Silvercorp Metals Inc. · TSX:SVM
Silvercorp Metals — Investor Presentation (November 2024)
40 slides from Silvercorp Metals's investor presentation, Nov 14, 2024
Slide 1: Profitable Silver Producer Positioned to Grow
NYSE-A | TSX: SVM Profitable Silver Producer Positioned to Grow Corporate Presentation November 2024
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS TSX: SVM | NYSE AMERICAN SVM Cautionary Note Regarding Forward-Looking Information and Forward-Looking Statements Cautionary Note to U.S. Investors concerning estimates of Measured, Indicated and Inferred Resources This presentation includes “forward-looking statements” within
Slide 3: Growing Profitable Silver Producer
GROWING PROFITABLE SILVER PRODUCER TSX: SVM | NYSE AMERICAN SVM Profitable Operations to Support Growth Proven Track Record Cash Generating Mines Growth Projects • MSCI ESG Rating A • Current year production of China 8 Moz AgEq (Ag + Au) & • Cumulative production of • Ying Mining District: upgrade 1
Slide 4: Growth Strategy
GROWTH STRATEGY TSX: SVM | NYSE AMERICAN SVM 1. Grow China operations and build new Ecuador mines • Ying: • Extensive drilling and tunnelling to expand resources • Mine optimization and development in progress to increase production • El Domo: Advance detailed engineering and site preparation ahead
Slide 5: Profitable Operations in a Stable Jurisdiction
PROFITABLE OPERATIONS IN A STABLE JURISDICTION TSX: SVM | NYSE AMERICAN SVM China Advantages: • Close to customers (smelters) and suppliers Ying Mining District, Henan Province • Stable regulations (SGX, HPG, HZG, TLP, LME, LMW and DCG mines) • 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 Overview • 7 mines, 2 mills (2,500 tpd) operating since 2006 • Ag-Pb and Zn concentrates sold to local smelters Resource Discovery & Reserve Definition • Drilled >2,400,000 m since inceptio
Slide 7: El Domo – Fully Financed, Construction Ready Copper-Gold Project
EL DOMO – FULLY FINANCED, CONSTRUCTION READY COPPER-GOLD PROJECT TSX: SVM | NYSE AMERICAN SVM Ecuador’s Next Mine • Fully permitted to build and operate 2021 Feasibility Study Highlights Mine Life (years) 10 • Investment Protection Agreement with the (kt Cu) 11 Government of Ecuador (koz Au) 26 • $2
Slide 8: Condor Gold Project
CONDOR GOLD PROJECT TSX: SVM | NYSE AMERICAN SVM Project Overview • Significant land package in the productive Zamora Cu-Ag belt • 55 km south of Tongling’s Mirador Cu-Au mine • 33 km south of Lundin Gold’s Fruta del Norte Au mine • Investment Agreement with the Ecuador Government • >150,000 m of dr
Slide 9: Precious Metals Resources Growth & Diversification
PRECIOUS METALS RESOURCES GROWTH & DIVERSIFICATION TSX: SVM | NYSE AMERICAN SVM China Mines China & Ecuador Production + Inventory Growth & Diversification 499 Moz China Ecuador >100Moz AgEq Produced 350 Moz 162 Moz 108 Moz 120 Moz 103 Moz 2P Reserve M&I Resource Inferred Resource 2P Reserve M&I Res
Slide 10: El Domo Provides Significant Near-Term Revenue Growth
EL DOMO PROVIDES SIGNIFICANT NEAR-TERM REVENUE GROWTH TSX: SVM | NYSE AMERICAN SVM Current Mines1 El Domo1,2 Total F2025E $175M F2025E $298M $298M F2026E $185M F2026E $315M $315M F2027E $192M F2027E $321M $85M $152M $473M F2028E $184M F2028E $307M $81M $142M $449M Note: Fiscal year shown. 2. El Domo
Slide 11: Incubating World Class Opportunities
INCUBATING WORLD CLASS OPPORTUNITIES TSX: SVM | NYSE AMERICAN SVM 27.4% Holding in New Pacific Metals (TSX: NUAG, NYSE American: NEWP) • SVM funded acquisition and discovery of two large silver deposits in Bolivia – Silver Sand and Carangas • Indirect exposure to over 145 Moz of AqEq (Ag + Au) in th
Slide 12: History of Low Cost Production Growth
HISTORY OF LOW COST PRODUCTION GROWTH TSX: SVM | NYSE AMERICAN SVM 1 2 Consolidated Production Silver Price AISC 8 Silver 7.0 3 6.5 6.6 Ag Ounces (M) 6.4 6.3 6.3 6.2 6.0 6.1 6 5.6 5.3 5.1 5.0 5.0 4.6 4.2 4.0 3.9 4 $15.95 1.9 2 $11.33 $11.38 $10.20 $8.77 $9.73 $6.86 $7.49 $3.82 $3.27 $3.52 - 120 Lead
