Mineros S.A.

Good morning and welcome to our presentation of the financial and operational results of Mineros S.A. corresponding to the fourth quarter and the end of the year 2024. My name is Juan Camilo Boando and I am the Director of Relations with Investors. The original language of this call is Spanish, however, if you want to hear it in English, please follow these two steps. To listen to this call in English, please follow two steps. First, identify the box that says English and click on Start. Then, to avoid listening to both languages at the same time, identify the box that says Media Player and click on Mute. Before we start, it is important to warn the listeners that this call and this presentation can contain prospective information about the future results of the company and that, for various reasons, among them the same nature of mining activity, these predictions can be made or not, according to what is foreseen. For this reason, we warn investors that they must be careful when making investment decisions and not be based exclusively on the information presented here. It is also worth mentioning that this presentation contains measures and non-conventional indicators according to the NIFs, such as the cash cost and the all in sustaining cost per ounce of gold sold, the average price per ounce of gold sold, the adjusted EBITDA and the net debt. Additional information about these measures can be found in section 10 of our MD&A published in Canada, which is also published on our website under the Investors menu in the financial reports section. Today with me in the room, Andrés Restrepo, President of Mineros, Alan Banzier, Vice President of Finance and Administration, Ana Isabel Gaviria, Vice President of Legal and Sustainability, and Santiago Cardona, Vice President of Colombia. And additionally, we are joined by Luis Fernando Villa, Vice President of Nicaragua, and Ann Wilkinson, Vice President of Relations with Investors. With this, I give the floor to Andrés Restrepo, President of Mineros.

Thank you, Juan. Good morning everyone and thank you for joining us in our report of the results of the fourth quarter and the end of 2024. In today's conference we are going to present the most outstanding events of the fourth quarter and the end of the year, followed by the financial results of the fourth quarter, also of the end of the year, and operational results. We are going to do a review of high flight of each operation and finally we are going to tell you what we believe are our challenges and opportunities in the year that begins. Let's start then with the relevant facts starting with the fourth quarter of 2024. During the fourth quarter of 2024 we produced a little more than 54,000 ounces of gold and 112,000 ounces of silver. These operating results generated a net utility of 23 million dollars for the fourth quarter. Our adjusted dividend was 56.9 million dollars and we had a net cash flow of 56.7 million dollars. In October, we paid dividends for a value of 7.5 million dollars to our shares. Now, in terms of relevant facts for the end of the year 2024, we noted that we had a production of 213,000 ounces of gold in our operations, of which 132,000 ounces were produced in Nicaragua and 82,000 in Colombia. As for the production of silver, the total production was 765,000 ounces, registering a growth of 13% compared to the year 2023. One of you, an investor, asked me about this production of silver that we see or show as a relevant fact. We really had a very good year from the point of view of silver production, but it is important to clarify that our little is gold and that silver is like a subproduct. It does not mean that we do not consider it important. What it means is that we do not deliberately explore looking for silver deposits. but in our operation in Nicaragua, the artisan miners and we ourselves found a percentage of silver due to the characteristics of the settlement and that amount of silver varies between one year and another. So it is a relevant fact because we had a very good year in silver, but it is worth clarifying that we continue to be a company focused on gold, mainly gold, silver and associated metals, and silver is an associated metal. These results provided us with net utility for the end of the year of 86.6 million dollars, an adjusted EBITDA of 210 million dollars and a net cash flow of 86.8 million dollars. During the year we paid a total of $27.7 million in dividend to our shareholders and our share had a very positive performance both in the Canadian stock market and in the Colombian stock market, registering a valuation of 129% and 131% respectively. Let's analyze the behavior of the gold price. During the year 2024, the price of gold recorded a predominantly altist trend, operating between $ 1,992 and $ 2,787 per ounce, with an average of $ 2,388 during the year. At the end of 2024 it recorded an increase of close to 27%, with a closing price of $ 2,624.50. Geopolitical events such as wars in Ukraine and the Gaza Strip, and the expectation and subsequent confirmation of the reduction of interest rates in the United States, as well as expectations of inflation worldwide, were one of the main factors that pushed metal to reach new historical highs during the year that ended. This positive trend was maintained in the first three months and was only compensated during the last quarter, in which the main impacts were the results of the US elections and the adjustments in the monetary policy rate of the Federal Reserve. With this, I will give the floor to Alan Uánchez to explain our initial result.

