Mineros Sa · BVC:MINEROS
Mineros Sa — Q4 2021 Earnings Presentation
29 slides from Mineros Sa's earnings presentation, Mar 3, 2022
Slide 1: Year End & Q4 2021 Earnings Release
Year End & Q4 2021 Earnings Release March 3, 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 Corporate Secretary & General Counsel José Díaz Cardozo Exploration Manager Santiago Cardona Country Manager Colombia Carlos Mario Gómez Country Manager Nicaragua John Jairo Cuervo Muñoz Country Manager 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: IPO in TSX and Offering at BVC
IPO in TSX and Offering at BVC In November 2021, Mineros completed its IPO in Canada and listed on the Toronto Stock Exchange (TSX), and a concurrent public offering in Colombia through the Bolsa de Valores de Colombia (BVC). A total of 38,050,000 common shares were issued: o 25,272,223 common share
Slide 8: Initial 20% interest earned in the La Pepa Project, Chile
Initial 20% interest earned in the La Pepa Project, Chile On June 25, Mineros exercised its first option to earn a 20% interest in the La Pepa Project. This acquisition was made pursuant to an option agreement with Yamana. We have a second option to increase our interest to 51%, after which we may a
Slide 9: Approval of Colombian environmental permits
Approval of Colombian environmental permits On October 19, 2021, the Colombian National Authority of Environmental Licences ("ANLA") granted environmental permits sufficient to support planned operations at Nechi Alluvial Property within a 141-hectare area covered by the environmental management pla
Slide 10: Nicaragua: Luna Roja Exploration Target Acquisition
Nicaragua: Luna Roja Exploration Target Acquisition On May 21, Mineros consolidated 100% ownership by purchasing a 50% interest in the Luna Roja Exploration Target for USD 24.5 million, and a 1.25% net smelter return royalty from the two concessions after starting commercial production. Near-surface
Slide 11: Colombia: Formalization Program
Colombia: Formalization Program The Formalization mining program is a collaborative model, to work with formerly-informal miners as third party contractors. By the end of 2021, the program included 9 operating units, generating more than 200 direct jobs. Photo Credit: Colombian Ministry of Mines and
Slide 12: Nicaragua: Acquisition of remaining 25% of Vesubio Mining S.A.
Nicaragua: Acquisition of remaining 25% of Vesubio Mining S.A. The Vesmisa Plant, owned by Vesubio Mining, S.A., is a 140 tpd processing plant dedicated to artisanal production. On March 4, 2021, through Hemco, our Nicaraguan operating subsidiary, we acquired a 10% interest in Vesmisa. On July 27, H
Slide 13: Gold Price Behavior
Gold Price Behavior 2021 Daily Gold Spot Price (US$/oz) 2,000 $1,950 1,950 1,900 1,850 1,800 1,750 1,700 $1,684 1,650 1,600 1,550 ene Jan feb Febmar Mar abr Apr may May jun Jun jul Jul agoAug Sept sep Oct oct Nov nov Dec dic 13
Slide 14: Financial Performance
Financial Performance Presented by: Alan Wancier CFO
Slide 15: Financial Results 2021
Financial Results 2021 2020 (MUSD) o Slight growth in revenues explained 2021 (MUSD) by higher sales of silver and income from sales of energy 485.3 496.2 o The increase in costs is a result of increased purchases of mineralized material from artisanal miners in 371.3 Nicaragua and formalized third
Slide 16: Financial Results Q4 2021
