Silver Mines : Capital Raising Presentation

About this update from Silver Mines Limited

For personal use only CAPITAL RAISING PRESENTATION Not for release to US wire services or distributions in the United States Jo Battershill – Managing Director December 2024 For personal use only IMPORTANT NOTICES AND DISCLAIMER (CONTINUED) Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial and tax situation and needs and seek professional advice from their legal, financial, taxation or other independent adviser (having regard to the requirements of all relevant jurisdictions). The Company is not licensed to provide financial product advice in respect of an investment in shares. Cooling off rights do not apply to the acquisition of shares under the Offer. Past performance Past performance metrics and figures (including past share price performance of the Company), as well as any historic or pro forma financial information, that is included in this Presentation are provided for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company’s views, or that of any other party involved in its preparation, on the Company’s future financial performance or condition or prospects. Investors should note that past performance of the Company, including in relation to the historical trading price of the Company’s shares, production, mineral resources and ore reserves, costs and other historical financial information cannot be relied upon as an indicator of (and provides no guidance, assurance or guarantee as to) future performance, including the future trading price of shares offered and sold under the Offer. The historical information included in this presentation is, or is based on, information that has previously been released to the market. Forward-looking statements and forecasts The material in this presentation contains certain forecasts and forward-looking information, including regarding possible or assumed future performance or potential growth of Silver Mines. Such information is not a guarantee of future performance and involves unknown risks and uncertainties, as well as other factors, many of which are beyond the control of Silver Mines. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors. No representation or warranty, expressed or implied, is made or given by or on behalf of Silver Mines, any of Silver Mines’ directors, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for such information or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation. Investors are cautioned not to place undue reliance on such statements. The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements. Accordingly, neither Silver Mines nor any of the Silver Mines directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon the statement or as a result of any admission in, or any document supplied with, this presentation or by any future communications in connection with such documents and any such liabilities are expressly disclaimed. Silver Mines confirms that for the purposes of Listing Rule 5.19.2, all material assumptions underpinning the information continue to apply and have not materially changed. JORC Code It is a requirement of the ASX Listing Rules that the reporting of Ore Reserves and Mineral Resources in Australia comply with the Joint Ore Reserves Committee’s Australasian Code for Reporting of Mineral Resources and Ore Reserves ("JORC Code"). Investors outside Australia should note that while Ore Reserves and Mineral Resources estimates of the Company in this document comply with the JORC Code (such JORC Code-compliant Ore Reserves and Mineral Resources being "Ore Reserves" and "Mineral Resources" respectively), they may not comply with the relevant guidelines in other countries and, in particular, do not comply with (i) National Instrument 43-101 (Standards of Disclosure for Mineral Projects) of the Canadian Securities Administrators (the "Canadian NI 43-101 Standards"); or (ii) Item 1300 of Regulation S-K, which governs disclosures of mineral reserves in registration statements filed with the SEC. Information contained in this document describing mineral deposits may not be comparable to similar information made public by companies subject to the reporting and disclosure requirements of Canadian or US securities laws. Mineral Resources and Ore Reserves This Presentation contains estimates of the Company's Mineral Resources and Ore Reserves – refer to Appendix 1 and Appendix 2 in particular. The information in this Presentation that relates to the Company’s Mineral Resources and Ore Reserves has been extracted from the Company's previous ASX announcements including: ASX Announcement “Maiden Ore Reserve – Bowdens Silver Project” dated 30 May 2018; and ASX Announcement “Updated Mineral resource Estimate for Bowdens Silver Deposit” dated 31 March 2023. Copies of these announcements are available at www.asx.com.au or https://www.silvermines.com.au/news-announcements/ . The Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements and, in relation to the estimates of the Company’s Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from those announcements. 