Thank you, Andrés, and good morning everyone. Let's start with the state of the results of the quarter. Let us remember that the figures are expressed in millions of US dollars. During the fourth quarter of 2024, the company's revenues recorded an increase of 15%, reaching $ 150 million, mainly due to an increase of 35% in the average price of gold sales. despite a decrease of 13% of the ounces sold and a decrease of 25% in silver sales. The sales cost increased by 16% due to higher prices of gold, which increases the costs of buying minerals from artisanal miners. Also due to greater depreciations and amortizations, greater operating expenses that were driven by inflation, that increased maintenance costs and materials, services and labor. The adjusted gross utility of EBITDA increased by 14.7% respectively, thanks to the increase in income and net utility had an increase of 7%. The net free cash flow was positive and totaled $56.7 million, compared to the $36.7 million of the same period in 2023, mainly due to higher income from sales and other income of $29.7 million, compensated with higher payments to suppliers during the quarter of $8.1 million. Moving on to the results of the end of 2024, income increased by 20% due to the fact that the average price of gold sales increased by 23%, since silver sales were 48% higher compared to the previous year. On the other hand, sales costs recorded an increase of 17% during 2024. due mainly to higher costs of buying artisanal materials as a consequence of higher prices of gold, higher labor costs, higher costs for services and higher taxes and royalties. The gross utility and adjusted EBITDA increased by 27% and 22%, respectively, thanks to higher incomes partially compensated with a higher sales cost and the continuous operations utility increased due to the increase in gross utility, partially compensated by an increase in costs. The continuous operations utility increased Due to the increase in gross utility, I already mentioned it before. Finally, we highlight that net utility had an important increase of 403%, compared to the year 2020-2023, and net utility of continuous operations increased by 16%. Now let's move on to the box. The box of the quarter increased 39 million dollars, closing at 96 million dollars. The flow of operations is mainly composed of income from gold and silver sales for 167 million, payments to suppliers of 72 million, payments for employee benefits of 15 million and payments of taxes of 7 million. The cash flow used in investment activities is explained by buying property, land and equipment for 19 million dollars and buying intangibles and exploration projects for 2 million dollars. The flow used for financing activities was largely composed by the payment of dividends of 7.5 million and payment of financial obligations for 5 million dollars. Now let's move on to the adjusted EBITDA. The adjusted EBITDA had an increase of 7% due to a greater number of ounces sold, added to an increase in the average price of gold sales. To close the financial part, let's now move on to net debt. The decrease in net debt with respect to the same period of the previous year is explained by a significantly higher cash balance, At the end of the quarter, loans and loans were $26 million, while the balance of cash and cash equivalents was $96.4 million. As we have mentioned before, as part of our financial strategy, we permanently monitor the market in search of opportunities in order to be prepared when cash needs require it. and this box position meets our availability to meet our obligations and growth projects. With this, I return the floor to Andrés, who will talk about operational indicators. Thank you, Alan.

