Slide 1: Corporate Presentation August 1, 2018
SVM:TSX/NYSE AMERICAN Corporate Presentation August 1, 2018
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 Ying Mining District, Henan Province Historical Production (April 2006 – March 2018) Silver: 57 Million Ounces Lead+Zinc: 834 Million lbs BYP Mine, Hunan Province Profit Distribution*: US$380 million (On Care and Maintenance) 15+ year mine life remaining GC Mine, Guan
Slide 4: 57 Million Ounces of Silver Produced in 12 Years
57 MILLION OUNCES OF SILVER PRODUCED IN 12 YEARS (5.1) (5.7) * Silvercorp’s fiscal year end is March 31 Red numbers in brackets are fiscal year’s guidance SVM:TSX/NYSE AMERICAN 4
Slide 5: 834 Million Pounds of Lead and Zinc Produced in 12 Years
834 MILLION POUNDS OF LEAD AND ZINC PRODUCED IN 12 YEARS (76.3) (81.4) * Silvercorp’s fiscal year end is March 31 Red numbers in brackets are fiscal year’s guidance SVM:TSX/NYSE AMERICAN 5
Slide 6: Improved and Steady Head Grades at Ying Mining District
IMPROVED AND STEADY HEAD GRADES AT YING MINING DISTRICT Dilution Control Improvement SVM:TSX/NYSE AMERICAN 6
Slide 7: Financial Performance (Value & Profit per Tonne Ore Mined)
FINANCIAL PERFORMANCE (VALUE & PROFIT OF PER TONNE ORE MINED) ▸ Cash + short-term investments: US$106.1M (as at Mar. 31, 2018) Silver Price (us$ per ounce) ▸ Dividend of Per Tonne Value US$0.02/share in fiscal 2018 ▸ No Receivables ▸ No Debt ▸ Invested US$23M in New Pacific Metals ▸ US$6.8M on share
Slide 8: Revenue Percentage by Metals
REVENUE PERCENTAGE BY METALS ▸ GC Mine contributed to increased revenue for Lead and Zinc since Q3 2014 ▸ Lead and Zinc price increases boosted Lead and Zinc revenue percentage SVM:TSX/NYSE AMERICAN 8
Slide 9: Quarterly Free Cash Flow
QUARTERLY FREE CASH FLOW SVM:TSX/NYSE AMERICAN 9
Slide 10: Quarterly Adjusted Net Income (Loss)
QUARTERLY ADJUSTED NET INCOME (LOSS) SVM:TSX/NYSE AMERICAN 10
Slide 11: Steady & Reduced Shares Outstanding
STEADY & REDUCED SHARES OUTSTANDING * Source: BMO Capital Markets SVM:TSX/NYSE AMERICAN 11
Slide 12: Comparison with Peers: Free Cash Flow per Share and Multiples
COMPARISON WITH PEERS: FREE CASH FLOW PER SHARE AND MULTIPLES SVM:TSX/NYSE AMERICAN 12
Slide 13: Comparison with Peers: All-In Sustaining Cost
COMPARISON WITH PEERS: ALL- IN SUSTAINING COST * All-in sustaining cost per ounce of silver, net of by-product credits. SVM:TSX/NYSE AMERICAN 13
Slide 14: Comparison with Peers: Return on Equity
COMPARISON WITH PEERS: RETURN ON EQUITY SVM:TSX/NYSE AMERICAN 14
Slide 15: Growth: Grow Shares Outstanding or Free Cash Flow?
GROWTH： GROW SHARES OUTSTANDING OR FREE CASH FLOW? 167.03M • Silvercorp bought back 5,754,552 common shares of the Company since 2015 • Free cash flow=operating cash flow less capital expenditures less capital lease payment SVM:TSX/NYSE AMERICAN 15
Slide 16: 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. SVM:TSX/NYSE
Slide 17: 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. SVM:TSX/NYSE AMERICAN 17
Slide 18: Adopt New Information Tool "Enterprise Blog" in Operation
ADOPT NEW INFORMATION TOOL “ENTERPRISE BLOG” IN OPERATION REDUCES DILUTION, IMPROVES SAFETY AND PRODUCTION EFFICIENCY Improvement in the head grades of metals can be attributed in part to an internal “Enterprise Blog” (EB) system in the management of Mine Production and Safety Information. “EB” is a
Slide 19: 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 working over 200 veins within 68.74km² mining permits HPG ▸ Two centralized mills of 3,200 t/d capacity to produce silver-lead and zinc concentrates SGX ▸ 6 smelters within 200km ▸ Produced
Slide 20: GC Mine in Guangdong: The Second Mine
GC MINE IN GUANGDONG: THE SECOND MINE Our Newest Mine ▸ Commercial production commenced in 2014 ▸ Underground silver/zinc mine ▸ Excellent infrastructure and access ▸ Profitable operations Main Access Ramp SVM:TSX/NYSE AMERICAN 20
Slide 21: BYP Gold Mine: Preparing for Production
BYP GOLD MINE : PREPARING FOR PRODUCTION Status: ▸ Suspended mining operations in August 2014 ▸ Capital requirements for upgrades to sustain ongoing production are being considered ▸ Continuing to review alternatives for this project ▸ To bring the project back to production may cost US$10 500 tpd M
