Slides
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Results Q4 and Full Year 2024 FEBRUARY 18, 2025 BVC: MINEROS TSX: MSA
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To listen in English – Para oír en Inglés 2 Step 2 Click MUTE on the box that says “Media Player” to avoid listening to both audios simultaneously Step 1 Click START on the box that says “English” BVC: MINEROS TSX: MSA
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3Cautionary Note The information presented herein contains forward-looking statements; such information relates to future events, including the Company's performance, prospects and business opportunities. The projections may include, inter alia, the estimation of resources and reserves, future production levels, future investment levels and their allocation, levels of investment in exploration and mine development. The estimated resources and reserves are based on projections of future performance and internal assumptions. Any information presented that is not historical may be considered forward-looking and reflects conclusions drawn based on resource and reserve assumptions that may be economically viable. Any phrase that indicates or involves predictions, expectations, plans, projections, estimates, assumptions of future events or performance (for which words such as "seek", "anticipate", "plan", "plan", "continue", "estimate", "expect", "may"; "project", "predict", "potential", "identification", "intend", "could", "should" and other similar expressions are generally used) may be indicative of forward-looking statements. Future events involve known and unknown risks, uncertainties and other factors that could cause results to differ materially from estimates. There can be no guarantee that the estimates presented will be correct, so investors should be cautious in their analysis. The information presented herein is not intended to create or assume any obligation for the Company, except as required by law. Projections may include risks and uncertainties related to operational risks, production costs, availability of exploration equipment, availability of key personnel, resource and reserve estimates, health, safety or health issues, legal risks, regulatory changes, competition, geopolitical risk and financial risk, among others. BVC: MINEROS TSX: MSA
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4 This presentation includes non-IFRS financial measures and non-IFRS ratios such as: • Cash Cost (per ounce of gold sold) • AISC (per ounce of gold sold) • Average price per ounce of gold sold • Adjusted EBITDA • Net Debt • Return on Capital Employed (ROCE) The Company believes that these non-IFRS financial measures and non-IFRS ratios, in addition to conventional measures prepared in accordance with IFRS, provide investors with a better ability to assess the Company's performance. Non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. These financial measures may not be comparable with similar financial measures or ratios disclosed by other issuers. Certain additional disclosures for these non-IFRS financial measures and non-IFRS ratios can be found in Section 10."Non-IFRS Financial Measures" of the Management's Discussion & Analysis of Financial Condition & Results of Operation for the three and nine months ended September 30, 2024, available on the Company’s website and at SEDAR+ at www.sedarplus.com All values in this presentation are in U.S. dollars. Non-IFRS Financial Measures and Non-IFRS Ratios
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Management Team ©2023 Mineros. Todos los derechos reservados. 5 Andrés Restrepo Isaza President & Chief Executive Officer Alan Wancier Vice President, Finance & Administration Santiago Cardona Múnera Vice President, Colombia Ana Isabel Gaviria Arteaga Vice President, Legal & Sustainability Luis Fernando Villa Tabares Vice President, Nicaragua BVC: MINEROS TSX: MSA Luis Felipe Ramirez Vice President, Talent & Communications Ann Wilkinson Vice President, Investor Relations
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Agenda ©2024 Mineros. Todos los derechos reservados. 6 o Highlights o Financial Results o Results of Operations o Review of Operations o Challenges & Opportunities BVC: MINEROS TSX: MSA
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Highlights Presented by: Andrés Restrepo Isaza President & CEO
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8Highlights - Q4 2024 BVC: MINEROS TSX: MSA Produced 112,142 silver ounces Net Profit $ 23.2 M Adjusted EBITDA $56.9 M Net Free Cash Flow $56.7 M Produced 54,189 gold ounces, 13% less than the same period in 2023 Paid US$ 7.5 M in dividends to our shareholders
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9Highlights - Full Year 2024 BVC: MINEROS TSX: MSA Produced 765,611 silver ounces, 23% more than the same period of 2023 Net Profit $ 86.6 M Adjusted EBITDA $210.1 M Net Free Cash Flow $86.8 M Produced 213,245 gold ounces 131,228 oz in Nicaragua 82,017 oz in Colombia Paid US$ 27.7 M in dividends to our shareholders During 2024 our shares increased by: 131% BVC 129% TSX
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10Q4 2024 - Gold Price ($/oz) BVC: MINEROS TSX: MSA $2,563 $2,787
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Financial Results Presented by: Alan Wancier VP, Finance & Administration
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12Financial Results - Q4 2024 o Revenue increased due to a 35% increase in average realized price of gold sold, despite a 13% decrease in ounces of gold sold, and a 25% decrease in sales of silver o Cost of sales increased due to: (i) higher gold prices, increasing the costs of purchasing ore from artisanal miners; (ii) higher depreciation and amortization; and (iii) higher operating expenses, driven by inflation that increased maintenance and materials and services and labor costs. o Gross Profit and Adjusted EBITDA rose 14% and 7% respectively, due to higher revenue o Net free cash flow was positive and totaled $56.7M, compared to $36.7M in the same period of 2023, primarily due to higher sales and other revenues of $29.7M, offset by higher payments to suppliers during the quarter of $8.1M. o Profit increased to $23.2M from $21.8M in Q4 2023 Q4 2023 (M USD) Q4 2024 (M USD) 15% 14% 7% 2% (100)%16% 7%
