Mineros S.A.

Buenos días y bienvenidos a nuestra presentación de resultados financieros y operativos de Mineros S.A. correspondientes al segundo trimestre del año 2025. Mi nombre es Diana 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 tengan cuenta que esta teleconferencia está siendo grabada. favor de considerar que la teleconferencia del día de hoy se llevará a cabo en español con interpretación simultánea en inglés. Le recordamos que si tienen dificultades para visualizar la diapositiva en la parte web, maximicen la ventana llamada diapositivas. A partir de este momento, le cedo la palabra a Juan Camilo Bando, director de relación con inversionistas. Señor Juan Camilo, tiene usted la palabra.

Muchas gracias y muy buenos días para todos. 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. We remind you that this call may include prospective information. The real results may vary due to the risks inherent to mining. During this presentation, we will refer to various financial metrics that are not standards according to NIFO. For a detailed explanation of these measures and their calculation, you can consult section 10 of our MD&A available in the investors section under the financial reports menu on our website. Today, David Londoño, CEO of Mineros, Sergio Chavarría, Financial Manager, Santiago Cardona, Vice President of Colombia, and Nivaldo Díaz, Technical Vice President of Business Development, Manuela Botero, Legal Director, and additionally, David Splett, CFO of Mineros, Luis Fernando Villa, Vice President of Nicaragua, and Ann Wilkinson, Vice President of Relations with Investors. With this, I give the floor to David Londoño, CEO of Mineros.

Thank you, Juan Camilo. Good morning and thank you for joining us today. In today's conference, we will present the most outstanding aspects, followed by the financial results of the quarter, our operating results, a review of each operation, and finally, what are our challenges and opportunities. Let's start then with the relevant facts. For the second quarter of 2025, we highlighted our gold production of approximately 54,000 ounces. This performance reflects the operational consistency of our mines in Colombia and Nicaragua, reinforcing our continuous effort to maintain stable and reliable production levels. Our gold production reached 108,150 ounces during the first six months of the year, This represents an increase of 3% compared to the 105,000 ounces that were produced in the first semester of 2024. But what is most important is that this production was safely achieved. As for our silver production, we produced a little more than 70,000 ounces in the second quarter and during the first six months we achieved a production of about 148,000 ounces. We paid dividends for a amount of 7.5 million dollars in the second quarter and in the course of the year we have paid a total of 14.9 million dollars. We also want to highlight that in the second quarter we ended negotiations with the unions of Nicaragua and Colombia. Thanks to constructive dialogue, we have signed labor agreements that reflect our commitment to the creation of shared value and that will be in force for the next two years. As for our exploration and growth programs, we have had significant advances both in the Guillermina deposit and in the project to come. Likewise, Recently, we announced the acquisition of 100% of the PEPA project in Chile, in which we already had a participation of 20%. This transaction was achieved through the purchase of the remaining 80% to Pan American Silver. Later, we will provide more details about this acquisition. Finally, we continue to advance in the restructuring of the stock purchase program. As we have already mentioned, the shareholders' assembly approved on March 31 a resolution proposed by the shareholders that authorizes the company, at the discretion of the board, to buy back its shares up to a total amount of a maximum of 12 million dollars in a period no longer than two years, that is, until March 31, 2027. This approval granted our directives the flexibility to carry out one or more re-acquisition offers at their discretion, subject to the rules and regulations applicable in Canada and Colombia. Currently, we are advancing in the design for the implementation of the program and we will be announcing in a timely manner to the market any news about it. As we will see later, our great operational performance is directly translated into excellent financial results. These results not only reflect our efforts focused on operational efficiency and the solidity of our mines, but also our capacity to generate value consistently and safely. We are very optimistic about the company's direction and we will continue to work to maintain this growth and success center. We now move on to review the behavior of gold. During the second quarter of 2025, the price of gold continued to show a positive performance. The closing price of the quarter was $3,303 per ounce, which represents an increase of 6.1% compared to the closing price of the first quarter of 2025, which was $3,113 per ounce. The average price for the quarter was $3,289 per ounce. This behavior is reflected in our results and we will continue to work to maintain attractive margins in our operation. With this, I will give the floor to Sergio Echavarría, who will explain our financial results.

