2025 Full Year Results Press Release

HO C HSCHIL D 11 March 2026

Preliminary Results

Year ended 31 December 2O25

"This year marks a key moment for Hochschild, delivering our strongest ever financial performance, driven fry disciplined execution at Inmaculada and precious metal price tailwinds. We added 1.7 million ounces to our resource hose, advanced our two exciting growth projects in Peru and Brazil, and significantly increased the dividend, reflecting the strength of our balance sheet. At Mara Rosa, we are close to completing our turnaround plan, positioning the operation for a stronger and more sustainable future."

2O25 Strong financial performance

• Revenue up 25% at $1,182.1 million (2024: $947.7 million)'

• Revenue (pre-exceptionsI) up 28% at $1,208.6 million (2024: $947.7 miIIion)2

• Adjusted EBITDA up 39% at $583.7 million (2024: $421.4 million)*

• Profit before income tax (pre-exceptionsI) up 66% at $330.4 million (2024: $199.1 million)

• Profit before income tax (post-exceptionsI) up 110% at $372.8 million (2024: $177.2 million)

• Basic earnings per sha re (pre-exceptionsI) at $0.31 (2024: $0.23)

• Basic earnings per sha re (post-exceptionaI) at $0.39 (2024: $0.19)

• Cash and cash equivalents balance of $317.0 million as at 31 December 2025 (2024: $97.0 million)

• Net debt2of $22.7 million as at 31 December 2025 (2024: $215.6 million)

• Recommended finaI dividend of 5.00 US cents per sha re ($25.7 million)°

  2025 Operational Performances

• Strong 2025 safety performance

• Full year attributable production of 311,509 gold equivalent ounces (2024: 347,374 ounces)

• Attributable aII-in sustaining costs (AISC) 2from operations of $2,138 per gold equ ivalent ounce (2024: $1,558)

• Strong performance at Inmaculada producing 209,921 gold equivalent ounces

• Turnaround plan at Mara Rosa progressing in-line with expectations, positioning the asset for stronger and sustainable long-term production

• San Jose performance in line with expectations producing 120,639 gold equivalent ounces

• Senior management team strengthened with key appointments including Cassio Diedrich as Chief Operating Officer

  2O25 Exploration and Project Highlights

• TotaI resource additions of 1.7 million gold equivalent ounces

• Monte do Cormo project progressing towards updated economics and a finaI investment decision by mid-2026

• Royropata silver project permitting process on track

• Strong progression on monetisation of non-core assets: Tiernan Gold Corp now trading on the TSX Venture Exchange

  2025 ESG KPls"

• Lost Time Injury Frequency Rate of 0.97 (2024: 1.25)7

• Fresh water used per tonne of ore processed: 0.26 m*/tonne (2024: 0.31 m*/tonne)

• Recycled waste of 81.4% (2024: 57.3%)

• LocoI workforce vs totaI workforce of 65.9% (2024: 59.3%)

• Women in the workforce of 10.6% (2024: 10.0%)

• ECO score of 5.61 out of 6 (2024: 5.58)a

‌'Revenue is reported in the ñnonc/o/ statements net oF commerc/o/ discounts plus revenue From the sole oF aggregates and services revenue

‌°Pevenue fpre-except/ono/J is reported in the Financial stotem ents net oF commerc/o/ discounts, plus revenue From the sole oF aggregates and services revenue, and excludes the non-cost recycling oF

826.4 m // on oF accumulated losses related to the ro//-forward of gold hedges.

‌"adjusted EB/f0é, net dedt andé/SC are non-/FPS measures Please see the F none a/ Pev ew poges20-26 For a dean t on and oo/cu/ot on ofédjusted EB/r0A, net dedt andattr butab/e é/SC. the Company has calculated Is a//-*n sustain ng most on on attr dutod/e bas s and excludes Peruv an royalties wh*oh ore recogn sed n the noome tax /*ne Management believes thot the updated methodology better o/*gns w*th prevo ng ndustry praot*ces and enhances oomparod*/ ty with peers Allprevious per ads have been re-presented to reflect tH*s change

‌*Please see the Financial Pevieyy page 23 For the calculation oF the Final proposed dividend

‌'2025 and £02a equivalent Figures calculated using the go/d/s//ver ratio oF83x

‌°Fv 2024 9N7fFON T ONION KP/'2 9XCTU 09 MONO POSO ISO TO TON SLFUGPION OF 0 FOR T fS'2fOW fNQ0 C/f7f/f9S WL fCN OCCUISO0 jSFfOF TO MO 2024 2025 9N7fFON T 9NLOf RPIS fNCTUDO GOZO POSO

‌'Calculated as total number oF accidents per m////on labour hours

‌^fhe ECO Score *s an *eternally des gned key Performance /nd motor measuring env ronmenta/ performance *n one numder and encompass ng numerous /bctors *nc/ud*ng management oF waste water outcome oFregulatory nspeot ons and sound environmental practices relating to water oonsumpt*on and the reoyo/ ng of maker o/s

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Net debt

Net debt is a measure of the Group's financial position. The Group uses net debt to monitor the sources and uses of financial resources, the availability of capital to invest or return to shareholders, and the resilience of the balance sheet.

Gross Revenue

Gross revenue represents the revenue generated from the Group's core business, excluding the impact of commercial discounts, and non-cash hedged items.

L/nit cost per tonne

Unit cost per tonne represents the direct cash cost including direct cash support costs in producing one tonne of saleable product. This is a standard industry measure applied by most major mining companies and therefore, comparable for the users of the Financial Statements.

Cash costs

Cash costs are a measure of the cost of operating production expressed in terms of dollars per ounce of gold and this is a standard industry measure applied by most major mining companies which reflects the direct costs involved in producing each ounce of metal.

About Hochschild Mining PLC

Hochschild Mi ning PLC is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX Best Market in the U.S. (HCHDF), with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and operates two underground epithermal vein mines: Inmaculada, located in southern Peru; and San Jose in southern Argentina, and an open pit gold mine, Mara Rosa, located in the state of Goios, Brazil. Hochschild also has numerous long-term projects throughout the Americas.

Forword looking stotements

This oneouncement maY contoin torword looktag stotements. B/ their noture, torword looking statements involve risks ord uncertainties because theY relate to events ord depend or circumstoaces that will or moY occur in the future. Actual results, performance or achievements oI 1-Hochschild Mintag PMC: moY, for various reosons, be moteriolly diUerent from as Y future results, performance or achievements expressed or implied b such forward looking statements.

The torword-looking stotements reflect knowledge and information ovoiloble ot the date oI preparation oL this onnouncement. Except os required b/ the Eisting Rules ord opplicoble law, the Board oI !-Hochschild Mintag PMC: does not undertoke or Y obligation to update or change or Y torword-looking stoteme sts to reflect events occurring aiter the done oI this onnouncement. Nothing in this as nouncement should be construed as a profit torecost.

Note

The intormotion contoined within this ontounceme at is deemed bY the C:omponY to constitute inside intormotion as stipuloted under the Market Abuse Reg elation (Regulotion (HU) No.896/2014). Upon the publication oI this announceme at via o 'egulatorY lvtormotion Service, this inside intormotioo is now considered to be in the

LEI: 549300HKJ0TVQ3CCHQ89

2025 was a year that provided a number of challenges, but also one that clearly demonstrated the strength of our business and our people. Record precious metal prices towards the end of the year provided a powerful tailwind, delivering strong financial results and reinforcing our confidence in the long-term fundamentals of our portfolio. At Mara Rosa in Brazil, we responded quickly and decisively to operational challenges, executing a comprehensive turnaround plan that is now close to completion. As we look ahead, I am excited by the progress and potential of our two high-value projects in Peru and Brazil, which position the Company well for the year ahead and beyond.

Success for the Group is defined by achieving operational efficiency while delivering transformative change. We engage proactively with our communities, creating a meaningful and lasting positive social legacy. Through sustained effort, we achieved record proportions of local employment across our workforce and local procurement. We also implemented a comprehensive social investment programme benefiting communities across all our operations.

Environmental management is integral to our approach to sustainable growth. In 2025, we delivered excellent environmental performance, reflected in our best-in-class ECO Score tool. This was further demonstrated by year-on-year reductions in freshwater consumption per tonne of ore processed, alongside continued improvements in waste management. In addition, our two ESG-linked loans delivered interest rate reductions linked to defined environmental and safety performance indicators. We also made significant progress in addressing climate-related risks, with our operations in Brazil and Argentina meeting 100% of their energy requirements from renewable sources.

Safety excellence remained a defining feature of the Group's operational performance in 2025. This was reflected in an all-time low injury frequency rate, and the achievement of 2 million man-hours worked in San Jose without incidents. Together, these outcomes are a clear testament to the dedication, discipline, and professionalism of our operations I teams.

Mara Rosa had a challenging start to the year, reflecting a combination of adverse seasonal conditions and operational issues. But I am pleased to report that the situation was addressed decisively through a comprehensive review of the operation, led by Eduardo Landin. The review resulted in the implementation of a turnaround plan for our Brazilian business, strengthening leadership including our new Chief Operating Officer, Cassio Diedrich, and operational oversight, alongside targeted maintenance and process improvements. Following a temporary plant shutdown in July, the mine's performance improved steadily throughout the second half of the year as access to higher-grade areas improved and plant stability was restored. With the reorganisation now complete, the operation is on more stable footing, and management remains focused on delivering consistent performance and realising the asset's long-term value.

The performance of our brownfield exploration team continues to be a key strength of Hochschild. Building on the success of previous years, the team delivered another strong result in 2025, adding 1.7 million gold equivalent ounces to our resource base. This outcome reflects both disciplined execution and the underlying quality of our asset portfolio and reinforces our longstanding view that there remains significant potential within our existing operations. These additions support the long-term sustainability of the business and confirm the important role that brownfield exploration continues to play in our overall strategy.

Outlook

As noted above, 2025 saw a continuation of the extraordinary uplift in the precious metals market, with both gold and silver reaching record levels on an almost monthly basis. Gold has recently risen to further new highs of over $5,400 per ounce, whilst silver has climbed to over $100 per ounce, with both metals benefiting from tight market conditions and heightened global political and economic uncertainty. This exceptional pricing environment has materially enhanced the Group's financial position, and we are encouraged to see this strength continuing into 2026 although precious metal markets remain volatile. It provides a strong foundation as we move forward to finance our project pipeline and complete the turnaround of our operations in Brazil.

2025 was a year marked by disciplined financial management, as we made substantial progress towards our medium-term financial objectives. A central priority during the year was the reduction of our debt position, and I am pleased to report that strong cash generation enabled us to reduce net debt by almost $200 million. This was achieved whilst also strengthening the Company through the monetisation of non-core assets. Management did an excellent job in successfully listing Tiernan Gold on the Toronto Stock Exchange Venture Exchange (TSXV), ra ising capital to advance the Volcan gold project in Chile while retaining an approximately 70% interest. As a result, our balance sheet is now well positioned to finance our next development project in Brazil, Monte do Carmo, with updated project economics underway and a final investment decision targeted for mid-2026.

Last year, we highlighted that, as part of our capital allocation strategy, we recognised the importance of returning capital to our shareholders. Accordingly, we introduced a new dividend policy designed to provide greater predictability and consistency for our investors in the years ahead. Building on this, the Board is pleased to announce that the performance of the Company this year and the strength of our balance sheet allows us to recommend a final dividend of 5.00 US cents per share, representing a distribution of $25.7 million for a total of $30.9 million in 2025.

Eduardo Hochschild, Chair 1O March 2O26

During 2025, Hochschild Mining made solid progress across the Company, supported by disciplined execution of our strategy, despite operational challenges at Mara Rosa in Brazil. Our focus remains firmly on our four strategic pillars-brownfield exploration, operational efficiency, ESG leadership, and disciplined capital allocation-which continue to guide our decision making and underpin our commitment to long-term value creation. While Mara Rosa did not meet our expectations, decisive action was taken, and with a strengthened team including a new COO, a comprehensive operational review, and targeted optimisation initiatives now delivering results, a robust platform is in place to support improved performance in Brazil and reliable production in 2026.

