Mineros S.A.

Good morning, everyone, and thank you for joining us to go through our second quarter and first half 2026 results. I'm Juan Awando, Director of Investor Relations, and with me this morning are Daniel Henao, our President and CEO, Natalia Correa, our CDFO. Before we get started, a quick reminder that today's presentation includes forward-looking statements, which rest on assumptions and inherent risks and uncertainties. We encourage you to review our second quarter MD&A and financial statements, both of which are on our website and RCDR Plus. We also refer to a number of non-IFRS measures this morning, such as cash cost, all-in sustaining cost and adjusted EBITDA, and net free cash flow. You'll find those defined and reconciled in Section 10 of the MD&A and in the last evening news release. Unless we say otherwise, every figure is in U.S. dollars. After our prepared remarks, we'll take your questions through the webcast portal. The call is being recorded, and we'll post a replay on our website afterwards. With that, let me hand it over to our president and CEO, Daniel Henao. Thank you, Juan, and good morning, everyone. The first half of this year was a transformational one for Mineros. We gave record results We strengthened the balance sheet further, and we made real progress on the growth side of the business. It reflects the work of the Mineros team, running the operations more efficiently, safely, keeping a firm plan on cost, and returning value to our shareholders. We've built today's call around four drivers, and I want to give you the headline of each before we dig in. The first is performance, and it was our strongest half on record, with revenues of almost $560 million, up 46% year over year. The second is balance sheet strength. We now hold about $250 million in cash and gold-backed assets. The third is our growth and exploration potential. We keep advancing at sound pace. Chemco is on its way to 2,500 tons per day. We continue to de-risk urban air, advancing on detail engineering in multiple fronts, and this year we expect to get final permits on that asset. And this year we're also running the largest drill program in the company's history. And fourth is how we return value to you, our shareholders. Share price performance and expanded buyback program to $175 million of which we have executed already $18 million alongside $14.7 million of business paid through the half of the year. Natalia will start us off on that first driver, performance.

Thanks Daniel. It really was a strong quarter for both of our operations, so let me take you through the numbers. Let me start with the headlines for the quarter. Taking in the order, they drive the business. We sold 61,849 gold equivalent ounces. That's an 11% increase over the same quarter last year. This volume, combined with a much stronger gold price, All of this converted into a net profit of $45 million, which is equivalent to 15 cents per share for the quarter. Now, on the gold price, Our average realized price was $4,290 per ounce, 29% higher than a year ago. We made a deliberate decision to keep our production largely unhedged because we have a conviction in gold as an asset. And this quarter, that decision is clearly visible in our margins. I would stress that this performance is exactly what's funding our growth. Advancing for Me, expanding HEMCO, supporting what is our largest ever drilling program, and continuing to return capital to shareholders. We are not having to choose between those things, and that's a direct result of the earnings power we are generating right now. Let's now look at the full six months. The first half tells a compelling story. What I want you to notice first is not just the numbers. but the shape of those bars. Across all four charts, you are looking at two and a half years of data and first half 2026 is the tallest bar in every single one. That's not a coincidence and it's not just gold price. Volume was a significant part of it. We sold 122.6 thousand gold equivalent ounces up 12% which we achieved through disciplined operational improvement at both properties. Price was also a driver. Our average realized gold price of $4,530 per ounce is up 46% year over year and had a positive impact on our record revenues of $559 million for the half, increasing 63% over last year. What's particularly satisfying is how efficiently that revenue converted into earnings. EBITDA reached $260 million, up 70% with a 47% margin. On a trailing 12-month basis, EBITDA stands at $465 million. This is more than the EBITDA of the entire 2025 year. Finally, at the bottom line, we had a record net profit of $133 million, equivalent to 45 cents per share, and up 63% compared to the first half of 2025. The story underneath these bars is a simple and a powerful one. We sold more metal at meaningfully higher prices and because we kept costs on track, that flows straight through to record revenue, record EBITDA and record earnings.