Thank you, David. Good morning. Let's start with the state of the results of the quarter. Let's remember that the figures are expressed in millions of US dollars. In the second quarter of 2025, our income grew significantly, by 37%, totaling 180 million. The main catalyst was the 42% increase in the average price of gold sales. Although silver sales decreased by 68%, the consistent gold production in Colombia and Nicaragua, as David highlighted, and our cost discipline, were key to achieving these results. The cost of sales increased by 17% due to the fact that the higher prices of gold increase the costs of buying minerals from artisan cooperatives by 14 million, higher taxes by 783,000 and higher payroll expenses, including 576,000, as a result of the signing of the agreement with the trade union in Colombia. Brutal utility and adjusted EBIT increased by 81% and 66%, respectively, thanks to the increase in income. And net utility had an increase of 141%, at $43 million, compared to $18 million of utility reported in the second quarter of 2024. The net cash flow was positive and totaled 45.1 million against the negative balance of 6.8 million from the same period of 2024 and is obtained after discounting the net cash flow generated by operations, the payment of dividends for 7.5 million and the capital savings for 6.5 million. In this slide, we have the accumulated financial results of the year with a cut to June 30, 2025. The company's revenues recorded an increase of 39%, reaching 343 million, mainly due to an increase of 41% in the average price of gold sales, a growth of 3% of the ounces sold, partially compensated with a decrease of 59% of silver sales. Sales costs increased by 18% during the semester, mainly due to higher purchase costs of craft materials for the higher prices of gold, which is equivalent to an increase of $23.6 million. On the other hand, gross utility and adjusted EBITDA record increases of 86% and 70%, reaching $139 and $153 million respectively. thanks to higher revenues that were partially compensated by the increase in sales costs. Finally, net utility had an increase of 134% during the semester, going from $34.9 million in the six months of 2024 to $81.5 million at the end of the semester. Let's now look at the adjusted EBITDA. This was 82.3 million at the end of the quarter, compared to 49.6 million registered in the second quarter of 2024, which represents an increase of 66%. This variation is mainly explained by the increase in income thanks to the rise in the price of gold. This remarkable performance also underlines our discipline in cost control and operational efficiency, We have maintained a rigorous focus on the optimization of costs and processes, allowing us to maximize the impact of favorable gold prices and ensure sustained profitability, which, as you can see, has been maintaining a growing trend over the last few quarters. Finally, let's move on to cash and net debt. The net cash flows of the operations represent income from the sale of gold, silver and electricity for 196 million, minus payments to suppliers for 91 million, payments for salaries and benefits to employees of 20 million and payments of taxes for 25 million. The cash flow used in investment activities includes purchase of property, land and equipment for $19 million and exploration projects for $2 million. On the other hand, the flow used for financing activities was largely composed of the payment of dividends for $7 million and payment of financial obligations for $5 million. At the end of the quarter, loans and loans were 25.6 million, while the balance of cash and equivalents was 109.7 million, leading to a net debt position of less 86 million. This figure represents an important improvement compared to the 2 million registered in the same period of 2024. As part of our financial strategy, we maintain a solid cash position, This allows us not only to fulfill our obligations, but also to be ready to take advantage of growth opportunities as they arise. With this, I finish the review of the financial results and return the floor to David, who will talk about operational indicators.

Thank you very much, Sergio.

