Mineros Sa · BVC:MINEROS
Mineros Sa — Q3 2023 Earnings Presentation
35 slides from Mineros Sa's earnings presentation, Nov 10, 2023
Slide 1: Earnings Call Q3 2023
Earnings Call Q3 2023 November 10, 2023 TSX: MSA BVC: MINEROS
Slide 2: Cautionary Statement
Cautionary Statement 2 Certain statements made and information contained herein constitute “forward-looking information”. Such statements and information relate to future events, including the company’s future performance, business prospects or opportunities. Forward-looking statements involve known
Slide 3: Non-IFRS Measures
Non-IFRS Measures 3 The Company has included non-IFRS financial measures and non-IFRS ratios in this Presentation. Management believes that non-IFRS financial measures and non-IFRS ratios, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to e
Slide 4: Management
Management 4 Andrés Restrepo Isaza President and CEO Alan Wancier CFO Ana Isabel Gaviria Arteaga VP Legal and Sustainability Ana María Ríos Puerta VP Business Development Lina Toro Palacio VP Talent Management Santiago Cardona Múnera VP Colombia Luis Fernando Villa Tabares VP Nicaragua John Jairo Cu
Slide 5: Agenda
Agenda 5 o Highlights o Financial Performance o Operational Indicators o Details per Operation o Looking Ahead ©2023 Mineros. All rights reserved.
Slide 6: Highlights
Highlights Presented by: Andres Restrepo CEO
Slide 7: Sale of Minas Argentinas S.A. “MASA”
Sale of Minas Argentinas S.A. “MASA” 7 On September 7, 2023, we signed a share purchase and sale agreement with Eris LLC to sell all of the outstanding shares of MASA, which includes the Gualcamayo Mine and the Deep Carbonates Project. The disposed business, MASA has been presented as a discontinued
Slide 8: Investment and Sale Background
Investment and Sale Background 8 Mineros invested in MASA in December 2018, with a favorable macroeconomic scenario in Argentina. At the time, we acquired an operating mine that was approaching the end of life and the Deep Carbonates Project (“DCP”), which was an early stage project. The strategy du
Slide 9: Temporary suspension of the main processing plant at the Hemco Property in Nicaragua
Temporary suspension of the main processing plant 9 at the Hemco Property in Nicaragua On August 2, we suspended operations of the main processing plant at the Hemco Property in Nicaragua, which processes 89% of the material and disposal of tailings. The suspension was precautionary in nature, desig
Slide 10: Gold Price Behavior
Gold Price Behavior 10 Daily Gold Price Behavior Q3 2023 ($/oz) 2000 1980 1960 1940 $1,978 1920 1900 1880 1860 1840 $1,849 1820 1800 3/07/2023 3/08/2023 3/09/2023 Jul Aug Sept
Slide 11: Financial Performance
Financial Performance Presented by: Alan Wancier CFO
Slide 12: Financial Results Q3 2023
Financial Results Q3 2023 12 Revenue o Gold Production for the quarter was impacted by Q3 2022 (M USD) Q3 2023 (M USD) the two-week suspension at the Hemco Property. o The 2% increase in revenue is explained by an 100% increase in sales of silver $1.6M. Sales of 99.7 101.4 gold were similar to the Q
Slide 13: Financial Results for the nine months ended September 30, 2023
Financial Results for the nine months ended 13 September 30, 2023 Revenue 2022 (M USD) 2023 (M USD) o The 2% decrease in revenue is mainly explained by explained by 65% higher sales of silver, which were partially offset, by a 5% decrease of ounces 316.9 of gold sold. 309.9 Cost of sales o The 3% in
Slide 14: Cash and Cash Equivalents
Cash and Cash Equivalents 14 Amounts in USD millions Cash Balances decreased by 38% 4.3 o Cash flows from operating activities 47.4 is explained by income from sales of gold and silver ($133M), less payments made to suppliers ($106M), payments of employee 11.0 5.6 32.9 benefits ($18M) and taxes ($7M
Slide 15: Adjusted EBITDA
Adjusted EBITDA 15 ADJUSTED EBITDA MUSD (1) Adjusted EBITDA from continuing operations 48 decreased by 11%, explained by lower gold produced due to the 40 temporary suspension at 37 38 the Hemco Property and higher costs of sales. 33 -11% Adj. EBITDA Q3 2023 vs. Q3 2022 10 Q3 2022 Q4 2022 Q1 2023 Q2
Slide 16: Net Debt
Net Debt 16 Net Debt (MUSD) 1. Debt (MUSD) / Adj. EBITDA (LTM MUSD) 2. The decrease in Net Debt balance is explained by lower loans and other borrowings of $23M, partially offset by 0.0 0x lower cash and cash 0.12x 0.08x (0.02)x (0.02)x 0.00x equivalents of $6M (1.00)x 18 13 (2.00)x - 96% (3.00)x Ne
