Mineros S.A.

Mineros Financial reporting and operating results for the third quarter of 2025. My name is Diana and I will be the operator for today's call. In this moment, all participants are in listening mode. At the end of the presentation, there will be a Q&A session in the web platform only. Please keep in mind that these presentation of results is being recorded. The presentation of today will be mainly held in Spanish with simultaneous interpretation into English. We remind you that if you have any difficulty when seeing the slides, you may maximize the window called slides. From this moment, I give the floor to Juan Camilo Obando. He is the Director of Relationships with Investors and Insurance Companies. Mr. Juan Camilo, the floor is yours. Good morning and welcome to Mineros Financial and Operating Results for the third quarter of 2025. My name is Juan Camilo Obando and I am the investor relations manager. The original language of this call will be Spanish. However, if you wish to listen to it in English, please follow these two steps.

First, identify the box that says Please remember that this call may include forward looking information.

Actual results may vary due to inherent risks in mining. During this presentation, several financial metrics that are not standard under the IFRS will be referenced. For a detailed explanation of these measures and their calculation, please refer to our section 10, our MD&A available in investor sections under the financial reports menu on our website. Joining me in the room today are David Londoño, CEO of Minero, David Splett, CFO, Sergio Chavarría, Financial Manager, Santiago Cardona, Vice President of Colombia, and Nivaldo Diaz, Vice President of Nicaragua, and Isabel Gaviria, Vice President, Legal and Sustainability, and additionally, joining us by phone is Anne Wilkinson, Vice President of Investor Relations. I'll hand the floor to David Londoño. Good morning, and thank you for joining us today. During today's call, we will present the key highlights followed by the quarter's financial results, our operational performance, a review of each operation, and finally, our opportunities and outlook. For the third quarter of 2025, we delivered a solid gold production nearing 55,000 ounces. This figure underscores the operational consistency of our assets in Colombia and in Nicaragua, which is key to achieving stable production. We emphasize that this growth has been accomplished while always maintaining safety as the top priority in our operations. Gold production stands at 163,000 ounces for the first nine months of the year. This represents a 2.5% increase compared with the 159,000 ounces reported for the same period in 2024. We had a record net income which reached 54 million for the third quarter and accumulated net income year to date of $136 million. We generated positive free cash flow of $62 million in the third quarter and a total of $106 million in net free cash flow for the first nine of 2025. We concluded to the share pay buyback program that was approved earlier this year by the shareholders general assembly and subsequently by the board of directors. The company repurchased a total of 3.9 million shares at a price of 12,000 Colombian pesos. This operation finished on September the 12th. Finally, we acquired 80% of La Pepa Project from Pan American Silver Corporation. This transaction of 14 million grants us 100% ownership of this gold exploration asset in Chile, providing us full control over its future development plan. As we will detail next, our excellent operating performance directly translates into strong financial results. These achievements reflect our discipline in operational efficiency, the strength of our assets, and our ability to consistently and safely generate value. We maintain a very optimistic outlook for the company and remain committed to sustaining this trajectory of growth and success. I will now hand the call over to David, who will discuss the financial performance for the quarter. Thank you, David. Good morning. Let us begin with the income statement for the quarter. As a reminder, all figures are expressed in millions of dollars. In the third quarter of 2025, the company achieved significant revenue growth of 39%, reaching a record figure of $196 million. The main driver of this result was a 40% increase in the average realized gold price. Consistent gold production in Colombia and Nicaragua coupled with our strict cost discipline, were fundamental to these results. Our gross profit saw an increase of 49%, reaching a record figure of $82 million. And net income stood at $54 million, representing 90% growth. This implies a significant advance versus the $29 million reported in the third quarter of 2024. in terms of liquidity, net free cash flow was approximately $63 million. This result is calculated after covering the payment of 7.5 million in dividends, 7 million in sustaining capital expenditures, and 0.4 million in interest payments. The cost of sales increased by 33%, primarily because the higher gold prices are reflected in the greater cost of purchasing ore from artisanal cooperatives, in addition to an increase in depreciation and amortization. On this slide, we present a summary of our financial results through the end of September 30, 2025. The company's revenue grew by 39%, totaling 538 million. This solid increase was primarily driven by a 40% increase in the average realized gold price, coupled with 2.5% growth in gold ounces sold. We achieved significant profitability expansion. The gross profit and adjusted EBITDA registered increases of 70% and 59% respectively, reaching 221 million and 244 million. Net income experienced 114% growth during the first nine months of the year, increasing from 63.4 million in the same period of 2024 to a record figure of $136 million at the close of September 2025. the cost of sales increased by 23% during the first 90 months of the year. This is primarily attributed to the higher cost of purchasing material from artisanal miners' cooperatives due to the increased gold price in addition to higher