Slide 22: Steady Production and Cost Control to Support Quality Growth
STEADY PRODUCTION AND COST CONTROL TO SUPPORT “QUALITY GROWTH” Current Production: ▸ Maintain steady production, with stable or reduced cost Growth: ▸ Grow existing assets organically through drilling ▸ Bring BYP back to production ▸ Acquired ~29.8% equity interest in New Pacific Metals Corp. (TSX-V
Slide 23: Comparison with Peers: Revenue by Metals
COMPARISON WITH PEERS: REVENUE BY METALS * Source: BMO Capital Markets * Silvercorp forecasts by BMO are FY2019 and estimates effective as of May 30, 2018 SVM:TSX/NYSE AMERICAN 23
Slide 24: Comparison with Peers: Balance Sheet
COMPARISON WITH PEERS: BALANCE SHEET * Stock prices were quoted as of March 31, 2018 * Balance sheet as of March 31, 2018 SVM:TSX/NYSE AMERICAN 24
Slide 25: Comparison with Peers: Key Valuation Ratios
COMPARISON WITH PEERS: KEY VALUATION RATIOS * Stock prices were quoted as of March 31, 2018 SVM:TSX/NYSE AMERICAN 25
Slide 26: Comparison with Peers: Key Valuation Ratios
COMPARISON WITH PEERS: KEY VALUATION RATIOS * Stock prices were quoted as of March 31, 2018 SVM:TSX/NYSE AMERICAN 26
Slide 27: Metal Prices
METAL PRICES Silver Price Lead Price Zinc Price US$ Per Ounce US$ Per Pound US$ Per Pound * Current price & Silvercorp Net Realized Selling Price as of May 22, 2018. * Realized selling prices are calculated using Shanghai Metal Exchange price, less smelter charges, recovery, and 16% of value added t
Slide 28: FY2019 Production Guidance
FY2019 PRODUCTION GUIDANCE Ying Mining District GC Mine Consolidated Production and F2019 F2018 F2018 F2019 F2018 F2018 F2019 F2018 F2018 cash costs Guidance Guidance Actual Guidance Guidance Actual Guidance Guidance Actual Ore (000' tonne) 630 650 614 250 250 246 880 900 860 Head Grades Silver (gra
Slide 29: FY2019 Capital Expenditure Guidance
FY2019 CAPITAL EXPENDITURE GUIDANCE Ying Mining District GC Mine Consolidated Work Amount Work Amount Work Amount Mine Development and Facilities (meters) (US$ million) (meters) (US$ million) (meters) (US$ million) Mine Development and Capitalized Amount Tunneling* 66,000 18.8 1,000 0.6 67,000 19.4
Slide 30: Head Office
HEAD OFFICE Suite #1378 - 200 Granville St., Vancouver, BC, Canada V6C 1S4 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 Analysis and
Slide 31: Appendices
APPENDICES SVM:TSX/NYSE AMERICAN 31
Slide 32: Appendix I: Ownership and Coverage
APPENDIX I: OWNERSHIP AND COVERAGE Top 10 Institutional Investors % O/S Analyst Coverage 1 Van Eck Associates Corporation 7.93 Ryan Thompson BMO Capital Markets 2 Old Mutual Global Investors (UK), LTD 3.11 Joe Reagor Roth Capital 3 Global X Management Company, 1.41 Bhakti Pavani Euro Pacific 4 DZ Pr
Slide 33: Appendix II: Management & Board
APPENDIX II MANAGEMENT & BOARD Management Board of Directors Rui Feng, Ph.D., Geology Rui Feng Marina Katusa Chairman and CEO, Director Yikang Liu Paul Simpson Derek Liu, MBA, CGA, CPA Chief Financial Officer David Kong Luke Liu, M. Eng. PhD (Mining Eng.) Vice President China Operations Lorne Waldma
Slide 34: Appendix III: Summary of Reserves
APPENDIX III: SUMMARY OF RESERVES1 Average Grades Contained Metal Reserves Reserve Tonnes Silver² Project Category (Million) Silver Lead Gold Zinc Silver Eq. Lead Zinc (g/t) (%) (g/t) (%) (Moz) (t) (t) (Moz) Proven 4.67 252 4.15 0.11 1.55 37.85 1.07 193,950 72,240 Ying Mining District Probable 7.63
Slide 35: 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 (t) Zinc (t) (g/t) (g/t) (%) (%) (Moz) (Moz) Measured 5.91 266 0.13 4.36 1.64 50.55 1.56 257,600 96,690 Ying Mi
Slide 36: Appendix V: BYP Mine Resource
APPENDIX V: BYP MINE RESOURCE Mineral Resources for Gold Zones: Contained Metal Resource Grades Cut-off Grades Resources CLASS (g/t) Tonnes Gold (g/t) Gold (oz) (Million) Indicated 1.0 3.51 2.59 292,000 Inferred 1.0 2.47 1.84 146,000 Mineral Resources for Lead and Zinc Zones: Contained Metal Resourc
Slide 37: Endnotes and Cautionary Statements
ENDNOTES AND CAUTIONARY STATEMENTS Guoliang Ma, P. Geo., is the 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 pre