Mineros Sa · BVC:MINEROS
Mineros Sa — Q2 2022 Earnings Presentation
31 slides from Mineros Sa's earnings presentation, Aug 4, 2022
Slide 1: Q2 2022 Earnings Release
Q2 2022 Earnings Release August 4, 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 VP Legal and Sustainability Eduardo Flores Zelaya VP of Business Development and Strategy Country Manager Chile Santiago Cardona VP Colombia Carlos Mario Gómez VP Nicaragua John Jairo Cuervo Muñoz VP 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: Fatal Incident at Nechí Alluvial
Fatal Incident at Nechí Alluvial On the afternoon of May 28, 2022, a storm with heavy rains and strong winds hit Nechí and overturned the floating beneficiation plant connected to the Llanuras suction dredge. A total of eight people were working on the plant at the time of the incident. Two people w
Slide 8: Approval of environmental permits
Approval of environmental permits (Colombia) o On April 25, 2022, the Colombian National Authority of Environmental Licenses “ANLA”, by Resolution 812, approved Minero’s application to amend the environmental management plan for the Nechí Alluvial Property, which was submitted on November 18, 2021.
Slide 9: Acquisition of Additional 25% Interest in GNM Exploration Target
Acquisition of Additional 25% Interest in GNM Exploration Target o On July 22, 2021, Mineros exercised a first option to acquire a 25% interest in the GNM Exploration Target from Royal Road Minerals Limited ("Royal Road"), after investing USD 1 million for exploration, under the terms of the Royal R
Slide 10: ISO Certification at the Hemco Property
ISO Certification at the Hemco Property In the second quarter of 2022 the Company received ISO 14001:2015 (Environmental Management System) and ISO 45001 (Occupational Health and Safety Management) certification at its Hemco Property. These certifications are valid for an initial period of three yea
Slide 11: Appointment of VP Nicaragua
Appointment of VP Nicaragua On July 11, 2022, Mineros announced the appointment of Mr. Luis Villa as Vice President Nicaragua, effective as at October 1, 2022. Mr. Villa has been with the Company for sixteen years, most recently in the position of Manager of Projects and Supply Chain for Mineros All
Slide 12: Gold price behavior
Gold price behavior Q2 2022 Gold Price Behavior ($/oz) 2,000 1,950 $1.979 1,900 1,850 1,800 1,750 $1.807 1,700 abril mayo junio April May Jun 12
Slide 13: Financial Performance
Financial Performance Presented by: Alan Wancier CFO
Slide 14: Financial Results Q2 2022
Financial Results Q2 2022 o The increase in revenues is mainly Q2 2021 (MUSD) explained by the increase in sales of Q2 2022 (MUSD) gold given increased efficiencies at the Nechí Alluvial Property and reaching a 137.3 higher grade area at the Hemco 128.4 Property o The 7% increase in costs is 50% 99.
Slide 15: Financial Results YTD 2022
Financial Results YTD 2022 2021 (MUSD) o Revenues increased by 3%, as a 2022 (MUSD) result of higher gold sold ounces during the second quarter of the year 253.8 261.9 o The 6% increase in costs is due to higher D&A, higher cost from the 191.5 180.9 purchase of artisanal material at the Hemco Proper
Slide 16: Cash and Cash Equivalents
Cash and Cash Equivalents o Cash flows from operating activities is explained by income from sales of gold ($123M) less 17.8 payments made to suppliers ($76M) and taxes ($5M) 49.5 o Cash flows used in investment activities refer to purchases of 17.3 1.2 38.8 property, plant and equipment ($14M) and
Slide 17: Adjusted EBITDA
Adjusted EBITDA ADJUSTED EBITDA MUSD (1) Adjusted EBITDA was 47 higher than during Q2 2021 explained by 42 41 mainly higher gold production along with 35 lower expenses related 32 to the Canadian IPO + 12% ADJUSTED EBITDA Q2 2022 vs. Q2 2021 10 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 (1) Adjusted EB