ESG

Our corporate purpose places responsibility at the core of how we operate. As highlighted by the Chair, this commitment is reflected in a comprehensive range of initiatives that underpin our long-term value creation targets. In 2025, our ESG programme made strong progress, delivering year-on-year improvements across 10 of our 16 key ESG performance indicators and reinforcing its central role in the execution of our corporate strategy.

Through active community engagement, we reinforced our social licence to operate across all our sites. We delivered an excellent Lost Time Injury Frequency Rate of 0.97 (2024: 1.25), while our operations in Peru and Argentina continued to maintain Level 8 safety management system certification from Det Norske Veritas. Environmental performance remained robust, reflecting the effective integration of sustainability principles and responsible resource stewardship throughout our operations.

Operations

Our operations I performance in 2025 highlighted the resilience of our diversified asset base. Attributable gold equ ivalent production totaIIed 311,509 ounces, a 10% reduction compared with 347,374 ounces in the prior year, largely attributable to cha Ilenges at the Mara Rosa operation. All-in sustaining costs for the year were higher than initiaIly anticipated, reflecting lower production in Brazil, additional capital investment to support the operational reset at Mara Rosa, the mining of lower-grade border areas of the veins at San Jose, and the impact of higher precious metaI prices in royalties, selling eXpenses and workers' profit sharing.

In 2025, the Inmaculada mine delivered another solid performance in line with plan, producing 209,921 gold equivalent ounces, 5% lower than 2024 (220,501 ounces), reflecting a scheduled reduction in grade. All-in sustaining costs were $1,732 per gold equivalent ounce (2024: $1,479 per ounce), with the increase year on year driven by the planned grade profile, partially offset by higher throughput. Over at San Jose in Argentina, production of 120,639 gold equivalent ounces was modestly below 2024 (123,732 ounces), primarily due to scheduled lower grades, although this was mitigated by higher-than-anticipated tonnage processed. All-in sustaining cost of $2,520 per gold equivalent ounce was higher than expected, reflecting the mining of lower-grade border areas, higher royalties and export taxes driven by increased precious metal prices, and the removal in April 2025 of the export benefit allowing partial settlement of exports at the blue dollar rate.

A reorganised Brazil management team, including the appointment of our new General Manager, Ediney Drummond, has strengthened oversight and execution. Operational improvements in the latter part of the year enhanced access to ore, increased productivity, and laid the groundwork for sustainable performance. Key focus areas - mining development, water management, filtration, and plant reliability-were addressed through improved maintenance and infrastructure readiness. These actions have established a solid platform for consistent operations and workforce stability as we have moved into 2026.

Gold production for the year at Mara Rosa totalled 40,062 gold equivalent ounces (2024: 63,538 ounces). Throughout the review process, we remained closely engaged with all stakeholders, including local authorities and communities, and are focused on unlocking the full potential of this asset in the next few quarters.

Projects

In terms of strategic delivery, we continued to make strong progress across our high-potential growth projects. In Brazil, detailed engineering studies at our Monte Do Carmo project in Tocantins are nearing completion. With the permitting pathway now substantially de-risked and lessons learned from our Mara Rosa experience being applied, we are preparing the project for a potential construction decision around mid-year. In Peru, the exciting Royropata silver project has advanced following the securing of all necessary land easements in 2024. The team is now preparing the documentation required to submit the Modified Environmental Impact Assessment application to the Peruvian government later this year, following the national elections and the installation of the new administration in the third quarter.

In the second half of the year, I was pleased to see our management team make further progress in adding value to our non-core project portfolio through the listing of Tiernan Gold Corp ("Tiernan") on the TSXV and concurrent capital raise. This transaction represented an important step for Tiernan and reflected the significant work completed over the past few years on the Volcan gold deposit in Chile. Tiernan now provides a dedicated platform to advance the project and realise its full potential

‌under experienced leadership. Tiernan raised approximately $30 million, and Hochschild received approx imately $12 million in proceeds from the secondary offering, while retaining a 69.8% stake of Tiernan. With gold prices remaining strong, we believe this structure offers the best path to maximise long-term value for a II stakeholders.

Exploration

Exploration continues to be a core pillar of the Group's growth strategy, and during 2025 we built on our strong track record by adding a total of 1.7 million ounces of resources across the portfolio, with, in particular, significant further additions at Inmaculada and Royropata. The brownfield exploration team remains focused on identifying new opportunities for resource expansion within 10 kilometres of our existing operations, including drill testing at one of three deposits identified within the Inmaculada-Pallancata district in Peru. Over the longer term, the strategy also includes the selective acquisition of additional mining properties to further support sustainable growth and replace resources.

Financial position

Record precious metal prices during the year drove the Company to generate significant cashflow with the result that the Company's balance sheet is the strongest it has been for several years. Cash and cash equivalents was $317.0 million at the end of December (2024: $97.0 million) reflecting strong operational cash flow during the year along with the consolidation of Tiernan's cash balance following its listing and capital raise on the TSXV in the second half of the year. Total debt was $339.6 million (2024: $312.6 million) and therefore net debt was reduced to $22.7 million (2024: $215.6 million).

Financial results

TotaI attributable Group production was 9% lower than 2024 but this was offset bya 37% rise in the gold price received and a 54% rise in the silver price. Consequently, revenue increased by 25% to $1,182.1 (2024: $947.7 million) and pre-exceptionsI revenue increased by 28% to $1,208.6 million (2024: $947.7 million). Attributable aII-in sustaining costs were at $2,138 per gold equivalent ounce or $25.7 per silver equivalent ounce (2024: $1,558 per ounce/$18.8 per ounce). Adjusted EBITDA of $583.7 million (2024:

$421.4 million) increased by 39% versus 2024 reflecting the significant price rises partiaIly offset by a faII in production and an increase in cost of sales. Pre-exceptionsI profit for the year was $200.7 million (2024: $133.5 million) and basic earnings per share (pre-exceptionsI) increased to $0.31 (2024: $0.23 per share) mainly due to the higher profitsbility, net of taxes. On a post-exceptions I basis, profit for the year was $247.4 million (2024: $113.7 million) and basic earnings per share (post-exceptionsI) was higher at $0.39 (2024: $0.19) and includes the non-cash recycling of $26.4 million of accumulated losses related to the roll-forward of gold hedges, the reverse I of impairment at the Volcan project of $43.2 million, the reverse I of impairment of the investment in Aclara Resources Inc. of $22.2 million, the reverse I of impa irment of $13.6 million of the San Jose mine, and the listing and transaction expenses in connection with Tiernan's transaction of $10.2 million. The tax effect of exceptions I items was a goin of $4.2 million.

OutIook1

We expect attributable production in 2026 to be between 300,000 and 328,000 gold equivalent ounces. This will be driven by: 174,OOO-185,000 gold equivalent ounces from Inmaculada; an attributable contribution of 59,OOO to 63,OOO gold equivalent ounces from San Jose; and an increased level of production from the Mara Rosa mine of between 67,000 and 80,000 gold ounces. All-in sustaining costs for operations are expected at between $2,157 and $2,320 per gold equivalent ounce. This forecast which is an increase versus 2025 reflects the lower production in Inmaculada driven by lower grade expectations as well as additional capex on expansion of Inmaculada's tailings dam. This will be partially offset by increased production at Mara Rosa and higher expected currency devaluation in Argentina.

The outlook for the Company remains compelling as we complete the turnaround at Mara Rosa, advance our two high-qualitv growth projects in Brazil and Peru, and continue to generate strong cash flows in a highly supportive precious metals price environment. This financial strength has enabled us to strengthen the balance sheet, increase returns to shareholders and position the business to support sustainable growth. Alongside our focus on operational excellence and disciplined capital allocation, we will continue to assess opportunities to optimise our portfolio, whether through value-accretive acquisitions or the monetisation of our non-core assets, with the clear objective of delivering sustained value creation.

Eduardo Landin, Chief Executive Officer 1O March 2O26

OPERATIONS

Note: 2025 and 2024 equivalent figures assume a gold/silver ratio of 83x. 2026 forecasts assume a ratio of 77x.

Production

In 2025, Hochschild delivered attributable production of 311,509 gold equivalent ounces or 25.9 million silver equivalent ounces, in line with the Company's revised guidance but lower than the 2024 result (347,374 gold equivalent ounces) mainly due to the challenges at Mara Rosa and lower scheduled production at Inmaculada.

The overaII attributable production torget for 2026 is 300,000-328,000 gold equivalent ounces.

Total 2025 group production

Totol production includes 1OO°/< of oll production, including production attributable to 1-Hochschild's minoritY shareholder at Son lose.

Attrihutahle 2025 grouD production

Attributable production includes 100% oI all production from lnmaculado, Maro 'osa and 81°/< from Son lose.

Attrihutahle 2026 Production forecast split

COSS

Attributable all-in sustaining cost from operations in 2025 was $2,138 per gold equivalent ounce (2024: $1,558 per gold equivalent ounce), higher than original guidance of $1,587 - $1,687 mainly as a result of: the significantly higher costs and reduced production related to the challenges at Mara Rosa; lower grades in Argentina; and higher precious metal prices resulting in increased royalties, selling expenses in Argentina, and increased workers' profit sharing in Peru.

The attributable all-in sustaining cost from operations in 2026 is expected to be between $2,157 and $2,320 per gold equivalent ounce.

2026 AttrihutahIe AUC: forecast split

‌

Inmaculada

The 100% owned Inmaculada gold/silver underground operation is located in the Department of Ayacucho in southern Peru. It commenced operations in June 2015.

Production

The Inmaculada mine delivered gold equivalent production of 209,921 ounces (2024: 220,501 ounces), which although a 5% reduction versus 2024 was according to the mine plan and was due to reduced gold and silver grades partially offset by increased tonnage arising from a number of efficiency initiatives executed since the first half of 2024.

The Company is currently focused on managing grade variability inherent to sequencing, maintaining access to higher-grade zones, and sustaining stope inventory through continued geomechanical discipline and flexibility in development work.

Costs

All-in sustaining cost was $1,732 per gold equivalent ounce (2024: $1,479 per ounce). The increase compared with 2024 was primarily driven by forecasted lower gold and silver grades and higher production volumes, which increased production costs, as well as other cost components directly affected by significantly higher precious metal prices, including workers' profit sharing and commercial deductions.

Development project: Royropota

The 100% owned Royropata project is located in the Department of Ayacucho in southern Peru and is close to the Pallancata mine which was placed on temporary care and maintenance in December 2023.

In 2025, work continued on the Modified Environmental Impact Assessment for Royropata, which is progressing on schedule and is expected to be completed in early Q2, with submission to the Peruvian government planned following the national elections in July 2026. A public workshop in the Pallancata community to present the environmental and social baseline results was successfully held in December 2025, and a corresponding workshop for the Iscahuaca community in February 2026.

Son lose

The San Jose silver/gold mine is located in Argentina, in the province of Santa Cruz, 1,750 kilometres south west of Buenos Aires. San Jose commenced production in 2007. Hochschild holds a controlling interest of 51% and is the mine operator. The remaining 49% is owned by McEwen Mining Inc.

Production

San Jose's production in 2025 totalled 120,639 gold equivalent ounces (2024: 123,732 ounces) with the decrease versus 2024 reflecting scheduled declining grades although this has been partially offset by increased tonnage due to the expansion of the processing plant which was completed at the end of 2024.

Costs

All-in sustaining costs were at $2,520 per gold equivalent ounce (2024: $1,973 per ounce) with the significant increase versus 2024 mostly due to: the mining of lower-grade border areas of the veins at San Jose; the impact of higher precious metal prices on royalties and export taxes; and the impact of the removal of the export benefit in April 2025 which had allowed the Company to settle a portion of exports at the blue dollar rate. These were partially offset by higher treated tonnage.

Maro Rosa

The 100% owned Mara Rosa open pit gold mine is located in the mining friendly jurisdiction of Goios State in Brazil. Mara Rosa commenced production in mid-May 2024.

Production

Following Q1 2025, the Company reported that operations at Mara Rosa were adversely affected by heavier-than-usual seasonal rainfall and contractor performance issues. These challenges restricted access to ore-particularly hipher-prade

removal delays, carried over from the previous year, were further hampered.

