Mineros Sa · BVC:MINEROS
Mineros Sa — Q3 2024 Earnings Presentation
36 slides from Mineros Sa's earnings presentation, Nov 15, 2024
Slide 1: Results Q3 2024
Results Q3 2024 NOVEMBER 15, 2024 BVC: MINEROS TSX: MSA
Slide 2: To listen in English – Para oír en Inglés
BVC: MINEROS To listen in English – Para oír en Inglés TSX: MSA 2 Step 1 Click START on the box that says “English” Step 2 Click MUTE on the box that says “Media Player” to avoid listening to both audios simultaneously
Slide 3: Cautionary Note
BVC: MINEROS Cautionary Note TSX: MSA 3 The information presented herein contains forward-looking statements; such information relates to future events, including the Company's performance, prospects and business opportunities. The projections may include, inter alia, the estimation of resources and
Slide 4: Non-IFRS Financial Measures and Non-IFRS Ratios
Non-IFRS Financial Measures and Non-IFRS Ratios 4 This presentation includes non-IFRS financial measures and non-IFRS ratios such as: • Cash Cost (per ounce of gold sold) • AISC (per ounce of gold sold) • Average price per ounce of gold sold • Adjusted EBITDA • Net Debt • Return on Capital Employed
Slide 5: Management Team
BVC: MINEROS Management Team TSX: MSA 5 Andrés Restrepo Isaza President & Chief Executive Officer Alan Wancier Vice President, Finance & Administration Ana Isabel Gaviria Arteaga Vice President, Legal & Sustainability Santiago Cardona Múnera Vice President, Colombia Luis Fernando Villa Tabares Vice
Slide 6: Agenda
BVC: MINEROS Agenda TSX: MSA 6 o Highlights o Financial Results o Results of Operations o Review of Operations o Challenges & Opportunities ©2024 Mineros. Todos los derechos reservados.
Slide 7: Highlights
Highlights Presented by: Andrés Restrepo Isaza President & CEO
Slide 8: Highlights - Q3 2024
BVC: MINEROS Highlights - Q3 2024 TSX: MSA 8 Produced 53,612 gold ounces, 7% Paid $7.5 M in more than the dividends to our Net Profit $28.5 M same period in shareholders 2023 Adjusted EBITDA $62.9 M Produced 186,724 silver ounces, Net Free Cash Flow 34% more than in $38.8 M the same period in 2023
Slide 9: Q3 2024 - Gold Price ($/oz)
BVC: MINEROS Q3 2024 - Gold Price ($/oz) TSX: MSA 9 $2,672 $2,351
Slide 10: Financial Results
Financial Results Presented by: Alan Wancier VP, Finance & Administration
Slide 11: Financial Results - Q3 2024
Financial Results - Q3 2024 11 Q3 2023 (M USD) Q3 2024 (M USD) o Revenue increased due to a 29% increase in average realized price of gold sold, a 7% increase in ounces of gold sold, and a 74% increase in sales of silver o Cost of sales increased due to: higher gold prices, increasing the costs to p
Slide 12: Financial Results - Nine Months Ended Sept 30, 2024
Financial Results - Nine Months Ended - Sept 30, 2024 12 F9M 2023 (M USD) F9M 2024 (M USD) o Revenue grew by 23% because the price of gold rose 19% and because silver sales were 82% higher to ($8.0 M). o Cost of sales rose 18%, due to higher costs of purchasing artisanal material because of the high
Slide 13: Cash and Cash Equivalents
Cash and Cash Equivalents 13 o Net cash flows from operations represents revenues from the sale of gold, silver and electricity of $138.8 M, less payments to suppliers of $(68.8) M, salaries and benefits of $(12.2) M and taxes of $(6.4) M o Cash flow used in investing activities is composed of purch
Slide 14: Adjusted EBITDA
88% Adjusted EBITDA 14 Figures in millions of USD Adjusted EBITDA increased 88%, due to higher revenues from higher gold prices and higher silver sales 88% ADJUSTED EBITDA Q3 2024 vs. Q3 2023 Adjusted EBITDA is a non-IFRS financial measure. Its most comparable IFRS measure is net income. Non-IFRS fi
Slide 15: Net Debt
Net Debt 15 Figures in millions of USD The decrease in Net Debt from the same period of the previous year is explained by a significantly higher cash balance. At the end of the quarter, credits and loans were $28.7 M, with a balance of cash and cash equivalents $57.1 M. +3,843% Net Debt Q3 2024 vs.