Slide 18: Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio Lower loans and other borrowings compared to Q2 Net Debt (MUSD) (1) 2021, since the proceeds of Debt (MUSD) / Adj. EBITDA (LTM MUSD) (2) 1.0 0x concurrent public offerings in Canada and Colombia in Q4 2021, were used for debt 0.26x 0.22x 0.0 0x repayment 0.02x 0.11x
Slide 19: Operational Indicators
Operational Indicators Presented by: Andrés Restrepo Isaza President & CEO
Slide 20: Production, Average Realized Price, Cash Cost and AISC
Production, Average Realized Price, Cash Cost and AISC Produced Ounces (koz) Higher production at all our AISC (USD/oz) (1) Cash Cost (USD/oz)(1) operations Average Realized Price (USD/oz) (1) 80 koz Lower unit costs explained by higher ounces produces and lower 74 koz sustaining capital expenditure
Slide 21: Details by Operation
Details by Operation Presented by: Andrés Restrepo Isaza President & CEO
Slide 22: Colombia
Colombia Q2 2022 vs. Q2 2021 23 koz 21 koz 25 koz 3,0 00 19 koz 2,5 00 17 koz Production + 11% 16 koz 2,0 00 15 koz 1,5 00 AISC + 4% 1,523 1,0 00 Gross Profit + 18% 1,226 1,259 1,057 1,015 50 0 5 koz - Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 o Higher production compared to Q2 2021, explained Produce
Slide 23: Nicaragua
Nicaragua Q2 2022 vs. Q2 2021 40 koz 3,0 00 33 koz 32 koz 33 koz 34 koz 30 koz 2,5 00 30 koz 2,0 00 Production + 13% 1,5 00 AISC - 4% 20 koz 1,329 1,384 1,447 1,305 1,0 00 Gross Profit + 0% 1,279 50 0 10 koz - Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 o The 13% increase in production is explained by t
Slide 24: Argentina
Argentina Q2 2022 vs. Q2 2021 25 koz 5,0 00 17 koz 17 koz 4,0 00 Production + 16% 15 koz 15 koz 14 koz 14 koz 3,0 00 AISC - 22% 2,594 2,0 00 Gross Profit + 3,300% 1,873 2,025 1,627 1,0 00 1,457 5 koz - Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 o The higher production is explained by higher Produced Ou
Slide 25: Looking Ahead
Looking Ahead Presented by: Andrés Restrepo Isaza President & CEO
Slide 26: Looking Ahead
Looking Ahead o We are on track to reach 2022 production guidance between 262,000 – 285,000 ounces of gold o Advance in growth and exploration campaigns • Porvenir Project (Nicaragua): Based on a project re-evaluation the Company now anticipates completing a pre-feasibility study in the second half
Slide 27: 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
Slide 28: Mineral Reserves & Mineral Resources
Mineral Reserves & Mineral Resources Effective Date Dec. 31, 2021 as per 2021 AIF Mineral Reserves and Mineral Resources Tonnage Grade Contained Metal Ore Au Ag Zn Au Ag Zn (Kt) (g/t) (g/t) (%) (Koz) (Koz) (Mlb) Mineros S.A. Proven & Probable Reserves Nechí Alluvial Property 748,588 0.05 - - 1,157 -
Slide 29: Mineral Reserve Notes
Mineral Reserve Notes Effective Date Dec. 31, 2021 as per 2021 AIF 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. Nechi Alluvia
Slide 30: Mineral Resource Notes
Mineral Resource Notes Effective Date Dec. 31, 2021 as per 2021 AIF Mineral Resource Reporting Notes: • CIM (2014) definitions were followed for Mineral Resources. • Mineral Resources are exclusive of Mineral Reserves. • Mineral Resources that are not Mineral Reserves do not have demonstrated econom
Slide 31: Luna Roja Deposit Mineral Resource
Luna Roja Deposit Mineral Resource Effective Date June 17, 2022 as per Mineros news release dated July 7, 2022 Mineral Resources(1) Tonnes Grade Contained Metal (kt) (g/t Au) (koz Au) Indicated 1,139 2.40 88 Open Pit Inferred 318 2.27 23 Indicated 25 5.15 4 Underground Inferred 186 2.39 14 Indicated