Let's now move on to our operational indicators. This graph summarizes the operational performance of the last five quarters. As you can see, the total production of the second quarter had a stable and consistent behavior compared to previous quarters, a reflection of our operational discipline. In terms of costs, the cash cost and the all-in-sustaining cost had an increase of 28%, mainly explained by the increase in sales costs. associated mainly with the purchase of mineral from artisanal mining. During the second quarter of 2025, the average selling price per ounce of gold reached $3,313, registering an increase of 42% compared to the same period of the previous year. We see how we have maintained attractive margins by effectively transferring the increase in the price of gold to our sales prices during the last five quarters. This, added to our operational discipline, has significantly improved our income and our profitability. Let's now look at the operations. I give the floor to Santiago Cardona, Vice President of Colombia, who will present the details of the Bagre operation and, later, Luis Fernando Villa, Vice President of Nicaragua, who will present the details of the GEMCO operation.

Thank you, David. In Colombia, we achieved a production of 21,000 ounces during the second quarter of the year, which represents an increase of 1% compared to the same period of 2024. This growth, although moderate, reflects our operational capacity to maintain stability, even in the face of technical and socio-political challenges. In operational terms, we increased the volume of processed material, which partially compensated for a slight reduction in the tenors and recovery levels, allowing us to maintain a solid performance in our operation. The Olin Sustaining Cost had an increase of 19% compared to the same period of the previous year, at $1,560 per ounce, due to the natural increase in labor costs, as well as higher operating contract costs and taxes and royalties. These two last concepts impacted by the higher price of gold. In addition, we highlight the following aspects in the operation. The signing of the new collective labor convention, as David previously reported, which will run between May 2025 and May 2027. strengthening labor stability and relations with our workers. The entry into operation and setting up of the Aurora plant, currently in the stabilization process, which represents a key step in our growth strategy and continuous improvement in productive capacity. Advance in projects related to the improvement in the recovery of gold and optimization of our processes. 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 second quarter was 33,000 ounces, very similar to the production of the second quarter of 2024. We saw an increase of 7% in processed tons, thanks to a better... Thank you, Santiago.

It seems that Luis Fernando has problems Let's continue with Fernando.

Let's look at the presentation from Nicaragua. Let's replace Luis Fernando. In Nicaragua, as you can see in the graph, the production of the second quarter was stable and recorded 33,000 ounces, very similar to the production of the second quarter in 2024. We had an increase of 7% in tonnages processed during the quarter, thanks to a better operational availability and an increase in the yield per hour of the plants, which compensated for a decrease of 5% in the tenors. The Olin Sustaining Cost had an increase of 33% due to the higher price of gold, which caused an increase in the costs of buying minerals from artisan cooperatives. In the lower right-hand table, we can see the costs in relation to industrial and artisan production. During the second quarter, 59% of the total costs correspond to artisan production, which in turn represented 82% of the total produced in Nicaragua, with 27,000 of the 33,000 ounces produced. Some relevant issues. Also in Nicaragua, during April of this year, the signing of the collective agreement with the trade unions was achieved, which will have the same validity for two years. Additionally, aligned with the company's growth strategy, the board approved an initiative that will seek to expand GEMCO's processing capacity by 20% for the beginning of 2028. going from 2,000 tons to 2,400 tons per day. With this, I conclude the results of Nicaragua and I give the floor again to David. Thank you, Santiago.

