[PPT] - Silver Yearbook 2019 New York, NY 23 April 2019 Sponsors and PowerPoint Presentation

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Silver Yearbook 2019

New York, NY 23 April 2019

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Sponsors and Partners

China Partner

Shanghai Huatong Silver Exchange

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Silver Prices

3 8 12 16 20 24 28 32 36 40 44 48 52 10 11 12 13 14 15 16 17 18 19 $ / Oz Silver Prices: 1 January 2010 to 22 April 2019

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Global Economic Outlook

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2 4 6 8 10 1980 1985 1990 1995 2000 2005 2010 2015 2020p 2025p World Emerging and Developing Economies Advanced Economies Real Gross Domestic Product Annual, Projected Through 2027 Percent Change Percent Change

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Silver Bullion Inventories

5 500 1,000 1,500 2,000 2,500 3,000 3,500 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Implied Unreported Stocks Government Dealer Exchange ETPs Mln Oz Silver Bullion Inventories Year-end Data, through 2018

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London Silver OTC Trading Volumes

6 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 19-Nov-18 24-Dec-18 28-Jan-19 4-Mar-19 8-Apr-19 Total of All Transactions Spot's Percent of Total London Silver OTC Trading Volumes Billion Ounces Percent

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Investment Demand

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Silver Investment Demand

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50 100 150 200 250 5 10 15 20 25 30 35 40 45 60 65 70 75 80 85 90 95 00 05 10 15 Million Ounces $/Ounce Nominal Price (LHS) Net Changes in Inventories Net Additions Net Withdrawals Silver Market Balance Annual, Projected Through 2019. Prices through 2018.

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Coins Continued To Dominate Silver Investment Demand

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50 100 150 200 250 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Other ETPs Coins Net Investment Demand Estimated Investment Demand by Major Investment Vehicle Mln Oz Mln Oz

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Silver ETF Holding On

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100 200 300 400 500 600 700 800 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 SLV CEF ZKB Monthly Silver ETP Holdings Mln Oz March 2019

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20 40 60 80 100 120 140 160 180 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Annual Changes to Silver ETP Holdings Mln Oz Mln Oz March 2019

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Institutional Investors On Comex Turn Net Short

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50 150 250 350 450 550 650 750 A-95 J-97 O-99 J-02 A-04 J-06 O-08 J-11 A-13 J-15 O-17 Long Short Net Fund Position in Comex Mln Ozs Non-Commercial Gross Long and Short Silver Positions Comex Futures & Options. Weekly Data, Through 26 March 2019 Mln Ozs

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Silver Prices Have A Lot To Catch Up

20 40 60 80 100 120 20 40 60 80 100 120 72 76 80 84 88 92 96 00 04 08 12 16 Monthly Gold/Silver Price Ratio Ratio Ratio March 2019

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Fabrication Demand

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Fabrication Demand Rose For Sixth Consecutive Year

14 100 200 300 400 500 600 700 800 900 1,000 100 200 300 400 500 600 700 800 900 1,000 77 80 83 86 89 92 95 98 01 04 07 10 13 16 19p Photovoltaic Imports into Trans Economies Other Countries Other Uses Biocides Superconductors Electronics Jewelry & Silverware Photography Million Ounces Million Ounces Annual Fabrication Demand Projected Through 2019

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Reaching New Records, But At A Slower Pace

15 20 40 60 80 100 20 40 60 80 100 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19p Annual Silver Demand for Photovoltaic Solar Panels Projected Through 2019 Mln Oz Mln Oz

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Jewelry & Silverware Demand At Elevated Levels

16 5 10 15 20 25 30 35 40 50 100 150 200 250 300 350 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18p $/Oz. Silver Prices (RHS) Million Oz. Global Jewelry and Silverware Demand

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Electronics Demand Continues To March Higher

17 50 100 150 200 250 300 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13 15 17 19p Million Ounces Annual Total Electronics Demand Projected Through 2019

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Supply

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Total Silver Supply Continues To Decline

19 100 200 300 400 500 600 700 800 900 1,000 1,100 100 200 300 400 500 600 700 800 900 1,000 1,100 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Secondary Mine Production Million Ounces Million Ounces Net Exports from Tran. Econ. Government Disposals Projected Through 2019 Total Annual Silver Supply

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New Mine Capacity In Declining Trend

20 5 10 15 20 25 30 35 40 2013 2014 2015 2016 2017 2018 2019p Million Ounces Annual Additions to Silver Mine Capacity from Near-Term Mine Development Projects

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Most Producers Reduced Costs In 2018

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5 10 15 20 25 30 35 40 45 50 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Cash Cost per Ounce Cash Cost per Ounce Average Silver Price in 2018: $15.71 Production Weighted 2018 Cash Cost: $5.47 Primary Silver Producers' Cash Costs in 2018 Average Silver Price in 2017: $17.09 Production Weighted 2017 Cash Cost : $5.90 2017 2018

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Production-Weighted Costs Lowest Since 2009

22 $0 $5 $10 $15 $20 $25 $30 $35 $40 $0 $5 $10 $15 $20 $25 $30 $35 $40 2001 2003 2005 2007 2009 2011 2013 2015 2017 $/Ounce $/Ounce Average Cash Cost Annual Average Silver Price Annual Average Primary Producers' Silver Cash Costs and Prices

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Average Costs Declined Slower Than Average Prices Squeezing Margins

23 5 10 15 20 25 30 5 10 15 20 25 30 2001 2003 2005 2007 2009 2011 2013 2015 2017 $/Ounce $/Ounce Margin Between The Price of Silver and Average Cash Operating Costs of Production

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One Final Point

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1990s All Over Again? Probably Not.

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50 100 150 200 250 5 10 15 20 25 30 35 40 45 60 65 70 75 80 85 90 95 00 05 10 15 Million Ounces $/Ounce Nominal Price (LHS) Net Changes in Inventories Net Additions Net Withdrawals Silver Market Balance Annual, Projected Through 2019. Prices through 2018. Similar Trend In Investment Demand

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CPM Group Precious Metals Yearbooks

Launch Dates: 2019 Platinum Group Metals Yearbook 9 July @ New York For general inquiries, email info@cpmgroup.com

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