Slide 13: Focus on Generating Free Cash Flow
FOCUS ON GENERATING FREE CASH FLOW TSX: SVM | NYSE AMERICAN SVM Profit (Green Bar Below) on every tonne of ore mined Per Tonne Value (US$) Realized Silver Price (US$/oz) Calendar Year *Realized silver price is calculated using the Shanghai Metal Exchange price, less smelter deduction and Value Added
Slide 14: Margins Outperform Industry Averages
MARGINS OUTPERFORM INDUSTRY AVERAGES TSX: SVM | NYSE AMERICAN SVM EBITDA Margin Return on Equity TTM TTM 46% 8.8% Silvercorp Silvercorp VS. VS. 17% 16% 40% 1.8% Vanguard Peer Avg. GDX Peer Avg. Industrials ETF 75 40 46.3% 60 30 45 20 8.8% 30 10 15 0 0 -10 2010 2012 2014 2016 2018 2020 2022 2024 2010
Slide 15: Focus on Generating Free Cash Flow
FOCUS ON GENERATING FREE CASH FLOW TSX: SVM | NYSE AMERICAN SVM Adjusted Net Income (US$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 16: Undervalued Relative to Peers
UNDERVALUED RELATIVE TO PEERS TSX: SVM | NYSE AMERICAN SVM EV / EBITDA P / Adj E P / OCF TTM TTM TTM 6.4x VS. 12.5x 13.9x VS. 55.3x 9.0x VS. 13.8x Peer Median Peer Median Peer Median Silvercorp Silvercorp Silvercorp Fortuna 3.6x Fortuna 10.9x Fortuna 4.6x Silvercorp 6.4x Silvercorp 13.9x Silvercorp
Slide 17: Catalysts
CATALYSTS TSX: SVM | NYSE AMERICAN SVM 1 Complete Ying mill expansion and underground mine mechanization 2 Advance El Domo priority projects 3 Announce and begin Condor exploration 4 New Pacific – Permitting advancements at Silver Sand and Carangas 5 Increase production; FY25 Guidance: 8.0 Moz AgEq
Slide 18: Ownership & Coverage
OWNERSHIP & COVERAGE TSX: SVM | NYSE AMERICAN SVM Top 10 Investors % O/S Analyst Coverage 1 Van Eck Associates 9.04 2 Former Luminex Holders* 4.37 3 Tidal Investments 2.89 4 Rui Feng 2.87 5 Connor Clark & Lunn 2.41 6 Global X Management 2.17 7 Renaissance Technologies 2.13 8 Wheaton Precious Metals
Slide 19: Strong & Improving ESG Ratings and Risk Profile
STRONG & IMPROVING ESG RATINGS AND RISK PROFILE TSX: SVM | NYSE AMERICAN SVM • Ranked top 42nd percentile overall in Metals and Mining- Precious Metals RATING • Toxic emissions & waste, community A RATING relations, and labor management score in the top 25th percentile • Ranked top 27th percentile i
Slide 20: Fiscal 2024 Sustainability Highlights
FISCAL 2024 SUSTAINABILITY HIGHLIGHTS TSX: SVM | NYSE AMERICAN SVM Environment Health & Safety Social Responsibility Total Recordable Water recycling Workforce from local 85% rate 1.64 Incident Rate (per million working hours) 74% province Local supplier 46% Waste rock utilization rate 2,048 Worker
Slide 21: TSX:SVM NYSE American:SVM
TSX:SVM $8 >1,300,000 HEAD OFFICE 30-Day Avg Daily Volume Suite 1750–1066 West Tel: 604-669-9397 $7 Hastings St. Vancouver, BC Investor@silvercorp.ca Canada V6E 3X1 www.silvercorpmetals.com $6 $5 $4 $3 NYSE American:SVM $2 >2,700,000 30-Day Avg Daily Volume FOLLOW US ON $1
Slide 22: Appendices
APPENDICES TSX: SVM NYSE AMERICAN: SVM
Slide 23: Leadership: A Solid History of Value Creation
LEADERSHIP: A SOLID HISTORY OF VALUE CREATION TSX: SVM | NYSE AMERICAN SVM Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng, Ph.D., Geology Chairman and CEO Derek Liu, MBA, CGA, CPA Yikang Liu, Former Dep. Gen. Sec. of the Chief Financial Officer China Mining Assoc.; over 40 years geo
Slide 24: YTD Production & Capital Expenditure versus FY2025 Guidance
YTD PRODUCTION & CAPITAL EXPENDITURE VERSUS FY2025 GUIDANCE TSX: SVM | NYSE AMERICAN SVM 1 Production Head grades Metal production Production cost Ore processed Gold Silver Lead Zinc Gold Silver Lead Zinc Cash cost AISC (tonnes) (g/t) (g/t) (%) (%) (oz) (Koz) (Klbs) (Klbs) ($/t) ($/t) Six months end
Slide 25: Revenue Percentage by Metal
REVENUE PERCENTAGE BY METAL TSX: SVM | NYSE AMERICAN SVM Base Metals: 32% Gold: 4% Silver: 64% Calendar Year 25
