Volcan Compania Minera S.a.a. Class A · BVL:VOLCAAC1
Volcan Compania Minera S.a.a. Class A — Volcan Compañía Minera — Q3 2024 Earnings Presentation
24 slides from Volcan Compania Minera S.a.a. Class A's earnings presentation, Oct 30, 2024
Slide 1: Volcan Compañía Minera 3Q 2024 Results
Volcan Compañía Minera 3Q 2024 Results October 30th, 2024 Firmado Digitalmente por: ANAHI COM ARGUELLES Fecha: 30/10/2024 11:46:59 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 Highlights 1 2 Operating Results 3 Financial Results 2
Slide 4: 3Q 2024 Highlights: Safety and Production
3Q 2024 Highlights Safety Production Strengthening the safety strategy: 63-66 60.5 62.4 62.9 5.0 52.9 6.5 4.2 • Launch of the SSOMAC Management System & Corporate 5.0 50.3 3.8 12.5 5.0 11.1 3.7 3-4 Governance in August 2024. 11.6 4.7 0.5 3.2 Silver FMT 000 0.4 MM Oz 3.0 Zinc 10.0 0.4 0.4 10.1 0.4 0.
Slide 5: 3Q 2024 Highlights: Unit Cost, Sales, CAPEX
3Q 2024 Highlights Unitary Cost Sales by Metal* USD/ t 3Q23 Gold 4% USD225 MM 51.1 52.0 49.0 49.5 46.1 Continues focus on cost management Silver 37% - 3.1% from 3Q23 to 3Q24 Zinc 3Q23 4Q23 1Q24 2Q24 3Q24 42% Copper Note: Unitary costs includes infill drilling 3% Lead 15% CAPEX USD MM 3Q24 Gold 3% US
Slide 6: 3Q 2024 Highlights: EBITDA, Cash, Net Debt
3Q 2024 Highlights EBITDA +42% 123.6 3Q24 Operating Income 86.1 87.2 USD 73.8 MM 70.1 (vs. USD 32.5MM 3Q23) 44.8 3Q23 4Q23 1Q24 2Q24 3Q24 YTD Operating Income USD 111.7 MM Cash Position Net Debt Q1: USD 62.2 MM Q1: USD 711.3 MM (vs. USD 50MM 9Q23) Q2: USD 68.0 MM Q2: USD 693.9 MM Q3: USD 101.1 MM Q3
Slide 7: 3Q 2024 Balance sheet and refinancing highlights
3Q 2024 Balance sheet and refinancing highlights ~USD 63 MM ~USD 765 MM Additional Working ~USD 59.3 MM in Refinancing of Capital Facilities until Loan amortizations as of syndicated loan and March 2025 and USD Oct/24 2026 notes 30MM until June 2025 September 9th: October 18th: May 31st: Asset sale
Slide 8: 3Q 2024 Romina Project status
3Q 2024 Romina Project status • Alpamarca plant refurbishment • LT & SE Roberto Letts Tunnel • Mine development • LT UG ramp • 3 km Road Romina - Alpamarca • Platforms and gateways • Roberto Letts tunnel portal • Waste dump construction • PTARI gateway • Mine ramp portal and subestation • PTARI equi
Slide 9: Schedule
Schedule 1 Highlights 1 2 Operating Results 3 Financial Results 8
Slide 10: Consolidated Operating Results
Consolidated Operating Results Consolidated Jan-Mar Jul-Sep Jul-Sep Jan-Sep Jan-Sep var % var % Production 2024 2024 2023 2024 2023 Mineral extraction (thousands MT)1 2,293 2,564 2,414 6.2 7,126 6,970 2.2 Polymetallic ore 2,058 2,317 2,166 7.0 6,390 6,244 2.3 Oxides ore 236 247 248 -0.6 736 726 1.4
Slide 11: Quarterly Evolution of Zinc Production
Quarterly Evolution of Zinc Production (thousand FMT) Consolidated San Cristobal/Carahuacra Andaychagua Δ MT Milled: -6 kt Δ MT Milled: +26 kt Δ Grade: +1% Δ Grade: - 5% 60.5 62.4 62.9 50.3 52.9 22.5 22.0 21.4 15.7 16.2 15.8 15.8 16.6 15.0 16.2 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23
Slide 12: Quarterly Evolution of Silver Production
Quarterly Evolution of Silver Production (MM Oz) Consolidated San Cristobal/Carahuacra Andaychagua Δ MT Milled: +26 kt 4.2 3.8 Δ MT Milled: +6 kt 3.7 Δ Grade: - 9% Δ Grade: - 9% 3.0 3.2 1.5 1.3 1.3 0.8 0.9 0.6 0.5 0.4 0.4 0.5 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24
Slide 13: Quarterly Evolution of Lead Production