taxes and royalties. Let us now look at the adjusted EBITDA. This key indicator reached a record figure of $90.3 million at the end of the quarter, representing an increase of 44% compared to the 62.9 million registered in the Q3 from 2024. This expansion is directly attributable to strong revenue growth, primarily driven by the favorable increase in gold prices. Finally, let's review the cash position. Net cash flows from operating activities generated $204 million from the sale of gold, silver, and electricity. This was after payments to suppliers totaling 103 million, employee salaries and benefits payments for 15 million, and tax payments amounting $11 million. Cash flow utilized. in investing activities was allocated to purchases of property, plant, and equipment totaling $16 million and strategic investments in intangible assets and exploration projects of $45 million. Regarding the cash used in financing activities, the main components were dividend payments of $7 million, and the amortization of financial obligations totaling $9 million. Our current credit and loans balance stood at $17.6 million, while the cash and cash equivalents balance was $102.2 million, a highly significant figure despite the capital expenditures incurred during the quarter, including the La Pepa acquisition. With this review, I will now turn the floor over to David, and this finalizes our operational indicators. Who will present the operational indicators? Thank you so much, David. Let us now discuss our operating indicators. This chart summarizes our operating performance over the last five quarters. As you can observe, the total production for the third quarter remained stable and consistent compared to previous periods. This is a direct reflection of our strong discipline and operational execution across all our assets. As clearly visible on the green line, The average realized gold price per ounce in the third quarter of 2025 reached $3,464, which represents a significant 40% increase compared to the same period last year. We emphasize that our margins continue to show a positive trend, and here we can see graphically how the gap between our average realized selling price and our costs continues to widen, indicating continuous margin improvement. On the cost front, we registered an increase of 38% in cash costs and 34% in AISC, which stood in $1,704 and $1,982 per ounce respectively. This increase is primarily explained by the rise in the cost of sales, largely associated with the purchase of ore from artisanal mining in Nicaragua, as David mentioned that before. I will now turn the floor over to Santiago Cardona, our Vice President of Colombia, who will present the results and details of our alluvial operation. Following that, we will continue with Inivaldo Diaz, who recently assumed the Vice Presidency of Nicaragua and who will offer us a comprehensive overview of GENCO operation. Thank you, David. In Colombia, we achieved a production of 23,000 ounces during the third quarter, which represents a 16% increase compared to the same period in 2024. This growth was primarily driven by lower dilution and the optimization of overburden removal and the hydraulic level control of the pit. The AISC per ounce of gold sold increased by 13%, reaching $1,573 per ounce. This is primarily due to the increase in gold prices, which directly impact the cost of operating contracts. In our formalization contracts, more taxes and royalties related to this price. Also, the increases associated with the year-over-year change. Additionally, during the quarter, we saw the commissioning of the Aurora plant contributing to our growth strategy and technological renewal aimed at optimizing recovery in our operations. Finally, our occupational health and safety indicators continue to report very low values. highlighting our safety performance. This is the result of our robust and effective prevention culture and demonstrate that safety is a core value and a pillar of our operational excellence. With this, I conclude the presentation of our operations in Colombia, and I will now turn the floor over to Inivaldo Diaz, Vice President of Nicaragua. Thank you, Santiago. In Nicaragua, Q3 production remains stable, registering 32,000 ounces. This figure is 5.4 below the production from the third quarter of 2024. This variation is primarily due to a 9.5% decrease in tons milled, though it was partially offset by a 4.6% increase in the process grades. Of the 32,000 ounces produced, 83% originated from the artisanal production. Consequently, 58% of the total cost for the third quarter is directly associated with this artisanal output. The AISC recorded a 52% increase. 80% of the increase of the AISC is due to higher purchases from artisanal mining, 26% above, compared to the same quarter from last year, which is explained by the prioritization given to artisanal mining over the industrial mining. the feed blend shifted from a 55% artisanal, 45% industrial mix in the Q3 of 2024 to a 20% artisanal, 30% industrial mix in the Q3 of 2025. Adding to the higher purchasing volume is the price effect, which is 40% higher in Q3 2025 versus the same period in 2024, leading to a greater volume of purchases in 26% and 40% higher price. Finally, in July, the decision was made to begin stockpiling high-grade ore purchased from artisanal mining for a special processing at the Besmisa plant, This required upgrades, including replacement of the cone crusher, major repairs to the agitation tanks and other circuit adjustments. The plant was shut down for nearly one month, affecting quarterly operational costs and production. By September, we began achieving the anticipated results. The ore inventory generated at the stockpiling pads amounted to 5,604 ounces, of which 4,527 ounces are from the artisanal mining and 1,077 ounces are from industrial mining. The benefit of this initiative to batch process the high-grade material is the increase of metallurgical recovery by enhancing the residence time and reducing the gold content in the leach tails. With this, I conclude the results for Nicaragua, and