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13Financial Results Full Year 2024 o The 20% growth in revenue is due to a 23% higher average gold price and a 48% increase in silver sales of $6.9 M o Cost of sales increased by 17%, explained by higher purchase costs of artisanal material due to higher gold prices, higher labor costs, higher service costs and higher taxes and royalties o Gross profit and Adjusted EBITDA increased by 27% and 22%, thanks to higher revenues partially offset by higher cost of sales o Profit from continuing operations increased due to increased gross profit, partially offset by an increase in costs o Loss from discontinued operations decreases to $0 because of the sale of Gualcamayo in September 2023 o Net profit increased by 403% from 2023 and net profit from continuing operations by 16% 2023 (M USD) 2024 (M USD) 20% 27% 22% 16% (100)%17% 403%
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14Cash and Cash Equivalents o Net cash flows from operations represents revenues from the sale of gold, silver and electricity of $166.7 M, less payments to suppliers of $71.6 M, salaries and benefits of $15.4 M and taxes of $6.9 M o Cash flow used in investing activities is composed of purchases of PPE of $19.1 M and purchases of services and investments in exploration projects of $1.8 M o Cash used for financing activities was largely composed of a dividend payment to shareholders $7.5 M and payment of financial obligations of $5.0 M 69% Figures in millions of USD
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15Adjusted EBITDA Figures in millions of USD Adjusted EBITDA is a non-IFRS financial measure. Its most comparable IFRS measure is net income. Non-IFRS financial measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. These financial measures may not be comparable with similar financial measures disclosed by other issuers. +7% EBITDA AJ. Q4 2024 vs. Q4 2023 Adjusted EBITDA increasaed by 7%, due to higher revenues from higher gold prices
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16Net Debt The decrease in Net Debt from 2023 is due to significantly higher cash balance At the end of 2024, credits and loans were $25.9 M, with a balance of cash and cash equivalents $96.4 M. Net Debt is a non-IFRS financial measure. Net Debt consists of Credits and Loans, less Cash and Cash Equivalents. Non-IFRS financial measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. These financial measures may not be comparable with similar financial measures disclosed by other issuers. +190% Net Debt Q3 2024 vs. Q3 2023 Figures in millions of USD
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Results of Operations Presented by: Andrés Restrepo Isaza President & CEO
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18Production, average gold price & costs +35% Average Sale Price Q4 2024 vs. Q4 2023 Production decreased due to a 7% lower production at the Hemco Property and a 19% lower production at Nechí Alluvial Property Cash Cost increased due to a 16% increase in cost of sales and the increase in AISC was explained by the increase in Cash Costs, offset by a 12% decrease in sustaining capital expenditures Average sales price, Cash Cost per ounce of gold sold and the AISC per ounce of gold sold are non-IFRS financial measures. Non-IFRS financial measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. These financial measures may not be comparable with similar financial measures disclosed by other issuers. +35% AISC Q4 2024 vs. Q4 2023 -13% Oz Produced Q4 2024 vs. Q4 2023 +38% Cash Cost Q4 2024 vs. Q4 2023
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Review of Operations Presented by: Andrés Restrepo Isaza President & CEO
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20Nechí Aluvial - Colombia o Q4 2024 production decreased by 19% from 2023 due to lower grades and lower recovery. The Company has faced challenges due to geological uncertainties, resulting in lower grades and a reduced reconciliation factor. o AISC per ounce of gold sold increased by 40% due to higher labor and services costs and higher maintenance and materials costs and lower cost dilution per unit, given lower production. This was partially offset by slightly lower maintenance CAPEX. o Gross profit decreased by (4)%, as costs increased more than revenues due to lower production. This was partially offset by improved gold sales prices. AISC per ounce of gold sold is a non-IFRS financial measure. Non-IFRS financial measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. These financial measures may not be comparable with similar financial measures disclosed by other issuers. Q4 2024 vs. Q4 2023 Production -19% AISC +40% Gross Profit -4%
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21Hemco - Nicaragua o Production was 7% lower in Q4 2024 due to a 14% decrease in grades that was slightly offset by higher tonnes processed. o AISC per ounce of gold sold increased by 27% due to higher gold prices, which increase the costs of purchasing ore from artisanal miners. o Gross profit increased by 42%, primarily due to higher revenues from higher gold prices and more gold and silver ounces sold. Q4 2024 vs. Q4 2023 Production -7% AISC 27% Gross Profit +42% AISC per ounce of gold sold is a non-IFRS financial measure. Non-IFRS financial measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with IFRS. These financial measures may not be comparable with similar financial measures disclosed by other issuers.
