Mineros Sa · BVC:MINEROS
Mineros Sa — Q2 2021 Earnings Presentation
26 slides from Mineros Sa's earnings presentation, Aug 10, 2021
Slide 1: Q2 2021 Earnings Release
Q2 2021 Earnings Release Aug. 10, 2021
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: Management
Management Andrés Restrepo Isaza CEO Alan Wancier CFO Ana Isabel Gaviria General Secretary Eduardo Flores Zelaya VP of Business Development and Strategy Country Manager Chile Santiago Cardona Country Manager Colombia Carlos Mario Gómez Country Manager Nicaragua John Jairo Cuervo Muñoz Country Manage
Slide 4: Agenda
AGENDA o Highlights o Operative Indicators o Financial Performance o Detail per Operation o Going Forward
Slide 5: Highlights
Highlights
Slide 6: Response to Appeal with ANLA
Response to Appeal with ANLA o On June 23, the Colombian environmental authority “ANLA”, replied to the Appeal filed by the Company in April. o A good part of previous decisions were reconsidered. o I that sense, once impacts were evaluated, the Company considers that, although not all the requested
Slide 7: Employee Vaccination
Employee Vaccination We joined the Colombian Government’s initiative called “Companies for vaccination”, to vaccinate for free all of our employees in Colombia, against Covid-19 As of August 5, we had vaccinated ~1,100 people We have not started a similar program in Argentina or Nicaragua, since the
Slide 8: Llanuras Aluviales Project
Llanuras Aluviales Project In Colombia, we launched the Llanuras Aluviales project, a new alluvial production unit that uses lighter technology, with easier transportation and allows for process optimization. Llanuras will permit access to smaller areas with lower average grades. With an investment
Slide 9: Consolidation of 100% of Vesmisa
Consolidation of 100% of Vesmisa At the end of July, our subsidiary Hemco, in Nicaragua, signed an agreement to acquire 15% of the shares of Vesmisa, for USD 1.5 million, consolidating 100% of ownership. Vesmisa is a plant that processes mineral from artisanal mining, with a capacity of 140 tons per
Slide 10: Formalizing small miners
Formalizing small miners On Friday, July 30, the Colombian Ministry of Mines and Energy announced that more than 5,000 miners have been formalized in the country, with the initiative called “Legal Mining”. We are happy to share that Luz Milena Miranda, “the formalized miner # 5,000", works with Mine
Slide 11: Gold Price Behavior
Gold Price Behavior Daily Behavior Gold Spot Price (US$/oz) 1950 $1.908 1900 1850 1800 1750 1700 $1.718 1650 1600 abr-2021 apr-2021 may-2021 jun-2021 11
Slide 12: Operative Indicators
Operative Indicators
Slide 13: Production, Price and cost
Production, Price and cost Produced Ounces (koz) Lower production in Argentina and due AISC (USD/oz) to the sale of Operadora Minera 75 koz Cash Cost (USD/oz) Average Selling Price (USD/oz) Higher costs due to the purchase of artisanal/formalized material and higher 70 koz investments in Argentina,
Slide 14: Financial Performance
Financial Performance
Slide 15: EBITDA and EBITDA Margin
EBITDA and EBITDA Margin Lower EBITDA generation, due to EBITDA MUSD higher production EBITDA Margin costs in Argentina and cost of artisanal 53 ore 52 10 0% 90 % 45 42 - 21% 80 % 40 70 % 60 % EBITDA Q2 2021 vs. Q2 2020 50 % 40 % 42% 43% - 21% 36% 30 % 33% 33% 20 % 10 % EBITDA Margin 10 0% Q2 2021 v
Slide 16: Debt
Debt Net Debt (MUSD) Debt (MUSD) / EBITDA (LTM MUSD) New debt used in the acquisition of the Luna Roja Project 0.3 0.3 0.0 x 0.2 0.1 0.1 + 13% -1.0x 47 42 -2.0x NET DEBT 33 Q2 2021 vs. Q2 2020 -3.0x 19 11 -4.0x 0% Net Debt/EBITDA Q2 2021 vs. Q2 2020 - -5.0x Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 16
Slide 17: Financial Results Q2 2021
Financial Results Q2 2021 Q2 2020 (MUSD) Margins Q2 2021 Q2 2020 o Higher income explained mainly Q2 2021 (MUSD) Operating 23.7% 35.8% EBITDA 32.6% 42.3% by higher energy sales and Net 8.1% 6.9% hedges 126.3 128.4 o The increase in costs is due to higher costs from 92.6 artisanal/formalized material
Slide 18: Financial Results 2021
Financial Results 2021 2020 (MUSD) 2021 (MUSD) 253.8 242.6 180.9 155.5 95.7 86.9 78.9 62.9 24.7 24.2 Revenues Costs Operating Profit EBITDA Net Profit +5% +16% +20% -9% -2% 18
Slide 19: Cash and Equivalents
Cash and Equivalents o Cash flow from Operations 19.6 includes payments from gold sales, partially offset by payments to suppliers, salaries and taxes 46.2 14.6 42.6 o Investments in mine development, stripping of a 0.5 new pit in Argentina, exploration and PPE 37.4 o Cash flow from financing activi
Slide 20: Detail per Operation
Detail per “5,9, Operation
Slide 21: Colombia
Colombia Q2 2021 vs. Q2 2020 21 koz 21 koz 25 koz 3,0 00 20 koz 18 koz 2,5 00 Production - 4,8% 15 koz 2,0 00 AISC + 7,5% 15 koz 1,5 00 Gross Profit - 0,5% 1,0 00 Gross Margin - 2,0% 1,032 1,191 1,127 944 1,015 50 0 5 koz - o 5% lower production due to the sale of Operadora Minera Q2 2020 Q3 2020 Q4
Slide 22: Nicaragua
Nicaragua 40 koz 3,0 00 Q2 2021 vs. Q2 2020 32 koz 32 koz 30 koz 32 koz 2,5 00 Production 0% 30 koz 27 koz 2,0 00 AISC + 26,2% 1,5 00 Gross Profit - 21,7% 1,547 1,395 1,324 20 koz 1,0 00 1,053 1,193 Gross Margin - 25,6% 50 0 10 koz - Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Produced Ounces (koz) AISC
Slide 23: Argentina
Argentina 3,5 00 Q2 2021 vs. Q2 2020 2,594 3,0 00 21 koz 25 koz 1,999 Production - 11,8% 2,5 00 17 koz 17 koz 15 koz 15 koz 2,0 00 AISC + 86,6% 15 koz 1,5 00 Gross Profit - 99,6% 1,572 1,390 1,437 1,0 00 Gross Margin - 100,0% 50 0 5 koz - Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Produced Ounces (koz)
Slide 24: Going Forward
Going Forward
Slide 25: Going Forward
Going Forward o Advance in growth programs • Increase life of mine of Gualcamayo • To complete technical studies for Porvenir and Luna Roja (Nicaragua), DCP (Argentina) and La Pepa (Chile) • JV with Royal Road in Nicaragua and Colombia o Continue developing new and smaller alluvial operation methods
Slide 26: pent
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