Mineros S.A.

Buenos días y bienvenidos a nuestra presentación de resultados financieros y operativos de Mineros S.A. correspondientes al primer trimestre del año 2025. Mi nombre es Karen y seré su operadora para la llamada de hoy. En este momento, todos los participantes se encuentran en modo de escucha. Al final de la presentación, habrá un espacio de preguntas y respuestas en la plataforma web únicamente. Por favor, tenga en cuenta que esta teleconferencia está siendo grabada. Please consider that today's conference will be held in Spanish with simultaneous English translation. We remind you that if you have difficulties viewing the slide on the website, maximize the window called slides. From now on, I give the floor to Juan Camilo Obando, Director of Relations with Investors. Mr. Juan Camilo, you have the floor.

To listen to this call in English, please follow these 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. Antes de empezar, es importante advertir a los oyentes que esta llamada y esta presentación pueden contener información prospectiva sobre los resultados futuros de la empresa y que por diversas razones, entre ellas la naturaleza misma de la actividad minera, estas previsiones pueden realizarse o no. For this reason, we warn investors to be careful when making investment decisions and not to base themselves exclusively on the information presented here. It is also worth mentioning that this presentation contains non-conventional measures and indicators according to the NIF, such as the Cash Cost and the All In Sustaining Cost per ounce of sold gold, the average price per ounce of sold gold, the adjusted interest rate and net debt. The additional information about these measures can be found in section 10 of our MD&A published in Canada and that is also available on our website under the Investors menu in the financial reports section. Today with me in the room are David Londoño, President of Mineros, Alan Banser, Vice President of Financial and Administrative, Santiago Cardona, Vice President of Colombia, and Ibaldo Díaz, Vice President of Technical and Business Development and Strategy. In addition, we are accompanied by Ana Isabel Gaviria, Vice President of Legal and Sustainability, Luis Fernando Villa, Vice President of Nicaragua, and Ann Wilkinson, Vice President of Relations with Investors. With this, I welcome you and give the floor to David Londoño, President of Mineros.

Thank you very much Juan Camilo. Good morning and thank you for joining us today in our report of results for the first quarter of 2025. As you know, I'm David Londoño and I started as President and CEO of Mineros on April 8, a month ago. I have been working as CEO of Americas for Oceana Gold and previously as General Manager of Dictour Lake Goldmine and Vice President of Projects at Kirtland Lake Gold, now part of Niko Eagle, among others. In today's conference, we will present the most outstanding aspects of the first quarter of 2025, followed by the financial results of the quarter, our operational results, a review of each operation and, finally, our challenges and opportunities. Let's start first with the relevant facts. It is important to highlight first that on March 31, 2025, we had the General Assembly of shareholders in which several relevant decisions were made for the company. First, an annual dividend of 10 cents per share was approved, paid quarterly. In addition, we had the election of the new board in which five new members were elected and four of the previous members were re-elected. In this way, the board was made up of Augusto López, who was appointed as president of the board, Andrés Restrepo, Hernán Rodríguez, Natalia Correa, Philip Martins, Sofía Bianchi, Marco Izquierdo, Michael Boyle, and Daniel Henao. We cordially welcome our new members of the board. On the other hand, Deloitte was selected as our auditor for a period of two years. In addition, a resolution was approved that authorizes the company, at the discretion of the board, to buy back its ordinary shares through acquisitions in the Colombia stock market and or the Toronto Stock Exchange, up to a maximum of 12 million dollars in a period no longer than two years. We are currently studying the most suitable mechanism to carry out this program and we will be communicating it to the market. Continuing with the relevant facts, during the first quarter of 2025 we produced a little more than 54,000 ounces of gold, which represents an increase of 5% compared to the same period of 2024. We also produced 77,000 ounces of silver. We paid by dividing our shareholders by a amount of $7.5 million. These operating results reported a net utility record of $38 million for the first quarter of the year. On the other hand, our adjusted EBITDA was $71.3 million and we had an effective and equivalent balance of $81.3 million at the end of the quarter. During the first quarter of 2025, the price of gold had a positive performance and set a new record in its trading, continuing with the marked CISTA trend that has been presenting since last year. The closing price of March 31 was 3,123 ounces, which represents at the moment 17.5% compared to the closing price of the fourth quarter of 2024, when it was $2,657 per ounce. The average price recorded during the quarter was $2,862 per ounce. With this, I will give the floor to Alan Bancher, who will explain our financial results.