Thanks Natalia. This next slide breaks down what we actually sold in the quarter and it's worth a moment because the mix is shifting in our favor. On a global equivalent basis, we sold about 62,000 ounces, 59.6 thousand ounces of gold plus another 2.2 thousand ounces of gold equivalent that came from silver. Silver is the part I'll draw your attention to. We sold a record 150.7 thousand ounces of silver in the quarter, essentially all of it from Henco at an average price of $62 an ounce. That's come out of the work we've done on silver recoveries at the Henco plant and it's turning into a genuine second revenue stream. Because we account for silver as a byproduct, every ounce we sell also works to bring our only sustaining cost down on the gold side. With that on the performance picture, let me now take you to the outlook on the operations and let me start with the guidance. Because we have raised it, and I want to be clear about why we did that. We now expect consolidated gold production of 220,000 to 240,000 ounces of gold up from the previous 213,000 to 233,000 ounces range that we set at the start of the year. What sits behind the increase is a deliberate focus on the quick return ounces initiative that we've been discussing in previous calls. Improve the coverage for gold and silver, removing historical bottlenecks like processing capacity, and improving the grades of our operations. The operational excellence initiatives are starting to pay off. On cost, we're holding our guidance. Consolidated cash costs of 2070 to 2170 an ounce and holding sustained costs of 2370 to 2470. Our second quarter all-in sustaining cost of $24.58 lands right inside the range, so we are on track. The gauges show where we are against the full-year increase in guidance. On a golden-brilliant basis, we've delivered 53% of the midpoint of our guidance at the hamlet, Colombia at 48% and Nicaragua at 57%. That's exactly the pacing we want going into the second half. Let me now break the half down to operations, because behind these results are two very different producing platforms, each with its own business model. In Colombia, the tea produced over 42,000 ounces of gold in the first half at an only sustainable cost of $19.33 an ounce and a cash cost of $17.09. The main story here is recovery. We took our gold recovery rate up to about 95%. Improved recoveries more than offset lower rates than expected according to the mine plan. Our own operation is the most cost efficient source at $16.76 an ounce for the first half and our contract mining partners at high grade volume on top of that. At a margin of around 20% for us in the quarter. In Nicaragua, Henco produced more than 75,000 ounces in the quarter at an only sustained cost of 25.21 an ounce and a cash cost of 23.37. With throughput now up to 2,100 tons a day and heading towards the 2,500 tons a day that we set as a target by December of this year. Same pattern here. Our own underground mining is the lower cost source at $18.33 an ounce per half and we buy ore from our Bonanza Mining partners that operate in our concessions at a 40 to 45 percent margin of the spot gold price to scale up our throughput. That earns us a margin of around 35 percent of the quarter and just as importantly, It formalizes and supports the local mining community around the operations, which matters a great deal to us. Before I leave operations, one point worth explaining. You'll notice we're now producing more gold than we are selling, and that is deliberate. Our milling capacity is still catching up to the ore we are producing, So we've been building a stockpile of high-grade ore, about 16,000 gold-to-gold analysis of it, sitting ready to be processed. Those are ounces we've already produced and paid to bring to surface, and they will move through the plant and into cells over the coming quarters as we remove the processing bottleneck of our operation. So in summary, Our own operations anchor the cost base, our partners contribute incremental volumes at attractive margins, and the combined oil and sustaining cost remains well below prevailing oil prices, giving us a resilient margin structure across all cycles. With that, I'll hand it over to Natalia for the balance sheet.

Thanks Daniel. The balance sheet is a part of the story I'm pleased to talk about. We are in a net cash position. We are carrying real liquidity, and more and more of that liquidity is backed by physical gold. This slide lays out our strong liquidity piece by piece, which adds up to $229 million in cash and gold-backed assets. Let me walk you through each of these. The largest single item is $125 million in precious metals. That's 29,309 ounces of gold and 112,000 ounces of silver, sitting there as a core treasury asset. Next to that, 41 million in cash and equivalents and 63 million in gold-backed receivables, which represent another 12,912 ounces of gold that will be settled either into cash or refined metal. On top of this, We have 56 million of working capital lines available and already disbursed to the company. Below this, you'll see another portion of our inventories, which we consider to be short-term liquidity items. 21 million in our stock panels and 3 million in the inventory representing metal we have already produced and that flows through to revenue as it's processed. This is equivalent to roughly 16,000 ounces of gold equivalent that we've built up ahead of the Hemco plant expansion. Presenting a liquidity in this way recognizes that physical gold is a highly liquid asset, convertible into cash on timescales comparable to any short-term investment, and reflects the company's strategy of holding reserves for value in its core product. rather than exclusively in fiat currency. This is a conservative flexible balance sheet with very little leverage and plenty of room to fund both growth pipeline and what we return to shareholders. Back to you, Daniel, on growth.

