Slide 1: Q3 2022 Earnings Release
Q3 2022 Earnings Release November 16, 2022 TSX: MSA MINEROS: CB
Slide 2: Cautionary Statement
Cautionary Statement 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 a
Slide 3: Non-IFRS Measures
Non-IFRS Measures 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 eva
Slide 4: Management
Management Andrés Restrepo Isaza President & CEO Alan Wancier CFO Ana Isabel Gaviria VP Legal and Sustainability Ana María Ríos Puerta VP Business Development Santiago Cardona VP Colombia Luis Fernando Villa Tabares VP Nicaragua John Jairo Cuervo Muñoz VP Argentina 4
Slide 5: Agenda
AGENDA o Highlights o Financial Performance o Operational Indicators o Details per Operation o Looking Ahead
Slide 6: Highlights
Highlights Presented by: Andrés Restrepo Isaza President & CEO
Slide 7: Impairment of Asset
Impairment of Asset On May 28, 2022, a storm with unusually heavy rains and strong winds hit the area where the Nechí Alluvial Property is located and overturned the beneficiation plant connected to the Llanuras suction dredge. After a thorough review, as of September 30, 2022, management had not fo
Slide 8: Appointment of VP Nicaragua
Appointment of VP Nicaragua On July 11, 2022, Mineros announced the appointment of Mr. Luis Villa as Vice President Nicaragua, effective as at October 1, 2022, replacing Mr. Carlos Mario Gomez, who will be retiring later this year following 14 years of service with the Company. Mr. Villa has been wi
Slide 9: Appointment of VP Business Development
Appointment of VP Business Development On August 26, 2022, Mineros announced the appointment of Ms. Ana María Ríos as Vice President, Business Development, effective as of October 1, 2022. Ms. Ríos has seventeen years of professional experience, of which the last fourteen have been at Mineros, most
Slide 10: Workforce reduction in Argentina
Workforce reduction in Argentina On September 9, 2022, Mineros announced that over the next six months, it will downsize its operations at its Gualcamayo Property, reducing its workforce in Argentina by up to 30%, as a result of the natural depletion of the deposit. The Company expects to incur cost
Slide 11: Gold price behavior
Gold price behavior Q3 2022 Gold price behavior ($/oz) 1,850 $1,811 1,800 1,750 1,700 $1,622 1,650 1,600 julio July agosto August septiembre September 11
Slide 12: Financial Performance
Financial Performance Presented by: Alan Wancier CFO
Slide 13: Financial Results Q3 2022
Financial Results Q3 2022 o The increase in revenues is mainly Q3 2021 (MUSD) explained by a 19% increase in ounces Q3 2022 (MUSD) of gold sold given increased efficiencies at the Nechí Alluvial Property and the 135.9 Gualcamayo Property 120.2 o The 9% increase in costs is explained by 103.5 higher
Slide 14: Financial Results YTD 2022
Financial Results YTD 2022 o The increase in revenues is mainly 2021 (MUSD) explained by a 7% increase in ounces 2022 (MUSD) of gold sold 397.8 o The 7% increase in costs is explained 374.0 by higher D&A ($8.2) and by higher prices of consumables due to 295.0 inflation ($4.3M) 275.7 o Higher gross p
Slide 15: Cash and Cash Equivalents
Cash and Cash Equivalents o Cash flows from operating activities is explained by income 22.8 from sales of gold ($142M) less payments made to suppliers ($77M) and taxes ($18M) o Cash flows used in investment 38.8 activities refer to purchases of 19.6 2.4 32.4 property, plant and equipment ($11M), ex
Slide 16: Adjusted EBITDA
Adjusted EBITDA ADJUSTED EBITDA MUSD (1) Adjusted EBITDA was 33% higher than during 47 Q3 2021 explained 43 mainly by more ounces 41 of gold sold 35 32 + 33% ADJUSTED EBITDA Q3 2022 vs. Q3 2021 10 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 (1) Adjusted EBITDA is a non-IFRS financial measure and might n
Slide 17: Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio Lower loans and other Net Debt (MUSD) (1) borrowings compared to Q3 2021, since the proceeds of Debt (MUSD) / Adj. EBITDA (LTM MUSD) (2) concurrent public offerings in Canada and Colombia in Q4 2021, were used for debt 0.22x 0.0 0x repayment 0.02x 0.11x 0.10x -0.05x