Let's look at some operational indicators. The graph of this slide summarizes the operating performance of the last five quarters. As you can see, the total production in the fourth quarter had a decrease of 13% compared to the same quarter of 2023. However, if you look, you can also see a lot of consistency in the four quarters of the year. That is a strength that miners have and that is worth highlighting in all the calls we have with you. Yes, we are comparing ourselves with a spectacular quarter, which was the last quarter of 2023, but throughout the year we had very consistent results. As you can see, the total production of the fourth quarter had a decrease of 13% compared to the first of 2023. For this, Nicaragua provided a reduction of 7% and Colombia of 19%, and that generated an increase in the cash cost, of 38% because the cash cost is done per ounce. So if you produce fewer ounces and the costs are very fixed, that indicator tends to rise. So the main factor for the increase in the cash cost is a 16% increase in sales costs. and the Olin had an increase of 35%, which is explained by the increase of the cash cost, which is the basis to calculate the Olin, compensated a little by a decrease of 12% in the CAPEX, in the maintenance capital expenses. During the fourth quarter of 2024, the average price of 0 ounces reached 2,662 dollars per ounce, which is an increase of 35% compared to the same period of the previous year. Remember that we in Nicaragua buy the mineral, the artisanal minerals for a percentage of the spot price. So when the price of gold goes up, our costs also go up and that has an impact on both the cash cost and the Olin. As you can see in the trend line in the graph, we continue to maintain very attractive margins and consistent operating results, as I said at the beginning. So yes, when there are high gold prices, and there is a weight revolution, costs go up, but if you compare those levels of cash cost with the current prices of gold, we continue to have supremely generous margins that allow us to operate in a very relaxed way. In Colombia, the production of the fourth quarter was 23,000 ounces, which represents a decrease of 19% compared to the fourth quarter of 2023. I would also like to stop a little in Colombia so that we can look at the graph of Colombia. You can see that Colombia had a very challenging year. The production of the first quarter was 19,000 ounces, it went up to 21 in the second, to 20 in the third and to 23 in the fourth. So what we can see is a recovery in the fourth compared to the other quarters of the year. There is a negative impact compared to the last quarter of 2023, again, because it was an exceptionally good quarter. And in part this is normal in mining operations. Our drugs are advancing northward and reaching richer or less rich areas, which is something that we cannot manage, that we cannot control. It is the way gold is deposited in the alluvium, in the alluvial bed. What can we do? We can control costs and expenses. And that's what Colombia did throughout the year. It had a very, very stringent policy of control of costs and expenses, and that is reflected in gross utility. You can see that even with productions lower than those of the last quarter of 2023, gross utility was very similar. See, 23 million dollars against 24 in the last quarter of 2023. So, The mining companies cannot manage the price of gold so much because it is given by the market and production, in a certain way, is given by the settlement. There is some margin of maneuver, but it is given by the settlement. What they can control are costs and expenses and Colombia did a very good job of controlling costs and expenses, which allowed it to have, at the end of the year, considerable gross utility compared to that of the last quarter of 2023. Although production was considerably better, obviously the price of gold helped a lot, but the price of the dollar affected Colombia. So, that's the life of a mining operation and that's the most clear summary of what happened with Colombia. The gross utility decreased by 4%, in 23 million dollars, because the costs raised a greater increase than the income, given the lower production, as I told you. I'm comparing this with the last quarter of the previous year, but counteracted by a legal handling of costs and expenses benefited by the best prices of gold sales. Now let's look at Nicaragua. Nicaragua had a completely different year from Colombia. The production of the fourth quarter of Jemco was 32,000 ounces and there you can see that it is a very consistent operation, 33, 33, 34, 32 compared to 34 of the last quarter of the previous year. It is a reduction of 7% compared to the 34,000 ounces produced in the fourth quarter of the previous year, but year after year the result in Nicaragua is positive, year after year Nicaragua had growth in production. This gross utility Olin per ounce, sorry, had an increase of 27%, although we kept the productions very flat. Why? Because of what I was telling you, that the cost in Nicaragua is very affected by the price of gold. 75, almost 80% of gold that is produced in Nicaragua is produced with mineral purchased at 70% from artisan miners and that mineral is paid at a percentage of the spot price. When the price of gold goes up, the cost goes up automatically. In terms of gross utility, it registered an increase of 42%, located at 27 million dollars compared to 19 million dollars that were registered in the fourth quarter of 2023. This is due to higher revenues for the higher price of gold and more ounces of gold and silver sold. So, summarizing what we had from the operational point of view in miners in the year 2024. We had a challenging year in Colombia, in which we made great efforts to increase recovery and increase production and we achieved it in the last quarter, but not enough to compensate for the impacts of the first three. However, we were very careful in the management of costs and expenses and that allowed us to recover gross utility and have a good year in Colombia and receive all the benefits of the best price of gold or all the possible benefits of the best price of gold. Nicaragua had a very consistent year, it received all the benefits of the best price of gold, it had an increase in costs, but this increase in costs is explained again by the gold prices that affect the cost of the mineral that is bought from artisanal miners. This concludes our presentation of operating indicators, let's now move on to challenges and perspectives. Let's review our estimates for the year 2025. During 2024, the total production of our operations in Colombia and Nicaragua was located within the range of estimates and productions for the year. This is very important. In the Toronto market, it is very important to comply with what is called the guidance, which are the signals that one says to the market that it is going to comply. It is very important to be consistent and show that consistency in the Toronto market. As for production estimates for this year, the table that we are showing you now includes production and cost estimates, in which we are predicting a production of between 81,000 and 92,000 ounces of gold for Colombia and a production between 120 and 132 for Nicaragua. In consolidated figures for the two operations, we estimate a production of between 201 and 223,000 ounces of gold for 2025. In terms of costs, we are estimating that the cash cost per ounce sold and consolidated will be in a range between 1,340 and 1,430 dollars per ounce while the line we are hoping to be between 1,650 and 1,750 dollars per ounce these are indicators that are not nif but that allow investors to look very easily at how the company's margins are because comparing these indicators with the gold spot price one realizes how the company's margins are Finally, we do a review of our growth and exploration programs. What did we do regarding the project to come? We updated the assumptions and completed the analysis of metallurgical tests and finalized the geometallurgical model in the fourth quarter of 2024. This has allowed us to evaluate alternative mining methods to improve the efficiency of extraction and reduce costs. Geomechanical studies have also been completed. We are working on the update of resources and mineral reserves for this project, to maximize its value, and we are also optimizing the prefactability study to lower the investment as much as possible. This is planned to be completed this year. Red Moon. In the fourth quarter of 2024, we completed internal metallurgical tests in the Hemco laboratory, along with all the technical work and analysis to update the estimation of mineral resources for the Luna Roja settlement. This year we do not have planned perforation activities for that site because we are going to focus on other fronts that are in the package of miners in Nicaragua, in the package of lands and concessions of miners in Nicaragua. Now, as for exploration near the mine, in 2024 we completed a perforation program of 134 wells and 37,860 meters. In the fourth quarter of 2024, that program advanced mainly in two mines, in the Panama mine and in the Payoneer mine, with 7,829 meters of drilling completed in 29 wells. A total of 4,000 meters were drilled in Panama and 3,825 in Payoneer. By 2025, a drilling campaign of approximately 30,000 meters has been planned, very similar to last year, to expand our resource and reserve base. We are estimating a total of 17,500 meters for the Panama mine and 12,500 for the Paya Unida mine. We are preparing an initial estimation of mineral reserves, whose publication is scheduled for the end of this year. This concludes our presentation. At this time we would like to receive your questions.