Slide 17: Operational Indicators
Operational Indicators Presented by: Andres Restrepo CEO
Slide 18: Production, average selling price and cost
Production, average selling price and cost 18 Produced Ounces (koz) AISC (USD/oz) Cash Cost (USD/oz) Average Realized Price (USD/oz) 65 Production was impacted by unscheduled maintenance stoppages at the milling area at 59 the Hemco Property and lower production at 57 57 the Gualcamayo Property. 60
Slide 19: Detail per Operation
Detail per Operation Presented by: Andres Restrepo CEO
Slide 20: Nechí Aluvial - Colombia
Nechí Aluvial - Colombia 20 Q3 2023 vs. Q3 2022 25 koz 25 koz 30 koz 25 koz 23 koz 3,00 0 Production - 8% 18 koz 2,50 0 20 koz 2,00 0 AISC + 31% 1,50 0 10 koz Gross profit 0% 1,00 0 1,256 1,224 1,247 951 1,011 500 0 koz - o The 8% decrease in production during the quarter is Q3 2022 Q4 2022 Q1 2023
Slide 21: Hemco - Nicaragua
Hemco - Nicaragua 21 Q3 2023 vs. Q3 2022 40 koz 3,00 0 34 koz 33 koz 32 koz 32 koz 2,50 0 Production - 16% 30 koz 27 koz 2,00 0 AISC + 22% 1,645 1,50 0 20 koz 1,351 1,357 1,269 1,348 1,00 0 Gross profit - 55% 500 10 koz - o Production for the quarter decreased by 16%, explained Q3 2022 Q4 2022 Q1 20
Slide 22: Looking Ahead
Looking Ahead Presented by: Andres Restrepo CEO
Slide 23: Looking Ahead
Looking Ahead 23 Updated Guidance Based on the sale of the Gualcamayo Property, we updated our 2023 consolidated production and cost guidance. The updated guidance includes production from the Gualcamayo Property until September 21, 2023: Original Updated Gold Production (oz) 264,000 – 292,000 239,0
Slide 24: Mineros
Mineros TSX: MSA BVC: MINEROS Por el bienestar de todos
Slide 25: Adjusted EBITDA
Adjusted EBITDA . . (32,507) Add: Current tax * Add/less: Deferred tax * EBIT Add: Depreciation and amortization EBITDA Less: Other income ? Less: Finance income (excluding interest Add: Finance expense (excluding interest expense) Add: Other expenses ‘Add: Exploration expenses Less: Foreign exchang
Slide 26: Net Debt to Adjusted EBITDA ratio
Net Debt to Adjusted EBITDA ratio 26
Slide 27: Cash Cost and AISC per ounce of gold sold
Cash Cost and AISC per ounce of gold sold 27
Slide 28: Average Realized Price of gold
Average Realized Price of gold 28
Slide 29: AISC per ounce of gold sold per Material Property
AISC per ounce of gold sold per Material Property 29
Slide 30: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources 30 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form MINERAL RESERVES AND MINERAL RESOURCES Tonnes Grade Contained Metal Classification/Property (kt) (g/t Au) (g/t Ag) (% Zn) (koz Au) (koz Ag) (t Zn) (Mlb Zn) Proven and Probable Nechí Alluvial Pr
Slide 31: Mineral Reserves Notes
Mineral Reserves Notes 31 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form Mineral Reserve Reporting Notes: (1) CIM (2014) definitions were followed for Mineral Reserves. (2) Mineral Reserves are as of December 31, 2022. (3) Numbers may not add due to rounding. Nechí Alluvial Propert
Slide 32: Mineral Reserves Notes
Mineral Reserves Notes 32 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form HEMCO Property – Nicaragua: (1) Mining method: Panama and Pioneer: shrinkage stoping, sub-level open stoping (SLOS), and bench and fill. (a) Porvenir: cut-and-fill stoping and sub-level stoping. (b) (2) Minimu
Slide 33: Mineral Resources Notes
Mineral Resources Notes 33 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form Mineral Resource Reporting Notes: (1) CIM (2014) definitions were followed for Mineral Resources. (2) Mineral Resources are exclusive of Mineral Reserves. (3) Mineral Resources that are not Mineral Reserves d
Slide 34: Mineral Resources Notes
Mineral Resources Notes 34 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form HEMCO Property: (1) Cut-off grades and values: (a) Panama: 2.0 g/t Au (b) Pioneer: 2.0 g/t Au (c) Porvenir: NSR cut-off value of US$82.30/t (d) Luna Roja: open pit: 0.87 g/t Au; underground: 2.0 g/t Au (e) Le
Slide 35: Mineral Resources Notes
Mineral Resources Notes 35 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form La Pepa Project: (1) Open pit Mineral Resources are estimated inside of an optimized pit envelope at a cut-off grade of 0.20 g/t Au for oxides and 0.26 g/t Au for sulphides, which corresponds to the marginal