In response, CEO Eduardo Landin temporarily assumed direct operational oversight and led a comprehensive review of mining, processing, permitting, and waste management activities. The processing plant was suspended for approximately one month to allow for critical maintenance and upgrades across the crushing, milling, and filtering circuits, whilst mining activities continued uninterrupted. Processing subsequently resumed using two of the four to ilings' filters, with the remaining units brought back online following maintenance and testing. Operational performance has since shown steady improvement. A toilings thickener, planned for installation in the first half of 2026, is expected to further enhance waste filtration and support the plant's ability to operate at full capacity.

Mining performance improved over the second half of the year, with increasing material movement rates reflecting enhanced fleet efficiency and improved haulage conditions. This progress was supported by pushback development that improved access to future higher-grade ore zones, as well as stabilisation of the processing plant through stronger maintenance routines. Focus areas included ra iny-season water management, strengthening filtration and detoxification ava ilability, and improving moisture control through better maintenance planning and spares readiness. Reliable equipment availability and infrastructure performance further supported goins in productivity and operational stability.

In parallel, the Company completed a reorganisation of its Brazil operations, including the appointment of a new Brazil General Manager, Ediney Drummond, and a new Mine Manager, alongside the implementation of a revised management structure. With the operational ramp-up progressing in line with expectations, management remains focused on sustaining consistent performance through reliable mining and plant operations, effective rainy-season management, completion of the toilings thickener installation, and maintaining workforce stability.

For the year, Mara Rosa produced a total of 40,062 gold equivalent ounces including minor silver by-product (2024: 63,770 ounces). Production in the latter part of the year reflected a strong improvement following the implementation of the turnaround strategy.

Costs

As a result of the challenges outlined above, including production falling short of expectations and lower grades, AISC increased sharply to $3,697 per gold-equivalent ounce, compared with $1,408 per ounce in 2024. Higher capex also contributed to the increase, as the cost of the remediation activities increased the spend from the original budget of $11-12 million to just over $34 million.

Development project: Monte Do Carmo

Work has continued on the Monte Do Carmo project in 2025 and included:

• Project Manager recruitment

• Engineering studies ongoing (Ausenco) and including GAP ana!vsis from Mara Rosa experience

• Review of process optimisation options underway, including potential for 100% Carbon-in-Leach configuration, utilisation of a SAG mill and plant and mine capacity expansion opportunities

• Completion of metallurgical testwork

• Meeting with Tocantins state agency to discuss workforce development plans

• Award of the installation licence

• Signing of contract for transmission line and power distribution network to support water intake and construction infrastructure

• Evaluation of the use of water harvesting for the project

• Review of proposed filtration system

• Validation of pit engineering study

• Geotechnical studies almost complete

The Company currently expects updated economics and a finaI investment decision in mid-2026.

lnmoculodo

During the year, the team carried out a further 13,142a of potential drilling and 17,363a of resource drilling. By the end of the year 0.5 million gold equivalent ounces of resources had been added at a grade of approximately 2.8 grams per tonne of gold equivalent (38.5 million silver equivalent ounces at a grade of approximately 239 grams per tonne of silver equivalent).

In the first quarter of 2026, the tea m is planning 3,6O0m of potentia I d rifling in Inmaculada CentraI and Southern zones.

Son lose

During the year, the team carried out 11,458m of potential drilling in the region. By the end of the year 168,000 gold equivalent ounces of inferred resources had been added at a grade of approximately 7.65 grams per tonne of gold equivalent (13.9 million silver equivalent ounces at a grade of approximately 635 grams per tonne of silver equivalent).

The plan for the first quorter of 2026 is to perform potentiaI d rifling in the HV-W a rea and in the northern zone.

Royropato

Exploration work continued at the Royropata project in 2025 with the team adding approximately 1.1 million gold equivalent ounces of resources at a grode of approximately 6.4 g ra ms per tonne of gold equivalent (89.0 million silver equ ivalent ounces of inferred resources at a grade of approximately 534 gra ms per tonne of silver equivalent).

Moro Rosa

Within the district, the team carried out 5,8O5m of potential drilling and 7,903 of resource drilling during 2025.

Monte Do C:armo

During Q1 2026, resource d rilling will continue in Sierra Alto.

The reporting currencY of 1-locñschild Mintag PMC: is HS dollars. lv discussions of financial performance, the Group removes the eitect oI exceptional items, unless otherwise indicoted, ord in the income statement results are shown both pre and post such exceptional items. Exceptional items are those items, which due to their nature or the expected intrequenc Y oI the events giving rise to them, are disclosed separotelY or the toce oI the income statement to enoble o better understonding oL the tinoncial pertormonce oI the Group and to tocilitote comporison with prior Years.

Revenue

Gross revenue2

Gross revenue before exceptional items increased by 27% to $1,229.7 million in 2025 (2024: $966.1 million) due to the higher average realised precious metal prices, partially offset by lower gold and silver production with gold output decreasing mainly due to the operational challenges at Mara Rosa. Silver output fell mainly due to scheduled grade reductions at Inmaculada and San Jose, partially offset by higher tonnage at both operations.

Gross revenue before exceptional items from gold increased to $823.4 million (2024: $660.1 million) due to the 37% increase in the average realised gold price, partially offset by lower gold production from Mara Rosa.

Silver

Gross revenue before exceptional items from silver increased in 2025 to $404.6 million (2024: $305.6 million) due to the 54% increase in the average realised silver price, partially offset by lower silver production at Inmaculada and San Jose.

Gross average realised sales prices

The following table provides figures for average realised prices (before the deduction of commercial discounts) and ounces sold for 2025 and 2024:

Hedges

2025 realised prices and revenue include the effect of the following hedges: forwards for 29,167 gold ounces at a price of $2,117 per ounce, and zero cost collars for 60,000 gold ounces at a strike put of $2,000 per ounce and a strike call of $2,485 per ounce, the impact of which was a loss of $86.1 million in 2025.2024 realised prices and revenue include the effect of the following hedges: forwards for 27,600 gold ounces at a price of $2,100 per ounce, and zero cost collars for 100,000 gold ounces at a strike put of

$2,000 per ounce and a strike call of $2,252 per ounce, the impact of which was a loss of $27.9 million in 2024.

In August 2025, the Group renegotiated the gold forward hedge agreement resulting in the extension of 20,813 ounces from August to December 2025 to the first semester of 2028. At the date of the roll-forward, the fair value of these instruments amounted to a liability of $26.4 million. In accordance with IFRS 9, the accumulated loss recognised in the cash flow hedge reserve within equity was reclassified to the income statement following the discontinuation of the original hedge relationship and the realisation of the hedged item. Given the non-recurring and non-cash nature of this hedge accounting reclassification to the income statement, and the fact that the cash settlement will occur in 2028 once the instruments mature, the resulting charge of $26.4 million has been presented as an exceptional item within revenue. This presentation facilitates a better understanding by users of the financial statements of the Group s underlying operating performance by separating the effects of this discrete, non-cash hedge accounting reclassification from revenue and profitability trends.

Commercial discounts

Commercial discounts refer to refinery treatment charges, refining fees and payable deductions for processing concentrate, and are deducted from gross revenue on a per tonne basis (treatment charge), per ounce basis (refining fees) or as a percentage of gross revenue (payable deductions). In 2025, the Group recorded commercial discounts of $21.1 million (2024: $18.4 million). The ratio of commercial discounts to gross revenue in 2025 was 2%, in line with 2024.

Revenue

Revenue before exceptional items was $1,208.6 million (2024: $947.7 million), including gold revenue of $813.4 million (2024: $649.3 million) and silver revenue of $393.4 million (2024: $298.0 million). In 2025, gold accounted for 67% and silver 33% of the Company's consolidated net revenue (2024: gold 69% and silver 31%).

Reconciliation of gross revenue fry mine to Group net revenue hefore exceptional items

$000

Silver revenue

Year ended 31 Dec 2025

YeOr ended 31 Dec 2024

% change

‌'°/nc/udes revenue From services of80 4 m*//*on n 202S f2024: 80 4 m*//*onJ and a re ate soles *n /4ora Post of BI 4 m //*on n 2025. Gross revenue *s the net revenue bus commerc a/ d*soounts from the

Cost of soles

TotaI cost of soles was $677.9 m illion in 2025 (2024: $605.3 m illion). The direct production cost excluding depreciation and amortisation was higher at $508.0 million (2024: $454.0 m illion) ma inIy due to: higher volumes at Inmaculada and San Jose; higher mining and waste movement at Mara Rosa due to the normalisation of the stripping ratio as well as higher filtration and to ilings management costs; and rising precious metaI prices resulting in increased royaIties. Depreciation and amortisation in production cost increased from $157.2 m illion in 2024 to $173.6 million in 2025 ma inly due to higher tonnage extracted at Inmaculada and San Jose and the change in the depreciation method from units of production to stra ight line basis for certain minor equipment in Inmaculada. The depreciation increase was pa rtiaIly offset by the impact of lower tonnage produced in Mara Rosa. Workers' profit sha ring increased from $3.1 m illion in 2024 to $15.5 million in 2025 ma inly due to higher precious metaI prices. Fixed costs incurred during totaI or pa rtiaI production stoppages due to operational cha Ilenges at Mara Rosa were $15.1 million (2024: $1.1 million due to bad weather in San Jose). Increase in inventories was $35.5 million in 2025 (2024: $1O.1 million) ma inIy due to higher products in process of $23.0 million and $8.3 million at Mara Rosa and Inmaculada respectively; and higher finaI products at San Jose of $5.5 million.

Fixed costs during operational stoppages and reduced capacity

Unit cost per tonne

The Company reported unit cost per tonne at its operations of $136.7 per tonne in 2025, an 8% increase versus 2024 ($127.0 per tonne). This was ma inly due to the impact of the lower tonnage at Mara Rosa.

Unit cost per tonne fry operation (including royalties)'^:

‌extracted ord treoted tosmoge oh 3,849k ord S,SO£k respects very‌

‌Cash costs include cost of sales, commercial deductions and selling expenses, less depreciation and amortisation included in cost of sales.‌‌‌‌‌

C:ash cost reconciliation

Year ended 3J December 2025

Year ended 31 December 2024

Co-product cash cost per ounce is the cash cost allocated to the primary metal (allocation based on proportion of revenue), divided by the ounces sold of the primary metal. By-product cash cost per ounce is the total cash cost minus revenue and commercial discounts of the by-product divided by the ounces sold of the primary metal.

All-in sustaining cost reconciliation'

All-in sustaining cash costs per silver equivalent ounce

The Com pany has ca Iculated its a II-in sustaining cost per gold and silver equ ivalent ounce on an attributable basis and excludes Peruvian royaIties which are recognised in the income tax line. Management believes that the updated methodology

‌'"Other adjustments no/ude fixed casks dur*ng operat ono/ stoppages and reduced capao*ty*n Moro Peso ofBSS I m*// on most of sale of aggregates ofBJ I m // on *n Moro Post and cost oFenergy tronsm*ss onserv res oF80.I m*// on *n /nmaou/odo

‌better aligns with prevailing industry practices and enhances comparability with peers. All previous periods have been represented to reflect this change.‌‌‌‌‌‌

Year ended 3J December 2025

Year ended 31 December 2024"

‌Administrative expenses

Administrative expenses were higher at $55.6 million (2024: $50.2 million) mainly due to higher professions I fees of $8.9 million (2024: $7.1 million) and legoI workers profit sharing in Peru of $3.2 million resulting from higher precious metaI prices (2024: $1.4 million).

Exploration expenses

In 2025, exploration expenses increased to $28.7 million (2024: $26.9 million) mainIy due to higher prospects and generative expenditure in Peru of $4.1 million (2024: $1.5 million), and higher exploration expenses at San Jose of $11.9 million (2024: $9.8 million). These were pa rtiaIly offset by lower exploration expenses at Inmaculada of $2.7 million (2024: $4.4 million), and Monte do Cormo exploration expenses in 2024 of $1.6 million.

