BVC: MINEROS 1 Mineros Achieves 2023 Production Guidance and Announces 2024 Guidance
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Mineros Achieves 2023 Production Guidance and Announces 2024 Guidance
(all amounts expressed in U.S. dollars)
Medellin, Colombia – January 22, 2024 – Mineros S.A. (TSX:MSA, MINEROS:CB) (“Mineros” or the “Company”) is
pleased to announce that it achieved its production guidance for 2023. Mineros is also pleased to provide its production
and cost guidance for 2024.
2023 Full Year and Fourth Quarter Production:
•250,769 ounces of gold produced for the full year, within the Company’s 2023 production guidance range of
239,000 - 262,000 ounces.
• 62,039 ounces of gold produced in the fourth quarter.
2024 Production and Cost Guidance:
•Gold production of 209,000 to 229,000 ounces in 2024, a decrease of approximately 13% over its 2023
guidance, as a result of the sale of the Company’s Gualcamayo Property in September 2023.
•Cash cost (“Cash Cost”)1 per ounce of gold sold is expected to increase slightly to between $1,180 to 1,270
in 2024 ($1,170 to 1,270 in its 2023 guidance).
•All-in sustaining cost (“AISC”) per ounce of gold sold1 is expected to decrease slightly to between $1,430 to
1,530 in 2024 (1,440 to 1,540 in its 2023 guidance).
Andrés Restrepo, President and CEO of Mineros, commented: “We had a strong operational fourth quarter and
demonstrated resilience throughout the year. We were able to meet our 2023 production guidance while overcoming
the disruptions we had in March at our Nechí Alluvial Property and in July at our Hemco Property. As we move forward,
the Company will continue to focus on being a reliable and profitable operator.”
2023 Production
Total annual production from all operating units was 250,769 ounces of gold in 2023, meeting the Company’s annual
production guidance of 239,000 to 262,000 ounces (Table 1).
Table 1. 2023 Fourth Quarter and Full Year Production.
1 Cash Cost per ounce of gold sold and AISC per ounce of gold sold are non-IFRS ratios, with no standardized meaning under IFRS, and therefore may
not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations to the most directly comparable
IFRS measures, see “Non-IFRS Financial Measures” below.
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Three Months
Ended December
31,
Change Year ended
December 31, Change Guidance
2023
2023 2022 ounces % 2023 2022 # % oz
Nechí Alluvial
Property (Colombia) 27,920 24,986 2,934 12% 93,757 92,385 1,372 1% 84,000 - 94,000
Hemco Property 9,480 9,828 (348) (4)% 32,732 40,677 (7,945) (20)% 35,000 - 37,800
Artisanal Mining 24,639 23,783 856 4% 93,219 91,843 1,376 1% 90,000 - 97,200
Nicaragua 34,119 33,611 508 2% 125,951 132,520 (6,569) (5)% 125,000 - 135,000
Total gold produced
from continuous
operations (oz)
62,039 58,597 3,442 6% 219,708 224,905 (5197) (2%) 209,000 - 229,000
Gold produced from
discontinued
operations (oz) (1)
— 13,971 (13,971) (100)% 31,061 62,247 (31,186) (50)% 30,000 - 33,000
Total gold produced
(oz) 62,039 72,568 (10,529) (15)% 250,769 287,152 (36,383) (13)% 239,000 - 262,000
Note: Guidance for silver is not provided by the Company, as we treat it as a by-product
(1) The Company’s Gualcamayo Property was sold in September 2023.
Annual production of 93,757 ounces of gold from the Nechí Alluvial Property was near the higher end of our 2023
guidance and approximately 1% above 2022 production. The increase in production in 2023 relative to the previous
year is a result of higher operational efficiencies and 28% higher average gold grade at the Nechí Alluvial Property.
In Nicaragua, total combined annual production of 125,951 ounces of gold met our 2023 guidance and was 5% lower
than 2022 annual production. Gold production was impacted by a two-week suspension of the main processing plant
at the Hemco Property during the third quarter, to allow for tailings detoxification capacity enhancements at the San
José Tailings Dam.
2024 Guidance
The Company announces 2024 production guidance of 209,000 to 229,000 ounces of gold, a decrease of
approximately 13% from 2023 guidance, mainly explained by the sale of the Company’s Gualcamayo Property in
September 2023 (Table 2).
