE AMERICAN SVM 1. Organic growth from existing operations • Extensive drilling and tunnelling to expand resources and production • Ying optimization and expansion programs in progress 2. Incubation of junior exploration companies for growth • Targeting world-class asset
Slide 5: Our Operations
OUR OPERATIONS TSX: SVM | NYSE AMERICAN SVM China Advantages: • Close to customers (smelters) and suppliers • Stable mining regulations Ying Mining District, Henan Province (SGX, HPG, HZG, TLP, LME, LMW and DCG mines) • Free market for metals • Free profit distribution • Home for 80% of global solar
Slide 6: Ying District – Growth Through Drilling, Optimization, Expansion & Consolidation
YING DISTRICT – GROWTH THROUGH DRILLING, OPTIMIZATION, EXPANSION, & CONSOLIDATION TSX: SVM | NYSE AMERICAN SVM Drilled ~1,300,000 m since 2020 • Focused on vein extensions and discovery Mine optimization in progress • Increase mine mechanization with increased shrinkage mining, better ramp access an
Slide 7: Incubating World Class Opportunities – 27.4% New Pacific Metals Investment
INCUBATING WORLD CLASS OPPORTUNITIES – 27.4% NEW PACIFIC METALS INVESTMENT TSX: SVM | NYSE AMERICAN SVM Silver Sand Project Carangas Project Silverstrike Project A large silver deposit to be A new globally significant 200 m thick, near surface mined by open pit and Ag-Au polymetallic discovery oxidi
Slide 8: Catalysts
CATALYSTS TSX: SVM | NYSE AMERICAN SVM Additional drilling to upgrade resources to reserves and make new 1 discoveries Ying Mine optimization and mechanization programs, new TSF, and 2 mill expansion Advance Kuanping to construction status with updated plan and 3 cost estimates 4 Obtain BYP gold min
Slide 9: Focus on Generating Free Cash Flow
FOCUS ON GENERATING FREE CASH FLOW TSX: SVM | NYSE AMERICAN SVM Profit (Green Line Below) on every tonne of ore mined Silver Price (US$ per ounce) Per Tonne Value (US$) Calendar Year *Realized silver price is calculated using the Shanghai Metal Exchange price, less smelter deduction and Value Added
Slide 10: Focus on Generating Free Cash Flow
FOCUS ON GENERATING FREE CASH FLOW TSX: SVM | NYSE AMERICAN SVM Adjusted Net Income (US$M) Free Cash Flow (US$M) Calendar Year Calendar Year Note: Adjusted net income = adjusted for one-time non-cash items, FX gain(loss), Note: Free cash flow = operating cash flow less capital expenditures, less cap
Slide 11: 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 Kilometer Calendar Year Benefits of drilling 1) Made new discov
Slide 12: Margins Outperform Industry Averages
MARGINS OUTPERFORM INDUSTRY AVERAGES TSX: SVM | NYSE AMERICAN SVM EBITDA Margin Return on Equity TTM TTM 41% 8.1% Silvercorp Silvercorp VS. VS. 19% 15% 39% -0.5% Vanguard Peer Avg. GDX Peer Avg. Industrials ETF 75 40 60 30 41.1% 45 20 8.1% 30 10 15 0 0 -10 2010 2012 2014 2016 2018 2020 2022 2010 201
Slide 13: Undervalued Relative to Peers
UNDERVALUED RELATIVE TO PEERS TSX: SVM | NYSE AMERICAN SVM EV / EBITDA P / Adj E P / OCF TTM TTM TTM 3.9x VS. 10.7x 13.8x VS. 114.9x 6.9x VS. 23.2x Peer Avg. Peer Avg. Peer Avg. Silvercorp Silvercorp Silvercorp Fortuna 3.4x Silvercorp 13.8x Fortuna 3.5x Silvercorp 3.9x Fortuna 13.8x Silvercorp 6.3x
Slide 14: Building Metals Inventory
BUILDING METALS INVENTORY TSX: SVM | NYSE AMERICAN SVM P&P Reserves M&I Resources (not in P&P) Inferred Resources Silver1 Million Ounces 152 155 126 121 108 115 102 102 102 141 86 86 121 120 96 97 95 119 65 62 75 50 50 57 57 57 77 34 63 57 115 114 115 115 102 99 99 103 103 103 108 109 25 81 64 59 40
Slide 15: Growing Low Cost Production