Quarterly Evolution of Lead Production (thousand FMT) Consolidated San Cristobal/Carahuacra Andaychagua Δ MT Milled: +6 kt 16.9 15.5 15.1 Δ Grade -14% Δ MT Milled: +26 kt Δ Grade: - 19% 11.2 12.4 3.5 3.8 2.3 2.3 2.8 4.1 4.0 3.6 2.5 3.1 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24
Slide 14: Quarterly Evolution of Gold Production
(thousand Quarterly Evolution of Gold Production (M Oz) Oz) Consolidated Oxides Andaychagua Δ MT Milled: -1 kt 5.4 Δ Grade -25% 3.8 3.5 2.8 2.8 3.6 2.2 1.7 1.8 2.2 0.3 0.2 0.1 0.2 0.3 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Ticlio Chungar San Cristobal/Carahuacra 0
Slide 15: Consolidated Production Costs and Unit Costs
Consolidated Production Costs and Unit Costs Production Cost (USD MM) Production Cost (USD MM) 3Q23 3Q24 USD +0.6 MM (+0.5%) 15% 16% Mine cost Mine cost 26% 124.2 Plant and Other Cost 25% 124.8 59% Plant and Other Cost 59% Others Others Production Unit Cost (USD/TM) Production Unit Cost (USD/TM) 3Q2
Slide 16: Production Unit Cost per Unit
Production Unit Cost per Unit Consolidated San Cristobal/Carahuacra Andaychagua 51.1 52.0 49.0 49.5 83.7 91.3 81.1 79.1 78.8 46.1 81.2 75.2 80.6 74.9 75.8 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Ticlio Chungar Alpamarca 117.2 108.6 113.1 102.3 96.1 94.7 105.2 102.3
Slide 17: Evolution of Mining Investments
Evolution of Mining Investments 55.2 46.5 44.7 33.8 32.9 52.3 42.0 44.9 3Q24 vs 3Q23: 33.1 31.3 Variation in Operating Units (+6.8%): 2.7 2.9 1.6 1.6 0.7 • Plants and Tailings Facilities (USD +4.6MM): Higher investments for tailings reprocessing at Ocroyoc 3Q23 4Q23 1Q24 2Q24 3Q24 and Rumichaca Sust
Slide 18: Schedule
Schedule 1 Highlights 1 2 Operating Results 3 Financial Results 17
Slide 19: Sales and prices evolution
Sales and prices evolution Jan-Mar Apr-Jun Jul-Sep Jul-Sep Jan-Sep Jan-Sep Fines Sales var % var % 2024 2024 2024 2023 2024 2023 Spot Prices Zinc (USD/TM) Zinc (thousands FMT) 52.5 54.4 63.5 60.7 4.6 170.5 181.6 -6.1 Lead (thousands FMT) 11.8 12.4 15.0 17.0 -11.6 39.2 45.8 -14.4 2,956 2,813 2,785 Co
Slide 20: P&L and EBITDA
P&L and EBITDA Income Statement Jan-Mar Apr-Jun Jul-Sep Jul-Sep Jan-Sep Jan-Sep var % var % (MM USD) 2024 2024 2024 2023 2024 2023 Sales 176.7 218.3 274.8 229.8 19.6 669.8 664.3 0.8 Cost of Goods Sold -159.4 -164.5 -181.9 -184.3 -1.3 -505.8 -547.1 -7.6 Gross Profit 17.3 53.8 92.9 45.5 104.1 164.0 11
Slide 21: 3Q 2024 Cash Flow and Cash Balance
3Q 2024 Cash Flow and Cash Balance 3Q24 Cash Flow 123.6 140.0 120.0 100.0 80.0 60.0 -32.9 -1.7 -2.0 40.0 3.5 33.1 20.0 0.0 -57.4 Ebitda 3Q24 Sustaining and Mine clousure and Taxes Working capital Financing Cash 3Q24 expansionary communities and others capex Cash Balance Bridge 250.0 FCFFO +USD 85.6
Slide 22: Transactions timeline
Transactions timeline Notes Huanchor Prepaid 1 Prepaid 2 exchange offer sale closing USD 30 MM 81.37% of 2026 Notes Huanchor HP USD 25MM (~ USD 299.9 MM) sold to Rimac exchanged for 2030 Hydro (EDF Notes (8.75%; bullet + + AC Capitales) security package) for USD 49.5 MM 2024 2024 2024 2024 2024 2024
Slide 23: Debt maturity profile and Net Debt to EBITDA Ratio
Debt maturity profile and evolution of Net Debt to EBITDA Ratio Notes and Syndicated Loan Maturity Profile (USD MM) Net Debt to EBITDA ratio 299 2.8 1,500 2.8 3.0 254 2.6 1,300 2.4 2.5 1,100 2.0 2.0 900 777 775 774 762 765 700 1.5 299 254 88 1 500 326 1.0 266 277 250 288 35 300 20 25 62 62 68 101 0.
Slide 24: Q&A
Q&A 23
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