Mineros Sa · BVC:MINEROS
Mineros Sa — Q2 2024 Earnings Presentation
35 slides from Mineros Sa's earnings presentation, Aug 15, 2024
Slide 1: Results Q2 2024
Results Q2 2024 August 15, 2024 BVC: MINERS TSX:MSA
Slide 2: To listen in English
To listen in English 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
Cautionary Note 3 The information presented here contains forward-looking statements. Such information relates to future events, including the Company's performance, prospects and business opportunities. Forward-looking statements may include, but are not limited to, estimates of resources and reser
Slide 4: Non-IFRS and Other Financial Measures
Non-IFRS and Other Financial Measures 4 This presentation includes non-IFRS measures and indicators: o Cash Cost (per ounce of gold sold) o AISC (per ounce of gold sold) o Average price per ounce of gold sold o Adjusted EBITDA o Net Debt The Company believes that these non-IFRS measures, in addition
Slide 5: Management Team
Management Team 5 Andrés Restrepo Isaza Presidente Alan Wancier VP Administrativo y Financiero Ana Isabel Gaviria Arteaga VP Legal y de Sostenibilidad Lina Toro Palacio VP Talento Santiago Cardona Múnera VP Colombia Luis Fernando Villa Tabares VP Nicaragua ©2023 Mineros. Todos los derechos reservado
Slide 6: Agenda
Agenda 6 o Highlights o Financial Results o Results of Operations o Review of Operations o Challenges and Opportunities ©2024 Miners. All rights reserved.
Slide 7: Highlights
Highlights Presented by: Andrés Restrepo Isaza President and CEO
Slide 8: Q2 2024 Highlights
Q2 2024 Highlights 8 Donated library Produced 53,703 ounces Produced 224,096 collections for educational of gold, which results in ounces of silvera, 47% institutions in the Bajo Mineros being on track to more than the same period Cauca region - $5.0 M meet guidance for the year in 2023. Provided $3
Slide 9: Q2 2024 - Gold Price ($/oz)
Q2 2024 - Gold Price ($/oz) 9 $2,427 $2,251 April 2024 May 2024 June 2024
Slide 10: Financial Results
Financial Results Presented by: Alan Wancier VP Finance and CFO
Slide 11: Q2 2024 Financial Results
Q2 2024 Financial Results 11 Q2 2023 (M USD) Q2 2024 (M USD) o Revenue grew due to an 18% increase in the average price per ounce of gold sold, and due to a 79% increase in the sale of silver ($2.9 M), all despite a 6% decrease in ounces of gold sold o Cost of sales increased because it was more cos
Slide 12: H1 2024 Financial Results
H1 2024 Financial Results 12 H2 2023 (M USD) H2 2024 (M USD) o Revenue grew 15% due to the 14% higher average price per ounce of gold sold and an 87% increase in silver sales of $5.7 M o Cost of sales increased by 20%, due to more expensive artisanal material, given the higher price of gold ($12.8 M
Slide 13: Cash and cash equivalents
Cash and cash equivalents 13 USD millions o Cash flow from operations represents revenues from the sale of gold and silver ($126.3 M), less payments to suppliers ($77.3 M), salaries and benefits ($15.0 M) and taxes ($27.5 M) o Cash flow used in investing activities bought PPE ($12.6 M) and investmen
Slide 14: Adjusted EBITDA
Adjusted EBITDA 14 USD millions Adjusted EBITDA increased 4%, due to the increase in the average price of gold sold and due to more ounces of silver sold +4% EBITDA AJ. Q2 2024 vs. Q2 2023 Adjusted EBITDA is a non-IFRS financial measure. Its most comparable IFRS measure is net income. Non-IFRS finan
Slide 15: Net Debt
Net Debt 15 USD millions Net debt was down significantly due to a significant decrease in debt levels offset slightly by a lower cash position due to the timing of income tax payments in Colombia (85)% Net Debt Q2 2024 vs. Q2 2023 Net Debt is a non-IFRS financial measure. Net Debt consists of Credit
Slide 16: Results of Operations
Results of Operations Presented by: Andrés Restrepo Isaza President
Slide 17: Production, Average Gold Price & Costs
Production, Average Gold Price & Costs 17 Production for the first six months of 2024 was 105,444 ounces of gold Cash Cost & AISC rose largely due to higher gold prices which result in us paying our artisanal mining partners in Nicaragua more and the devaluation of the US dollar against the Colombia
Slide 18: Review of Operations
Review of Operations Presented by: Andrés Restrepo Isaza President