Thank you, David. Good morning. Let's start with the results of the quarter. Let's remember that the figures are expressed in millions of US dollars. During the first quarter of 2025, the company's revenues recorded an increase of 41%, reaching $160 million due mainly to an increase of 39% in the average price of gold sales, added to a growth of 5% of the sales ounces, despite a decrease of 55% in silver sales. The cost of sales increased by 19% due The higher the prices of gold, the higher the costs of buying minerals, artisanal minerals, greater depreciations and amortizations, and greater operating expenses driven by inflation, which increased the costs of maintenance, materials, services and labor. Brutal utility and adjusted EBIT increased by 92% and 75% respectively. thanks to the increase in income and net utility had an increase of 127%, located at 38 million dollars compared to 16.8 million reported in the first quarter of 2024. The net free cash flow was negative and totaled 1.1 million against the negative balance of 1.9 million last year. This is obtained after discounting the net cash flow generated by operations the payment of dividends for 7.5 million, capital expenses for 4.4 million and interest payments for 750,000 million. Now let's move on to the box. The net cash flows of the operations represent income from the sale of gold and silver mainly for 125 million, less payments to suppliers for 80 million, payments for salaries and benefits of employees for 16.9 million and payment of taxes for 17.4 million. The flow of cash used in investment activities is explained by purchases of property, plant and equipment for 14.3 million, among which 5.1 million are invested in the expansion of the Colas San Jose dam and 2.4 million in maintenance and maintenance expenses in Jemco, Nicaragua. We also have 1.9 million of maintenance and maintenance expenses in the aluvial mine and purchase of intangibles and exploration projects for 1.1 million. The flow used for financing activities was mainly composed by the payment of dividends for 7.5 million and payment of financial obligations for 5.2 million. The box of the quarter closed at 81.3 million dollars with a decrease of 16% compared to the initial balance of the quarter when it was located at 96.4 million. Now let's look at the adjusted EBIT. This was located at 71.3 million at the end of the quarter, compared to 40.7 registered in the first quarter of 2024, representing an increase of 75%. This variation is mainly explained by the increase in income due to the rise in gold prices of 39% and the increase of 5% in gold sales. To close the financial part, let's move on to net debt. The decrease in net debt with respect to the same period of the year in 2024 is explained by a significantly higher cash balance. At the end of the quarter, loans and loans were 28.1 million, while the balance of cash and equivalents was 81.3 million. As we have mentioned in previous meetings, 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. This cash position meets our availability to meet our obligations and growth projects. With this, I return the floor to David, who will talk about operational indicators.

Thank you very much, Alan. Let's now move on to our operational indicators. The chart in this slide summarizes the operational performance of the last five quarters. As you can see, the total production of the first quarter had an increase of 5% compared to the same quarter of 2024 due to a higher production of 21% in Colombia, slightly contradicted by a lower production of 5% in our operation in Nicaragua. On the other hand, the cash cost had an increase of 22% due mainly to an increase of 19% in the sales cost, And the All In Sustaining Cost had an increase of 18%, mainly impacted by the increase in the Cash Cost. During the first quarter of 2025, the average selling price per ounce of gold reached $2,881 per ounce, registering an increase of 39% compared to the same period of the previous year. As you can see in the trend line of the chart, we continue to maintain highly attractive margins and the altist trend of the gold price has been translated to our average sales prices during the last five semesters. Let's now look at the performance of the operations. I invite our Vice President of Operations in Colombia, Santiago Cardona, and our Vice President of Operations in Nicaragua, Luis Fernando Villa, to present the details of both operations. Santiago.

Thank you, David. In Colombia, the production of the first quarter of the year was 23,000 ounces, which represents an increase of 21% compared to the first quarter of 2024. This is due to some major tenors and to a constant improvement that we have been doing on the recovery of gold. The All In Sustaining Cost per ounce of sold gold had an increase of 4% compared to the same period of the previous year, located at $ 1,295 per ounce due to some higher labor costs, services and maintenance, as Alan already described, compensated in turn for a decrease in maintenance capital costs. Brutal utility recorded an increase of 157%, up to 30 million dollars as a result of the largest gold production during the quarter combined with the increase in gold prices. As points to highlight in the operation in Colombia, we tell you that we started the negotiations of collective agreement with the syndicate, which is a process that is carried out every two years and that so far advances in a satisfactory way. We hope to reach an agreement that benefits both parties as has been achieved in previous years. It is also very important, at the end of the year 2024, an additional suction drag was added, which will improve the performance in the deck, which combined with the improvements that we have been making to improve availability and recovery, we hope will help us reduce costs in the operation and improve operational performance and better production. With this I end the presentation of the operation in Colombia and I give the floor to Luis Fernando Villa, Vice President of Nicaragua.