Slide 18: Operational Indicators
Operational Indicators Presented by: Andrés Restrepo Isaza President & CEO
Slide 19: Production, Average Realized Price, Cash Cost and AISC
Production, Average Realized Price, Cash Cost and AISC Higher production at the Nechí Produced Ounces (koz) AISC (USD/oz) (1) Alluvial Property and the Cash Cost (USD/oz) (1) Gualcamayo Property 80 koz Average Realized Price (USD/oz) (1) 2,8 00 75 koz Lower Cash Cost and AISC 75 koz 74 koz 2,6 00 ex
Slide 20: Details by Operation
Details by Operation Presented by: Andrés Restrepo Isaza President & CEO
Slide 21: Colombia
Colombia Q3 2022 vs. Q3 2021 25 koz 30 koz 23 koz 3,0 00 17 koz 19 koz 2,5 00 16 koz 20 koz Production + 46% 2,0 00 AISC - 22% 1,5 00 1,523 10 koz 1,0 00 Gross Profit + 87% 1,226 1,259 1,057 951 50 0 0 koz - Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 o Higher production compared to Q3 2021, explained P
Slide 22: Nicaragua
Nicaragua Q3 2022 vs. Q3 2021 40 koz 3,0 00 33 koz 32 koz 33 koz 34 koz 32 koz 2,5 00 30 koz 2,0 00 Production - 2% 1,5 00 AISC - 2% 1,447 1,384 1,305 1,351 20 koz 1,0 00 Gross Profit - 24% 1,279 50 0 10 koz - Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 o The 2% decrease in production is due to Produced
Slide 23: Argentina
Argentina 25 koz Q3 2022 vs. Q3 2021 5,0 00 17 koz 17 koz 4,0 00 Production + 27% 15 koz 15 koz 14 koz 14 koz 3,0 00 AISC - 5% 2,594 2,0 00 Gross Profit + 116% 1,873 2,025 1,627 1,0 00 1,457 5 koz - Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 o The higher production is explained by higher Produced Ounce
Slide 24: Looking Ahead
Looking Ahead Presented by: Andrés Restrepo Isaza President & CEO
Slide 25: Looking Ahead
Looking Ahead o We are on track to reach 2022 production guidance between 262,000 – 285,000 ounces of gold o Advance in growth and exploration campaigns • Porvenir Project (Nicaragua): Based on a project re-evaluation the Company now anticipates completing a pre-feasibility study in the second half
Slide 26: TSX: MSA MINEROS: CB
eae: Mineros por el bienestar de todos TSX: MSA MINEROS: CB EMCO Mineros Nicaragua Fundacion pvuincieenas case + Negocios ee Minas Argentinas s.a. Gualcamayo por el bienestar de todos
Slide 27: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Three Months Ended September Nine Months Ended September 30, 30, 2022 2021 2022 2021 Net profit for the period 2,610 8,150 24,481 32,327 Less: Interest income (50) (235) (568) (946) Add: Interest expense 1,511 1,156 3,835 3,604 Add: Current tax (1) 8,640 6,812 28,929 2
Slide 28: Cash Cost and AISC per Segment
Cash Cost and AISC per Segment 28
Slide 29: Mineral Reserves & Mineral Resources
Mineral Reserves & Mineral Resources Effective Date Dec. 31, 2021 as per 2021 AIF Mineral Reserves and Mineral Resources Tonnage Grade Contained Metal Ore Au Ag Zn Au Ag Zn (Kt) (g/t) (g/t) (%) (Koz) (Koz) (Mlb) Mineros S.A. Proven & Probable Reserves Nechí Alluvial Property 748,588 0.05 - - 1,157 -
Slide 30: Mineral Reserve Notes
Mineral Reserve Notes Effective Date Dec. 31, 2021 as per 2021 AIF Mineral Reserve Reporting Notes: • CIM (2014) definitions were followed for Mineral Reserves. • Mineral Reserves are estimated using an average long-term gold price of US$1,500/oz. • Numbers may not add due to rounding. Nechi Alluvia
Slide 31: Mineral Resource Notes
Mineral Resource Notes Effective Date Dec. 31, 2021 as per 2021 AIF Mineral Resource Reporting Notes: • CIM (2014) definitions were followed for Mineral Resources. • Mineral Resources are exclusive of Mineral Reserves. • Mineral Resources that are not Mineral Reserves do not have demonstrated econom
Slide 32: Luna Roja Deposit Mineral Resource
Luna Roja Deposit Mineral Resource Effective Date June 17, 2022 as per Mineros news release dated July 7, 2022 Mineral Resources(1) Tonnes Grade Contained Metal (kt) (g/t Au) (koz Au) Indicated 1,139 2.40 88 Open Pit Inferred 318 2.27 23 Indicated 25 5.15 4 Underground Inferred 186 2.39 14 Indicated