In addition, the Group capitalises part of its brownfield exploration, which mostly relates to costs incurred converting potentia I resources to the Inferred or Measured and Indicated categories. In 2025, the Company capitalised $10.0 million relating to brownfield exploration (2024: $7.4 million), bring ing the totaI investment in exploration for 2025 to $38.7 million (2024: $34.3 million).

Selling expenses

Selling expenses increased to $21.9 million (2024: $17.5 million) mainly due to higher precious metal prices impacting Argentinian export taxes.

Other income/expenses

Other income was lower at $10.2 million (2024: $21.0 million) primarily reflecting a lower benefit from the Argentinian Government export programme to settle a portion of San Jose exports at the blue-chip exchange rate which remained in force until April 2025 totaling $3.0 million (2024: $16.0 million), partially offset by a $1.3 million goin in 2025 on the early settlement of the deferred consideration for the acquisition of the Monte do Cormo project, originally payable in June 2026 for $10 million.

Other expenses before exceptions I items were higher at $65.2 million (2024: $43.2 million) mainly due to mine closure provision increases of $24.0 million (2024: $14.7 million) at Selene, Sipan and Ares, the provision for recovery of the ICMS credit (state tax on circulation of merchandise and transportation and communication services in Brazil) of $4.6 million (2024: $niI), higher provision for legoI cla inns of $5.9 million (2024: $1.6 million), anda higher corporate sociaI responsibility contribution in Argentina as a result of higher commodity prices of $5.9 million (2024: $4.4 million).

Adjusted EBITDA

Adjusted EBITDA increased by 39% to $583.7 million (2024: $421.4 million) mainly due to the increase in revenue resulting from increased precious metal prices, partially offset by higher costs of sales, and a lower benefit from the Argentinian Government export programme to settle a portion of San Jose exports at the blue-chip exchange rate.

Adjusted EBITDA is calculated as profit from continuing operations before exceptional items, net finance costs, foreign exchange losses and income tax plus non-cash items (depreciation and amortisation and changes in mine closure provisions) and exploration expenses other than personnel and other exploration related fixed expenses.

Finance income

Finance income of $11.8 million decreased from $13.1 million in 2024 mainly due to lower interest on Argentinian mutuaI funds of

$2.9 million (2024: $6.9 million), pa rtiaIly offset by a higher goin on Argentinian bonds of $2.0 million (2024: $0.3 million).

Finance costs

Finance costs increased from $26.9 million in 2024 to $41.1 million in 2025, principaIly due to the unrealised fair vaIue loss of $7.5 million on the financiaI liability related to the stream agreements with Sprott (2024: $niI), and the unrealised fair value loss of

$7.4 million related to the warrants issued in connection with Tiernan s capitaI ra ise in Decem ber 2025.

Foreign exchange (losses)/gains

The Group recognised a foreign exchange loss of $4.0 million (2024: $10.4 million) mainIy due to the impact of devaluation of the local currency on monetary assets in Argentina of $6.5 million (2024: $9.1 million), pa rtiaIly offset by a foreign exchange goin in Brazil of $1.4 million (2024: loss of $1.0 million).

Income tax

The Company's pre-exceptionsI income tax charge was $129.7 million (2024: $65.6 million). The increase in the cha rge is mainIy explained by higher profitability versus 2024 due to increased precious metaI prices.

The effective tax rate (pre-exceptionsI) for the period was 39.2% (2024: 33.0%), compared to the weighted average statutory income tax rate of 31.2% (2024: 31.1%). The higher effective tax rate in 2025 versus the average statutory rate is mainly explained by: the effect of higher royalties and the Special Mining Tax resulting from higher prices which increased the effective rate by 5.9%, and the withholding tax increasing the rate by 2.3%. These effects were partially offset by the impact of local currency devaluations on deferred taxes in Brazil and Peru decreasing the rate by 1.5%.

Exceptional items

Exceptions I items in 2025 totaIled a $46.7 million goin after tax (2024: $19.8 million loss after tax) related to: the non-cash recycling of the accumulated loss arising from the roll-forward of gold hedges in August 2025 of $26.4 million; and the reverse I of impairment of: the Volcan project of $43.2 million, the investment in Aclara Resources Inc. of $22.2 million, and the San Jose mining unit of $13.6 million. Also included were listing and transaction expenses of $10.2 million arising from Tiernan Gold listing on the TSXV and concurrent capitaI ra ise. 2024 includes the innpa irment charges at the Azuca and Arcata projects of $13.7 million, the impa irment of the investment in Aclara Resources Inc. of $5.1 million, and the write-off of work in progress of $3.1 million in Peru.

The tax effect of these exceptions I items was a $4.2 million tax goin (2024: $2.1 million). Cosh flow and balance sheet review

Cash flow:

Net cash generated from operating activities increased from $321.2 million in 2024 to $423.9 million in 2025 mainIy due to higher Adjusted EBITDA of $583.7 million (2024: $421.4 million), pa rtiaIly offset by higher tax payments and working capitaI movements.

Net cash used in investing activities decreased from $277.0 million in 2024 to $231.2 million in 2025 mainly due to the cash consideration pa id for the acquisition of Monte do Carmo of $45.0 million in 2024 and lower expenditure on the Royropata MEIA process of $8.3 million (2024: $32.9 million), primarily due to investments in Royropata easements incurred in 2024. These effects were partially offset by the consideration received for the sale of Crespo project net of transaction costs of $13.9 million in 2024, and the early settlement of the deferred consideration related to the acquisition of Monte do Carmo of $8.8 million in 2025.

Cash from financing activities increased from an outflow of $34.8 million to an inflow of $27.6 million in 2025, primarily due to: the $275.0 million final settlement of the former $300m medium-term facility in 2024; the draw-down of $90.0 million from the existing $300.0 million medium-term loan facility (2024: $30m draw-down); a net increase of $135.0 million in short and medium-term bank loans (2024: net increase of $80.0 million in short-term loans); and the net proceeds from Tiernan s capital raise of

$40.0 million (net of agent fees and transaction costs). These effects were partially offset by: the full repayment of the $200.0 medium-term facility (2024: $140 million draw-down); the payment for the execution of the buy-down option related to the Sprott stream agreements on the Monte do Carmo project of $13.0 million in 2025; and payments of dividends to shareholders of $15.2 million (2024: $niI).

Working capital

‌The Group's working capita I position decreased by $127.0 million from $(81.7) million to $(208.7) million. The key drivers of the decrease were: higher income tax payable of $74.6 million resulting from higher profitability and higher derivative financia I liabilities of $71.3 million due primarily to unrealised changes in fa ir value of the Group hedge contracts. These effects were pa rtiaIly offset by higher inventories of $31.1 million.‌

Net deht

The Group's reported net debt position was $22.7 million as at 31 December 2025 (2024: $215.6 million). The decrease is ma inly explained by the higher cash generated by the business and net proceeds from Tiernan Gold s capitaI ra ise in the TSXV in December 2025 of $40.0 million. Net debt to adj usted EBITDA was 0 O4x (2024: O.5x)".

Capitol expenditure

Capital expenditure decreased from $348.1 million in 2024 to $249.8 million in 2025, ma inly reflecting lower spending at Monte do Carmo following the acquisition of the project in November 2024. The acquisition resulted in one-off capital expenditure in 2024 totalling $86.6 million, comprising $60.0 million of cash consideration ($45.0 million was paid and $15.0 million deferred, of which $10.0 million was settled in advance ata discount in 2025) and $26.2 million of assumed liabilities representing the fair value of the loan and streaming agreements with Sprott transferred to the Group on completion, of which $13.0 million was paid in 2025 related to the buy down of 50% of the stream agreements. Capital expenditure was also lower at Pallancata, primarily due to investments in Royropata easements incurred in 2024.

The responsibility statement below has been prepared in connection with the Company's Annual Report and Accounts for the year ended 31 December 2025, which will be made available to shareholders on or around 7 April 2026 and which includes, among other things, the financial statements and accompanying notes set out herein.

• the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

• the Management Report (as defined in the Directors' Report) includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

share)

per share)

For the Year ended 31 December 2025

Year ended 31 December

Notes

2024

US$000

113,749

Gain on equity instruments at fair value through other comprehensive income (OCI)

20 15

Other comprehensive loss for the year, net of tax

15

(89,816)

23,933

Equity shareholders of the Parent

Non-controlling interests

7,189

16,744

23,933

1Foreign exchange effect generated in the Group's companies when the functional currency is the local currency, mainly generated by the decrease (2024: increase) of the US$ exchange rate in Brazil.

As at 31 December 2025

Chief Executive Officer 10 March 2026

1Taxes paid have been offset with value added tax (VAT) credits received of US$30,632,000 (2024: US$6,732,000).

income/(expense)

interests

equity

payment awards

income/(expense)

interests

control

FOR THE YEAR ENDED 31 DECEMBER 2025

The financial information for the year ended 31 December 2025 does not constitute statutory accounts as defined in sections 435

(1) and (2) of the Companies Act 2006. Statutory accounts for the year ended 31 December 2024 have been delivered to the Registrar of Companies and those for 2025 will be delivered following the Company's annual general meeting. The auditor has

Principal activity

Country of incorporation

Equity interest at 31 December

2024

%

reported on these accounts; their reports were unqualified. Their report did not include a reference to any other matters to which the auditor drew attention by way of emphasis of matter and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

Hochschild Mining PLC (hereinafter "the Company") is a public limited company incorporated on 11 April 2006 under the Companies Act 2006 as a Limited Company and registered in England and Wales with registered number 05777693. The

Cúspide Copper S.A.C. 4 and 13Exploration Peru 100

Compañía Minera Cerro Salto S.A.C. 4 and 13Exploration Peru 100

Toro Bravo Peru S.A.C. 5 Exploration Peru -

Hochschild Mining (US) Inc. 8Holding company USA 100

Hochschild Mining Canada Corp9Exploration Canada 100

Tiernan Gold Corp. 9 and 11Holding company Canada 100

Company's registered office is located at 17 Cavendish Square, London W1G 0PH, United Kingdom.

Amarillo Mineracao do Brasil Ltda. 10 Production of gold and silver

Brazil 100

The ultimate controlling party of the Company is Mr Eduardo Hochschild whose beneficial interest in the Company and its subsidiaries (together "the Group" or "Hochschild Mining Group") is 38.27% and it is held through Pelham Investment Corporation ("Pelham"), a Cayman Islands company.

On 8 November 2006, the Company's shares were admitted to the Official List of the UKLA (United Kingdom Listing Authority) and to trading on the London Stock Exchange.

The Group's principal business is the mining, processing and sale of silver and gold. At 31 December 2025, the Group has one operating mine (Inmaculada) located in southern Peru, one operating mine (San Jose) located in Argentina and one operating mine (Mara Rosa) located in Brazil. The Group also has a portfolio of projects located across Peru, Argentina, Brazil, and Chile, at various stages of development.

These consolidated financial statements were approved for issue by the Board of Directors on 10 March 2026. The Group's subsidiaries, all held indirectly, except for Hochschild Mining Holdings Limited, are as follows:

Serra Alta Mineracao Ltda. 10 and note 4(b)Exploration Brazil 100

Serra Alta Participacoes Inmobiliarias S.A. 10 and note 4(b)Exploration Brazil 100

1Registered address: Av. Santa Fe 2755, floor 9, Buenos Aires, Argentina.

2Registered address: Sargento Cabral 124, Comodoro Rivadavia, Provincia de Chubut, Argentina.

3Registered address: Av. Apoquindo 4775 of 1002, Comuna Las Condes, Santiago de Chile, Chile.

4Registered address: La Colonia 180, Santiago de Surco, Lima, Peru.

5Registered address: La Colonia 180, Santiago de Surco, Lima, Peru. The company was incorporated on 2 February 2025.

6Registered address: 17 Cavendish Square, London, W1G0PH, United Kingdom.

7Registered address: Calle Aguila Real No 122, Colonia Carolco, Monterrey, Nuevo Leon, CP 64996, Mexico.

8Registered address: 1025 Ridgeview Dr. 300, Reno, Nevada 89519, USA.