Thank you Santiago. In Nicaragua, the production of the first quarter was 31,000 ounces, registering a reduction of 5% compared to the 33,000 ounces produced in the same period of 2024. This variation is a reduction of 13% in the tenor of the processed mineral, which was greatly compensated by an increase of 10% in the tonnages treated, thanks to which we achieved a better operational disability and an increase in the yield per hour of the plants. The Olin Sustaining Cost per ounce had an increase of 27% due to the higher price of gold, which caused an increase in the purchase costs of the mineral to the artisanal miners. In terms of gross utility, this registered an increase of 57%, located at 29 million dollars compared to the 18 million registered in the first quarter of the previous year. Due to this, mainly to higher income for the higher price of gold. Also to highlight, at the beginning of April of this year, the negotiation of the labor agreement with labor unions, which will be in force for the next two years, ended in a satisfactory way for both parties, which will be in force for the next two years. With this, I conclude the results of Nicaragua and I give the floor again to David.

Thank you very much, Luis Fernando. Let's talk about our challenges and opportunities in which we will do a review of our growth and exploration programs. As for the exploration Cerca Mina in the first quarter of 2025, 2,420 meters were completed in 83 perforations. which is equivalent to approximately 25% of the company's original perforation plan. This focused on perforations for mesh closure within the current production area with 566 meters completed. Now, moving on to Nicaragua, in the face of the upcoming project, we can tell you that we continue to advance according to what is planned with the update of the resources and mineral recipes of the project. Also, regarding the Forvenir project, and as we reported to the market in the press release a couple of days ago, we received the permission for forest use for the Forvenir mine. This concludes the mine permit stage and now we will proceed to present the study of environmental impact for the processing plant. As a result of this permit, it means that we can start development work in the mine while we continue our high-tech engineering in the plant. It should be noted that, previously, reserves for 572,000 oz of gold, 1.9 million oz of silver and 379 million pounds of zinc have been reported for the future. In terms of exploration, the execution of 66,900 meters of diamond perforation is in strategic areas of our concessions, including areas where artisan miners work. This is aimed at strengthening the operational continuity of our production mines and considerably improving the classification of impoverished resources to indicated ones and improving the quality of our resources and reserves base. Of this plan, 49,300 meters will be in Brownfield, of which we have already executed 8,530 at the end of the quarter. In Greenfield, we are going to execute 17,600 meters and we estimate to start at the end of May. With this, our presentation concludes.

At this time, we would like to have the space for questions.

Well, we are going to give a couple of minutes while we are receiving more questions from the audience. And we can start with the first question that has come to us. And it is why the cash balance decreased by 96.4 million in the fourth quarter of 2024. to 81.2 million in the first quarter and we are going to join this question with another one that they ask us about the information of the increase in international debt accounts in the first quarter of 2025, which exceeded 25 million dollars.

Well, yes, these two questions have basically the same answer and The decrease in cash and the increase in bills to be paid follows the company's normal cycle. There are always some variations between the end of the year, especially in bills to be paid, and the beginning of the following year. So, in this case, We had that decrease for some accounts to be paid at the beginning of the year and also tax payments that are made in the first quarter. Additionally, because we don't have the cash, we have increased our accounts for charging in almost 34 million dollars. It's also a matter of time. Our clients pay us between 7 and 21 days and these accounts for charging are following the correct days of recovery. They have increased by an increase of 5% in sold ounces and also by a huge increase.

Thank you, Alan. We continue with the next question. They say, good morning, thank you very much for the presentation. I would like to know what is the vision of the company's growth under the new administration and the new shareholders. Will it be done through organic or inorganic growth? Additionally, in what period of time could we expect this growth?

Thank you very much for the question. As everyone knows, the first thing we are going to do is to look internally at the operations, improve performance, to look at the costs and also improve the costs in both operations. That is the first task that we have to do. Second, as you all know, the exploration near the mine is the one that improves the results it produces. The deposits will always find where there has already been a mine in operation. That is the first thing we are doing and that is why we are increasing exploration in both countries this year. And then, obviously, every time there is an opportunity to acquire a project that is close to operation or already in operation, if it adds value to miners, we will look at it and consider either acquiring deposits or an M&A.