We are going to give a couple of minutes while we receive some other questions and we will continue with the presentation. Well, we start with the first question. This question comes to us from Mr. Julian Auxique. Do you already have an estimated dividend recommendation for 2025?

Last week's meeting defined a recommendation for dividends that we are going to publish today, in the afternoon or tomorrow, because we are completing the writing of a very, very long circular technique that must be published in the Toronto market and that signal of dividends is included in that circulation and we cannot give asymmetric information in Colombia and in Toronto. So the publications in Toronto are delaying the announcement a bit, but you can wait for it between tonight and tomorrow. I anticipate that they are good news in what has to do with ordinary living.

The second question is also from Mr. Julian Ausique. Can you explain in more detail the implications of the elimination of the payment royalty by miners to miners?

Hello, Julian. No, this royalty has not been eliminated, nor is it a structure of intercompany of financing. What we did was remove this number from the AISC data. Why? Because the ISC is measured at a consolidated level in Canada and these intercompany fees are eliminated when they are consolidated, so this number was eliminated to have better clarity about this number.

And Julian also asks us, have you made estimates of the implications in the liquidity of the share both in Colombia and in Canada for the Sound Valley OPA?

We do not believe that the OPA affects the terms of liquidity materially, but we are completely on the subject of passivity with respect to the OPA. What I can tell you is that the liquidity at the company's general level almost quadrupled versus the year 2023. For example, the average of transactions in the Canadian Stock Exchange in 2023 was around 20,000 or 22,000 daily transactions. This is the average of the entire year. and in 2024 this average rose to almost 86,000 transactions per day. So definitely in 2024 we have seen an increase in the liquidity of the share.

Maybe what I would add is that we have the perception that this increase in the transactionality of the shares is the result of a lot of work of seeding that has been done during the last five years. Before listing the company in Toronto, we began to make meetings with investors at a national and also international level, presenting the company, explaining it to the market, explaining it to investors, So, more and more, because in this you have to be consistent, this is a marketing activity that sometimes one thinks is ungrateful because the results are not sold immediately, but more and more in those visits to investors, in those meetings, which are trips that are made during one or two days, to different markets and in those two days we can have 40 or 50 half-hour meetings with investors. More and more people who attend say, I am already a mining investor. So liquidity has improved for several reasons. The first, because the company has shown consistent results and for the Toronto market it is very important that one like that sub-promises and overcomes. y hemos logrado hacer eso durante todos estos años porque la manera como se van dando resultados consistentes de la compañía le generan tranquilidad al mercado sobre dos factors that initially caused him restlessness. One was the alluvial operation and the other was the purchase of artisanal minerals in Nicaragua. The investors have already realized that, despite the fact that we have a purchase of minerals in Nicaragua and that we have an alluvial operation, both operations are very consistent and that gives the investors peace of mind. So, We believe that the OPA of Sun Valley may have some impact, but many things can also happen in the future. We are working to grow the company, we are giving good news, all that can generate interest in the action and generate greater transactionality. We frankly believe that the transaction is not of such a size that it can affect the transactionality of the sector.

Thank you Andrés.

We have another question from Mr. Santiago Mazo. Good morning to everyone and thank you for these excellent results. The government of El Salvador is destroying the mining sector in the country and taking into account that the country is in a zone rich in gold, is there the possibility that miners enter the country to expand operations and diversify?

The truth, Santiago, right? The truth, Santiago, is that in mining times are long. to deploy and develop a mining project can take 5, 6, 7 years. And then these announcements that a country is going to start working or allow mining to work are very interesting, but one must be cautious and must wait for that transformation to really sustain itself, because we have seen situations in which ha habido países que se han abierto a la minería y después se han cerrado con un cambio de gobierno y en minería hay que invertir mucho antes de sacar la primera onza es mejor estar uno en un mercado donde uno sienta que el apoyo a la actividad minera es consistente y con visión de largo plazo

Thank you. We also continue with another question from Mr. Santiago Mazo.

Could you give us more information about the OPA for miners?

I'm going to give the floor to Ana Gaviria to tell you a little bit about that.