Slide 19: Nechí Aluvial - Colombia
Nechí Aluvial - Colombia 19 Q2 2024 vs. Q2 2023 Production (16)% AISC +25% Gross Profit (17)% o Production in Q2 2024 decreased 16% due to 8% lower volumes (Q2 2024: 8.4Mm3, Q2 2023: 9.1Mm3) at a lower grade o AISC 25% higher, due to higher costs due to inflation, a strong Colombian peso and lower p
Slide 20: Hemco - Nicaragua
Hemco - Nicaragua 20 Q2 2024 vs. Q2 2023 Production +2.8% AISC 18% Gross Profit 34% o Production in Q2 2024 was similar to Q2 2023 o AISC increased by 18% largely because of a 23% increase in costs, largely due to the increase in costs when buying ore from our artisanal mining partners given the hig
Slide 21: Challenges and Opportunities
Challenges and Opportunities Presented by: Andrés Restrepo Isaza President and CEO
Slide 22: Challenges and Opportunities
Challenges and Opportunities 22 Forecast of Production and Unit Costs 2024 – Guidance The following table shows our production and unit cost guidance for 2024: F H1 2024 Guidance 2024 Production (oz) 105,444 209,000 - 229,000 Cash Cost (USD/oz) 1,270 1,180 - 1,270 AISC (USD/oz) 1,472 1,430 - 1,530 G
Slide 23: Mineros
Mineros BVC: MINEROS TSX: MSA Por el bienestar de todos
Slide 24: Adjusted EBITDA
Adjusted EBITDA 24 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net Profit For The Period 18,076 12,552 34,850 27,956 Less: Interest income (297) (278) (784) (560) Add: Interest expense 1,992 1,147 4,031 2,339 Add: Current tax 1 12,287 11,544 22,294 23,107 Add/less: Defe
Slide 25: Net Debt
Net Debt 25 June 30, 2024 2023 Loans and other borrowings 29,123 46,881 Less: Cash and cash equivalents (27,225) (34,269) Net Debt 1,898 12,612
Slide 26: Cash Cost per ounce of gold sold
Cash Cost per ounce of gold sold 26 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of sales 91,991 75,596 172,669 143,567 Less: Cost of sales of non-mining operations 1 (225) (192) (420) (299) Less: Depreciation and amortization (12,023) (10,270) (23,707) (20,837) Les
Slide 27: AISC per ounce of gold sold
AISC per ounce of gold sold 27 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of sales 91,991 75,596 172,669 143,567 Less: Cost of sales of non-mining operations 1 (225) (192) (420) (299) Less: Depreciation and amortization (12,023) (10,270) (23,707) (20,837) Less: Sa
Slide 28: Average price per ounce of gold sold
Average price per ounce of gold sold 28 Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Sales of gold from continuing operations 124,976 111,708 231,938 206,668 Gold sold from continuing operations (oz) 53,703 56,864 105,444 107,473 Average realized price per ounce of gold
Slide 29: Cash Cost & AISC per ounce of gold sold per segment
Cash Cost & AISC per ounce of gold sold per segment 29 Three months ended June 30, 2024 Three months ended June 30, 2023 Nechi Alluvial Hemco Gualcamayo Nechi Alluvial Hemco (Discontinued operation)1 Cost of sales 34,197 61,475 Cost of sales 30,662 50,124 24,205 Less: Depreciation and amortization (
Slide 30: Mineral Resources and Mineral Reserves
Mineral Resources and Mineral Reserves 30 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form
Slide 31: Notes Mineral Reserves
Notes Mineral Reserves 31 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Mineral Reserve Reporting Notes: 1. CIM (2014) definitions were followed for Mineral Reservas. 2. Mineral Reservas are as of December 31, 2023. 3. Numbers may not add due to rounding. Nechí Alluvial Property –
Slide 32: Notes Mineral Reserves
Notes Mineral Reserves 32 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 stopping and sub-level stopping. 2. Minimum
Slide 33: Notes Mineral Resources
Notes Mineral Resources 33 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 Reservas. 3. Mineral Resources that are not Mineral Reservas do n
Slide 34: Notes Mineral Resources
Notes Mineral Resources 34 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. Future: 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 an
Slide 35: Notes Mineral Resources
Notes Mineral Resources 35 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form La Pepa Project: 1. Superficial Mineral Resources are estimated inside 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 c