Thanks, Natalia. We're now moving to the part I enjoy most talking about because it's where our future ounces will come from. We have a fully funded pipeline and we're drilling actively across the portfolio. Let me walk you through where we're putting the drill bit to work because we've made a very deliberate choice this year. Through the first half, we drilled about 29,000 meters across the portfolio against a full year plan of about 95,000 meters. That makes this the largest exploration program the company has ever run, and it tells you where our conviction fits. The bulk of it is at Henco. In Nicaragua, where we drilled about 27,000 meters of a 75,000-meter drill program, what the table really shows you is the shift toward near-mine drilling at Panama and Pioneer. Right where we're already mining, we've completed about 12,000 meters on the way to roughly 41,000 meters. So we can grow resources and reserves closest to the production we're delivering. On top of that, 7.5 thousand meters in the Brownfield Bonanza block, 5,000 meters of greenfield in the Bonanza district, and 2.5 thousand meters of infield at Port Vernier. One of the results I would like to highlight is in Siloam, which we tested that vein system for the first time and hit 8.3 meters at 17.3 grams per ton of gold. That's exactly the kind of near-mine discovery this reallocated program was designed to find. Rounding out the portfolio, Columbia and Chi property has drilled about 2,000 meters of our 15,000 meters drill program on a $4.1 million budget. And in Chile, in La Pepa, we have a 7,000 meter drill program still to start on a $2.2 million budget. Beyond the drill bit, Our development pipeline is advancing on three fronts, and each is at a different stage. For the near Nicaragua, within the final stretch of permitting, we've received the environmental certification for processing plant and tailings facility in April, and the remaining forest management and treated wastewater permits are expected by the end of fourth quarter. Our updated 42-101 pre-feasibility study came out in March, An in-field drilling program and metallurgical campaign is underway with about 2.5 thousand meters drilled. Roughly 25% of the 10,000 meter drill plan and engineering audits and gap analysis by top engineering firms are now being completed. It's a high quality project, largely permitted, sitting right next to infrastructure we already run. La Pepa, in Chile, Maricunga´s GoPelt, which holds a 42-101 measure and indicate resource of over 2 million ounces. We have now secured the required sectoral permits for the drilling program in June, though drilling hadn´t started as of June 30, given the winter season. Our environmental characterization for the season is finished. We´re continuing the environmental baseline work for future permitting and we're moving to a CIM-compliant preliminary economic assessment early in the third quarter that we expect to release to the market by the second quarter of 2027. And in Tolima, Colombia, our newest and potentially the most transformational opportunity of the company, we now can confirm that it's 100% ours through the acquisition of Anglo Gulashanti Colombia, now Mineros Tolima. the sole register holder for the concession in the Central Cordillera of the Andes in Colombia. This asset carries a historical resource estimate of about 23 million ounces of gold in the indicated category and about 5 million ounces in the inferred category. We're integrating and validating the historical data now and we're targeting a maiden mineral resource estimate that we expect to release by the end of the year. This now brings me to the last of our four drivers, and it's one this team cares a lot about. Returning value to you, our shareholders, with share price performance, an expanded BIRAC program, and a steady dividend. Over the last two years, Mineto's share price has increased over 500%, against roughly 120% for the Junior Peer Index and 68% for gold itself. The share price has outperformed both the metal and our peers and will be returning capital to you the whole way through. That outperformance has continued into 2026. In the first half of the year, our share price appreciated approximately 13% between year end 2025 and June 30th Even as the gold declined around 7% and the GDXJ Junior Gold Miner Index fell roughly 14% over the same period. This reflects the strength of our operations and disciplined capital allocation and it extends the significant outperformance of Mineros that we have demonstrated relative to both gold and its peer index. On the buyback program during the second quarter, we repurchased 4.1 million shares for about $18 million. And just after the quarter end on July 14th, our shareholders approved expanding the program and the reserve behind it to $175 million in total, running through March, 2029. Alongside the buyback, we have paid $14.7 million in dividends in the first half in line with a year ago. Between the two, I think the message to the market is very clear. One about how confident we are in the business, how committed we are to returning capital to our shareholders. Let me now put it all together before we go to our questions because it really was a strong quarter. and a very strong first half. And it showed up across all four of our drivers. On performance, the business is performing strongly with record first half revenues of about $560 million and adjusted EBITDA of $260 million. Unique cost held within our guidance range. On the balance sheet, We have about $230 million in cash, gold-backed assets, a position strengthened by the new bullion policy that anchors our treasury to fit for gold. In growth, we're on track with Henco expanding, Fort Veneer moving to final permitting on our largest-ever drill program on the way across the portfolio. And on shareholder returns, The share is outperforming both its peers and the gold price while we return value through the expanded buyback and steady dividends. So the first half gave us record financial results and continued production growth. Stronger balance sheet with more gold behind it, costs held where they should be, and real progress across the growth pipeline. while we bid more to return capital to shareholders. Discipline growth, real returns, tied by gold. That was the plan for the start and it´s delivering as promised. With that, let me hand back to Juan to close us out. Thank you, Daniel. That concludes our prepared remarks. Thank you all for your time during this morning and for your continued confidence in Mineros. We will now open the line for your questions, which will be taken by Ann Wilkinson, our Vice President of Investor Relations. For any follow-up, please feel free to reach out to our Investor Relations team using the details on screen.