Well, according to the information published in the Wallet of the Stock Exchange between last Friday and yesterday, Monday, the Colombian Financial Superintendence accepted the request presented by Zonvale to carry out a public acquisition offer in Colombia. to acquire between 5% and 9% of ordinary mining shares at an offer price of 4,600 pesos. The deadline for the acceptance of the offer will begin on February 21 and end on March 6, but it could be extended to 20 additional days in accordance with Colombian legislation. I think Andrés gave them a little more color about the impact it could have.

Thank you. Thank you. Next question, also from Santiago. What is the average price of gold estimated for 2025?

Hello Santiago, as you have noticed, the price of gold is basically gone. Today we are around 2,900 20, 2,910. Many international banks are even seeing prices of 3,000 and above 3,000 dollars per ounce this year. These are prices that we never imagined six months ago, for example. I would believe that a very feasible range should be more or less 200 dollars, which is the price today. So the price could oscillate between 2,800 and, as banks say, 3,100 dollars per ounce. I think it has a lot of impact on what is happening at the geopolitical level and we will have to wait to see how all the things that are happening at the global level unfold.

Habiendo dicho eso, nosotros hacemos nuestros presupuestos con precios de oro más conservadores, porque es mejor estimar ingresos más conservadores y ajustar los costos y gastos y las inversiones de capital basado en números más conservadores para que cuando hay un año bueno y suben los precios, ustedes reciban todo el beneficio posible de esos buenos precios de oro.

The next question is, what was the dynamizer of the net utility of 2024 for miners that favored for it to recover and improve with so much force?

There were many factors, we no longer had the negative impact of Argentina, we managed to have, despite the fact that we had an impact on the production of Colombia, a good result for the good prices of gold and in Nicaragua we received practically all the benefit of the gold prices because we met the production goals that we had set. The costs were impacted because, as I say, the cost of the mineral that is processed from artisanal minerals follows the spot price, but the net result is positive for the company. So I would say that the biggest driver is price, but to receive the benefits of a year of good prices, the company has to be prepared. So we were prepared in many ways. We had current permits in Colombia, we had current permits in Nicaragua. We had made investments in the last four or five years to increase production capacities in Nicaragua. We have been making investments in innovation in Colombia to try to maintain the recovery as high as possible in an alluvium that is becoming thinner and thinner and more difficult to recover. So one could, being vacuous, say, ah, that was the price of gold. Sometimes I meet friends who tell me, no, you have nothing to complain about, because with those gold prices you are doing very well. But the truth is that mining activity has important challenges. The deposits are not exact science. One estimates productions based on explorations and perforations that are done every 100 or every 50 meters. assumes that the deposits have uniform behavior and they don't always have it. And there are situations that impact the costs in a considerable way that are unpredictable. So, as I tell you, and I don't get tired of repeating it, the management of a mining operation focuses mainly on a good management of costs and expenses. And because we did a good management of costs and expenses, we receive as much as possible the benefit of some prices.

Thank you, Andrés. Next question, also from Mr. Santiago Mazo. What is the value in mining books separately on December 31, 2024?

The value in books of the separate states, of the separate company, is 1.8 billion pesos, that is, a little more than 405 million dollars, more or less. Thank you.

We move on to another question from Mr. Jaime Alvarez. He asks us, hello, when can I expect to obtain the update of resources of Luna Roja and see it viable for production?

In Luna Roja we will initially have the production of artisan mining. We work with artisan miners, the most superficial part of the deposits. So what we are predicting for these next few years is that there will be more or less a reduction of the base of resources and reserves in Luna Roja. Why? Because they are taken out with artisan mining. In the time that the work is being done with artisan mining, exploration continues, which is already brownfield, because there is already operation there, and models of mining are made to extract that mineral. The truth is that miners have a very large package of concessions and we have found fronts such as the reform that are closer to the current operations. So one is prioritizing in a way that is as efficient as possible from the point of view of costs, to return to the topic that we had said. Luna Roja, although it is a settlement with a lot of interest, it is a little far away, it is in Rosita, it is not in Bonanza. Much of what we are doing in exploration is in the Bonanza area, which is close to the mine, and we have found interesting fronts there. I remind you that we have about 170,000 hectares of concession package. and we have many exploration targets that are giving positive results. So we have not ruled out the red moon, we are going to extract artisanal minerals from there, but it is not an imminent and urgent priority either, because the other areas are providing us with enough minerals to meet the budget. For example, the Brownfield exploration of the Pioneer mine, which was a mine that we entered with a very small resource base when we had just entered Nicaragua and the operation itself was very challenging. we have found any amount of additional resources in that mine, exploring in depth, and the deposits have continuity. So one is prioritizing, which does not mean that nothing is discarded, but that it is maintained for different years.

Thank you.

We continue with the next question from Jorge Franco. Are new fronts of exploration and exploitation planned in Colombia? What expectations do you have in Colombia taking into account adverse policies to the exploration and exploitation of minerals?