Slide 16: Results of Operations
Results of Operations Presented by: Andrés Restrepo Isaza President & CEO
Slide 17: Production, average gold price & costs
Production, average gold price & costs 17 Production increased due to Hemco - 37% increase in tonnes of ore processed and 2% better recoveries were partially offset by a 15% decrease in gold production at Nechi due to a decrease in volume of material processed, and 13% lower grade. Higher Cash Cost
Slide 18: Review of Operations
Review of Operations Presented by: Andrés Restrepo Isaza President & CEO
Slide 19: Nechí Aluvial - Colombia
Nechí Aluvial - Colombia 19 Q3 2024 vs. Q3 2023 Production (15)% AISC +30% Gross Profit +8% o Q3 2024 production decreased by 15% versus Q3-2023, because there was a modest 3% less material processed at 13% lower grades, partially offset by 12% better recoveries (Q3 2024: 9.1Mm3, Q3 2023: 9.4Mm3). o
Slide 20: Hemco - Nicaragua
Hemco - Nicaragua 20 Q3 2024 vs. Q3 2023 Production +25.7% AISC (10)% Gross Profit +496% o Production in Q3 2024 was 26% higher than in Q3 2023 due to a 37% increase in tonnes of ore processed at a 2% better recovery, offset by slightly lower grade ore. The increased tonnage was largely due to a bri
Slide 21: Challenges and Perspectives
Challenges and Perspectives Presented by: Andrés Restrepo Isaza President & CEO
Slide 22: Revised Guidance
Revised Guidance 22 Forecast of Production 2024 – Revised Guidance Guidance Guidance 2024 2024 Revised Colombia (Nechi Alluvial) 86,000 - 96,000 77,000 - 85,000 Nicaragua (Hemco) 33,000 - 35,000 33,000 - 35,000 Total Company Mines 119,000 - 131,000 110,000 - 120,000 Nicaragua (Artisanal) 90,000 - 98
Slide 23: Opportunities
Opportunities 23 Growth and exploration programs Porvenir Project (Nicaragua) - Updates to the geometallurgical assumptions along with the 2023 metallurgical work analysis are underway and we expect to receive the results to update the model in the second half of 2024. As a result, the company has d
Slide 24: Mineros
Mineros BVC: MINEROS TSX: MSA Por el bienestar de todos
Slide 25: Adjusted EBITDA
Adjusted EBITDA 25 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net Profit For The Period 28,507 (32,507) 63,357 (4,551) Less: Interest income (294) (390) (1,078) (950) Add: Interest expense 2,012 1,222 6,043 3,561 Add: Current tax 1 15,231 6,982 37,525 30,089
Slide 26: Net Debt
Net Debt 26 September 30, 2024 2023 Loans and other borrowings 28,718 33,692 Less: Cash and cash equivalents (57,127) (32,933) Net Debt (28,409) 759
Slide 27: Cash Cost per ounce of gold sold
Cash Cost per ounce of gold sold 27 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Cost of sales 86,234 75,658 258,903 219,225 Less: Cost of sales of non-mining operations1 (407) (195) (827) (494) Less: Depreciation and amortization (12,254) (10,943) (35,961) (3
Slide 28: AISC per ounce of gold sold
AISC per ounce of gold sold 28 Nine Months Ended September Three Months Ended September 30, 30, 2024 2023 2024 2023 Cost of sales 86,234 75,658 258,903 219,225 Less: Cost of sales of non-mining operations 1 (407) (195) (827) (494) Less: Depreciation and amortization (12,254) (10,943) (35,961) (31,78
Slide 29: Average realized price per ounce of gold sold
Average realized price per ounce of gold sold 29 Three Months Ended September Nine Months Ended September 30, 30, 2024 2023 2024 2023 Sales of gold from continuing operations 132,788 96,450 364,726 303,117 Gold sold from continuing operations (oz) 53,612 50,196 159,056 157,669 Average realized price
Slide 30: Cash Cost and AISC per ounce of gold sold by segment
Cash Cost and AISC per ounze of gold sold by 30 segment Three months ended September 30, 2024 Three months ended September 30, 2023 Nechi Alluvial Hemco Gualcamayo Nechi Alluvial Hemco (Discontinued operation)1 Cost of sales 32,833 57,027 Cost of sales 29,686 49,361 32,535 Less: Depreciation and amo
Slide 31: Mineral Resources and Mineral Reserves
Mineral Resources and Mineral Reserves 31 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form
Slide 32: Mineral reserves notes
Mineral reserves notes 32 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Mineral Reserve Reporting Notes: 1. CIM (2014) definitions were followed for Mineral Reserves. 2. Mineral Reserves are as of December 31, 2023. 3. Numbers may not add due to rounding. Nechí Alluvial Property –
Slide 33: Mineral reserves notes
Mineral reserves notes 33 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Hemco Property – Nicaragua: 1. Mining method: a. Panama and Pioneer: shrinkage stoping, sub-level open stoping (SLOS), and bench and fill. b. Porvenir: cut-and-fill stoping and sub-level stoping. 2. Minimum mi
Slide 34: Mineral resources notes
Mineral resources notes 34 Effective Date Dec. 31, 2023 as per 2023 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 do n
Slide 35: Notas Recursos Minerales
Notas Recursos Minerales 35 Effective Date Dec. 31, 2023 as per 2023 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. Leticia
Slide 36: Notas Recursos Minerales
Notas Recursos Minerales 36 Effective Date Dec. 31, 2023 as per 2023 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