Mineros Sa · BVC:MINEROS
Mineros Sa — Q2 2023 Earnings Presentation
36 slides from Mineros Sa's earnings presentation, Aug 4, 2023
Slide 1: Earnings Call Q2 2023
Earnings Call Q2 2023 August 4, 2023 TSX: MSA BVC: MINEROS
Slide 2: Cautionary Statement
Cautionary Statement 2 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
Slide 3: Non-IFRS Measures
Non-IFRS Measures 3 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 e
Slide 4: Management
Management 4 Andrés Restrepo Isaza President and CEO Alan Wancier CFO Ana Isabel Gaviria Arteaga VP Legal and Sustainability Ana María Ríos Puerta VP Business Development Lina Toro Palacio VP Talent Management Santiago Cardona Múnera VP Colombia Luis Fernando Villa Tabares VP Nicaragua John Jairo Cu
Slide 5: Agenda
Agenda 5 o Highlights o Financial Performance o Operational Indicators o Details per Operation o Looking Ahead ©2023 Mineros. All rights reserved.
Slide 6: Highlights
Highlights Presented by: Andres Restrepo CEO
Slide 7: New Collective agreement in Colombia
New Collective agreement in Colombia 7 On June 8, 2023, we announced the signature of a collective agreement for operations at the Nechí Alluvial Property in Colombia, covering a two year period, starting May 1, 2023. We highlight the importance of these Agreements and invite all our collaborators t
Slide 8: Termination of strategic alliance with Royal Road Minerals Limited
Termination of strategic alliance with 8 Royal Road Minerals Limited Effective May 29, 2023, we terminated and, where applicable, settled all outstanding obligations under all of our agreements with Royal Road Minerals Limited (“Royal Road”). o Termination of their strategic alliance agreements for
Slide 9: Temporary suspension of the main processing plant at the Hemco Property in Nicaragua
Temporary suspension of the main processing plant 9 at the Hemco Property in Nicaragua On August 2, we announced the temporary suspension of the main processing plant, which processes 89% of the material and disposal of tailings at our Hemco Property. The suspension is precautionary in nature and is
Slide 10: Gold Price Behavior
Gold Price Behaviord 10 Second Quarter 2023 – Gold Price ($/oz) 2,100 $2,050 2,050 2,000 1,950 1,900 1,850 $1,907 1,800 3/04/2023 3/05/2023 3/06/2023 April May June ©2023 Mineros. Todos los derechos reservados.
Slide 11: Financial Performance
Financial Performance Presented by: Alan Wancier CFO
Slide 12: Financial Results Q2 2023
Financial Results Q2 2023 12 Q2 2022 (M USD) Revenue Q2 2023 (M USD) o The 1% increase in revenue is explained by an 80% increase in sales of silver, mostly attributable to Hemco. Sales of gold were similar to the comparable period since the 6% 137.3 138.8 decrease in ounces of gold sold was offset
Slide 13: Financial Results for the six months ended June 30, 2023
Financial Results for the six months ended June 30, 2023 13 2022 (M USD) Revenue 2023 (M USD) o The 2% decrease in revenue is mainly explained by a 6% decrease of ounces of gold sold, which was partially offset by 49% higher 261.9 256.9 sales of silver, mainly at the Hemco Property. Cost of sales o
Slide 14: Cash and Cash Equivalents
Cash and Cash Equivalents 14 Amounts in USD millions Cash Balances Grew by 38% 30.2 o Cash flows from operating activities is explained by income from sales of gold and silver 7.2 47.4 ($134M), less payments made to 2.8 suppliers ($77M), payments of employee benefits ($23M) and 34.3 12.7 taxes ($7M)
Slide 15: Adjusted EBITDA
Adjusted EBITDA 15 ADJUSTED EBITDA MUSD (1) Adjusted EBITDA 48 increased by 2%, 47 46 explained by the 1% 43 increase in revenue along 41 with stable costs. 2% Adj. EBITDA Q2 2023 vs. Q2 2022 10 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 (1) Adjusted EBITDA is a non-IFRS financial measure and might not
Slide 16: Net Debt
Net Debt 16 Net Debt (MUSD) 1. The negative Net Debt Debt (MUSD) / Adj. EBITDA (LTM MUSD) 2. balance is explained by the increase in cash and cash equivalents ($9M) added to lower loans and other 0.11x 0.10x 0.07x 0.0 0x borrowings ($13). (0.02)x (0.02)x (0.50)x 18 17 (1.00)x - 121% 13 Net Debt (1.5
Slide 17: Operational Indicators
Operational Indicators Presented by: Andres Restrepo CEO