Slide 26: Realized Metal Price Examples
REALIZED METAL PRICE EXAMPLES TSX: SVM | NYSE AMERICAN SVM Silver Lead Zinc US$ Per Ounce US$ Per Pound US$ Per Pound *Net of value added tax Shanghai Metal Exchange quoted prices on May 30, 2024: Silver=8.348 RMB/gram, lead=18,600 RMB/tonne, Zinc=24,980 RMB/tonne, all including 13% VAT. Conversion
Slide 27: Extensive Exploration for Organic Growth
EXTENSIVE EXPLORATION FOR ORGANIC GROWTH TSX: SVM | NYSE AMERICAN SVM Silvercorp’s extensive drilling & tunnelling Ying: 2,425 km of drilling and 798 km of tunnelling since 2004 GC: 467 km of drilling and 111 km of tunnelling since 2004 Kilometer Calendar Year Benefits of drilling 1) Made new discov
Slide 28: GC Mine
GC MINE TSX: SVM | NYSE AMERICAN SVM GC Underground Mine • 360,000 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 (A
Slide 29: El Domo Overview: Mining Title and Interest
EL DOMO OVERVIEW: MINING TITLE AND INTEREST TSX: SVM | NYSE AMERICAN SVM 1. Medium scale mining concession title for 25 years granted for Las Naves Concession containing the El Domo Project 2. Located 20 km from Pan-American highway and 3-hour drive from Guayaquil 3. Surface rights acquired for appr
Slide 30: El Domo Overview: Site Layout
EL DOMO OVERVIEW: SITE LAYOUT TSX: SVM | NYSE AMERICAN SVM Source: Adventus Mining Corp. filings 30
Slide 31: El Domo Overview: Technical Details
EL DOMO OVERVIEW: TECHNICAL DETAILS TSX: SVM | NYSE AMERICAN SVM 1. 10 year open-pit strip ratio of 7:1, 2. Tailings storage design sufficient to fit open pit & underground development 3. Engineers: SLR/Roscoe Postle, Klohn Crippen Berger, DRA, Knight Piesold, Base Met Laboratories 4. Following meta
Slide 32: Condor Project Overview
CONDOR PROJECT OVERVIEW TSX: SVM | NYSE AMERICAN SVM CONDOR NORTH - PEA 2021 ⚫ Concessions vary between 98.7% - Ownership Mine Life (years) 12 100% owned by Silvercorp LOM Gold Grade (g/t) 0.72 LOM Silver Grade (g/t) 5.94 ⚫ In Zamora Chinchipe Province, near LOM Gold Production (koz Au) 2,242 Ecuado
Slide 33: 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 37 and 40 for notes and a detailed breakdown of BYP’s
Slide 34: Ecuador Exploration Portfolio
ECUADOR EXPLORATION PORTFOLIO TSX: SVM | NYSE AMERICAN SVM 10 Exploration Projects with >135,000 Ha • Pijili & Santiago – 80/20 JV with Salazar; untested porphyry & epithermal targets • Tres Picachos –JOGMEC earn-in for 75%; potential for porphyry discoveries • Tarqui – Mineralized porphyry system i
Slide 35: 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 36: Summary of China Reserves
SUMMARY OF CHINA 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 7.17 223 0.16 3.45 1.05 51 37 55 248 75 Ying Mining Pro
Slide 37: Summary of China Resources
SUMMARY OF CHINA 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 12.03 213 0.20 3.38 0.97 8
Slide 38: El Domo: Resources and Reserves
EL DOMO: RESOURCES AND RESERVES TSX: SVM | NYSE AMERICAN SVM El Domo Open Pit Category Tonnes Grade Contained Metal Cu Pb Zn Au Ag Cu Pb Zn Au Ag (Mt) (%) (%) (%) (g/t) (g/t) (kt) (kt) (kt) (koz ) (koz ) Proven 3.1 2.50% 0.21% 2.30% 2.83 41 78.4 6.7 72.0 285 4,175 Probable 3.3 1.39% 0.29% 2.68% 2.23
Slide 39: Condor: Resources
CONDOR: RESOURCES TSX: SVM | NYSE AMERICAN SVM Category Tonnes Grade Contained Metal Deposit Au Ag Au Ag (Mt) (g/t) (g/t) (koz) (Moz) Los Cuyes 50.8 0.65 5.2 1,059 8.5 Soledad 19.4 0.63 4.8 390 3.0 Enma 0.66 0.64 11.6 14 0.25 Santa Barbara 39.8 0.67 0.8 859 1.0 Total Indicated 110.7 0.65 3.6 2,321 1
Slide 40: Cautionary Statements
CAUTIONARY STATEMENTS TSX: SVM | NYSE AMERICAN SVM Qualified Persons (Silvercorp) The scientific and technical information related to Silvercorp’s projects contained herein has been reviewed and approved by Guoliang Ma, P. Geo., who is a Qualified Person (“QP”) within the meaning of National Instrum
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