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Challenges and Perspectives Presented by: Andrés Restrepo Isaza President & CEO
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23Guidance Production and Cost Guidance 2025 Colombia (Nechí Alluvial Property) Gold production oz 81,000 - 91,000 Cash Cost per ounce of gold sold $/oz $1,220 - $1,320 AISC per ounce of gold sold $/oz $1,440 - $1,540 Nicaragua (Hemco Property & Artisanal) Hemco Property production oz 33,000 - 36,000 Artisanal production oz 87,000 - 96,000 Total gold production oz 120,000 - 132,000 Cash Cost per ounce of gold sold $/oz $1,420 - $1,520 AISC per ounce of gold sold $/oz $1,680 - $1,780 Consolidated Gold production oz 201,000 - 223,000 Cash Cost per ounce of gold sold $/oz $1,340 - $1,430 AISC per ounce of gold sold $/oz $1,650 - $1,750
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24Opportunities - Growth and exploration programs Porvenir Project (Nicaragua): o Assumptions were updated and analysis of metallurgical testwork was completed, leading to the completion of the geometallurgical model in the fourth quarter of 2024. This has allowed Mineros to evaluate alternative mining methods to improve mining efficiency and reduce costs, guided by the findings of the geomechanical study that was also completed in 2024. o The Company is updating the Porvenir Project's Mineral Resources and Reserves to maximize its value, with optimization of the pre-feasibility study scheduled for completion in 2025. Luna Roja (Nicaragua) - o In the fourth quarter of 2024, internal metallurgical testing at Hemco's laboratory was completed, along with all technical work and analysis to update the mineral resource estimate for the Luna Roja deposit. No drilling activities are scheduled for the Luna Roja deposit in 2025. Near Mine Exploration, Hemco Property Expansion o A diamond drilling program totaling 134 holes and 37,860 metres was constructed in 2024. In the fourth quarter of 2024, the drilling program advanced at the Panama Mine and the Pioneer Mine, with 7,829 metres of drilling completed in 29 holes. A total of 4,004 metres were drilled at the Panama Mine and 3,825 metres at the Pioneer Mine. o For 2025, a diamond drilling campaign of approximately 30,000 metres is planned to expand the current Mineral Resources and Mineral Reserves. A total of 17,500 metres are estimated for the Panama Mine and 12,500 metres for the Pioneer Mine. o The Company is preparing an initial mineral reserve estimate, which is expected to be published in late 2025, following the progress of work on the Mineral Resource estimate for the La Reforma target.