Let's talk about our challenges and perspectives. I want to talk a little about our corporate strategy in the face of changes in the administration and the action composition that we have had over the last few months. The ingredients for our success will be based on several strategic pillars that project us towards the future. We have a very experienced management and executive team that will guide us in this new stage of growth. We maintain a solid financial performance, which gives us the ability to invest and expand. Our business strategy is robust, designed to identify and capture new growth opportunities. and, fundamentally, we will continue to strengthen our social distance to operate, ensuring that our presence in Colombia and Nicaragua continues to generate shared value, without conflicts and with the support of the communities. Our vision for the future incorporates the use of our potential for exploration, the optimization of our operations, ensuring that our growth is sustainable and, therefore, our strategic focuses will be focused on accelerating exploration, a constant improvement in operational excellence, always within the framework of our commitment to responsible and safe mining. We will also be focusing efforts towards inorganic growth, looking for smart investments that generate value for the company and its shareholders. Let us now move on to review our growth and exploration programs. As for the exploration near the mine, it focuses on the Panama and Pioneer Mines in Nicaragua, which are currently in production. During the second quarter of 2025, a total of 10,862 meters of diamond perforation were completed in 71 wells, reaching approximately 65% of the 2025 perforation plan. We are updating the resources and mineral reserves of these mines and we hope to publish them by the beginning of 2026. Regarding the upcoming project, we can tell you that we continue to advance according to the plans with the update of the resources and mineral reserves, seeking to maximize its value with the optimization of the pre-factibility study scheduled for the end of 2025. And as we announced recently to the market, we have obtained the forestry use permit required to start the construction phase of your underground mine. This approval allows you to start site preparation and underground development work. It is worth clarifying here that the permit specifically covers mining activities. On the Guillermina depot, on July 24, we announced its initial estimation of mineral resources, which includes mineral resources indicated by 30,000 ounces of gold and mineral resources inferred by 55,000 ounces. Mineralization in the depot remains open, which suggests a potential for expansion as the exploration work continues. The 2025 preparation campaign began in July and continues in progress with 2,000 meters planned. It represents a promising opportunity that could significantly contribute to the future development of the project to come. Let's talk now about the PEPA in Chile, and as announced on August 11, Mineros adquirirá de Pan American Silver su participación del 80% en el proyecto La Pepa por 40 millones de dólares. Con esta transacción, nuestra participación en el proyecto ascenderá al 100%. Se espera que esta adquisición se complete a más tardar el 30 de septiembre del 2025. This project represents an important opportunity in the exploration stage for miners in Chile, with a promising mineralization and plans for greater development. The acquisition gives us exposure to a third mining jurisdiction, which strengthens our asset diversification strategy and increases our inventory of reserves in a country with a wide and established mining history and a very favorable environment for the industry, with the presence of several multinationals in the sector. With this acquisition, we are expanding our strategy to include projects in earlier stages that will allow us to develop a portfolio of growth projects as we mature as medium-level gold producers. Now moving on to our cost estimates, as we had informed in our first quarter call for results, we have been following our cost guidance in view of the variations in gold prices with respect to the prices that were assumed during the budget. We have observed how our initial estimates, published at the beginning of the year, do not reflect the current reality of metal prices, which, as we have seen throughout this presentation, has presented an important increase during the year, so the guide for 2025 for the cash cost and the all-in sustaining cost has been adjusted so that it better reflects the market consensus estimates for gold prices during the rest of 2025, which exceed 3,000 dollars per ounce. It is important to highlight that this update only corresponds to our cost estimates and does not affect production estimates, which are maintained in accordance with what is presented to the market at the beginning of this year. In this way, we are modifying our estimation of our cash cost, going from a consolidated range of between $1,340 and $1,430 per ounce to a range of between $1,560 and $1,660 per ounce. And in terms of Loading Sustaining Cost, we went from a consolidated range of between $1,650 and $1,750 per ounce to a range of between $1,890 and $1,990 per ounce.

Finally, we want to tell you about some changes in the direction.

We welcome David Splett, our new CFO, who joined the group on July 22 of this year. David is a graduate in economics and administration and public accountant. He has more than 35 years of experience and a trajectory demonstrated in the creation of value and success in financial and operational roles in basic and precious metals, industrial minerals, oil and gas. Additionally, we had a change in our vice president of human talent and we welcome Edilia Diosa, who joined the company on July 3 of this year. Edilia. is an industrial engineer with an MBA and more than 18 years of experience in positions of strategic leadership in human management in companies in the mining, agro-industrial and services sectors. The incorporation of David and Adilia Mineros represents an important step to continue advancing in the strategic objectives of our