Industrias Penoles Sab De Cv · BMV:PE_OLES
Industrias Penoles Sab De Cv — Q2 2022 Earnings Presentation
22 slides from Industrias Penoles Sab De Cv's earnings presentation, 2022
Slide 1: 2Q'22 Highlights
2Q’22 HIGHLIGHTS EVOLVING TOWARD A SUSTAINABLE FUTURE 1
Slide 2: Economic Environment and Metals Prices
ECONOMIC ENVIRONMENT AND METALS PRICES GOLD London SILVER Comex During the second quarter of 2022 absenteeism due to Covid-19 decreased USD/oz USD/oz compared to the previous quarter, nevertheless, towards the end of the period positive cases increased with the arrival of the fifth wave. We continue
Slide 3: Economic Environment and Metals Prices
ECONOMIC ENVIRONMENT AND METALS PRICES METAL PRICES Gold Silver Lead Zinc Copper Perid (US$/Oz) (US$/Oz) (UScts/lb) (UScts/lb) (UScts/lb) 1Q'21 1,797.80 26.29 91.65 124.63 384.58 2Q'21 1,816.49 26.78 96.48 132.26 440.47 YTD Avg. 2021 1,807.14 26.54 94.07 128.44 412.53 1Q'22 1,877.16 24.13 105.92 170
Slide 4: Mining Division
MINING DIVISION MINING BUSINESS Gold (-17.2%): mainly due to lower recovery at Herradura and the expected decrease in the volume of ore processed at this mining unit. Production1 2Q'22 2Q'21 % Var YTD 2022 YTD 2021 % Var Silver (+1.4%): mainly due to the contribution of ore from Ore Milled (mton) 3,
Slide 5: Contribution by Mine – YTD
CONTRIBUTION BY MINE1 – YTD GOLD SILVER 342,758 Oz 34,415 kOz LEAD ZINC COPPER* 39,337 Ton 137,020 Ton 6,544 Ton 5 Notes: 1/ Includes 100% of Fresnillo plc production, */Includes copper cathodes
Slide 6: Metallurgical and Chemicals Division
METALLURGICAL AND CHEMICALS DIVISION METALS BUSINESS CHEMICALS BUSINESS In the lead-silver circuit there was lower gold production mainly due to the lower The quarterly output of sodium sulfate was lower, as the production rate was output at Herradura described above. Silver and lead also had lower
Slide 7: Financial Highlights – Income Statement
FINANCIAL HIGHLIGHTS INCOME STATEMENT HIGHLIGHTS In 2Q22 financial results, revenues declined to the previous year due to (Million dollars) 2Q'22 2Q'21 % Chg YTD 2022 YTD 2021 % Chg lower volumes sold, especially gold, zinc and concentrates, which was Gross Sales 1,475.3 1,598.7 -7.7 2,889.4 3,168.5
Slide 8: Quarterly Net Income Analysis
FINANCIAL HIGHLIGHTS – QUARTERLY NET INCOME ANALYSIS Notes: 1/ Financial expenses include Exchange result.2/Net of Revenue from Treatment Charges, Income on inventories and other items. 8
Slide 9: YTD Net Income Analysis
FINANCIAL HIGHLIGHTS – YTD NET INCOME ANALYSIS Notes: 1/ Other expenses include impairment losses. 2/ Financial expenses include Exchange result. 3/ Net of Revenue from Treatment Charges, Income on inventories and other items. 9
Slide 10: Net Sales by Product and Market
FINANCIAL HIGHLIGHTS NET SALES BY PRODUCT NET SALES BY MARKET 2Q 2022 2Q 2021 US$1,470 mm US$1,574 mm YTD 2022 YTD 2021 US$2,876 mm US$3,122 mm Notes: 10
Slide 11: Sales Volumes
FINANCIAL HIGHLIGHTS GOLD (Oz) SALES VOLUMES Units 2Q'22 2Q'21 %Chng YTD 2022 YTD 2021 %Chng SILVER (koz) Gold Oz 261,039 294,686 -11.4 511,319 617,290 -17.2 Silver Koz 18,984 18,773 1.1 36,075 36,875 -2.2 Lead Ton 26,907 31,005 -13.2 59,516 62,018 -4.0 Zinc Ton 57,513 72,705 -20.9 120,860 145,014 -
Slide 12: Cost of Production Breakdown