3 For personal use only IMPORTANT NOTICES AND DISCLAIMER (CONTINUED) Production Targets The information in this Presentation that relates to Production Targets has been extracted from the Company's ASX Announcement “Feasibility Study – Bowdens Silver Project” dated 14 June 2018. A copy of this announcements is available at www.asx.com.au or https://www.silvermines.com.au/news-announcements/ . The Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements and, in relation to the Production Targets, that all material assumptions and technical parameters underpinning the estimates in the announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from that announcement. Exploration Results The information in this presentation that relates to Exploration Results has been extracted from various Silver Mines ASX announcements and are available to view on the Company’s website at www.silvermines.com.au or through the ASX website at www.asx.com.au (using ticker code “SVL”). The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. No liability This Presentation has been prepared by the Company in good faith, based on information available to it, including information from third parties, and has not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. To the maximum extent permitted by law, each of the Company and its related bodies corporate, and their respective its directors, employees, agents and advisers, together with Petra Capital Pty Ltd and its directors, employees, agents and advisers: expressly disclaims any and all liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of or reliance on information contained in this presentation including representations or warranties or in relation to the accuracy or completeness of the information, statements, opinions, forecasts, reports or other matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation including, without limitation, any financial information, any estimates or projections and any other financial information derived therefrom, whether by way of negligence or otherwise; expressly excludes and disclaims all liabilities in respect of, makes no representations regarding, any part of this Presentation and make no representation or warranty as to the currency, accuracy, adequacy, reliability or completeness or fairness of any statements, estimates, options, conclusions or other information contained in this Presentation; and expressly excludes and disclaim all liability, for any expenses, losses, damages or costs incurred by you as a result of your participation in the Offer and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. Statements made and information presented in this Presentation are made and presented only as at the date of this Presentation, and is current as at the date of this Presentation (unless otherwise indicated). The information in this Presentation remains subject to change without notice. The Company reserves the right to withdraw the Offer or vary the timetable for the Offer at any time before the issue of the relevant securities without notice. Currency, figures and financial reports All dollar values are in Australian dollars (A$ or AUD) unless otherwise stated. Amounts, totals and change percentages are calculated on whole numbers and not the rounded amounts presented. The Company’s financial year is 1 July to 30 June. 4 For personal use only SILVER MINES LIMITED CORPORATE INFORMATION Share Trading History 0.35 40 0.30 35 30 0.25 (A$/sh) 25 (US$/oz) 0.20 20 SVL 0.15 15 XAG 0.10 10 SVL XAG 0.05 5 Average daily volume of 4.6m shares 0.00 0 0.40 0.35 R² = 0.6763 0.30 SVL strongly correlated to the US$ silver price prior to (A$/sh) 0.20 Court of Appeal judgment 0.25 SVL 0.15 0.10 0.05 0.00 10 15 20 25 30 35 XAG (US$/oz) Capital Structure before offer (ASX: SVL) AUD USD Shares on Issue (m) 1,510 1,510 Share Price ($) 5 Dec 0.115 Undiluted Market Capitalisation ($m) 173.7 111.9 Cash ($m, as at end Sept 2024) 7.1 4.6 Enterprise Value ($m) 166.6 116.5 Options ESOP @ A$0.30 Dec 2024 9.0m ESOP @ A$0.30 Mar 2026 2.5m ESOP @ A$0.50 Mar 2028 2.5m 3 Year Milestone @ A$0.20 5.0m Executive Performance Rights 12.0m Directors Keith Perrett Non-Executive Chairman Jonathan Battershill Managing Director Kristen Podagiel Non-Executive Director Rob Dennis Non-Executive Director 5 SILVER MINES LIMITED BOARD For personal use only Mr Keith Perrett Non-Executive Chairman Mr Perrett has had a long involvement in agriculture as a producer and industry leader at local, state, national and international levels. He was formerly Chairman of the Grains Research and Development Corporation (GRDC), the National Rural Advisory Council (NRAC), the Wheat Research Foundation, and President of the Grains Council of Australia. Mr Perrett is Chairman of Acumentis Group Limited (Director since February 2018). Mr Jo Battershill Managing Director Mr Battershill graduated with a Bachelor of Engineering (Geology) degree (Hons) from the Camborne School of Mines, United Kingdom in 1995. His career spans over 25 years in mining, business development and finance both in Australia and internationally. His industry experience