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26EBITDA Ajustado Three Months Ended December 31, Year ended December 31, 2024 2023 2024 2023 Net Profit For The Period 23,195 21,765 86,552 17,214 Less: Interest income (613) (352) (1,691) (1,302) Add: Interest expense 2,217 1,557 8,260 5,118 Add: Current tax 1 15,598 12,472 53,123 42,561 Add/less: Deferred tax 1 (699) (3,376) 1,894 (14,520) EBIT 39,698 32,066 148,138 49,071 Add: Depreciation and amortization 11,632 12,330 48,548 45,099 EBITDA 51,330 44,396 196,686 94,170 Less: Other income (516) (1,082) (2,908) (6,104) Add: Share of results of associates 20 117 99 117 Less: Finance income (excluding interest income) (24) (8) (107) (107) Add: Finance expense (excluding interest expense) 25 1,051 173 3,833 Add: Other expenses 4,831 4,152 10,802 10,053 Add: Exploration expenses 2,072 2,556 6,354 6,092 Less: Foreign exchange differences (843) 1,139 (1,000) 6,768 Add: Loss for the period from discontinued operations 2 — 1,043 — 57,324 Adjusted EBITDA3 56,895 53,364 210,099 172,146 1. For additional information regarding taxes, see Note 21 of our audited condensed interim consolidated financial statements, for the three months and year ended diciembre 31, 2024, and 2023. 2. The reconciliation above does not include adjustments for (impairment) reversal of assets, because there would be a nil adjus tment for the three months and year ended diciembre 31, 2024, and 2023. 3. Composition of Adjusted EBITDA has been revised to include loss for the year from discontinued operations.
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27Deuda Neta December 31, 2024 2023 Loans and other borrowings 25,927 32,802 Less: Cash and cash equivalents (96,410) (57,118) Net Debt (70,483) (24,316)
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28Cash Cost por onza de oro vendida Three Months Ended December 31, Year ended December 31, 2024 2023 2024 2023 Cost of sales 95,664 82,663 354,567 301,888 Less: Cost of sales of non-mining operations1 — (257) (827) (751) Less: Depreciation and amortization (11,469) (11,885) (47,430) (43,665) Less: Sales of silver (3,520) (4,669) (21,239) (14,384) Less: Sales of electric energy (2,270) (2,071) (7,581) (5,346) Less: Environmental rehabilitation provision (3,296) (1,846) (7,360) (4,788) Add: Use of environmental and rehabilitation liabilities 728 1,137 1,539 1,137 Add: Use of Retirement obligations 469 81 1,672 81 Cash Cost from continuing operations 76,306,000 63,153,000 273,341,000 234,172,000 Gold sold (oz) from continuing operations $54,189 $62,039 $213,245 $219,708 Cash Cost per ounce of gold sold from continuing operations ($/oz) 1 1 1 1 Cash Cost from discontinued operations — — — 66,262,000 Gold sold (oz) from discontinued operations $— $0 $0 $31,737 Cash Cost per ounce of gold sold from discontinued operations ($/oz) — — — 2 Cash Cost 76,306,000 63,153,000 273,341,000 300,434,000 Gold sold (oz) $54,189 $62,039 $213,245 $251,445 Cash Cost per ounce of gold sold ($/oz) 1408.14556459798 1017.95644675124 1281.81668972309 1194.82988327467 1. Refers to cost of sales incurred in the Company’s “Others” segment. See note 7 of our audited consolidated financial statemen ts for the three months and year ended diciembre 31, 2024 and 2023. The majority of this amount relates to the cost of sales of la tex. year ended December 31, 2024 and 2023.
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29AISC por onza de oro vendida Three Months Ended December 31, Year ended December 31, 2024 2023 2024 2023 Cost of sales 95,664 82,663 354,567 301,888 Less: Cost of sales of non-mining operations 1 — (257) (827) (751) Less: Depreciation and amortization (11,469) (11,885) (47,430) (43,665) Less: Sales of silver (3,520) (4,669) (21,239) (14,384) Less: Sales of electric energy (2,270) (2,071) (7,581) (5,346) Less: Environmental rehabilitation provision (3,296) (1,846) (7,360) (4,788) Add: Use of environmental and rehabilitation liabilities 728 1,137 1,539 1,137 Add: Use of Retirement obligations 469 81 1,672 81 Add: Administrative expenses 9,231 6,730 22,448 18,355 Less: Depreciation and amortization of administrative expenses 2 (163) (445) (1,118) (1,434) Add: Sustaining leases and leaseback 3 2,455 2,070 9,838 7,995 Add: Sustaining exploration 4 31 337 191 885 Add: Sustaining capital expenditures 5 8,313 9,822 26,125 25,378 AISC from continuing operations 96,173 81,667 330,825 285,351 Gold sold (oz) from continued operations 54,189 62,039 213,245 219,708 AISC per ounce of gold sold from continuing operations ($/oz) $ 1,775 $ 1,316 $ 1,551 $ 1,299 AISC from discontinued operations — — — 76,911 Gold sold (oz) from discontinued operations — 9,947 — 31,737 AISC per ounce of gold sold from discontinued operations ($/oz) $ — $0 $0 $2,423 AISC 96,173 81,667 330,825 362,262 Gold sold (oz) 54,189 71,986 213,245 251,445 AISC per ounce of gold sold ($/oz) $ 1,775 $ 1,134 $ 1,551 $ 1,441 1. Cost of sales of non-mining operations is the cost of sales excluding cost incurred by non -mining operations and the majority of this cost comprises cost of sales of latex. 