Financial Results Q4 2021 o Slight growth in revenues explained Q4 2020 (MUSD) mainly by higher income from sales Q4 2021 (MUSD) of energy o The growth in costs is explained by 121.5 122.2 the higher cost of artisanal and formalized material, and higher 95.6 personnel costs. 88.3 o Lower Adjusted EB
Slide 17: Cash and Cash Equivalents
Cash and Cash Equivalents o Cash flows from operating 19.6 activities is explained by 63.1 income from sales of gold, 0.6 and cash outflows due to 51.8 6.6 1.1 payments to suppliers, salaries and taxes o The cash flows used in financing activities is the net result of the proceeds from the Canadian
Slide 18: Adjusted EBITDA
Adjusted EBITDA ADJUSTED EBITDA(1) MUSD 45 Lower Adjusted 42 EBITDA, due to higher 40 costs in Argentina 35 and higher purchases 32 of artisanal and formalization material - 12% ADJUSTED EBITDA Q4 2021 vs. Q4 2020 10 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 (1) Adjusted EBITDA is a non-IFRS financial
Slide 19: Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio Net Debt (MUSD) (1) Proceeds of Debt (MUSD) / Adj. EBITDA (LTM MUSD) (2) Concurrent Offerings used for debt repayment and working capital 0.26x 0.22x 0.0 0x 0.06x 0.10x (0.05x) 47 35 -1.00 x - 174% -2.00 x NET DEBT Q4 2021 vs. Q4 2020 19 -3.00 x 11 -4.00 x - 183% (8
Slide 20: Operational Indicators
Operational Indicators Presented by: Andrés Restrepo Isaza President & CEO
Slide 21: Production, Average Realized Price, Cash Cost and AISC
Production, Average Realized Price, Cash Cost and AISC Higher production in Nicaragua, offset Produced Ounces (koz) AISC (USD/oz) (1) by lower production in Colombia and Cash Cost (USD/oz) (1) Argentina Average Realized Price (USD/oz) (1) 68 koz 67 koz Higher costs due to the purchase of artisanal a
Slide 22: Details by Operation
Details by Operation Presented by: Andrés Restrepo Isaza President & CEO
Slide 23: Colombia
Colombia Q4 2021 vs. Q4 2020 25 koz 3,0 00 2,5 00 18 koz 16 koz 2,0 00 Production - 12% 15 koz 1,5 00 AISC + 28% 1,523 Gross Profit - 49% 1,0 00 1,191 50 0 5 koz - Q4 2020 Q4 2021 o Lower production compared to Q4 2020, explained Produced Ounces (koz) AISC (USD/oz) by the delay of the approval of en
Slide 24: Nicaragua
Nicaragua Q4 2021 vs. Q4 2020 40 koz 3,0 00 32 koz 2,5 00 30 koz 27 koz 2,0 00 Production + 21% 1,5 00 AISC - 7% 1,555 20 koz 1,447 1,0 00 Gross Profit + 22% 50 0 10 koz - Q4 2020 Q4 2021 o The 21% increase in production for the quarter is due Produced Ounces (koz) AISC (USD/oz) to higher purchases
Slide 25: Argentina
Argentina Q4 2021 vs. Q4 2020 25 koz 21 koz 3,0 00 17 koz 2,5 00 2,0 00 Production - 16% 15 koz AISC - 6% 1,5 00 1,558 Gross Profit - 40% 1,457 1,0 00 50 0 5 koz - Q4 2020 Q4 2021 o The lower production is explained by the natural end Produced Ounces (koz) AISC (USD/oz) of life of the mine and by th
Slide 26: Looking Ahead
Looking Ahead Presented by: Andrés Restrepo Isaza President & CEO
Slide 27: Looking Ahead
Looking Ahead o 2022 Production Guidance between 262,000 – 285,000 ounces of gold, considering an increase in production at the Nechí Alluvial Property, a slight decrease in artisanal production in Nicaragua, and similar production levels at the Hemco and Gualcamayo properties 2021 Production 2022 G
Slide 28: General Shareholders Meeting
General Shareholders Meeting March 31, 2022 Information circular and other proxy materials Hotel Marriott available on our website Calle 1ª sur #43ª-83 www.mineros.com.co Section – Investors – Annual Shareholders Meeting Medellín, Colombia A live “listen-only” webcast of the Meeting will be availabl
Slide 29: 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