includes 10- years of senior operational and business development roles with WMC Resources Limited followed by over 15-years in stockbroking at Hartleys, Citigroup, UBS and Canaccord both in Sydney and London. Mr Battershill was consistently voted one of the leading mining analysts in Australia between 2009 and 2015 by institutional investors. Ms Kristen Podagiel Non-Executive Director Ms Podagiel has a distinguished legal background and over the past 20 years has worked as a commercial lawyer on major projects and developments including those in the mineral resources, technology, agriculture, energy and defence industries. Ms Podagiel has extensive senior executive-level experience including her prior role as Chief Executive Officer and Managing Partner of McCullough Robertson, a leading Australian independent law firm. Ms Podagiel is a current director of PWR Holdings Limited (ASX:PWH), a global designer and manufacturer of high performative cooling solutions for elite motorsports, defence and automative applications. She is also a Chair of ADG Capital Pty Ltd, a company involved in a range of engineering disciplines across various industry sectors including mining. Mr Robert (Rob) Dennis Non-Executive Director Mr Dennis is a mining engineer with 50 years’ experience in the nickel, copper, gold and alumina industries. Rob is a skilled leader and has extensive base metals and precious metals operational, technical and project development experience. Mr Dennis’ past experience includes Chief Executive Officer and Managing Director of Poseidon Nickel Limited, Chief Operating Officer for the Independence Group (“IGO”) where he was responsible IGO’s nickel, copper, zinc and gold operations including overseeing the development and commissioning of IGO’s Nova Nickel Project. 6 WHY INVEST IN SILVER MINES LIMITED only One of the world’s largest, undeveloped silver projects use Resource of 189Moz silver (396 Moz AgEq) Reserve of 66Moz silver (97 Moz AgEq) supports personal operational mine life of over 16-yrs Targeting average production of 4.0 – 4.5Moz Ag at AISC Optimisation program underway anticipated to be finalised before end of 2024 For of Minister for Planning has stated that the Bowdens Development Application is still on foot Bowdens Silver mineralisation remains open with outstanding drilling results along strike and at depth Multiple options to extend mine life Extensive tenement holdings – 2,115km 2 at Bowdens and 747km 2 at Tuena Drilling has commenced at Bara Creek targeting Bowdens analogy (collapsed caldera) Drilling targets identified at Tuena Highly leveraged to a positive silver price environment Refer to Appendices 1 & 2 for further details regarding mineral resource estimates and ore reserves. Bowdens silver equivalent: Ag Eq (g/t) = Ag (g/t) + 33.48*Pb (%) + 49.61*Zn (%) + 80*Au (g/t) calculated from prices of US$20/oz silver, US$1.50/lb zinc, US$1.00/lb lead, US$1600/oz gold and metallurgical recoveries of 85% silver, 82% zinc and 83% lead, 85% gold estimated from test work commissioned by Silver Mines Limited. 7 For personal use only SILVER MINES LIMITED CAPITAL RAISING Offer • A$25M placement ( Placement ) to sophisticated or professional investors. • Offer Price of A$0.092 per share representing: Offer Price • 20.0% discount to the last traded priced of A$0.115 on 5 December 2024; and • 9.6% discount to the 5-day volume weighted average trading price to 5 December 2024. • Placement participants will receive 1 new unlisted option ( New Option ) for every 3 shares subscribed under the Placement. New Options • New Options key terms: • Exercise price A$0.1196 (30% premium to the Offer Price); and • Expiry 18 months from issue • Community and freehold land, including property purchases and land access agreements Use of Funds • Bowdens approvals and engineering • Exploration at Barra and Tuena targets • General working capital, business development and Offer costs Syndicate • Petra Capital Pty Limited – Sole Lead Manager and Sole Bookrunner Other • The Company has mutually terminated the existing A$30.2M Bromma Convertible Debenture 8 use only SILVER MINES LIMITED USE OF FUNDS Advancing approvals and engineering to align with a target FID by end 2025 Acquisition of key freehold properties neighbouring the Bowdens deposit Continue exploration primarily on new targets to demonstrate prospectivity of large tenement holding For personal Sources of funds Cash 1 Placement Total A$M 7.2 25.0 32.2 Uses of Funds A$M New equity Approvals and Engineering 10 Community/Freehold property purchases 7 Exploration 5 Corporate & business development (incl Offer costs) 2 3 Existing liquid capital Cash 1 7.2 Total 3 32.2 1 Cash as at 30 September 2024, refer to Company’s Quarterly Activities Report and Cashflow Report released on ASX 28 October 2024. 2 The Company may consider suitable freehold land acquisitions as they arise. 9 3 Use of Funds indicative only and the board may vary this at is discretion. onlyuse SILVER METAL OF INNOVATION personalFor Attention : This is an excerpt of the original content. 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