2. Depreciation and amortization of administrative expenses is included in the administrative expenses line on the audited conso lidated financial statements and is mainly related to depreciation for corporate office spaces and local administrative building s at the Hemco Property. 3. Represents most lease payments as reported in the audited consolidated financial statements of cash flows and is made up of t he principal of such cash payments, less non-sustaining lease payments. Lease payments for new development projects and capacity pr ojects are classified as non-sustaining. 4. Sustaining exploration: Exploration expenses and exploration and evaluation projects as reported in the audited consolidated financial statements, less non-sustaining exploration. Exploration expenditures are classified as either sustaining or non -sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of opera ting mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expe nditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative expl oration activity not linked to existing mining operations are classified as non - sustaining. 5. Sustaining capital expenditures: Represents the capital expenditures at existing operations including, periodic capitalized s tripping and underground mine development costs, ongoing replacement of mine equipment and overhaul of existing equipment, and i s calculated as total additions to property, plant and equipment (as reported on the consolidated statements of cash flows), less non -sustaining capital. Non-sustaining capital represents capital expenditures for major projects, including projects at existing operation s that are expected to materially benefit the operation and provide a level of growth, as well as enhancement capital for significant infrastruct ure improvements at existing operations. Non-sustaining capital expenditures during the three months and year ended diciembre 31, 2024, are primarily related to major projects at the Hemco Property and the Nechí Alluvial Property. The sum of sustaining capital expe nditures and non-sustaining capital expenditures is reported as the total of additions of property plant and equipment in the audit ed consolidated financial statements.
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30Precio promedio por onza de oro vendida Three Months Ended December 31, Year ended December 31, 2024 2023 2024 2023 Sales of gold from continuing operations 144,239 122,530 508,965 425,647 Gold sold from continuing operations (oz) 54,189 62,039 213,245 219,708 Average realized price per ounce of gold sold from continuing operations ($/oz) 2,662 1,975 2,387 1,937 Sales of gold from discontinued operations — — — 61,516 Gold sold from discontinued operations (oz) — — — 31,737 Average realized price per ounce of gold sold from discontinued operations ($/oz) — — — 1,938 Average realized price per ounce of gold sold ($/oz) 2,662 1,975 2,387 1,937 Sales of silver from continuing operations 3,520 4,669 21,239 14,384 Silver sold from continuing operations (oz) 112,142 198,427 765,611 614,756 Average realized price per ounce of silver sold from continuing operations ($/oz) 31 24 28 23 Sales of silver from discontinued operations — — — 217 Silver sold from discontinued operations (oz) — — — 9,220 Average realized price per ounce of silver sold from discontinued operations ($/oz) — — — 24 Average realized price per ounce of silver sold ($/oz) 31 24 28 23