GROWING LOW COST PRODUCTION TSX: SVM | NYSE AMERICAN SVM 1 2 Consolidated Production Silver Price AISC 8 Silver 7.0 Million Ounces 6.5 6.4 6.3 6.6 6.3 6.1 6.0 6 5.6 5.3 5.1 5.0 5.0 4.6 4.0 4.2 3.9 4 1.9 $15.95 2 $11.33 $10.20 $8.77 $9.73 $6.86 $7.49 $3.82 $3.27 $3.52 - Lead & Zinc 120 96 101 100 91
Slide 16: 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 84.9% of the 4,719,415 m³ of water used in our processing plants l
Slide 17: 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 Industry best practice Further waste reduction SGX MINE WASTE WATER TREATMENT SYSTEM 1M T/Y WASTE ROCK AGGREGATE PLANT YING MINES YING MINES Increas
Slide 18: Ownership & Coverage
OWNERSHIP & COVERAGE TSX: SVM | NYSE AMERICAN SVM Top 10 Investors % O/S Analyst Coverage 1 Van Eck Associates 5.13 2 Rui Feng 3.49 3 Tidal Investments 3.03 4 Renaissance Technologies 2.85 5 Connor Clark & Lunn 2.66 6 Global X Management 2.52 7 Stabilitas GmbH 1.30 8 DZ Privatbank S.A. 1.30 9 BlackR
Slide 19: TSX:SVM NYSE American:SVM
TSX:SVM $7 >480,000 HEAD OFFICE 30-Day Avg Daily Volume Suite 1750–1066 West Tel: 604-669-9397 Hastings St. Vancouver, BC Investor@silvercorp.ca $6 Canada V6E 3X1 www.silvercorpmetals.com NYSE American:SVM >1,650,000 30-Day Avg Daily Volume $5 $4 $3 $2 FOLLOW US ON $1
Slide 20: Appendices
APPENDICES TSX: SVM NYSE AMERICAN: SVM
Slide 21: Leadership: A Solid History of Value Creation
LEADERSHIP: A SOLID HISTORY OF VALUE CREATION TSX: SVM | NYSE AMERICAN SVM Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng, Ph.D., Geology Chairman and CEO Derek Liu, MBA, CGA, CPA Yikang Liu, Former Dep. Gen. Sec. of the Chief Financial Officer China Mining Assoc.; over 40 years geo
Slide 22: YTD Fiscal 2024 Production and Capital Expenditure Versus Guidance
YTD FISCAL 2024 PRODUCTION AND CAPITAL EXPENDITURE VERSUS GUIDANCE TSX: SVM | NYSE AMERICAN SVM FY2024 Production Head grades Metal production Production costs Ore processed Gold Silver Lead Zinc Gold Silver Lead Zinc Cash cost AISC (tonnes) (g/t) (g/t) (%) (%) (oz) (Koz) (Klbs) (Klbs) ($/t) ($/t) N
Slide 23: Ying Mining District, Henan
YING MINING DISTRICT, HENAN TSX: SVM | NYSE AMERICAN SVM • SGX, TLP, LME, LMW, HPG, HZG and DCG underground mines have Ying Mining District: 4 mining permits 68.59km² identified over 300 veins • 2 mills of 2,500 tpd capacity produce silver-lead and zinc concentrates • 6 smelters within 200 km ² ¹ ¹
Slide 24: Revenue Percentage by Metal
REVENUE PERCENTAGE BY METAL TSX: SVM | NYSE AMERICAN SVM Base Metals: 37% Gold: 4% Silver: 59% Calendar Year 24
Slide 25: Realized Metal Price Examples
REALIZED METAL PRICE EXAMPLES TSX: SVM | NYSE AMERICAN SVM Silver Lead Zinc US$ 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. Conver
Slide 26: GC Mine
GC MINE TSX: SVM | NYSE AMERICAN SVM GC Underground Mine • 330,000 tonne ore per year to produce silver-lead, zinc, and minor tin concentrates since 2014 • XRT ore sorting system in commercial production • Tailings are de-watered, then back- filled underground or dry-stacked Updated MRE NI 43-101 (M
Slide 27: 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 See Appendix pages 29 and 30 for notes and a detailed breakdown of BYP’s
Slide 28: 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
Slide 29: 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
Slide 30: Cautionary Statements
CAUTIONARY STATEMENTS TSX: SVM | NYSE AMERICAN SVM Qualified Persons The scientific and technical information of Silvercorp contained herein has been reviewed and approved by Guoliang Ma, P. Geo., who is a Qualified Person (“QP”) within the meaning of NI 43-101. For more information on Silvercorp’s
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