I turn the floor back to David. Thank you very much, Nivaldo. Let us now discuss our opportunities and outlook. I want to start by highlighting the solid progress in near-mine exploration, which is crucial for the future sustainability of our operations. During the third quarter of 2025, we completed a total of 9,806 meters of diamond drilling. This brings our year-to-date cumulative total to 29,252 meters, maintaining an excellent pace of exploration. Moving to the PORVENIR project, we continue working to advance on the following key stages. We are proceeding with the update of the pre-visibility study that will be finished by the end of the fourth quarter. Operating and capital costs within the project's financial model are currently being updated. In parallel, we are in the process of reaching an agreement with the community and authorities to define an environmental compensation plan. This is a fundamental step for the submission of the environmental management plan for the process plant. The greenfield exploration campaign focused on new discoveries began drilling in July 2025 and currently we have three drill rigs operating on site. We have completed 6,688 drill meters during the year. Finally, regarding the La Pepa project, as we mentioned earlier, we have completed the acquisition of 100% of the project. We're currently focusing our team's efforts on advancing the exploration plans, which we expect to commence next year. 2025 has represented a key period of strategic consolidation for Mineros, characterized by a substantial transformation and the establishment of unprecedented financial milestones. These achievements reaffirm the robustness of our strategy and our unwavering commitment to generating sustainable value for our stakeholders. From a financial perspective, management has demonstrated operational excellence. Productive discipline has ensured a stable and safe operation driving the achievement of record revenue at the corporate level. This operational efficiency has directly translated into a significant increase in profitability, materialized as a record EBITDA, record net income, and an outstanding generation of free cash flow. We have maintained a stable dividend program, and we have observed the market validating our execution, which has resulted in a very positive share performance during the year. On the corporate front, we have worked to secure the foundation for future growth. We have successfully completed the redefinition of the corporate strategy, providing a clear framework for the next phase of growth. We executed the share buyback program, thereby returning additional capital to shareholders and significant operational progress has been achieved, highlighted by the commission of our Aurora plant. Our geographic expansion strategy is consolidating with the total acquisition of the La Pepa project, integrating a new high potential jurisdiction into our operations. Finally, we continue to invest in our exploration pipeline with important advancements in greenfield exploration and in the development of the Port Renier project, ensuring long-term sustainability of our operations. This concludes our presentation. We would like now to open the floor for questions. From this moment, we will start the Q&A session. If you have a question, please write it in the Q&A field in the web platform. We will not receive questions by any other means. Questions in English will only be received in the Q&A box of the webcast. Thank you so much. Let's start with the Q&A session. First one comes from Lucas Carvajal, and he asks, why is it possible to have a debt in the company if the most attractive part of the company is a very healthy balance? So the opportunity of financing was open, and we decided that... to try the market for that. We have to have enough cash flow when an opportunity comes. And that opportunity is now. Unfortunately, when we were going to get the market or go to the market, the conditions were not favorable. We obviously have a plan to grow as a company. And we have this journey to grow at 300,000 ounces per year and even more in the next three years related to the investment with Camporvenir and Eluvial as well, in Hemco as well. And we are going to invest 200 or 300 million dollars related to this plan for growth organically, for growing organically. And also we want to maintain maximum liquidity if there is a chance to buy an asset or to buy a mine or something that is attractive. But we still need to identify that opportunity. Thank you so much. Next question comes from Mr. Simone Londoño. Good morning. Thank you so much for the presentation and congratulations for the results. Would you consider the possibility of starting a new buyback program? Thank you so much for your question. That's a decision made by the assembly. We are open for this decision from the assembly. And also there's another perspective from the previous point. We want to grow this company in the gold production. And it is feasible that this growth has more value for the shareholders, even more than the dividend. So our preference is to maintain the dividend in about 30 million per year and maximize the growth plan of production. Thank you so much. We have two more questions from Mr. Justin Chen. Could you please inform us the schedule for the final decision about ? If the pre-visibility study is presented in the next year, will you have a definite study before approving the pre-project? Or the feasibility project is enough so the assembly approves that project? Thank you, Justin. I would like to start first by saying that we are finishing the previsibility study. We will finish that in December at the end of the fourth quarter. And this will give us the possibility to perform a feasibility study that is going to be quite fast because this pre-feasibility study is the second time it is performed. It has more details. It is almost a feasibility study. We only have to work on a detailed engineering so we can make that decision. I think that we're going to make that decision in the middle of next year. We're applying all...