Volcan Compania Minera S.a.a. Class A · BVL:VOLCAAC1
Volcan Compania Minera S.a.a. Class A — Volcan Compañía Minera — Q2 2024 Earnings Presentation
22 slides from Volcan Compania Minera S.a.a. Class A's earnings presentation, Aug 8, 2024
Slide 1: Volcan Compañía Minera 2Q 2024 Results
Volcan Compañía Minera 2Q 2024 Results August 8th, 2024 Firmado Digitalmente por: LUIS FERNANDO HERRERA Fecha: 08/08/2024 05:10:37 p.m. 0
Slide 2: Disclaimer
Disclaimer Some statements contained in this presentation or in documents referring to this presentation may contain inaccuracies. No reliance for any purpose whatsoever may be placed on the information or opinions contained in this presentation or on the completeness of this presentation. Volcan Co
Slide 3: Schedule
Schedule 1 1 Highlights 2 2 Operating Results 3 Financial Results 2
Slide 4: 2Q 2024 Highlights: Safety and Production
2Q 2024 Highlights Safety Production Reinforce safety strategy: 62-65 63-66 4.2 62.6 60.5 62.4 3.8 • Alignment and accompaniment of contractor companies 3.7 2-4 2-4 50.3 52.8 3.2 13.0 12.5 3.0 involved in accidents 11.6 0.4 0.4 0.4 Silver 10.0 0.7 MM Oz FMT 000 10.1 Zinc • Verification of the critic
Slide 5: 2Q 2024 Highlights: Unit Cost, Capex, Sales by Metal
Highlights 2Q 2024 Highlights Unitary Cost * Sales by Metal $/t Gold 2Q23 53.2 4% 52.0 51.1 USD213 MM 49.0 46.2 Focus on cost management Silver - 13.3% from 2Q23 to 2Q24 34% 2Q23 3Q23 4Q23 1Q24 2Q24 Zinc *Unitary costs includes infill drilling 46% Copper CAPEX 4% Lead 13% USD MM Local Exploration 2Q
Slide 6: 2Q 2024 Highlights: Animon Paralyzation, EBITDA, Net Debt
2Q 2024 Highlights Estimated impact of the paralyzation EBITDA USD MM 86.1 87.2 70.1 Q1 Q2 Jan-Jul 49.3 44.8 SC-CAR / Zn 6.1k FMT 5.6k FMT 11.7k FMT TICLIO Pb 540 FMT 690 FMT 1,230 FMT Ag 290k Oz 280k Oz 570k Oz 2Q23 3Q23 4Q23 1Q24 2Q24 Cash Position Net Debt Q1: USD 62.2 MM Q1: USD 711.3 MM Q2: USD
Slide 7: 2Q 2024 Highlights: Transition Metals, Romina, Asset Disposals
2Q 2024 Highlights • Transition Metals AG: ✓ Transaction to acquire 55.028% of the Class A shares and 22.06% of the Share Capital of Volcan Compañía Minera S.A.A. made by Glencore International AG in favor of Transition Metals AG subsidiary of Integra Capital Romina Project (USD 147 MM Capex) Portfo
Slide 8: 2Q 2024 Balance strengthening and refinancing highlights
2Q 2024 Balance strengthening and refinancing highlights ~USD 765 MM ~USD 48 MM Refinancing of Additional Working syndicated loan and Capital Facilities 2026 notes May 31st: Asset June 14th: June: First July: July 24th: August 5th: Dec 2023: Asset sale sale closing payment of Launch of Glencore agre
Slide 9: Schedule: Operating Results
Schedule 1 1 Highlights 2 2 Operating Results 3 Financial Results 8
Slide 10: Consolidated Operating Results
Consolidated Operating Results Consolidated Jan-Mar Apr-Jun Apr-Jun Jan-Jun Jan-Jun var % var % Production 2024 2024 2023 2024 2023 Mineral extraction (thousands MT)1 2,293 2,269 2,406 -5.7 4,562 4,556 0.1 Polymetallic ore 2,058 2,015 2,167 -7.0 4,073 4,078 -0.1 Oxides ore 236 254 239 6.1 489 477 2.