Slide 18: Production, average selling price and cost
Production, average selling price and cost 18 Produced Ounces (koz) AISC (USD/oz) Cash Cost (USD/oz) Production was impacted by unscheduled 80 Average Realized Price (USD/oz) maintenance stoppages at the milling area at the Hemco Property and lower production at 74 75 the Gualcamayo Property. 75 73
Slide 19: Detail by Operation
Detail by Operation Presented by: Andres Restrepo CEO
Slide 20: Nechí Aluvial - Colombia
Nechí Aluvial - Colombia 20 Q2 2023 vs. Q2 2022 25 koz 25 koz 30 koz 23 koz 25 koz 3,00 0 Production + 7% 18 koz 2,50 0 20 koz 2,00 0 AISC + 16% 1,50 0 10 koz 1,00 0 Gross profit 0% 1,057 951 1,011 1,256 1,224 500 0 koz - Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 o The increase in production during th
Slide 21: Hemco - Nicaragua
Hemco - Nicaragua 21 Q2 2023 vs. Q2 2022 40 koz 3,00 0 34 koz 34 koz 33 koz 32 koz 32 koz 2,50 0 Production - 5% 30 koz 2,00 0 AISC + 5% 1,50 0 1,351 1,357 1,348 20 koz 1,00 0 1,279 1,269 Gross profit - 6% 500 10 koz - Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 o Production for the quarter decreased by
Slide 22: Gualcamayo - Argentina
Gualcamayo - Argentina 22 Q2 2023 vs. Q2 2022 3,50 0 20 koz 17 koz 18 koz 3,00 0 Production - 27% 14 koz 12 koz 2,50 0 10 koz 2,00 0 AISC + 3% 2,025 2,109 2,092 1,933 10 koz 1,50 0 1,778 Gross profit - 200% 1,00 0 500 0 koz - Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 o The decrease in production compa
Slide 23: Looking Ahead
Looking Ahead Presented by: Andres Restrepo CEO
Slide 24: Looking Ahead
Looking Ahead 24 Growth and exploration o Porvenir Project (Nicaragua): after obtaining positive prefeasibility study results, to date, we have completed 85% of the drilling program, with the objective of providing material for metallurgical test work. The metallurgical drilling campaign is expected
Slide 25: Mineros
Mineros TSX: MSA BVC: MINEROS Por el bienestar de todos
Slide 26: Adjusted EBITDA
Adjusted EBITDA 26 ©2023 Mineros. All rights reserved.
Slide 27: Net Debt to Adjusted EBITDA ratio
Net Debt to Adjusted EBITDA ratio 27 ©2023 Mineros. All rights reserved.
Slide 28: Cash Cost and AISC per ounce of gold sold
Cash Cost and AISC per ounce of gold sold 28 ©2023 Mineros. All rights reserved.
Slide 29: Average Realized Price of gold
Average Realized Price of gold 29 ©2023 Mineros. All rights reserved.
Slide 30: AISC per ounce of gold sold per Material Property
AISC per ounce of gold sold per Material Property 30 ©2023 Mineros. All rights reserved.
Slide 31: Mineral Reserves and Mineral Resources
Mineral Reserves and Mineral Resources 31 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form Mineral Reserves and Resources Tonnes Grade Contained Metal Classification/Property (kt) (g/t Au) (g/t Ag) (% Zn) (koz Au) (koz Ag) (t Zn) (Mlb Zn) Mineros S.A. Proven & Probable Reserves Nechí
Slide 32: Mineral Reserves Notes
Mineral Reserves Notes 32 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form Mineral Reserve Reporting Notes: (1) CIM (2014) definitions were followed for Mineral Reserves. (2) Mineral Reserves are as of December 31, 2022. (3) Numbers may not add due to rounding. Nechí Alluvial Propert
Slide 33: Mineral Reserves Notes
Mineral Reserves Notes 33 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form HEMCO Property – Nicaragua: (1) Mining method: Panama and Pioneer: shrinkage stoping, sub-level open stoping (SLOS), and bench and fill. (a) Porvenir: cut-and-fill stoping and sub-level stoping. (b) (2) Minimu
Slide 34: Mineral Resources Notes
Mineral Resources Notes 34 Effective Date Dec. 31, 2022 as per 2022 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 d
Slide 35: Mineral Resources Notes
Mineral Resources Notes 35 Effective Date Dec. 31, 2022 as per 2022 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) Le
Slide 36: Mineral Resources Notes
Mineral Resources Notes 36 Effective Date Dec. 31, 2022 as per 2022 Annual Information Form Gualcamayo Property: (1) Cut-off grades and values: (a) Santiago: 1.51 g/t Au. (b) Feeder: 2.02g/t Au. (c) Rodado: To acknowledge the low selectivity of the proposed mining method (block caving) at Rodado, al