Silvercorp represents an excellent opportunity for investors seeking precious metals exposure in their portfolios. Shareholder value is underpinned by three main assets:
1) Profitable, long-life mining operations (Ying and GC)
- Strong margins supported by low AISCs (sub-US$10/oz consolidated over the last few years)
- Free cash flow in excess of US$45 million in fiscal year 2022
- Organic production growth at Ying through exploration, land consolidation, and low-cost, high-impact investments (e.g., XRT ore sorting system, backfill plant, new flotation mill)
- Growth opportunities funded entirely by cash flow from operations
- Stable operations—Silvercorp has been mining in China since the early 2000s
- Over 15 years of mine life remain at Ying and 13 years at GC; extendable through several “low-hanging fruit” opportunities
- Long-term commitment to responsible mining and ESG (“Green Mine” certification awarded for mines at Ying and GC)
2) Investments in world-class opportunities
- New Pacific Metals (28% interest):
- Flagship Silver Sand project in Bolivia has the potential to be developed into one of the world’s largest silver mines with long life and robust economics; advancing through PFS and permitting
- Game-changing discovery of extensive gold mineralization beneath the silver horizon at the Carangas project in southwest Bolivia; maiden MRE by mid-2023
- Potential to discover large silver/gold-rich system(s) at the Silverstrike project southwest of La Paz, Bolivia
- Other notable strategic investments include:
- Whitehorse Gold (29% interest) — Two prospective tin projects in Bolivia plus the Skukum Gold project in southern Yukon (418 koz AuEq M&I + 517 koz AuEq inferred)
3) A strong balance sheet with liquidity and no debt
- Cash and short-term investments of US$210 million (US$1.19 per share) as at December 31, 2022
- Supports ongoing M&A efforts, funding our global search for transformational projects that can be quickly brought into production by leveraging our technical expertise and financial assets
- Also actively returning capital to shareholders through semi-annual dividend and share buybacks