Slide 11: Quarterly Evolution of Zinc Production
Quarterly Evolution of Zinc Production (thousand FMT) Consolidated San Cristobal/Carahuacra Andaychagua Δ MT Milled: + 5 kt Δ Grade: - 2% Δ MT Milled: - 120 kt Δ Grade: - 4% 62.6 60.5 62.4 50.3 52.9 22.9 21.4 22.5 15.0 16.2 15.8 15.7 16.2 15.8 15.8 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2
Slide 12: Quarterly Evolution of Silver Production
Quarterly Evolution of Silver Production (MM Oz) Consolidated San Cristobal/Carahuacra Andaychagua Δ MT Milled: +5 kt Δ Grade: - 6% 4.2 Δ MT Milled: - 120 kt 3.8 3.7 Δ Grade: + 0% 3.0 3.2 1.2 1.5 1.3 0.8 0.9 0.5 0.6 0.5 0.4 0.4 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q
Slide 13: Quarterly Evolution of Lead Production
Quarterly Evolution of Lead Production (thousand FMT) Consolidated San Cristobal/Carahuacra Andaychagua Δ MT Milled: + 5 kt Δ Grade: - 8% Δ MT Milled: - 120 kt Δ Grade: + 9% 15.3 16.9 15.5 11.2 12.4 3.8 4.1 4.0 2.9 3.5 2.3 2.3 3.4 2.5 3.1 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4
Slide 14: Quarterly Evolution of Gold Production
Quarterly Evolution of Gold Production (thousand Oz) Δ MT Milled: + 9 kt Consolidated Oxides Δ Grade: - 35% Andaychagua 5.5 5.4 3.8 2.9 2.9 3.6 3.6 2.2 1.7 1.8 0.3 0.3 0.2 0.1 0.2 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Ticlio Chungar San Cristobal/Carahuacra 0.5 0
Slide 15: Consolidated Production Costs and Unit Costs
Consolidated Production Costs and Unit Costs Production Cost (USD MM) Production Cost (USD MM) 2Q23 USD-24.7 MM (-19.3%) 2Q24 15% 15% Mine Cost Mine Cost 25% 127.7 Plant Cost 103.0 57% Plant Cost 60% 28% Others Others Production Unit Cost (USD/TM) Production Unit Cost (USD/TM) 2Q23 2Q24 -7.0 USD/TM
Slide 16: Production Unit Cost per Unit
Production Unit Cost per Unit Consolidated San Cristobal/Carahuacra Andaychagua 82.3 81.1 79.1 78.8 74.9 83.0 81.2 83.7 91.3 75.2 53.2 51.1 52.0 49.0 46.2 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Ticlio Chungar Alpamarca 113.1 105.2 117.2 95.9 95.5 95.2 102.3 97.5 9
Slide 17: Evolution of Mining Investments
Evolution of Mining Investments 55.2 42.7 44.7 33.8 2Q24 vs 2Q23: 32.9 Variation in Operating Units (-23.0%): 52.3 40.3 42.0 • Local Exploration (USD -1.1 MM): Lower investment in 33.1 31.3 Yauli and Chungar due to optimization in DDH and lower cost per meter 2.4 2.7 2.9 1.6 0.7 • Development (USD -
Slide 18: Schedule: Financial Results
Schedule 1 1 Highlights 2 2 Operating Results 3 Financial Results 17
Slide 19: Sales and prices evolution
Sales and prices evolution Jan-Mar Apr-Jun Apr-Jun Jan-Jun Jan-Jun Fines Sales var % var % 2024 2024 2023 2024 2023 Zinc (thousands FMT) 52.5 54.4 63.7 -14.5 107.0 120.8 -11.5 Lead (thousands FMT) 11.8 12.4 15.8 -21.6 24.1 28.7 -16.0 Copper (thousands FMT) 0.9 0.9 1.6 -43.1 1.8 2.9 -36.4 Silver (mil
Slide 20: P&L, EBITDA and cash generation
P&L, EBITDA and cash generation Income Statement Jan-Mar Apr-Jun Apr-Jun Jan-Jun Jan-Jun var % var % (MM USD) 2024 2024 2023 2024 2023 Sales 176.7 218.3 213.3 2.3 395.0 434.4 -9.1 Cost of Goods Sold -159.4 -164.5 -188.6 -12.8 -323.9 -362.8 -10.7 Gross Profit 17.3 53.8 24.7 117.6 71.1 71.6 -0.7 2Q24
Slide 21: Final Cash and Evolution of Net Debt / EBITDA Ratio
Final Cash and Evolution of Net Debt / EBITDA Ratio Cash Flow Bridge Net Debt to EBITDA ratio + 6.4 MM 20.7 MM 3.1 3.5 1,400 2.8 31.7 2.8 3.0 0 1,200 2.6 2.4 0 23.7 -6.0 2.5 1,000 0 68.0 729 734 713 711 694 2.0 61.6 25.0 800 0 -34.3 600 1.5 -3.0 1.0 0 -30.7 400 232 266 277 250 288 58.7 0.5 0 200 0 0
Slide 22: Q&A
Q&A 21
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