Well, good morning to everyone. Well, we, within our strategic plan, we always have, of course, the organic growth of each country and each mine, and for that, In our current property titles and some title requests that we have close to our alluvium, we have some prospecting and exploration campaigns, such as in the municipality of Caucasia. and in our own titles, in the jurisdiction of Zaragoza, the Bagri Nechi. So, yes, we continue campaigns to explore some verifications of our resources and reserves in our titles and some expansion of alluvium in nearby municipalities and areas of influence. And regarding the issue of how we see the regulation in Colombia, it is an issue that we have been working on always with the authorities and the communities, because you also have to see the moments of uncertainty as moments of opportunity. And when we see moments of opportunity, different perspectives and expectations are also opened, which is what we are working hand in hand with those communities and miners who want to formalize themselves. and also with the institutions, both mining and environmental, of departmental and national order, to be able to light up other mining possibilities. And in these moments of price, opportunities will also appear that will be reviewed in any of the jurisdictions where the miner is. So, that's the explanation to your question.

I'm going to complement a little. Ten years ago I arrived in Mineros, the alumni operation had ten years of mining life and today it has ten years of mining life. So there are other additional factors to the exploration that are called greenfields that add years to the life of a mine. One of these factors is the cut-off tenor. The cut-off tenor is the gold content below which it is not cost-effective to do mining work. With good gold prices, the cut-off tenor becomes efficient in removing gold from areas that were previously very poor for mining. So there are many factors that add life to the Colombian mining operation beyond the Greenfield exploration or that complement the Greenfield exploration, which, as Santiago says, is being done.

Thank you. Next question from Pedro Juan Mesa. Are you going to publish the MD&I in Colombian pesos?

Good morning, Juan. The document equivalent to the MD&I in Colombia is the integrated management report that complies with circulars 012 and 031 of the financial superintendency and that is already available on the web page in Colombian pesos.

Perhaps another answer that we could give is that at a given moment we did it. but since then one does it with a exchange rate of a given moment in history, it loses its validity when the exchange rate changes. It is better to have some documents in pesos for the Colombian market and others in dollars for the Toronto market and miners having the dollar as a functional currency, although it sounds very horrible and very alienating, it is good that you get used to the results in dollars because it is our functional currency. The price of gold is in dollars, a very good part of our costs are in dollars and that is why the company's functional currency changed three years ago to dollars, right Alan? Three years ago, four.

Yes, when we list or a little earlier, we change the functional currency.

I love it, very good. Perfect, next question, Mr. Lucas Carvajal. When do you estimate the beginning of the exploration of projects in Estudio?

That depends a lot, not only on how each project progresses, but on what mineral needs we have. So, One thing that is handled in mining activity is something called a capital investment assignment committee. And it prioritizes them depending on where it is more profitable. That's what I was referring to when I was telling you that costs and expenses had to be managed. So, a company can have a project for many years in force and accelerate or postpone it depending on how it is doing in other production fronts. Forvenir is a very interesting project in Nicaragua, but the Panama mine and the Pioneer mine are providing us with the mineral we need to have the plant at full. So it makes no sense to waste it for wasting it, but rather to have a growth as an efficient growth and take it in an adjusted way to things that are happening in the country. For example, there is a construction project of an electrical interconnection line between Rosita and Bonanza. When that line is built, our energy costs will drop considerably, both in the current operation of Panama and in the potential operation of Porvenir. So, in that sense, it is convenient for us that Porvenir ideally enters simultaneously with the line and the line is in design phase by the State and we are going to build it under a model that we We build, we operate and we transfer it to the State when the investment has already been paid. So one is adjusting this project, which is 100% mining, to the evolution of another project, which is an electric interconnection project. And it prioritizes if it has a mineral urgency and postpones if it does not have a mineral urgency.

The next question comes from Mr. Santiago Escobar, he asks us, how much do you plan to increase the dividend for the period 2025-2026?

That is information that we cannot disclose in Colombia without disclosing it in Toronto simultaneously, so we ask you for patience, tomorrow we will publish relevant information with the proposal of dividends. We appreciate your understanding, it is a matter of procedure. The procedures to prepare a General Assembly in Toronto are so long and so complex. that are usually done in the first semester, not in the first quarter. In Colombia, we have to do it in the first quarter and that generates a pressure on us to generate documents and to prepare terrible information. So, we thank you for your understanding, wait for us a day or two and you will know what dividend the board is proposing, clarifying that the final determination is from the assembly, not from the board.

Thank you. Juan Antonio Mejia asks us, good morning, do you currently have coverage? I also want to congratulate you for the results, the value that we see reflected by the shareholders is very good.

