Mineros Sa · BVC:MINEROS
Mineros Sa — Q1 2023 Earnings Presentation
36 slides from Mineros Sa's earnings presentation, May 9, 2023
Slide 1: Earnings Call Q1 2023
Earnings Call Q1 2023 May 9, 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: Alan Wancier CFO
Slide 7: Positive Prefeasibility Study Results for the Porvenir Project
Positive Prefeasibility Study Results for 7 the Porvenir Project On March 16 we announced positive prefeasibility study has been completed on the gold-silver-zinc Porvenir Project at our Hemco Property in Nicaragua. The Porvenir Project would increase significantly life of mine, from 5 to 13 years.
Slide 8: Temporary Suspension of Operations at the Nechí Alluvial Property
Temporary Suspension of Operations at 8 the Nechí Alluvial Property On March 10, the Company announced a temporary suspension of operations at its Nechí Alluvial Property due to protests by groups of informal miners not associated with the Company against measures taken by the national government of
Slide 9: Ordinary Meeting of General Shareholders Assembly
Ordinary Meeting of General Shareholders Assembly 9 On March 30, Mineros held the Ordinary Meeting of its General Shareholders Assembly, main decisions were: o An anual ordinary dividend of US$ 0.07 per common share, paid quarterly. Dividends will be paid on April 26, July 26 and October 26 of 2023,
Slide 10: Sustainability Report 2022
Sustainability Report 2022 10 On March 31, Mineros released its Sustainability Report for 2022, prepared in accordance with the Global Reporting Initiative (“GRI”), including mining industry-specific indicators. Some highlights: o More than 75% of Mineros’ 2022 workforce hired from local communities
Slide 11: Gold Price Behavior
Gold Price Behavior 11 First Quarter 2023 Gold Price ($/oz) 2,100 2,050 $1,993 2,000 1,950 1,900 1,850 1,800 1,750 1,700 $1,628 1,650 1,600 3/01/2023 3/02/2023 3/03/2023 Jan Feb Mar ©2023 Mineros. All rights reserved.
Slide 12: Financial Performance
Financial Performance Presented by: Alan Wancier CFO
Slide 13: Financial Results Q1 2023
Financial Results Q1 2023 13 Q1 2022 (M USD) Q1 2023 (M USD) o The decrease in revenue is mainly explained by a 7% decrease in gold ounces sold at the Nechí Alluvial 124.7 Property due to a nearly two-week 118.1 long suspension of operations and a 32% decrease in gold ounces sold at the Gualcamayo P
Slide 14: Cash and Cash Equivalents
Cash and Cash Equivalents 14 Amounts in USD millions o Cash flows from operating 2.7 activities is explained by income 49.8 from sales of gold ($110M), less payments made to suppliers ($80M), payments of employee benefits ($20M) and taxes ($7M) 10.9 2.6 34.3 o Cash flows used in investment activitie
Slide 15: Adjusted EBITDA
Adjusted EBITDA 15 Amounts in USD millions ADJUSTED EBITDA MUSD (1) Adjusted EBITDA had a stable behavior, thanks to 47 the reduction in cost of 46 sales which offset the lower 43 revenues due to the 41 41 decrease in production, affected by the mining strike in Colombia 0% Adj. EBITDA Q1 2023 vs. Q
Slide 16: Net Debt
Net Debt 16 Net Debt (MUSD) 1. The increase in Net Debt and Debt (MUSD) / Adj. EBITDA (LTM MUSD) 2. Net Debt over Adj. EBITDA for the last twelve months, is explained by a lower cash balance at the end of Q1 2023 ($15M), despite a reduction in loans and other borrowings 0.0 0x 0.02x 0.11x 0.10x (0.0
Slide 17: Details by Operation
Details by Operation Presented by: Patricia Ospina Campo IR Director
Slide 18: Production, average selling price and cost
Production, average selling price and cost 18 Produced Ounces (koz) AISC (USD/oz) Production was affected by the mining strike Cash Cost (USD/oz) in the Bajo Cauca region in Colombia. Average Realized Price (USD/oz) 80 The lower Cash Cost is explained by the 74 75 reduction in the cost of sales, whi
Slide 19: Detail by Operation
Detail by Operation Presented by: Patricia Ospina Campo IR Director
Slide 20: Nechí Aluvial - Colombia
Nechí Aluvial - Colombia 20 Q1 2023 vs. Q1 2022 25 koz 25 koz 30 koz 23 koz 3,00 0 Production - 7% 20 koz 19 koz 18 koz 2,50 0 2,00 0 AISC 0% 1,50 0 10 koz 1,00 0 Gross profit 0% 1,259 1,057 951 1,011 1,256 500 0 koz - Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 o The lower production during the quarter
Slide 21: Hemco - Nicaragua
Hemco - Nicaragua 21 Q1 2023 vs. Q1 2022 40 koz 3,00 0 33 koz 34 koz 34 koz 33 koz 32 koz 2,50 0 Production 0% 30 koz 2,00 0 AISC - 3% 1,50 0 20 koz 1,305 1,279 1,351 1,357 1,269 1,00 0 Gross profit + 13% 500 10 koz - o Production remained stable compared to the first quarter Q1 2022 Q2 2022 Q3 2022
Slide 22: Gualcamayo - Argentina
Gualcamayo - Argentina 22 Q1 2023 vs. Q1 2022 5,00 0 20 koz 17 koz 18 koz Production - 31% 14 koz 14 koz 4,00 0 AISC + 30% 10 koz 3,00 0 10 koz 2,00 0 Gross profit - 51% 2,025 1,778 1,933 2,109 1,627 1,00 0 0 koz - o The decrease in production compared to the first quarter Q1 2022 Q2 2022 Q3 2022 Q4
Slide 23: Looking Ahead
Looking Ahead Presented by: Patricia Ospina Campo IR Director
Slide 24: Looking Ahead
Looking Ahead 24 Production and Cost Guidance for 2023 o Production Guidance between 264,000 – 292,000 ounces of gold o Cash Cost per ounce of gold sold between 1,160 – 1,250 USD/oz o AISC per ounce of gold sold between 1,400 – 1,490 USD/oz Growth and exploration o Porvenir Project (Nicaragua): afte
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