9Registered address: Suite 1700, Park Place, 666 Burrard Street, Vancouver BC, V6C 2X8.

10Registered address: Fazenda Invernada s/n, Zona Rural, Mara Rosa - Goiás - Brazil, CEP: 76.490-000.

11The Group has a 69.8% interest in Tiernan Gold Corp, while the remaining 30.2% is held by non-controlling shareholders (see note 4(a)).

12The Company was incorporated on 8 July 2024.

13The Company was incorporated on 20 July 2024 and sold on 27 February 2025.

14The Group has a 51% interest in Minera Santa Cruz S.A. (Minera Santa Cruz), while the remaining 49% is held by a non-controlling shareholder.

continued

The significant financial information in respect of subsidiaries that contain material non-controlling interest before intercompany eliminations as at and for the years ended 31 December 2025 and 2024 is as follows:

Profit/(loss) attributable to non-controlling interests in the consolidated income statement, non-controlling interest in the consolidated statement of financial position, and dividends declared to non-controlling interests in the consolidated statement of changes in equity are solely related to Minera Santa Cruz and Tiernan Gold Corp.

The consolidated financial statements of the Group have been prepared in accordance with UK adopted International Accounting Standards.

The basis of preparation and accounting policies used in preparing the consolidated financial statements for the years ended 31 December 2025 and 2024 are set out below. The consolidated financial statements have been prepared on a historical cost basis except for the revaluation of certain financial instruments that are measured at fair value at the end of each reporting period, as explained below. These accounting policies have been consistently applied, except for the effects of the adoption of new and amended accounting standard.

The financial statements are presented in US dollars (US$) and all monetary amounts are rounded to the nearest thousand ($000) except when otherwise indicated.

The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2024, except for the

adoption of new standards effective as of 1 January 2025. Amendments apply for the first time in 2025, but do not have an impact on the consolidated financial statements of the Group.

• Lack of exchangeability - Amendments to IAS 21

  
  
  

  Certain new standards, amendments and interpretations to existing standards have been published and are mandatory for the Group's accounting periods beginning on or after 1 January 2026 or later periods but which the Group has not previously adopted. These have not been listed as they are not expected to have a material impact the Group financial statements. The Group has not yet completed its assessment of IFRS 18. The analysis is expected to conclude on second quarter of 2026.

  
  
  

  Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on management's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimates is contained in the accounting policies and/or the notes to the financial statements.

  Significant areas of estimation uncertainty and critical judgements made by management in preparing the consolidated financial statements include:

  Significant estimates:

  - Useful lives of assets for depreciation and amortisation purposes - note 2(f).

  Estimates are required to be made by management as to the useful lives of assets. For depreciation calculated under the unit of-production method, estimated recoverable reserves and resources are used in determining the depreciation and/or amortisation of mine-specific assets. This results in a depreciation/amortisation charge proportional to the depletion of the anticipated remaining life-of-mine production. Each item's life, which is assessed annually, has regard to both its physical life limitations and to present assessments of economically recoverable reserves and resources of the mine property at which the

  asset is located. These calculations require the use of estimates and assumptions, including the amount of recoverable reserves and resources. Changes are accounted for prospectively.

  Depreciation commences when assets are available for use. Land is not depreciated.

  • Ore reserves and resources - note 2(h).

    There are numerous uncertainties inherent in estimating ore reserves and resources. Assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and resources and may, ultimately, result in the reserves and resources being updated.

  • Recoverable values of mining assets - notes 2(k), 16, 17 and 18.

    The values of the Group's mining assets are sensitive to a range of characteristics unique to each mine unit. Key sources of estimation for all assets include uncertainty around ore reserve estimates and cash flow projections. In performing impairment reviews, the Group assesses the recoverable amount of its operating assets principally with reference to fair value less costs of disposal ("FVLCD").

    The recoverable values of the CGUs and advanced exploration projects are determined using a FVLCD methodology. FVLCD for CGUs is determined using a combination of level 2 and level 3 inputs. The FVLCD of producing mine assets is determined using a discounted cash flow model and for developing stage mine assets or advanced exploration projects is determined using a discounted cash flow model or the value-in-situ methodology. When using a value-in-situ methodology, the in-situ value is based on a comparable company analysis and applies a realisable 'enterprise value' to unprocessed mineral resources per ounce of resources, to estimate the amount that would be paid by a willing third party in an arm's length transaction (refer to notes 16, 17 and 18).

    There is judgement involved in determining the assumptions that are considered to be reasonable and consistent with those that would be applied by market participants. Significant estimates used in a discounted cash flow model include future gold

    
    
    

    and silver prices, future capital requirements, reserves and resources volumes, production costs and the application of disco unt rates which reflect the macro-economic risk, as applicable. When using a value-in-situ methodology, the in-situ value is based on a comparable company analysis. Changes in these assumptions will affect the recoverable amount of the property, plant and equipment, evaluation and exploration assets, and intangibles.

  • Mine closure costs - notes 2(o) and 28(1).

    The Group assesses its mine closure cost provision annually. Significant estimates and assumptions are made in determining the provision for mine closure cost as there are numerous factors that will affect the ultimate liability. These factors include estimates of the extent and costs of rehabilitation activities, technological changes, regulatory changes, cost increases, mine life and changes in discount rates. Those uncertainties may result in future actual expenditure differing from the amounts currently provided. The provision at the balance sheet date represents management's best estimate of the present value of the future closure costs required. In July 2021, the mine closure law for the province of Santa Cruz in Argentina was published, establishing a period of 180 business days to present the Mine Closure Plan. The plan was presented to the provincial authority in December 2022 and observations were received in December 2025. The Group plans to present an updated Mine Closure

    Plan, prepared with the support of external consultants, by the end of 2026.

  • Valuation of financial instruments - note 38.

    The valuation of certain Group assets and liabilities reflects the changes to certain assumptions used in the determination of their value, such as future gold and silver prices, discount rates, and resources and reserves estimates.

  • Non market performance conditions on LTIP 2022, LTIP 2023 and LTIP 2024 - note 28(2).

    There are two parts to the performance conditions attached to LTIP awards: 50% is subject to the Company's TSR ranking relative to a tailored peer group of mining companies, 50% is subject to internal KPIs split equally between: (i) three-year

    growth of the Company's Measured and Indicated Resources (MIR) per share (calculated on an enterprise value basis), and (ii) average outcome of the annual bonus scorecard in respect of 2023, 2024 and 2025, regarding LTIP 2023; 2024, 2025 and 2026, regarding LTIP 2024; and 2025, 2026 and 2027, regarding LTIP 2025, calculated as the simple mean of the three scorecard outcomes. At each reporting date the Group has to estimate the value of the shares and the possible outcome regarding the scorecard and MRI. The balance of the awards is disclosed in note 28(2).

    Critical judgements:

  • Assessment of impairment indicators for the Group's CGUs - notes 16, 17 and 18.

    Assessment of impairment indicators are performed during the year and they were identified in certain of the CGUs - refer to notes 16, 17 and 18 for details.

  • Income tax - notes 2(t), 2(u), 14, 30 and 36(a).

    Judgement is required in determining whether deferred tax assets are recognised on the statement of financial position. Deferred tax assets, including those arising from un-utilised tax losses require management to assess the likelihood that the Group will generate taxable earnings in future periods, in order to utilise recognised deferred tax assets. Estimates of future

    taxable income are based on forecast cash flows from operations and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax assets recorded at the balance sheet date could be impacted. The Group analyses the possibility of generating profit in all the companies and determines the recognition of deferred tax. No deferred tax asset is recognised in the holding and exploration entities as they are not expected to generate any profit to settle the temporary difference (refer to note 30).

    Judgement is also required when determining the recognition of tax liabilities as the tax treatment of some transactions cannot be finally determined until a formal resolution has been reached by the tax authorities. Tax liabilities are also recorded for

    uncertain exposures which can have an impact on both deferred and current tax. Tax benefits are not recognised unless it is probable that the benefit will be obtained and tax liabilities are recognised if it is probable that a liability will arise (refer to note 36(a)). The final resolution of these transactions may give rise to material adjustments to the income statement and/or cash flow in future periods. The Group reviews each significant tax liability or benefit each period to assess the appropriate accounting treatment.

  • Life of mine (LOM).

  There are several aspects which are determined by the life of mine, such as ore reserves and resources, recoverable values of mining assets, mine rehabilitation provision and depreciation. The life of mine for an operation is specified in the relevant Environmental Impact Assessment (EIA) which is amended from time to time as more resources at the mine are identified. EIAs are permits which are granted in the ordinary course of business to the mining industry. While the processing of such permits

  may be subject to delays, the Group has never had an EIA denied. A crucial element of Peru's legal framework is the principle of predictability which, in essence, means that if the legal requirements for any given permit have been satisfied, the State cannot unlawfully deny the granting of the permit. Taking this into consideration, as well as the Group's operational experience, the Group believes that permits will be secured such that operations can continue without interruption. In the unlikely scenario that this does not occur, there could be material changes to those items in the financial statements that are determined by the life of mine.

• Determination of functional currencies - note 2(e).

  The determination of functional currency requires management judgement, particularly where there may be several currencies in which transactions are undertaken and which impact the economic environment in which the entity operates. In Argentina, the exchange control restrictions limit the companies to hold US dollars but do not restrict carrying out transactions in US dollar.

• Recognition of evaluation and exploration assets and transfer to development costs - notes 2(g), 16 and 17.

  Judgement is required in determining when there is sufficient evidence that there is a future economic benefit of an exploration project, at which point the exploration costs are capitalised. This includes an assessment of whether there is a high degree of confidence of the existence of economically recoverable minerals, mine-site exploration is being conducted to

  convert resources to reserves, or mine-site exploration is being conducted to confirm resources. The stage, timeline and associated risks of the project are also considered. The exploration and evaluation assets are then assessed for impairment when facts and circumstances suggest that the carrying amount is not recoverable. Following advancement of engineering,

  permitting and project development activities, management concluded that the technical feasibility and commercial viability of the Monte do Carmo project are demonstrable. Accordingly, in line with the Group's accounting policy and the requirements of IAS 16 and IAS 23, the asset has been reclassified from Exploration & Evaluation to Property, Plant and Equipment.

• Climate change

  • General

    Between 2024 and 2025, the Group undertook a climate-related scenario analysis, a detailed transition risk assessment, an update of the physical climate risk assessment on its operations, and a financial quantification of carbon pricing which is considered to be the Group´s most material transition risk. These studies identified current and future climate-related risks to the Group's infrastructure. While current climate change-related factors are reflected in the Group´s existing budget, the financial impact of future carbon pricing on the Group is not expected to materialise until 2030. The magnitude of this impact remains uncertain due to the details of the emission trading system schemes as well as our own operational emissions' profile.

    Despite the adoption of the Group's climate change strategy, the introduction of unexpected climate-change regulations in the countries where the Group operates may affect the financial quantification estimates and could result in changes to financial results and the carrying values of certain assets and liabilities in forthcoming reporting periods.

  • Physical risks

  The Group completed a climate-related scenario analysis, identifying five 5 physical risks rated as "high": water stress and drought, extreme rainfall flooding, wildfires, extreme winds and storms, and extreme heat. The costs associated with managing these risks are incorporated into the Group's operational and capital expenditure. The financial quantification of the future impact of the most significant climate change-related physical risks on the Group will be conducted in 2026. As the Group progresses its adaptation strategy, the identification of additional risks or the development of the Group's response may result in changes to financial results and the carrying values of assets and liabilities in future reporting periods.

• Business combinations and asset acquisitions - note 4.

  In identifying a business combination (note 2(c)) or acquisition of assets the Group applies the concentration test in accordance with IFRS 3 to determine whether an acquisition is a business combination or an asset acquisition. The concentration test is

  met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable assets or a group of similar assets. If the concentration test is met, the acquisition is accounted for as an asset acquisition. If the concentration test is not met, the Group considers the underlying inputs, processes and outputs acquired as a part of the transaction. For an acquired set of activities and assets to be considered a business there must be at least some inputs and processes that have the capability to achieve the purposes of the Group. Where significant inputs and processes have not been acquired, a transaction is considered to be the purchase of assets.