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31 Cash Cost y AISC por onza de oro vendida por Segmento Nechi Alluvial Hemco Cost of sales 39,055 61,032 Less: Depreciation and amortization (3,881) (7,550) Less: Sales of silver (64) (3,456) Less: Sales of electric energy (2,270) — Less: Intercompany royalty (4,224) — Less: Environmental rehabilitation provision (3,296) — Add: Use of environmental and rehabilitation liabilities 728 — Cash Cost 26,048 50,495 AISC Adjustments Less: Depreciation and amortization of administrative expenses (4) (11) Add: Administrative expenses 1,495 959 Add: Sustaining leases and Leaseback 636 1,819 Add: Sustaining exploration 31 — Add: Sustaining capital expenditure 4,056 4,257 AISC 32,262 57,519 Gold sold (oz) 22,528 31,661 Cash Cost per ounce of gold sold ($/oz) $ 1,156 $ 1,595 AISC per ounce of gold sold ($/oz) $ 1,432 $ 1,817 Nechi Alluvial Hemco Gualcamayo (Discontinued operation)1 Cost of sales 33,969 52,822 — Less: Depreciation and amortization (4,265) (7,583) — Less: Sales of silver (61) (4,608) — Less: Sales of electric energy (2,071) — Less: Intercompany royalty (4,011) — — Less: Environmental rehabilitation provision (1,846) — — Add: Use of environmental and rehabilitation liabilities 1,137 — — Add: Use of Retirement obligations — 81 — Cash Cost 22,852 40,712 — AISC Adjustments Less: Depreciation and amortization administrative expenses (4) (7) — Less: Sales of electric energy (2,071) – – Add: Administrative expenses 799 897 — Add: Sustaining leases and Leaseback 547 1,523 — Add: Sustaining exploration 337 — — Add: Sustaining capital expenditure 4,075 5,747 — AISC 28,606 48,872 — Gold sold (oz) 27,920 34,119 — Cash Cost per ounce of gold sold ($/oz) $ 818 $ 1,193 $ — AISC per ounce of gold sold ($/oz) $ 1,025 $ 1,432 $ — Three months ended December 31, 2024 Three months ended December 31, 2023
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Recursos Minerales y Reservas Minerales 32 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form
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Notas Reservas Minerales 33 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Mineral Reserve Reporting Notes: 1. CIM (2014) definitions were followed for Mineral Reserves. 2. Mineral Reserves are as of December 31, 2023. 3. Numbers may not add due to rounding. Nechí Alluvial Property – Colombia: 1. The Nechí Alluvial Property Mineral Reserves have been expressed as tonnes by converting cubic metres to tonnes using a density factor of 2.0 t/m3. 2. Mineral Reserves are estimated at cut-off grades of 38 mg/m³ for mining by bucket line dredges, 49 mg/m³ for Brazilian suction dredge alluvials, 39 mg/m³ for wheel cutter suction dredge plain alluvials, and 96 mg/m³ for terrace alluvials. 3. Mineral Reserves are estimated using an estimated gold price of US$1,500/oz Au. 4. An exchange rate of COP$3,500.00 = US$1.00 was used. 5. Gold grade includes some silver. Alluvial gold at Nechí Alluvial Property is 890 fine for reserve estimation. 6. A minimum alluvial mining depth of 12 m was used. 7. A maximum alluvial mining depth of 30 m was used. 8. Mineral Reserves are depleted for production through December 31, 2023. 9. Mineral Reserves are estimated using an average long-term gold price of US$1,500/oz.
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Notas Reservas Minerales 34 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Hemco Property – Nicaragua: 1. Mining method: a. Panama and Pioneer: shrinkage stoping, sub-level open stoping (SLOS), and bench and fill. b. Porvenir: cut-and-fill stoping and sub-level stoping. 2. Minimum mining width: a. Panama and Pioneer: 0.90 m for shrinkage stoping and between 1.80 m and 2.00 m for mechanized mining methods. b. Porvenir: 1.55 m. 3. Cut-off grades and values: a. Panama and Pioneer: marginal and break-even cut-off grades of 2.50 g/t Au and 3.00 g/t Au, 2.15 g/t Au and 2.46 g/t Au, and 2.15 g/t Au and 2.46 g/t Au were applied to shrinkage, SLOS, and bench and fill mining methods respectively. b. Porvenir: based on NSR value per tonne determinations using metal prices, metal recoveries, and smelter terms. Breakeven NSR cut-off values vary from $81.34/t to $83.10/t depending on the mining method. 4. Metallurgical recoveries: a. Panama and Pioneer: 90% for gold. b. Porvenir: were applied on a block-by-block basis and average 85.6% for gold, 52.8% for silver, and 91, 1% for zinc. 5. Dilution: a. Panama and Pioneer: dilution skins of 0.25 m were applied to shrinkage stopes and between 0.6 m to 0.8 m to mechanized stopes. b. Porvenir: dilution skins 0.25 m thick on stope footwalls and 0.5 m thick on hanging walls. 6. Mining Extraction: 7. Panama and Pioneer: a factor of 70% was applied to shrinkage stopes and between 75% and 95% to mechanized stopes. 8. Porvenir: cut-and-fill 78% to 90% and 90% for sub-level stoping. 9. Mineral Reserves estimated using an average long term metal prices of US$1,500/oz Au, $19.00/oz Ag, and $1.27/lb Zn. 10.Total silver and zinc grades were not calculated because it is not representative considering the total tonnage.