Thank you David. Next question. They ask us what percentage of the price of the gold spot is paid to artisan miners in Nicaragua?

This depends a lot on the tenor that the artisan miner sends us and on the plant to which it is sent. However, on average, it is paid between 40 and 45 percent of the spot price.

Well, next question.

Good morning, first we will facilitate with the results. Do you currently have coverage or are you still exposed to gold?

And give him the welcome. Currently we are still exposed, we do not have coverage.

Thank you very much for the welcome. Next question.

Congratulations to the team for the results presented. At the beginning of the presentation, the resumption program was mentioned. Is there any estimated date for the start of its execution?

No, we are still in the process of analyzing the best way to do the resumption and once we have that finalized and approved by the board, we will announce the dates.

Next question, how does the administration perceive the initiative that the Ministry of Finance is leading to increase the retention of the source from 1% to 2.5% in gold purchases carried out by the International Commercialization Society?

And how can this measure affect the company?

Well, this is an effect that it has for Colombia. In principle, there was an impact on the box for approximately 3 million in the box, which would be recovered later. We must also make it clear that we are not marketers, so it is important that we are reviewing the impacts. We are still in a bill and reviewing it with the... that we carry out with the Colombian Association of Mining to see the impacts, not only to our company, but also to the mining guild here in Colombia.

Thank you, Santiago. The next question is about the reduction of total free cash with respect to the closure of CUC4 in 2024.

This is the answer at the beginning. At the end of the year, due to closure issues, the accounts for payment increase a little. In the first quarter, these accounts are paid for payment. In addition, taxes are also paid. Additionally, our accounts for payment increased and that increase will be seen in the box when they are recovered. We are in the right time to recover these accounts for payment.

Thank you, Alan. I will continue with the next question. Thank you very much for the presentation and the results. Do you consider that the alcista dynamic in the price of gold will be preserved for longer?

What are your perspectives on the subject? Thank you very much for this question. We are not really analysts, we are operators and it is very difficult to say if this will continue. Let's say that from the point of view of everything that is happening worldwide, it is expected that this can continue, that the rise can continue for the next two or three years. Thank you David.

The next question is about the depreciation and amortization expenses and provisions in the quarter, if we can give a little more information about these numbers.

Of course, the depreciation and amortization expenses for the quarter were 11 million dollars and the provisions were 3 million dollars.

Thank you, Alex. Next question. Thank you very much for the presentation. I would like to know what expectations of growth do you have about the exploratory spending and how much do you expect this to be reflected in future production?

Congratulations on the results. Thank you very much. As I said at the beginning, exploring Cercamina offers much better results because we are going to find the deposits where we have already found other deposits, and that is the experience at a global level, that deposits are always found next to where we are mining. So, if we explore Cercamina, The perspective is that we are going to increase the reserves, we are going to increase the life of the mine, particularly in Nicaragua where we have to define our reserves for the future.

Thank you David. Next question. Taking into account the extraordinary revenues that we could see throughout 2025, is there any policy of extraordinary dividends that is activated with these extraordinary revenues? How do you see the company's market cap with these conditions?

As you know, the dividends are approved in the Assembly. The dividends have already been approved for this year. It is 10 cents per share. We have to wait until next year to see how the Assembly reacts to such an extraordinary dividend.

Thank you, Alan. Here we have a message of congratulations to the team, to highlight the reduction of the consolidated ISC from 1,775 to 1,685 shows the good management and commitment of the administration.

And really the purpose of all of us here is to be sure that we have discipline in the expenses and that the performance of our production, obviously, improve the production results that directly affect the costs.

Thank you David.

I continue with the following question. Can you provide us with some color on the decrease in degrees in JEMCO? Should we wait for this situation to continue for the rest of the year?

This is associated with the prices of gold. As the price of gold goes up, the lower-grade mineral becomes much more attractive. And at this moment, for artisan miners, it is very attractive to sell the stockpiles of low-law mineral.

Thank you David. Next question, congratulations on the results. When do you expect the complete financial statements to be published?

The financial statements were published yesterday afternoon.

There you see them complete. Thank you.

Next question and again we receive congratulations for the results and the solid financial position of the company. What is the amount of the free cash flow for the first quarter of the year and what was its variation with respect to 2024?

The free cash flow for the first quarter was negative 1.1 million dollars. Last year it was negative 1.9 million dollars.

Thank you, Alan.