Good morning, everyone.

Thank you very much for your patience. Our first question comes from Riley Denton of Atrium Research. Riley is asking, how do you expect all-in sustaining costs to trend in Q3 and Q4?

Thanks, Riley, for your questions. So, generally speaking, we're receiving three major forces, headwinds, forces against us from a cost point of view. One of those is gold price, which is a nice force to have because a significant part of our business is indexed to the gold price with the partnership models that we have that adds cost pressure. And the second big force is the Colombian peso appreciated strongly against the U.S. dollar. We started the year at around $3,800 pesos for a dollar. We're sitting right now at about $3,170 pesos for a dollar. So that's a very significant appreciation of the peso against the dollar. And 90% of our costs in the Colombian operations are denominated in pesos. So, and the third one is, you know, things indexed to these items, things like taxes, royalties, that's on the negative side. However, as we've been discussing along the presentation, there are multiple initiatives around operational excellence that are helping us more than compensate for these headwinds that we're receiving from a cost point of view. So very strong initiatives like silver recoveries, for example. We had 370% more silver revenues in the first half of this year compared to the year before. That's an extra $23 million that we didn't used to see. That silver was simply going straight to the tailings and we were not capturing that. Because we treat silver as a byproduct, it helps us compensate our only sustaining costs. So the expectation for the end of the year, to answer your question, is is basically what we've guided from 2370 to 2470 pulling sustaining costs. We will continue working very hard on costs, so we perform similarly to the way we performed this first half, tracking below the lower end of guidance at 2348. So that continues to be the objective. All these operational excellence initiatives will continue to support our lower cost, As we recover economies upscale with the expanded processing capacity, improved rates, all those initiatives and trends are directly translating into positive forces to help us control cash costs and wholly sustaining costs. So to answer your question, we expect to be either within guidance or we'll work very hard to be below the lower end of guidance.

Our next question comes in from Juan Soto. Could you provide more clarity on the drivers behind the increase in cash costs and the 36% rise in cost of goods sold?

So it's a very similar question to the previous one. So again, gold price, the peso appreciation against the dollar, those are the major forces driving the cost pressure. However, as I mentioned, the first half, our only sustained cost is actually below the lower end of our guidance at 2348. So we're actually outperforming what we promised to the market and we expect to continue doing that. One thing that I would like to highlight is that our own operations are actually, you know, a peer-leading role in sustaining costs. Our Colombia operation all in sustaining cost is $16.76 and our Henco operation in Nicaragua is at $18.33 all in sustaining cost. So, those are the operations where we have more control on cost and those are performing very well.

So, along a very similar line, Juan Camilo Cuseno asked what impact will the appreciation of the peso have on revenues, earnings and costs for the remainder of 2026?