FINANCIAL HIGHLIGHTS COST OF PRODUCTION BREAKDOWN US$ 742.7 mm US$ 696.3 mm US$ 1,420.8 mm US$ 1,359.9 mm Notes: 12
Slide 13: Financial Highlights – Balance Sheet
FINANCIAL HIGHLIGHTS – BALANCE SHEET BALANCE SHEET YTD 2022 2021 % Chg. Cash and cash equivalents 1,711.1 1,817.1 -5.8 Inventories 1,961.4 1,809.7 8.4 Trade and other current receivables 680.7 723.8 -5.9 Property, plant and equipment 4,738.7 4,707.3 0.7 Deferred taxes 394.9 281.0 40.6 Other current
Slide 14: Financial Highlights – Cash Flow
FINANCIAL HIGHLIGHTS – CASH FLOW CA SH FLO W YTD 2 02 2 YTD 2 02 1 % Chg . O perat ing act ivit ies Net Income 216.5 442.5 -51 D&A Expenses 327.8 369.3 -11 Change in Working Capital -151.9 -201.0 24 Tax payments -195.9 -309.5 37 Other items 175.7 233.3 -25 Cash Flows from ( used in) O perat ing act
Slide 15: Projects Under Development
PROJECTS UNDER DEVELOPMENT Project Juanicipio Location Zacatecas 11.7 moz of silver Description* 43.5 koz of gold 56% Fresnillo plc Ownership 44% MAG Silver Investment 440** (US$ Million) E Startup E 3Q 2022 Notes: */Expected annual production, on average. **/ Juanicipio started processing ore at Fr
Slide 16: Environmental, Social, Governance
ENVIRONMENTAL SOCIAL GOVERNANCE 16
Slide 17: Tailings Deposit Management
TAILINGS DEPOSIT MANAGEMENT OUR APPROACH KEY ACTIONS Governance framework aligned to: Establishment of Independent Tailings Dam Review Panel: • International Commission on Large Dams (ICOLD) reviews mechanisms and onsite inspections of conditions. • Canadian Dam Association (CDA) • Canadian Mining A
Slide 18: Environment
ENVIRONMENT Our guidelines: Minimize water consumption and wastewater discharges • Optimize water use to reduce our freshwater consumption: ~ 69% is recirculated from our processes and ~ 11% comes from municipal wastewater Properly handle, dispose and reduce waste • Monetize residues and reprocess t
Slide 19: Social: Our People, Our Communities
SOCIAL OUR PEOPLE OUR COMMUNITIES Education We improve educational performance with focus on Safety STEM & human development We design safe facilities, processes and operations to guarantee the physical integrity of our personnel Environment We build awareness and carry out campaigns to mitigate Hea
Slide 20: Governance
GOVERNANCE Expert Management Team1 Corporate Governance Executive Committee Board of Directors SECRETARY 6 Directors elected by the 13 proprietary Board CEO & MGMT TEAM Board among its members members and 12 alternates Alejandro Rafael Mauricio Nancy Luis H. Javier Baillères Rebollar García Acosta V
Slide 21: Baluarte Minero
BALUARTE MINERO ▪ Effective January 1st, 2021, a transformation was launched by the Chairman of the Board, creating Baluarte Minero, an independent unit Board of Directors that provides shared administrative and technical services. ▪ The objective is to improve the preparedness of the Company to fac
Slide 22: Industrias Peñoles, S.A.B. de C.V.
INDUSTRIAS PEÑOLES, S.A.B. DE C.V. About Peñoles Peñoles, founded in 1887, is a mining group with integrated operations for the smelting and refining of non-ferrous metals and the manufacture of chemical products. Peñoles is one of the two largest global producers of refined silver; Latin America’s
Industrias Peñoles, S.A.B. de C.V. — Q2 2022 Earnings Presentation on 6ix