  For the assets and assumed liabilities acquired the Group allocates the total consideration paid (including directly attributable transaction costs) based on the relative fair values of the underlying items. On 7 November 2024 the Group acquired a 100% interest in the Monte do Carmo gold project in Brazil, through the acquisition of Serra Alta Mineração Ltda. (note 4). The

  transaction was accounted as a purchase of assets as it met the concentration test, with the main asset acquired being the Monte do Carmo project which is in a development stage.

  Where the acquiree does not meet the definition of a business under IFRS 3, the transaction has been accounted for in accordance with IFRS 2 Share-based Payment as the acquiree is deemed to have issued equity instruments in exchange for its identifiable net assets. Any excess of the deemed consideration over the fair value of the identifiable net assets acquired is recognised as a listing expense in the income statement. In December 2025, Tiernan Gold Corp., an indirect wholly-owned subsidiary of the Group, completed a reverse takeover of Railtown Capital Corp., a TSXV-listed capital pool company. As Railtown did not meet the definition of a business under IFRS 3, the transaction was accounted for in accordance with IFRS 2 (note 4(a)).

  - Stream Agreements- note 25(a).

  Judgement was required in determining the accounting treatment for the initial recognition and subsequent measurement of the obligations included in the Secured Note and Stream Agreement with Sprott Private Resource Streaming and Royalty Corp. ("Sprott"), assigned to the Group upon the acquisition of the Monte do Carmo project. Refer to notes 4 and 25(a) for details on the Monte do Carmo's acquisition and the Stream Agreements, respectively.

  Management determined that the Secured Note and Stream Agreement are closely connected, with the option by Sprott to set off the US$20,000,000 stream payment against the Secured Note upon commencement of production. Therefore, management considered the two contracts as a single unit of account. The Stream Agreement meets the definition of a derivative and is accounted for at fair value through profit and loss (FVTPL). The key assumptions on which management has based its

  determination of fair value are disclosed in note 25(a).

  • Investment in an associate - note 19.

    Judgement is required in determining the recoverable amount of the investment in Aclara Resources Inc. ('Aclara').

    Management determined that there were sufficient external and internal indicators to support a full reversal of the accumulated impairment of the investment in Aclara as of 31 December, 2025. As a result, the Group has recognised a reversal of impairment of US$22,187,000 as at 31 December 2025.

  • Loss on discontinuation of hedge relationship - note 38 (a).

  Management uses judgement in determining whether an item should be presented as exceptional in the income statement. In accordance with the Group's policy, "Exceptional items are those significant items which, due to their nature or the expected infrequency of the events giving rise to them, need to be disclosed separately on the face of the income statement to enable a better understanding of the financial performance of the Group and facilitate comparison with prior years."

  Given the non-recurring and non-cash nature of this hedge accounting reclassification to the income statement, and the fact that the cash settlement will occur in 2028 once the instruments mature, the resulting charge has been presented as an exceptional item within revenue. This presentation facilitates a better understanding by users of the financial statements of the Group´s underlying operating performance by separating the effects of this discrete, non-cash hedge accounting reclassification from revenue and profitability trends.

  
  
  

  The consolidated financial statements set out the Group's financial position, performance and cash flows as at 31 December 2025 and 31 December 2024 and for the years then ended, respectively.

  Subsidiaries are those entities controlled by the Group regardless of the amount of shares owned by the Group. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests' rights to safeguard their interest are fully considered in assessing whether the Group controls a subsidiary. Specifically, the Group controls an investee if, and only if, the Group has:

• power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee);

• exposure, or rights, to variable returns from its involvement with the investee; and

• the ability to use its power over the investee to affect its returns.

  Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

• the contractual arrangement with the other vote holders of the investee;

• rights arising from other contractual arrangements; and

• the Group's voting rights and potential voting rights.

  The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

  
  
  

  Subsidiaries are consolidated from the date of their acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases.

  Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

  Profit or loss and each component of OCI are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

  A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an equity transaction, affecting retained earnings. If the Group loses control over a subsidiary, it (i) derecognises the assets (including goodwill) and liabilities of the subsidiary; (ii) derecognises the carrying amount of any non-controlling interest (NCI); (iii) derecognises the cumulative

  translation differences, recorded in equity; (iv) recognises the fair value of the consideration received; (v) recognises the fair value of any investment retained; (vi) recognises any surplus or deficit in profit or loss; and (vii) reclassifies the parent's share of components previously recognised in other comprehensive income to profit or loss or retained earnings, as appropriate.

  An NCI represents the equity in a subsidiary not attributable, directly and indirectly, to the parent company and is presented separately within equity in the consolidated statement of financial position, separately from equity attributable to owners of the parent.

  
  
  

  Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any NCI in the acquiree. The choice of measurement of NCI, either at fair value or at the proportionate share of the acquiree's identifiable net assets, is determined on a transaction by transaction basis. Acquisition costs incurred are expensed and included in administrative expenses.

  Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount

  recognised for the NCI, and any interest previously held, over the net identifiable assets acquired and the liabilities assumed. Assets acquired and liabilities assumed in transactions separate to the business combinations, such as the settlement of pre-

  existing relationships or post-acquisition remuneration arrangements, are accounted for separately from the business combination in accordance with their nature and applicable IFRSs. Identifiable intangible assets meeting either the contractual-legal or the separability criteria are recognised separately from goodwill. Contingent liabilities representing a present obligation are recognised if the acquisition date fair value can be measured reliably.

  
  
  

  The Directors have reviewed Group liquidity, including cash resources and borrowings (refer to note 27 for details of the US$300 million medium-term loan) and related covenant forecasts to assess whether the Group is able to continue in operation for the period to 31 March 2027 (the "Going Concern Period") which is at least 12 months from the date of these consolidated financial statements. The Directors also considered the impact of a downside scenario on the Group's future cash flows and liquidity position as well as debt covenant compliance.

  Scenarios analysed

  For the purposes of the going concern assessment, the base case scenario reviewed by the Directors (the "Base Scenario") reflects, among other things, budgeted production for 2026 and current life-of-mine plans for Inmaculada, San Jose and Mara Rosa. The Base Scenario also assumes average precious metal prices of US$3,994/oz for gold and US$48.1/oz for silver (the "Assumed

  Prices"), being the average analysts' consensus prices for the Going Concern Period.

  The Directors also considered a severe but plausible downside scenario ("the Severe Scenario") which takes into account the combined impact of a three-week stoppage of all operations, unforeseen social-related costs and lower precious metal prices which are lower than the Assumed Prices (a 10% lower gold price and 15% lower silver price) ("the Downside Assumptions").

  Even in the Severe Scenario it has been assumed that all employees remain on full pay and that mitigating actions, such as the deferral of discretionary expenditure, which are under the Group's control, while available, would not be necessary.

  Under the Base and the Severe scenarios, the Group's liquid resources, which as at the date of this report include an undrawn amount of US$180 million, remain more than adequate for the Group's forecast expenditure and scheduled repayments of the amounts owed under the Group´s borrowings, with sufficient headroom maintained to comply with debt covenants.

  Reverse Stress Tests

  Management also performed reverse stress tests which were considered in the Directors´ assessment. Under these tests, the Directors concluded that:

• prices of US$1,797/oz for gold and US$21.7/oz for silver for the duration of the Going Concern Period would result in sufficient headroom to comply with the Group´s minimum level of liquidity; and

• 21 weeks of concurrent stoppages at each of Inmaculada, San Jose and Mara Rosa would result in sufficient headroom to

  The expected useful lives under the straight-line method are as follows:

  Years

  comply with the Group´s debt covenants of the medium-term loan facility.

  In its application of the above reverse stress tests, no mitigation actions were applied. The Directors considered the nature and extent of the conditions required to trigger these outcomes and concluded the likelihood of such scenarios occurring during the Going Concern Period to be remote.

  
  
  

  After their review, the Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence during the Going Concern Period. Accordingly, the Directors are satisfied the going concern basis of accounting is appropriate in preparing the consolidated financial statements.

  
  
  

  The functional currency for each entity in the Group is determined by the currency of the primary economic environment in which it operates. For the holding companies and operating entities this currency is US dollars and for the other entities it is the local currency of the country in which it operates. The Group's financial information is presented in US dollars, which is the Company's functional currency. Transactions denominated in currencies other than the functional currency of the entity are initially recorded in the functional currency using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rate prevailing at the statement of financial position date.

  Exchange gains and losses on settlement of foreign currency transactions which are translated at the rate prevailing at the date of the transactions, or on the translation of monetary assets and liabilities which are translated at period-end exchange rates, are taken to the income statement. Non-monetary assets and liabilities denominated in foreign currencies that are stated at historical cost are translated to the functional currency at the foreign exchange rate prevailing at the date of the transaction. Exchange

  differences arising from monetary items that are part of a net investment in a foreign operation are recognised in equity and transferred to income on disposal of such net investment.

  Subsidiary financial statements expressed in their corresponding functional currencies are translated into US dollars by applying the exchange rate at period-end for assets and liabilities and the transaction date exchange rate for income statement items. The resulting difference on consolidation is included as a cumulative translation adjustment in equity. On disposal of a foreign

  operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss.

  
  
  

  Property, plant and equipment is stated at cost or deemed cost less accumulated depreciation and impairment losses. Cost comprises its purchase price and directly attributable costs of acquisition or construction required to bring the asset to the condition necessary for the asset to be capable of operating in the manner intended by management. Economical and physical conditions of assets have not changed substantially over this period.

  The cost less residual value of each item of property, plant and equipment is depreciated over its useful life. Each item's estimated useful life has been assessed with regard to both its own physical life limitations and the present assessment of economically

  recoverable reserves and resources of the mine property at which the item is located. Estimates of remaining useful lives are made on a regular basis for all mine buildings, machinery and equipment, with annual reassessments for major items. Depreciation is charged to cost of production on a units of production basis for mine buildings and installations and plant and equipment used in the mining production process, or charged directly to the income statement over the estimated useful life of the individual asset on a straight-line basis when not related to the mining production process. Changes in estimates, which mainly affect units of production calculations, are accounted for prospectively.

  An asset's carrying amount is written-down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

  Gains and losses on disposals are determined by comparing the net proceeds with the carrying amount and are recognised within other income/expenses, in the income statement.

  Buildings 3 to 33

  Plant and equipment 5 to 15

  Vehicles 5

  During the period, management reassessed the depreciation method applied to certain items of plant and equipment at Inmaculada. Following an extension of the life of mine, management determined that the estimated useful lives of these assets, ranging between 10 and 15 years, were shorter than the revised life of mine. As a result, the depreciation method for these assets was changed from the units-of-production method to depreciation on a straight-line basis over their estimated useful lives. This change has been accounted for as a change in accounting estimate and applied prospectively (refer to note 16(2)).

  Borrowing costs directly attributable to the acquisition or construction of an asset that necessarily takes a substantial period of time to be ready for its intended use are capitalised as part of the cost of the asset. All other borrowing costs are expensed where incurred. For borrowings associated with a specific asset, the actual rate on that borrowing is used. Otherwise, a weighted average cost of borrowing is used. The Group capitalises the borrowing costs related to qualifying assets with a value of US$1,000,000 or more, considering that the substantial period of time to be ready is six or more months.

  
  
  

  Purchased mining properties are recognised as assets at their cost of acquisition or at fair value if purchased as part of a business combination. Costs associated with developments of mining properties are capitalised.

  Mine development costs are, upon commencement of commercial production, depreciated using the units of production method based on the estimated economically recoverable reserves and resources to which they relate.

  When a mine construction project moves into the production stage, the capitalisation of certain mine construction costs ceases and costs are either regarded as part of the cost of inventory or expensed, except for costs which qualify for capitalisation relating to mining asset additions or improvements, underground mine development or mineable reserve development.

  
  
  

  Assets in the course of construction are capitalised as a separate component of property, plant and equipment. Once the asset moves into the production phase, the cost of construction is transferred to the appropriate category. Construction in progress is not depreciated. Capital advances to suppliers related to the purchase of property, plant and equipment are disclosed in construction in progress.