Thank you very much, Juan Antonio. At this moment we do not have coverage. We stopped taking coverage when we saw that gold was going up. As soon as we see that it gives some sign of stabilizing, eventually we will look again at that possibility of taking coverage. The policy of coverage in miners is to cover the operations that are challenged, the operations that have narrow margins, so that one can guarantee that it fulfills budgets and generates the budgeted EBITDA and for that it sacrifices potentials additional utilities. With the current margins, it is not necessary. Look, we have cash costs that are very, very competitive with respect to the price of gold. So, if we took coverage, we would be taking away from you the possibility of having exposure to gold and benefiting from better prices.

Thank you. Next question from Mr. Jaime Álvarez. He asks us why miners have not been released from the obligation with Nomad in Argentina.

That is a commitment that the buyer has. The buyer has to deliver information so that Nomad transfers that obligation to them. In the next few days we will be visiting Nomad in Toronto to follow up on that commitment.

Thank you. Next question. Considering that El Salvador has authorized mining exploration again, does Mineralos plan to participate in mining exploration?

I think we have already answered that question.

Perfect. Next question, Mr. Jorge Franco. Is it possible that Zonbali acquires the entire company through successive OPAs or agreements like the ones that have already been made?

We don't have the answer. We really can't predict what the behavior of any mining activist will be. towards the future. So that's a question we can't answer. We are trying to answer all the questions so that you don't assume that we keep silence for some strange reason, but we don't have an answer to that.

Thank you. Next question from Mr. Manuel Rodríguez. What is the reason for the increase in the costs in GEMCO, since it is not proportional to the increase in the price of gold? Is it possible to meet the guidance of $1,750 per ounce, taking into account the high costs of Q4 of $1,817 per ounce?

Yes, we see it completely possible. There are different variations in the quarters, there are quarters that are more maintained than other quarters and then the costs can rise or vary from top to bottom. However, at a consolidated level, at an average level in the year, we do see that goal very possible. Thank you. Next.

I would complement Alan's message by saying that last year was a dry year in Nicaragua. and we have our own hydroelectric generation capacity at a very low cost, but when we have a dry year, we have to buy more diesel and that has impacted our costs in Nicaragua, but that is not maintained every year, so if we have major rains, major rains this year and with some investments that we are making to marginally improve the efficiency of our small hydroelectric power plants in Nicaragua, we are optimistic that we can lower a little that cash cost and that wind sustaining cost of Nicaragua.

Thank you. Jaime Alvarez asks us. a new passive contingent of 40 million dollars appeared in Nicaragua due to fiscal issues. How likely is it that we have to pay it?

Well, the DGI sent us to collect a A sum of money derived from the fact that they are ignoring a ministerial agreement that is in force that allows us to... What is the word, Alan? Discount. Discount from taxes a special contribution that is made at the beginning of the year, which is the VALORE. There is not really... as a legal support for that payment. So what are we doing? We answer that payment saying that it was not legal and we request that the DGI reconsider the possibility of making that payment. Having said this, what taxes are charged in a country depends on the authorities of that country. and there can perfectly be a modification in the ministerial agreement as a result of this. So, for now, the only thing we did was reveal it in the MD&I, by recommendation of the tax inspectors, but we still do not have a clear vision of whether this payment will be maintained. We do not even have a clear vision of whether it will be for the same amount or for a lower amount. So we fulfill our obligation to tell you that we were in this process of conversations with the State, but it is still too early to know. If we had known, if we had a signal of what the final payment could be, we would have included it in the financial statements of the year, as is the correct practice, but it is still very premature to say it. However, with respect to the market, it is important to reveal it, that is what there is.

Thank you.

Next question from Mr. Esteban Echavarría. They have a change in gold ounce purchases in Nicaragua compared to 2023 versus 2024. What is our competitive advantage for artisans to sell to miners?

Yes, in 2024, if I'm not wrong, we sold 3,000 ounces of more artisans than in 2023. These variations are completely natural in the business, it will never be an exact number. In terms of competitive advantages, we have them. We are much more efficient than artisan mills and that is why we can give more per ounce of gold to artisan miners. So, the inclination of an artisan miner, in the first instance, should be first to sell to miners before to an artisan mill. So, we definitely have competitive advantages.

And I would say that not only do we have competitive advantages, but it is a strategy that gives us a natural coverage and then gives us solidity, because if the gold prices go down, the costs also go down. but it is also a friendly strategy with the environment because all those ounces, if they were not processed in our plant in an environmentally responsible way, they would be processed in artisan mills that are called tracks that use mercury. So we are contributing to lowering the environmental impact of the activity in the country. is a win-win situation. The artisanal ore wins because our recovery is better than that of the artisanal mills, so they receive a better price for their mineral and the company wins because it has access to a mineral at very competitive prices and a natural coverage when there are price variations.

Thank you. The next question is from Jefferson Romero. Good morning, can you tell us something about the PEPA project in Chile?