The next question, and we also received it with a message of congratulations for the results. Would you like to know what is expected in the face of the contingency of taxes in Nicaragua? And if an adjustment has been made and now that ad valorem is paid, how is the situation of illegals in Colombia and particularly in the titles of the company?

Let's get Isabel to answer this question, please.

Well, it seems that ANA has connection problems. As for the situation of Valorem and DGI, we are in the different instances of the appeal, the legal appeal with the Nicaraguan government. We have to wait for the results to arise. We believe that we are on the right track.

Regarding the question of how the situation of illegals in Colombia continues, in general, the situation of illegal extraction in the country continues to grow, and we review this in light of the high price of gold. The high price of gold allows, as David explained in Nicaragua, to enter areas whose tenor or degree is lower and therefore there is a growth of this informal, artisanal and illegal mining and our situation is not alien to it and for that we are doing our formalization programs, increasing activity with environmental authorities, mining authorities to increase our formalization program and bring more miners to legality.

Thank you.

In the face of the favorable performance of the production of silver, do you plan to find more projects of this mine?

Really, Mineros has traditionally been a gold mine and we will continue in that direction, exploring for gold. We will find deposits that come combined with gold or copper, but we definitely continue to explore for gold.

In addition, they ask us what expectations we have on oil prices.

I think we already answered this a little bit. We are not analysts, we are operators, but looking at what is happening at the global level, we predict that it will continue to rise.

Perfect, thank you very much. We are going to give a couple of seconds if we have any other additional questions. Well, with this, there are no more questions.

Well, they ask a question here, what is the estimated life of the mine for the Aluvial operation in Colombia and if there is any project or activity to increase the life of this one. I'm going to pass it to Santiago to answer this question.

Well, we have resources and reserves for approximately 10 years in the titles that we currently have in force. We are exploring, as David explained, now in the perspectives of mesh closure and verification and change in the quality of resources and reserves, but we also want, and this is the line that David was talking about, to explore the mine closer, so we are going to do some programs possibly in the second semester and next year to look for, within our titles, to increase resources and reserves, therefore future operations, and we also have projects close to our area of influence, the Bagre Nechi, in the population of the Caucasus. We are also looking at and implementing exploration campaigns precisely to continue to increase the life of this alluvial operation.

It is nice to see such good results from such an important company, congratulations. And they ask us the following question. I would like to know what is the projection regarding the exploration and exploitation of polymetallics in Colombia.

Thank you very much for the question. As I said before, Mineros has traditionally been a gold operator, a company that mines gold. we will continue to explore for gold, particularly in the vicinity of Salvagre, as Santiago mentioned, but as we know, if we operate in Colombia, we know how to operate in Colombia, very likely in the future we would be willing to continue exploring for gold in Colombia.

Thank you. Next question about the LAPEPA project. How is the project going to advance in Chile?

Good afternoon, as you know, we own 20% of the PEPA project in Chile. The majority owner is Pan American Silver and we are always in contact with them to see what is going on with the project. When we have new communications with them and something material happens, we are communicating.

Thank you, Alex. Next question. He asks us about the state where the renewal of permits is in Aluvial, Colombia.

Well, as you know or I remind you, we have a PMA, an environmental management plan approved for all our RPP titles and the request for new use of resources permits is done dynamically and step by step every time we move our operations, by the same dynamic nature of the same. At the moment, we have permits until the beginning of 2027, which gives us flexibility in the operation, but we have also been developing a viability strategy in other areas of our titles and other titles, also with the regional authority with Antioquia and increasing our formalization programs through that viabilization. We are also about to finish the studies and engineering to request new extensions to our permits that we will be informing later.

Thank you, Santiago. The next question is about the mining life, both for Nicaragua and Colombia.

As we all know, the LOM is a document that is alive, it is changing, it is being optimized every year. Right now, for Colombia, we have 10 years in the plan. In the same way, for Nicaragua, we also have approximately 10 years with artisanal miners.

Thank you, David. Next question.

First of all, congratulations on the results. My question is, if the price of gold changes, what is the optimal price to not put the current operation and future investments at risk?

The optimal price is always the highest, obviously, but at this moment we have to focus on maintaining costs and performance in the operation.

Thank you.

Here they write to us, the action increases by 10% with these excellent results. Congratulations.

Well, this is the last question. Thank you all for attending and thank you very much for all the questions you asked us and we hope to see you here in the next meeting.

I hope you all have a good day and a good week.

Thank you very much. We are about to finish today's conference.

Thank you for participating. You can disconnect now.