  
  
  

  Expenditure incurred to replace a component of an item of property, plant and equipment is capitalised separately with the carrying amount of the component being written-off. Other subsequent expenditure is capitalised if future economic benefits will arise from the expenditure. All other expenditure including repairs and maintenance expenditures are recognised in the income statement as incurred.

  
  
  

  Exploration and evaluation expenses are capitalised when there is sufficient evidence that there is a future economic benefit to the Group. All other exploration and evaluation expenses are expensed as incurred. Exploration and evaluation expenses are considered to have a future benefit to the Group when there is a high degree of confidence of the existence of economically

  recoverable minerals, mine-site exploration is being conducted to convert resources to reserves, or mine-site exploration is being conducted to confirm resources. The stage, timeline and associated risks of the project are also considered. For exploration and evaluation conducted near operating mine sites, exploration and evaluation expenses are capitalised upon the confirmation of resources.

  Payments or option payments made by the Group to acquire licenses for exploration and evaluation assets, or to acquire an underlying mineral project, are capitalised in exploration and evaluation expenses or expensed as incurred, following the same criteria described above.

  The Group's exploration and evaluation assets are carried at acquired costs until such time as the technical feasibility and commercial viability of the extraction of resources in an area of interest are demonstrable, usually after a pre-feasibility study has been completed, at which time they are classified as mine development costs and are tested for impairment, and are then

  reclassified to mining properties and development costs. For exploration and evaluation conducted near operating mine sites, exploration and evaluation expenses are classified as development costs upon the conversion of resources to reserves.

  
  
  

  The Group estimates its ore reserves and mineral resources based on information compiled by internal competent persons. Reports to support these estimates are prepared each year and are stated in conformity with the 2012 Joint Ore Reserves Committee (JORC) code.

  It is the Group's policy to have the report audited every two years by a Competent Person. Reserves and resources are used in the units of production calculation for depreciation and amortisation as well as the determination of the timing of mine closure cost and impairment analysis.

  
  
  

  An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies.

  The considerations made in determining significant influence are similar to those necessary to determine control over subsidiaries. The Group's investment in its associate are accounted for using the equity method.

  Under the equity method, the investment in an associate is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group's share of net assets of the associate since the acquisition date. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for impairment separately.

  The statement of profit or loss reflects the Group's share of the results of operations of the associate. Any change in OCI of those investees is presented as part of the Group's OCI. In addition, when there has been a change recognised directly in the equity of the associate, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate.

  The aggregate of the Group's share of profit or loss of an associate is shown on the face of the statement of profit or loss outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate.

  The financial statements of the associate are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group.

  After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its associate. At each reporting date, the Group determines whether there is objective evidence that the investment in the associate is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the investment and its carrying value, and then recognises the loss within "Share of (loss)/profit of an associate" in the statement of profit or loss.

  Upon loss of significant influence over the associate, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss.

  
  
  

  Transmission line costs represent the investment made by the Group to construct the transmission line on behalf of the government to be granted the right to use it. This is an asset with a finite useful life equal to that of the mine to which it relates and that is amortised applying the units of production method for that mine.

  
  
  

  Water permits are recorded at cost and allow the Group to withdraw a specified amount of water from the ground for reasonable, beneficial uses. This is an asset with an indefinite useful life (note 18(2)).

  
  
  

  Legal rights correspond to expenditures required to give the Group the right to use a property for the surface exploration work, development and production. This is an asset with a finite useful life equal to that of the mine to which it relates and that is amortised applying the units of production method for that mine.

  
  
  

  Other intangible assets are primarily computer software which are capitalised at cost and are amortised on a straight-line basis over their useful life of three years.

  
  
  

  Royalty interests represent contractual rights to receive a percentage of revenue or production from specific mining operations. These assets are recognised at cost or at fair value when acquired. Royalty intangible assets have a finite useful life. Royalty intangible assets have a finite useful life and are amortised using the units-of-production method over the expected life of the related mining operation.

  
  
  

  Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment.

  The carrying amounts of property, plant and equipment and evaluation and exploration assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable. If there are indicators of impairment, an exercise is undertaken to determine whether the carrying values are in excess of their recoverable amount. Such review is

  undertaken on an asset by asset basis, except where such assets do not generate cash flows independent of other assets, and then the review is undertaken at the cash-generating unit (CGU) level.

  The assessment requires the use of estimates and assumptions such as long-term commodity prices, discount rates, future capital requirements, reserves and resources volumes (reflected in the production volume) and production costs. Changes in these assumptions will affect the recoverable amount of the property, plant and equipment and evaluation and exploration assets.

  If the carrying amount of an asset or its cash-generating unit (CGU) exceeds the recoverable amount, an impairment provision is recorded to reflect the asset at the lower amount. Impairment losses are recognised in the income statement.

  
  
  

  The recoverable values of the CGUs and advanced exploration projects are determined using a FVLCD methodology. FVLCD for CGUs was determined using a combination of level 2 and level 3 inputs. The FVLCD of the producing mine assets is determined using a discounted cash flow model and for the developing stage mine assets or advanced exploration projects is determined using a discounted cash flow model or the value-in-situ methodology, which applies a realisable 'enterprise value' to unprocessed

  mineral resources per ounce of resources, to estimate the amount that would be paid by a willing third party in an arm's length transaction (notes 16, 17 and 18).

  
  
  

  An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

  
  
  

  Inventories are valued at the lower of cost or net realisable value. Cost is determined using the weighted average method.

  The cost of work in progress and finished goods (ore inventories) is based on the cost of production. For this purpose, the costs of production include:

• costs, materials and contractor expenses which are directly attributable to the extraction and processing of ore;

• depreciation of property, plant and equipment used in the extraction and processing of ore; and

• related production overheads (based on normal operating capacity).

  Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

  
  
  

  Current trade receivables are carried at the original invoice amount and then subsequently measured at amortised cost less provision made for impairment of these receivables. Non current receivables are stated at amortised cost. A provision for impairment of trade receivables is established using the expected credit loss impairment model according IFRS 9. The amount of the provision is the difference between the carrying amount and the recoverable amount and this difference is recognised in the income statement. The revaluation of provisionally priced contracts stated in 2(q) is recorded as trade receivables.

  
  
  

  Ordinary shares are classified as equity. Any excess above the par value of shares received upon issuance of those shares is classified as share premium. The Group had the merger reserve available for distribution within retained earnings.

  
  
  

  Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation (note 28). If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

  
  
  

  Provisions for mine closure costs are made in respect of the estimated future costs of closure and restoration and for environmental rehabilitation costs (which include the dismantling and demolition of infrastructure, removal of residual materials and remediation of disturbed areas) in the accounting period when the related environmental disturbance occurs. The provision is discounted and the unwinding of the discount is included in finance costs. At the time of establishing the provision, a corresponding asset is capitalised and is depreciated over future production from the mine to which it relates. The provision is

  reviewed on an annual basis for changes in cost estimates, discount rates and operating lives of the mines.

  Changes to estimated future costs are recognised in the statement of financial position by adjusting the mine closure cost liability and the related asset originally recognised. If, for mature mines, the related mine assets net of mine closure cost provisions exceed the recoverable value, that portion of the increase is charged directly to the income statement. Similarly, if reductions to the estimated costs exceed the carrying value of the mine asset, that portion of the decrease is credited directly to the income

  statement. For closed sites, changes to estimated costs are recognised immediately in the income statement.

  
  
  

  In accordance with Peruvian legislation, companies in Peru must provide for workers' profit sharing equivalent to 8% of taxable income in each year. This amount is charged to the income statement within personnel expenses (note 10) and is considered deductible for income tax purposes. The Group has no pension or retirement benefit schemes.

  
  
  

  Other provisions are accounted for when the Group has a legal or constructive obligation for which it is probable there will be an outflow of resources for which the amount can be reliably estimated.

  
  
  
  
  

  A liability is recognised for the fair value of cash-settled transactions. The fair value is measured initially and at each reporting date up to and including the settlement date, with changes in fair value recognised in personnel expenses. The fair value is expensed over the period until the vesting date with recognition of a corresponding liability.

  The fair value of the awards is taken to be the market value of the shares at the date of award adjusted by a factor for anticipated relative Total Shareholder Return (TSR) performance. Fair values are subsequently remeasured at each reporting date to reflect the number of awards expected to vest based on the current and anticipated TSR performance. The approach used to account for vesting conditions when measuring equity-settled transactions also applies to cash-settled transactions.

  Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group's best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognised for awards that do not ultimately vest because the performance and/or service conditions have not been met.

  
  
  

  The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model and is recognised, together with a corresponding increase in other reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group's best estimate of the number of equity instruments that vest. The income statement expense for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in personnel expenses (note 10).

  Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group's best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognised is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognised for any modification that increases the total fair value of the

  share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss.

  On 22 May 2024, beneficiaries of LTIPs were communicated of a change in the payment mechanism resulting in a modification of the LTIP from an equity settled to a cash settled transaction. This resulted in a recognition of liability based on the fair valuation of the cash settled LTIPs as at the date of modification and reversal of the share-based payment reserves, the incremental fair value of the cash-settled award over that of the equity-settled award as at the modification date amounting to US$405,000 is expensed to the profit and loss. The liability is remeasured at each reporting date.

  
  
  

  The Group is involved in the production and sale of gold and silver from dore and concentrate containing both gold and silver. Dore bars are either sold directly to customers or are sent to a third party for further refining into gold and silver before they are sold. Concentrate is sold directly to customers.

  Revenue from contracts with costumers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Revenue excludes any applicable sales taxes.

  The revenue is subject to adjustment based on inspection of the product by the customer. Revenue is initially recognised on a provisional basis using the Group's best estimate of contained gold and silver. Any subsequent adjustments to the initial estimate of metal content are recorded in revenue once they have been determined.

  In addition, certain sales are "provisionally priced" where the selling price is subject to final adjustment at the end of a period, normally ranging from 15 to 120 days after the start of the delivery process to the customer, based on the market price at the relevant quotation point stipulated in the contract. Revenue is initially recognised when the conditions set out above have been

  met, using market prices at that date. The price exposure is considered to be an adjustment and hence separated from the sales contract at each reporting date. The provisionally priced metal is revalued based on the forward selling price for the quotational period stipulated in the contract until the quotational period ends. The selling price of gold and silver can be measured reliably as these metals are actively traded on international exchanges. The revaluation of provisionally priced contracts is recorded as revenue.

  Commercial discounts related to the refining, recovery and treatment of minerals are presented netted from sales.

  A proportion of the Group's sales are sold under CIF Incoterms, whereby the Group is responsible for providing freight/shipping services (as principal) after the date that the Group transfers control of the metal in concentrate to its customers. The Group, therefore, has separate performance obligations for freight/shipping services which are provided solely to facilitate sale of the commodities it produces.

  Other Incoterms commonly used by the Group are FOB, where the Group has no responsibility for freight or insurance once control of the products has passed at the loading port, and Delivered at Place (DAP) where control of the goods passes when the product is delivered to the agreed destination. For arrangements which have these Incoterms, the only performance obligations are the provision of the product at the point where control passes.

  For CIF arrangements, the transaction price (as determined above) is allocated to the metal in concentrate and freight/shipping services using the relative stand-alone selling price method. Under these arrangements, a portion of consideration may be

  received from the customer in cash at, or around, the date of shipment under a provisional invoice. Therefore, some of the upfront consideration that relates to the freight/shipping services yet to be provided, is deferred. It is then recognised as revenue over time using an output method (being days of shipping/transportation elapsed) to measure progress towards complete satisfaction of the service as this best represents the Group's performance. This is on the basis that the customer simultaneously receives and consumes the benefits provided by the Group as the services are being provided. The costs associated with these freight/shipping services are also recognised over the same period of time as incurred.

  Income from services provided to related parties (note 32(a)) is recognised in revenue when services are provided. Income from the sale of aggregates in Mara Rosa is recognised in revenue (note 5).

  Deferred revenue results when cash is received in advance of revenue being earned. Deferred revenue is recorded as a liability until it is earned. Once earned, the liability is reduced and revenue is recorded. The Group analyses when revenue is earned or deferred.