We have an interest of 20% in that project, the owner of 80% is Pan American Silver and we believe that Pan American Silver is planning to sell that project. If they sell it, the safest thing is that we participate in that transaction, but for now there is nothing firm about it. Why do we believe that Pan American has an interest in selling it? Because it is too small for them, it is not like a sufficiently important project so that the company is attending it and that makes it unattractive for a company like Pan American Silver. So they will most likely look for someone to sell it to and when that happens, the idea is that we accompany that sales process, but for now there is no announcement to make to the market.

Thank you Andrés. The next question comes from Mr. Jaime Alvarez. ¿Qué noticias han recibido de los permisos en Colombia? ¿Da la impresión que con este gobierno no se va a obtener la renovación? ¿Y cuál es el estado actual de la minería ilegal en los títulos de la compañía? Todos los días salen noticias sobre el crecimiento de estas actividades.

During this government we have not received material permits to operate or to continue our operation in Colombia. However, in the previous government and in previous governments we had requested enough areas to be able to continue operating. So we have enough areas to operate during the entire validity of this government and a few more months in the coming government. The truth is that What margin of maneuver do we have? We have been looking for the possibility that they give us permits for some small areas with formalization purposes. And there have been some advances, but more with the regional authority than with the national authority. And the current state of illegal mining in the company's titles and in the areas where the company operates is terrible. more than doubled the number of Brazilian drugs in the Nechi region and the northeast of Antioquia. That is an investment that, as the president of the Colombian Association of Mining said, is equivalent to a company that would have invested 80 million dollars in Colombia. 80 million dollars to produce illegally, using mercury, not paying royalties, not paying taxes, not paying contributions to social security. We believe that the government that the State should take care of these issues. Really, the truth is that this is something that affects us all, not just miners. If all this activity were to be done legally and to pay taxes, the income that the State would have would be considerable and the fiscal situation of the country would not be so complex and we could contribute to the development of the country. For us it is a sadness that the formalization programs do not progress well, that the procedures are not simplified to achieve them, and that as many people as possible dedicated to this activity work formally. I do not want to finish answering this question without mentioning that not everything is illegal mining. There is also ancestral mining, on a small scale, informal, with the desire to formalize itself. I would say that so many of those miners, those small miners, ancestral, informal, with the will to formalize themselves, as in large companies, we are victims of criminal extraction of minerals, because we do not even believe that this should be called mining.

Next question from Mr. Sebastián Restrepo, asking us, I would like to know how the company manages the political risk in Nicaragua's operations.

We manage the political risk in all operations. In Colombia, we have just given you an example, in Nicaragua we behave like a visitor. We believe that the political situation in Nicaragua is a situation that competes with the Nicaraguans. and that we, out of respect, must behave like an guest. We generate employment in Nicaragua, we pay taxes, we generate welfare and we invest in the country. The political situation in Nicaragua must be resolved by the Nicaraguans. This is something that I want to reach you as a message of respect. from the company to the country, as we should do in any other country where we are not local. The same applies to Chile. In Chile, where we had the PEPA, at the beginning of the current government, very worrying signs were presented for mining activity, about which we did not speak. It seemed to us that Chile had to solve it. ¿Cómo más manejamos el riesgo político a nivel macro? Diversificando geografías. Y la compañía sigue buscando terceras geografías donde operar. Ya vendimos a Argentina, salimos de los problemas que teníamos allá, pero seguimos explorando oportunidades de negocio para tener una tercera geografía, que es otra manera de manejar el riesgo, atomizándolo.

Thank you very much Andrés.

For the moment we have no more questions, we only have some messages of congratulations for the results, which we thank you very much because the truth is that the mining team has worked very hard during these two years, during this year, sorry, to get these results. It is not like my friends tell me when I meet them on the street, it is very easy because the price is very good. No, really, the price is very good and no one is going to ignore it, but the company is being able to reap the benefits of that good price because it sowed the seeds to achieve it. And that has been the effort of many people. I would say that the one who made the least effort is me. So I want to convey that message of congratulations to all the employees of the company, from the first to the last. because they are really very committed people who work in areas that in some cases are complex, they have complex environments. with a love for the company and with a dedication that fills me with emotion and fills me with pride. So I thank you very much for the messages and I am going to transmit them to the employees of the company tomorrow, that I have a meeting that we do with some periodicity, which is called the coffee with the president, in which they all connect and I have a coffee in my office with some people in person and I tell you about the company's results and I also tell you about the results of this call. Thank you very much for your presence here, thank you very much for your attention, thank you very much for having believed in miners all this time. We are glad that you have seen it reflected in the price of the share and in the dividends. Keep supporting us, we will continue to work for the good of the company, of the countries in which we operate and of you, our shareholders.

Well, thank you very much and with this we end the call for results of the fourth quarter and closing the year 2024 of Mineros S.A., thanking everyone for your participation. A happy rest of the day for everyone.