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Notas Recursos Minerales 35 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Mineral Resource Reporting Notes: 1. CIM (2014) definitions were followed for Mineral Resources. 2. Mineral Resources are exclusive of Mineral Reserves. 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 4. Numbers may not add due to rounding. Nechí Alluvial Property: 1. The Nechí Mineral Resources have been expressed as tonnes by converting cubic metres to tonnes using a density factor of 2.0 t/m3. 2. Mineral Resources for 2021 at Nechí Alluvial Property are estimated at a raw gold cut-off grade of 34 mg/m3 for suction dredge plain alluvials, 85 mg/m3 for terrace alluvials, 43 mg/m3 for Brazilian dredge alluvials and dredge tailings. 3. Mineral Resources are estimated using a gold price of US$1,700/oz Au and an exchange rate of COP$3,500 = US$1.00. 4. Alluvial gold at Nechí Alluvial Property is 890 fine for resource estimation. 5. Mineral Resources are estimated to the depth of dredging and drill hole grade capping has been carried out at 290 mg/m3. 6. Average thickness of the resource pay gravel is 11.1 m. Average thickness of overburden is 12.0 m. 7. Mineral Resources are estimated using drill hole and sample data from December 15, 2022, and depleted for production through December 31, 2023.
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Notas Recursos Minerales 36 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form Hemco Property: 1. Cut-off grades and values: a. Panama: 2.0 g/t Au b. Pioneer: 2.0 g/t Au c. Porvenir: NSR cut-off value of US$82.30/t d. Luna Roja: open pit: 0.87 g/t Au; underground: 2.0 g/t Au e. Leticia and St. Antonio: NSR cut-off value of US$73.30/t 2. Minimum width: a. Panama: 0.9 m was used for all veins except Pluto SW and Cruzada which used underground reporting shapes to demonstrate reasonable prospects for eventual economic extraction b. Pioneer: 1.0 m was used for all veins except Lone Star, Pioneer Mine, Pioneer Northeast Extension, Pioneer 3, and Pioneer 4 which used underground reporting shapes to demonstrate reasonable prospects for eventual economic extraction c. Porvenir: 0.8 m d. Luna Roja: 2.0 m e. Leticia and St. Antonio: No minimum width applied 3. Metal price: a. Panama: gold price of US$1,700/oz Au. b. Pioneer: gold price of US$1,700/oz Au. c. Porvenir: gold price of US$1,700/oz Au, a silver price of US$20/oz Ag, and a zinc metal price of US$1.36/lb Zn d. Luna Roja: gold price of US$1,700/oz Au, a silver price of US$20/oz Ag, and a zinc metal price of US$1.36/lb Zn e. Leticia and St. Antonio: gold price of US$1,700/oz Au, a silver price of US$20/oz Ag, and a zinc metal price of $US1.22/lb Zn 4. Bulk density: a. Panama: between 2.66 t/m3 and 2.68 t/m3. b. Pioneer: 2.68 t/m3. c. Porvenir: between 2.65 t/m3 and 2.90 t/m3. d. Luna Roja: between 3.00 t/m3 (open pit) or 3.15 t/m3 (underground). e. Leticia and St. Antonio: 2.72 t/m3 for Leticia and 2.75 t/m3 for San Antonio. 5. Metallurgical recoveries: a. Panama: Average gold recovery of 90%. b. Pioneer: Average gold recovery of 90%. c. Porvenir: were applied on a block by block basis and average 63.39% for gold, 52.55% for silver and 84.05% for zinc. d. Luna Roja: Average gold recovery of 83%. e. Leticia and St. Antonio: Gold recovery of 87%, silver recovery of 60%, and zinc recovery of 86.93%. 6. Porvenir and Pioneer Mine, the material within 30 m of the topographic surface has been excluded from the Porvenir Mineral Resources to allow for artisanal mining. 7. Total silver and zinc grades were not calculated because it is not representative considering the total tonnage.
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Notas Recursos Minerales 37 Effective Date Dec. 31, 2023 as per 2023 Annual Information Form La Pepa Project: 1. Open pit Mineral Resources are estimated inside of an optimized pit envelope at a cut-off grade of 0.20 g/t Au for oxides and 0.26 g/t Au for sulphides, which corresponds to the marginal cut-off grade. 2. Mineral Resources are estimated using a long-term gold price of US$1,650 per ounce. 3. Mineros holds a 20% interest in the La Pepa Project.