  
  
  

  A contingent liability is a possible obligation depending on whether some uncertain future event occurs, or a present obligation where payment is not probable or the amount cannot be measured reliably. Contingent liabilities are not recognised in the financial statements and are disclosed in notes to the financial statements unless their occurrence is remote (note 36).

  A contingent asset is a possible asset that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognised in the financial statements, but are disclosed in the notes if their recovery is deemed probable (note 36).

  
  
  

  Finance income and costs comprise interest expense on borrowings, the accumulation of interest on provisions, interest income on funds invested, unwinding of discount, and gains and losses from the change in fair value of derivative instruments.

  Interest income is recognised as it accrues, taking into account the effective yield on the asset.

  
  
  

  Income tax for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items charged or credited directly to equity, in which case it is recognised in equity.

  Current tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

  Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes, with the following exceptions:

• where the temporary difference arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss; and

• in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

  Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on the tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date.

  A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

  
  
  

  An estimated tax liability is recognised when the Group has a present obligation as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The liability is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account risks and uncertainties surrounding the obligation. Separate liabilities for interest and penalties are also recorded if appropriate.

  Movements in interest and penalty amounts in respect of tax liability are not included in the tax charge, but are disclosed in the income statement. Tax liabilities are based on management's interpretation of country-specific tax law and the likelihood of

  settlement. This involves a significant amount of judgement as tax legislation can be complex and open to different interpretation. Management uses in-house tax experts, professional firms and previous experience when assessing tax risks. Where actual tax liabilities differ from the liabilities, adjustments are made which can have a material impact on the Group's profits for the year.

  Refer to note 36(a) for specific tax contingencies.

  
  
  
  
  

  The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any

  remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Right-of-use assets are subject to impairment.

  
  
  

  At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, and amounts expected to be paid under residual value guarantees. The lease payments also include the

  exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments are recognised as expense in the period in which the event or condition that triggers the payment occurs.

  In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest, and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

  
  
  

  The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value (i.e.,

  below US$5,000). Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

  
  
  

  A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

  
  
  
  
  

  Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

  The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Group's business model for managing them.

  The Group's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

  Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

  
  
  

  For purposes of subsequent measurement, the Group's financial assets are classified in the following categories: - Financial assets at amortised cost (debt instruments)

  The Group measures financial assets at amortised cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows.

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

  Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

  The Group's financial assets at amortised cost includes trade and other receivables. - Financial assets designated at fair value through OCI (equity instruments)

  Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.

  Financial assets designated at fair value through OCI are carried in the statement of financial position at fair value with net changes in fair value recognised in the OCI. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are

  recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

  The Group has listed and non-listed equity investments under this category. - Financial assets at fair value through profit or loss

  Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial

  assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

  Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognised in the statement of profit or loss.

  The Group has listed equity investments and embedded derivatives under this category. Dividends on listed equity investments are also recognised as other income in the statement of profit or loss when the right of payment has been established.

  
  
  

  A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Group's consolidated statement of financial position) when:

• The rights to receive cash flows from the asset have expired; or

• The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass-through" arrangement; and either (a) the Group has

  transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

  
  
  

  The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate.

  For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.

  
  
  
  
  

  Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, and financial liabilities measured at amortised cost, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

  The Group's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

  
  
  

  The measurement of financial liabilities depends on their classification, as described below:

• Financial liabilities at fair value through profit or loss

  Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

• Financial liabilities measured at amortised cost

  This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are

  derecognised as well as through the EIR amortisation process.

  Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance costs in the statement of profit or loss.

  This category generally applies to interest-bearing loans and borrowings.

  
  
  

  A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the

  recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

  
  
  

  The silver and gold forward and zero cost collar agreements signed by the Group are being used to hedge the exposure to changes in the cash flows of the silver and gold commodity prices. Consequently, the Group has opted to apply hedge accounting under the requirements of IFRS 9 Financial Instruments.

  
  
  

  These derivative financial instruments were initially recognised at fair value on the date on which the derivative contract was entered into and were subsequently remeasured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

  For the purpose of hedge accounting, hedges are classified as cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognised firm commitment.

  At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

  The documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:

• There is "an economic relationship" between the hedged item and the hedging instrument

• The effect of credit risk does not "dominate the value changes" that result from that economic relationship

• The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item

  Changes in the fair value of derivatives designated as cash flow hedges are recognised in other comprehensive income and accumulated under the heading of cash flow hedging reserve until changes in the fair value of the hedged item are recognised in profit or loss. However, the ineffective portion of the changes in the fair value of such derivatives is recognised in profit or loss. The Group uses cash flow hedges for hedging the exposure to variability in silver and gold prices.

  The amounts that have been recognised in other components of equity relating to such hedging instruments are reclassified to profit or loss when the hedged transaction affects profit or loss.

  
  
  

  Dividends on the Company's ordinary shares are recognised when they have been appropriately authorised and are no longer at the Company's discretion. Accordingly, interim dividends are recognised when they are paid and final dividends are recognised when they are declared following approval by shareholders at the Company's Annual General Meeting.

  
  
  

  Cash and cash equivalents are carried in the statement of financial position at cost. For the purposes of the statement of financial position, cash and cash equivalents comprise cash on hand and deposits held with banks that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. For the purposes of the cash flow statement, cash and cash equivalents, as defined above, are shown net of outstanding bank overdrafts.

  Liquidity funds are classified as cash equivalents if the amount of cash that will be received is known at the time of the initial investment and the risk of changes in value is considered insignificant.

  
  
  

  Exceptional items are those significant items which, due to their nature or the expected infrequency of the events giving rise to them, need to be disclosed separately on the face of the income statement to enable a better understanding of the financial performance of the Group and facilitate comparison with prior years.

  Exceptional items mainly include:

• Impairments and reversal of impairments or write-offs of assets, property, plant and equipment and evaluation and exploration assets;

• incremental cost due to pandemics which are not expected to be recurring;

• gains or losses arising on the disposal of subsidiaries, investments or property, plant and equipment;

• any gain or loss resulting from restructuring within the Group;

• the impact of infrequent labour action related to work stoppages in mine units;

• the penalties generated by the early termination of agreements with providers or lenders of the Group;

• the reversal of an accumulation of prior year's tax expenses that resulted from an agreement with the government;

• expenses related to a corporate transaction, including listing expenses and related transaction costs;

• gains or losses arising from the discontinuation of hedge relationships; and

• the related tax impact of the above items.

  
  
  

  The Group measures financial instruments, such as derivatives, at each statement of financial position date.

  Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Group.

  The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

  A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

  All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, as described in note 38(e).

  For assets and liabilities that are recognised in the financial statements on a recurring basis at fair value, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

  The Group determines the policies and procedures for both recurring fair value measurement and unquoted financial assets, and for non-recurring measurement.

  At each reporting date, the Group analyses the movements in the values of assets and liabilities, which are required to be remeasured or re-assessed as per the Group's accounting policies. For this analysis, the Group verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

  The Group, in conjunction with its external valuers where applicable, also compares the changes in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

  For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

  
  
  

  On 3 October 2023, the Argentinian Government approved that exporters of crude oil, gas and derivatives, who meet certain conditions, may receive 25% of the funds received from exports through negotiable securities acquired in foreign currency and settled in local currency.

  Since 13 December 2023 changed to 20% and the benefit was in forced until April 2025. As at 31 December 2025 the Group

  recognised a benefit from the programme of US$2,979,000 (2024: US$15,996,000), disclosed as other income (refer to note 12(1)).

  
  
  

  In an open-pit operation, it is necessary to remove overburden or waste material to access the ore bodies (stripping activity).

  During the mine development and pre-production phases, the stripping related costs are capitalised as part of the cost of

  development and subsequently recognised as depreciation in the cost of sales, on a units of production basis, once commercial production starts.

  The removal of waste material usually continues throughout the life of mine. Upon commencement of commercial production, the activity is referred to as production stripping. Production stripping costs are capitalised only when it is probable that future

  economic benefits associated with the stripping activity will flow to the Group, and costs can be reliably measured. Otherwise, the production stripping costs are charged to the income statement as operating costs as they are incurred. Stripping activity costs associated with such development activities are capitalised as development costs using an average stripping ratio. The average stripping ratio is calculated by dividing the estimated number of tonnes of waste material to be removed by the estimated ore to be mined over the life of the mine, and is reviewed annually. The amount capitalised is subsequently depreciated using the units of production method.

  
  
  

  The Group's activities are principally related to mining operations, which involve the exploration, production and sale of gold and silver. Products are subject to the same risks and returns and are sold through similar distribution channels. The Group undertakes a number of activities solely to support mining operations including power generation and services. Transfer prices between

  segments are set at an arm's length basis in a manner similar to that used for third parties. Segment revenue, segment expense and segment results include transfers between segments at market prices. Those transfers are eliminated on consolidation.

  For internal reporting purposes, management takes decisions and assesses the performance of the Group through consideration of the following reporting segments:

• Operating unit - San Jose, which generates revenue from the sale of gold and silver (dore and concentrate)

• Operating unit - Mara Rosa, which generates revenue from the sale of gold and silver (dore)

• Operating unit - Inmaculada, which generates revenue from the sale of gold and silver (dore)

• Former operating unit - Pallancata, which generated revenue from the sale of gold and silver (concentrate) until 2023, and it is involved in the development of the Royropata area.

• Exploration, which explores and evaluates areas of interest in brownfield and greenfield sites with the aim of extending the life of mine of existing operations and to assess the feasibility of new mines.

• Other - includes the profit or loss generated by Empresa de Transmisión Aymaraes S.A.C.

The Group's administration, financing, other activities (including other income and expense), and income taxes are managed at a corporate level and are not allocated to operating segments.

Segment information is consistent with the accounting policies adopted by the Group. Management evaluates the financial information based on the adopted IFRS accounting policies in the financial statements.

The Group measures the performance of its operating units by the segment profit or loss that comprises gross profit, selling expenses and exploration expenses.

Segment assets include items that could be allocated directly to the segment.

Inmaculada US$000

San Jose US$000

Mara Rosa US$000

Pallancata US$000

Exploration US$000

Other1US$000

eliminations

US$000

Total US$000

-

1,971

-

1,501

53,051

113,736

29,325

Current assets

Other non-current assets

608,566 139,003 365,669 47,926 197,6297 39,576 -

Inter-segment - - - - - 4,647 (4,647) revenue

Not reportable

-

assets5

- - - - - 561,815 -

Provisional

of hedge

relationship2

1"Other" revenue relates to revenues earned by Empresa de Transmisión Aymaraes S.A.C. for energy transmission services.

2The amount represents the reclassification of US$26,427,000 from the cash flow hedge reserve within equity to the income statement following the extension of 20,813 ounces of gold forwards from August to December 2025 to the first semester of 2028. In accordance with IFRS 9, the accumulated loss was reclassified to the income statement following the discontinuation of the original hedge relationship and the realisation of the hedged item. The item is presented as an exceptional item (note 11), and had no impact on realised on cash flows (note 38(a)).

3Comprised of administrative expenses of US$55,604,000, other income of US$10,163,000, other expenses of US$75,401,000, write-off of assets (net) of US$4,074

,000, impairment of non-current assets of US$56,845,000, share of gain of an associate of US$20,544,000, finance income of US$11,826,000, finance costs of US$41,112,000, and foreign exchange loss of US$3,955,000.

4Includes depreciation capitalised in the Pallancata unit (US$444,000), San Jose unit (US$1,944,000), Inmaculada unit (US$286,000), Mara Rosa (US$42,000) and products in process (US$1,102,000).

5Not reportable assets are comprised of financial assets at fair value through OCI of US$86,000, other receivables of US$92,831,000, income tax receivable of US$795,000, deferred income tax asset of US$105,137,000, investment in associates US$43,372,000, other financial assets of US$2,640,000, and cash and cash equivalents of US$316,954,000.

6Includes Monte do Carmo capital expenditure of US$13,373,000.

7Includes Monte do Carmo balance of US$110,382,000.

Others3

Capital

expenditure

138,556 43,575 39,541 8,253 15,1966 4,655 -