Mineros Sa · BVC:MINEROS
Mineros Sa — Q1 2021 Earnings Presentation
29 slides from Mineros Sa's earnings presentation, May 10, 2021
Slide 1: Q1 2021 Earnings Release
Q1 2021 Earnings Release May 10, 2021
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: Management
Management Andrés Restrepo Isaza CEO Alan Wancier CFO Ana Isabel Gaviria General Secretary Eduardo Flores Zelaya VP of Business Development and Strategy Country Manager Chile Santiago Cardona Country Manager Colombia Carlos Mario Gómez Country Manager Nicaragua John Jairo Cuervo Muñoz Country Manage
Slide 4: Agenda
AGENDA o Highlights o Operative Indicators o Financial Performance o Detail per Operation o Going Forward o Mineral Reserves and Resources
Slide 5: Highlights
Highlights
Slide 6: Gold Price Behavior
Gold Price Behavior Daily Behavior Gold Spot Price (US$/oz) $ 2.000 $1,950 $ 1.950 $ 1.900 $ 1.850 $ 1.800 $ 1.750 $ 1.700 $ 1.650 $1,684 $ 1.600 $ 1.550 jan-21 ene-21 feb-21 mar-21 6
Slide 7: Operative Indicators
Operative Indicators
Slide 8: Production, Price and cost
Production, Price and cost Produced Ounces (koz) Lower production in Argentina and due AISC (USD/oz) to the sale of Operadora Minera Cash Cost (USD/oz) Average Selling Price (USD/oz) Higher costs due to the purchase of artisanal material and higher 73 koz 75 koz investments in Argentina, on the stri
Slide 9: Financial Performance
Financial Performance
Slide 10: EBITDA and EBITDA Margin
EBITDA and EBITDA Margin EBITDA MUSD EBITDA Margin Higher EBITDA generation, with 53 sustained margin 52 10 0% 90 % 45 42 + 7% 80 % 40 70 % 60 % EBITDA Q1 2021 vs. Q1 2020 50 % 40 % 42% 43% 36% 36% + 1% 30 % 33% 20 % 10 % EBITDA Margin Q1 2021 vs. Q1 2020 10 0% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 202
Slide 11: Debt
Debt Net Debt (MUSD) Lower debt and cash Debt (MUSD) / EBITDA (LTM MUSD) balance by the end of the quarter, and improvement on the indicator 0,4 0,3 0,0 x 0,2 0,1 0,1 55 42 -1,0x - 65% -2,0x NET DEBT 33 Q1 2021 vs. Q1 2020 -3,0x 19 11 -4,0x - 75% Net Debt/EBITDA - -5,0x Q1 2021 vs. Q1 2020 Q1 2020 Q
Slide 12: Financial Results Q1 2021
Financial Results Q1 2021 Q1 2020 (MUSD) Q1 2021 (MUSD) o Higher income explained mainly by higher average selling Price of 125,4 gold (+11%) 116,2 o The increase in costs is due to higher costs from artisanal 88,3 material and higher D&A 78,6 o Higher Administrative expenses due to salary increases
Slide 13: Efectivo y Equivalentes
Efectivo y Equivalentes 12,2 o Cash flow from Operations was 63,6 impacted by tax payments and higher 46,2 payments to suppliers 20,3 o Investments in mine 9,5 development, stripping of a new pit in Argentina, exploration and PPE o Cash flow used in financing activities was to pay debt, interests an
Slide 14: Detail per Operation
Detail per “5,9, Operation
Slide 15: Colombia
Colombia Q1 2021 vs. Q1 2020 23 koz 21 koz 21 koz 3.0 00 23 koz Production - 8,7% 18 koz 2.5 00 AISC + 26,5% 15 koz 2.0 00 Gross Profit - 7,2% 1.5 00 13 koz Gross Margin - 11,6% 1.0 00 1.032 1.191 1.108 876 944 50 0 Lower production due to the sale of Operadora 3 koz - o Q1 2020 Q2 2020 Q3 2020 Q4 2
Slide 16: Nicaragua
Nicaragua Q1 2021 vs. Q1 2020 40 koz 3.0 00 32 koz 32 koz 32 koz 30 koz 2.5 00 Production - 6,3% 30 koz 27 koz 2.0 00 AISC + 18,5% 1.5 00 Gross Profit - 15,4% 1.547 1.366 20 koz 1.0 00 Gross Margin - 22,6% 1.153 1.053 1.193 50 0 10 koz - Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 o Lower production in
Slide 17: Argentina