Well, as I mentioned before, I think in the glowing operation, we expect to produce anywhere from 80 to 90,000 ounces of gold this year. There is significant cost pressure on the exchange rate. However, that's being more than compensated by the operational excellent initiatives. So, generally speaking, the all-in sustained costs of the combined companies tracking below the lower end of guidance will continue working very hard on multiple initiatives to compensate that cost pressure on exchange rate. And we have demonstrated that in this first half of the year. So, we don't expect any revision to the cost at this point. We will continue working very hard to compensate this.

Michael Matheson asks, your gold production is up 11% year-over-year and silver production more than doubled. Do you see continued volume growth in the rest of 2026 and into 2027?

Thanks, Mati, for the question. Yes, so that's one of the largest initiatives that we have as a company, the bottlenecking, particularly the processing capacity in Nicaragua. We started the year at $1750 per day. The aim is to finish the year at $2500 per day. We're on track, we're on budget. and as we continue to advance that processing capacity, which is the main constraint for our production, we expect to continue delivering higher production. So Nicaragua is a growing platform and hopefully that remains that way. We're starting to demonstrate that the production capacity is higher than what we're able to sell at this point. We finished the half with about 16,000 ounces of gold in patios. That's mineral waiting to be processed, waiting for that processing capacity issue to be solved. And we're working very hard on solving that processing capacity. As we expand the processing capacity, then our entire production in Nicaragua should continue to expand.

Alina Islam asks, can you comment on the strategic gold reserve policy? Is the buying expected to continue through the second half?

So, Alina, I'll give you some highlights and I'll probably pass it on to Natalia. So, we believe that gold is structurally undervalued, given central bank accumulation, the negative real yields globally, the macroeconomic uncertainty. So this gold position reflects management and board conviction that gold is actually a very valuable long-term store of value. And it also aligns our balance sheets with our shareholder interest. Our shareholders invest in Mineros because they want to have gold exposure. So we're positioning the company for that.

No, I would simply add to what Daniel just said is that this is a strategic position that we have. It's based on fundamentals. We believe that gold is one of the perfect store of value for the company and it's also a good hedge for the inflation that mining companies have going forward, especially when you have projects that go into the long term. Then having a hedge over inflation is a strategy to protect the coast as well. So we finished the quarter with 29,000 ounces of physical gold. These ounces are stored in Swiss and U.S. vaults. and we expect to keep tracking this position and probably increase it as our production grows as well. Yeah, so I would say

Yeah, so I think that the policy, as it says right now, we could potentially expand that position to about 45,000 ounces as a total position. And as we go forward, we will take those determinations. The business is performing so well that we can invest in our growth, we can return value to shareholders in buybacks and dividends, and we can build these bullion positions. That's what we're doing right now.

Our next question comes from Jorge Arano. He says congratulations on the results. He'd like you to discuss the policy of returning capital to shareholders and the balance between dividends and share buybacks, particularly given the movements in the Colombian peso and how it may be affecting investors.

Okay, perfect. So, these are ultimately decisions taken by you, our shareholders, Jorge. So, these are things that will be determined on the assembly. But right now, we have a total of a $175 million buyback program. We can execute that in the coming years until I believe it's March 2029. We are in the process of doing that. So far, we've returned about $18 million in buybacks and then close to $15 million in dividends. We are convinced that Mineros is an excellent investment opportunity. So as a company, we see the buybacks as a very effective mechanism of returning value to you and at the same time reinvesting in our business. So we expect to continue doing that. It's our conviction that potentially the best investment for Mineros is Mineros. And as I mentioned before, because the business is performing so well, we can invest heavily in value return to shareholders, in growth, and then even have some resources left to enhance our bullion position.

So, Daniel and Natalia, we have two questions left. So, if anybody had any other questions, please do send them in. So, our next question comes from Michael Matheson. So, is Luna Roja the next deposit we'll see come into production? And how many annual allowances do you think it will contribute?