Argentina Q1 2021 vs. Q1 2020 3.5 00 3.0 00 21 koz 25 koz Production - 16,7% 1.999 2.5 00 18 koz 17 koz 17 koz AISC + 33,5% 15 koz 2.0 00 Gross Profit + 61,4% 1.5 00 15 koz 1.481 1.572 Gross Margin + 50,0% 1.390 1.437 1.0 00 50 0 5 koz - Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 o Lower production is
Slide 18: Going Forward
Going Forward
Slide 19: Going Forward
Going Forward o 2021 production guidance between 257,000 – 281,000 ounces of gold o Advance in growth programs • Increase life of mine of Gualcamayo • To complete technical studies for Porvenir and Luna Roja (Nicaragua), DCP (Argentina) and La Pepa (Chile) • JV with Royal Road in Nicaragua and Colom
Slide 20: TSX listing and dual offering
TSX listing and dual offering Some of the main tasks for the TSX listing have been completed: o All required information has been submitted o All questions from market regulators have been addressed o Mineros S.A. Policies and Bylaws have been adjusted There are some items still pending, prior to th
Slide 21: Environmental Permits
Environmental Permits o The alluvial property in Colombia, has an Environmental Management Plan, valid until 2025 o Before the dredges advance to a new area, some permits need to be updated o As a response to our latest request, the Environmental Authorities issued a Resolution, deciding: • To appro
Slide 22: Mineral Reserves and Resources
Mineral Reserves and Resources
Slide 23: Introduction to R&R
Introduction to R&R EXPLORATION RESULTS MINERAL MINERAL Thanks to the execution of our RESOURCES RESERVES strategy, we have increased our Mineral Reserves and Resources base on the last three years Inferidos The acquisition of Gualcamayo material Increase in property in Argentina, the growth in geol
Slide 24: Mineral Reserves and Resources
Mineral Reserves and Resources Mineros’ Consolidated Mineral Reserves and Mineral Resources, at all material properties, as at December 31, 2020 were estimated to: o Proven and Probable Mineral Reserves, were estimated to total 780 Mt at an average grade of 0.06 g/t Au for 1.6 million ounces of gold
Slide 25: ope
A ope Mineros por el bienestar de todos at bee ie Age to Att.,1 + 4 it>| Aix.) + 9 ‘Negocios #%: Fundacién 2: Mi K Mineros i Negoci h: Fundacio HEMCO I Minas Argentinas. Mineros poral anesta tec pera enesaa deste porel blenestar de todos Mineros Nicaragua yn an oe
Slide 26: Mineral Reserves Estimate
Mineral Reserves Estimate Mineral Reserves Estimate - Mineros S.A. - All Material Properties December 31, 2020 Proven Mineral Reserves Probable Mineral Reserves Total Proven and Probable Contained Contained Contained Tonnes Grade Tonnes Grade Tonnes Grade Metal Metal Metal (kt) (g/t Au) (koz Au) (kt
Slide 27: Mineral Reserves Reporting Notes
Mineral Reserves Reporting Notes 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. Nechí Alluvial Property – Colombia: •The Nechí All
Slide 28: Mineral Resources Estimate
Mineral Resources Estimate Mineral Resources Estimate - Mineros S.A. - All Material Properties December 31, 2020 Tonnes Grade Contained Metal (kt) (g/t Au) (g/t Ag) (%Zn) (koz Au) (koz Ag) (Mlb Zn) Measured and Indicated Nechí Alluvial Property 1,059,400 0.04 1,219 Hemco Property – Porvenir Project
Slide 29: Mineral Resources Reporting Notes
Mineral Resources Reporting Notes Mineral Resource Reporting Notes: •Canadian Institute of Mining, Metallurgy and Petroleum ((CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014) definitions) were followed for Mineral Resources. •Mineral Resources are estimated using a lo