Thanks Michael. So we're actually thinking beyond Luna Roja at this point because we're finding actually very interesting satellite deposits much closer to our own producing mines. Intercepts like the ones that we disclosed about a month ago, 8 meters at 70 grams per ton, that intercept is in a target called Siloah that's right in between our two producing mines and those are you know that's exploration drilling that very quickly makes it to a mine plan and then makes it to revenue so it makes more sense for us to start with those sort of with those sort of targets at the same time we're expanding for veneer beyond the current resource envelope those are targets that are also like adjacent immediate to these to for veneer so it's also just a lower hanging fruit from you know Exploration to production point of view. So Luna Roja is there. We're starting to produce some minerals from there through our partnership scheme. But we think there are better opportunities at the moment that we're harvesting. Closer to our mines, higher quality targets, and we expect to continue our focus there.

So and our last question for the day leads beautifully into this. Riley Benton asks, can you talk about next steps and timeline for Porvenir, one of your favorite subjects?

Thank you. Thank you, Anne. So, Porvenir, just to remind the audience about what Porvenir is. Porvenir is a project at a TFS stage immediately southwest of our two producing mines in Nicaragua, Pioneer and Panama. At $3,150 gold, which is the gold price we take to do the PFS, it's a project that was delivering 38% IRR, $460 million NPD on a $200 million investment. So it's a very nice growth opportunity that Mineros has. It would add about 70,000 ounces gold equivalent to our current production profile. And of course, it's an asset that we would love to take into production as soon as possible. You know, gold price right now is at around $42 an ounce, about $1,000 more than the price we use in these studies that deliver those numbers. So it's definitely something that we would love to push forward hard. So the focus right now The most important need is to continue to the risk the project so we're doing detail engineering in pretty much all aspects of the project from tailings down to the processing, optimizing the processing plant, the mine, where we have engaged major engineering firms to carry a gap analysis as well and in parallel we're working very hard with the authorities to get all the permits. We're still waiting for two relatively minor permits. All major permits we received already. So the plant is fully permitted, the mine is fully permitted, the tailings facility is fully permitted. So we're waiting now for forestry permits, which we expect to receive before the end of the year, and wastewater also expected to be received before the end of the year as soon as we finish that we're preparing ourselves to have a project that is ready for construction and we expect to announce the market to the market that decision hopefully you know by the end of the year or early next year is an exciting growth opportunity for Mineros We will work on an updated communication to provide more details to the market on where we stand right now. We've been working very hard on these assets in the last months, so an update is needed and will come out in the coming weeks. We have one more question that's come in.

Regarding the new project in Tolima, while a judicial settlement was announced, what is the strategy to address the environmental and social challenges associated with mining activities in these areas?

Thank you, Harold.

So, we are in the process of integrating that asset to our platform, starting to work with local communities, local authorities. They will be the key for this particular asset. So, it's all early days for now. We don't have a detailed plan on this particular asset. Our focus for now remains on the short-term initiatives for growth, what I was describing in Forvenir in Nicaragua. The other more advanced asset is La Pepa in Chile. We're putting together an update as well for the market on La Pepa, which is also an exciting growth opportunity for Mineros that hopefully will add a third producing jurisdiction in the coming years. So that remains the focus for now as a company.

And with that, Daniel, I think we're done. Did you have any closing remarks for our listeners?

Sure. Thank you very much. And so, yes, to close, I want to put this into perspective. We finished this half with record revenues, $560 million, record adjusted at $260 million and net earnings of about $130 million. All of that with an all-in sustaining cost tracking below the lower end of our guidance. These results speak about the discipline in the execution of the Mineros team. We have also increased our guidance to 220 to 240,000 ounces of gold. Henco remains on track to 2,500 tons per day by the end of the year. We're building a stockpile to support that growth already. We have 16,000 ounces sitting in patios waiting to be processed. The Fort Veneer Development Project is advancing through final permitting, gap analysis, detail engineering, and we continue to de-risk our growth pipeline to achieve that dream, that target of 500,000 ounces of gold per year by 2030. None of this happens without the great people behind Mineros. So I want to start with some sincere thanks to the Mineros team in Colombia. in Nicaragua, in Chile and in Canada. Your commitment underpins every one of these results. I want to thank as well our communities that host our operations and that grow alongside Mineros. And I want to thank you as well our shareholders that trust us with your resources and that trust is something that we regard as something to be earned every quarter. Thanks for joining everyone and we look forward to reporting on the next quarter.