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Table 2. 2024 Production and Cost Guidance
Guidance
2023 2024 Change
Colombia (Nechí Alluvial Property)
Gold production oz 84,000 - 94,000 86,000 - 96,000 2,000 - 2,000 2% - 2%
Cash Cost per ounce of gold sold $/oz 1,010 - 1,110 1,090 - 1,190 80 - 80 8% - 7%
AISC per ounce of gold sold $/oz 1,170 - 1,280 1,280 - 1,390 110 - 110 9% - 9%
Nicaragua (Hemco Property & Artisanal)
Hemco Property production oz 35,000 - 37,800 33,000 - 35,000 (2,000) - (2,800) (6%) - (7%)
Artisanal production oz 90,000 - 97,200 90,000 - 98,000 0 - 800 0% - 1%
Total gold production oz 125,000 - 135,000 123,000 - 133,000 (2,000) - (2,000) (2%) - (2%)
Cash Cost per ounce of gold sold $/oz 1,170 - 1,250 1,240 - 1,320 70 - 70 6% - 5%
AISC per ounce of gold sold $/oz 1,350 - 1,430 1,450 - 1,530 100 - 100 7% - 7%
Consolidated (1)
Gold production oz 239,000 - 262,000 209,000 - 229,000 (30,000) - (33,000) (13%) - (13%)
Cash Cost per ounce of gold sold $/oz 1,170 - 1,270 1,180 - 1,270 10 - 0 1% - 0%
AISC per ounce of gold sold $/oz 1,440 - 1,540 1,430 - 1,530 (10) - (10) 1% - 0%
(1) The consolidated guidance for each of the 2023 gold production, Cash Cost per ounce of gold sold and AISC per ounce of gold sold, include the
Gualcamayo Property (Minas Argentinas), which was sold in September, 2023. During 2023, the Gualcamayo Property produced 31,061 ounces of gold,
had Cash Cost per ounce of gold sold of $2,088 and AISC per ounce of gold sold of $2,423.
Annual gold production for 2024 at the Nechí Alluvial Property in Colombia is expected to increase slightly, to between
86,000 to 96,000 ounces, an increase of approximately 2% from 2023 production guidance. At the Nechí Alluvial
Property in Colombia, the Company anticipates Cash Cost per ounce of gold sold to increase from 2023 guidance by
approximately 7% to 8% in 2024 and AISC per ounce of gold sold to increase by approximately 9% in 2024 as compared
with 2023 guidance.
At the Hemco Property in Nicaragua, the Company anticipates annual production in 2024 of 123,000 to 133,000 ounces
of gold, including 90,000 to 98,000 ounces of gold from artisanal production, which is similar to its 2023 production.
Our relationship with the artisanal mining community has grown strong throughout the years bringing consistency to
mineral purchasing and predictability in our guidance. The Company anticipates Cash Cost per ounce of gold sold to
increase by 5% to 6%, and AISC per ounce of gold sold to increase by approximately 7% in 2024, as compared to 2023
guidance.
ABOUT MINEROS S.A.
Mineros is a Latin American gold mining company headquartered in Medellin, Colombia. The Company has a diversified
asset base, with mines in Colombia and Nicaragua and a pipeline of development and exploration projects throughout
the region.
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The board of directors and management of Mineros have extensive experience in mining, corporate development,
finance and sustainability. Mineros has a long track record of maximizing shareholder value and delivering solid annual
dividends. For almost 50 years Mineros has operated with a focus on safety and sustainability at all its operations.
Mineros’ common shares are listed on the Toronto Stock Exchange under the symbol “MSA”, and on the Colombia
Stock Exchange under the symbol “MINEROS”.
For further information, please contact:
Patricia Ospina
Investor Relations Manager
(+57) 6042665757
The Company has been granted an exemption from the individual voting and majority voting requirements applicable
to listed issuers under TSX policies, on grounds that compliance with such requirements would constitute a breach of
Colombian laws and regulations which require the directors to be elected on the basis of a slate of nominees proposed
for election pursuant to an electoral quotient system. For further information, please see the Company’s most recent
annual information form filed, available on SEDAR+ at www.sedarplus.com.
QUALIFIED PERSON
The scientific and technical information contained in this news release has been reviewed and approved by Luis
Fernando Ferreira de Oliveira, MAusIMM CP (Geo), Mineral Resources and Reserves Manager for Mineros S.A., who
is a qualified person within the meaning of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-
looking information includes statements that use forward-looking terminology such as “may”, “could”, “would”, “will”,
“should”, “intend”, “target”, “plan”, “expect”, “estimate”, “anticipate”, “believe”, “continue”, “potential”, “view” or the
negative or grammatical variation thereof or other variations thereof or comparable terminology. Such forward-looking
information includes, without limitation, statements with respect to guidance for production, Cash Cost and AISC;
identification of additional mineral resources and mineral reserves; the schedules and budgets for the Company’s
exploration and development projects; the Company’s continuous improvement initiatives and project performance, as
well as references to other possible events; the timing and amount of estimated future production; costs of production;
operating costs; price inflation; capital expenditures; costs and timing of the development of projects and new deposits;
estimates and the realization of such estimates (such as gold reserves and resources or mine life); success of
exploration, development and mining; currency fluctuations; capital requirements; project studies; government
regulation; permit applications; and environmental risks and proceedings.
Forward-looking information is based upon estimates and assumptions of management in light of management’s
experience and perception of current conditions and expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances, as of the date of this news release, including, without
limitation, assumptions about: future prices of gold and other metal prices; the accuracy of any mineral reserve and
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mineral resource estimates; production costs; the price of other commodities such as fuel; equipment or processes
operating as anticipated; permitting timelines; political and regulatory stability; the receipt of governmental, regulatory
and third party approvals, licenses and permits on favourable terms; obtaining required renewals for existing approvals,
requirements under applicable laws; sustained labour stability; stability in financial and capital goods markets;
availability of equipment; inflation; exchange rates; and positive relations with local groups. While the Company
considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social,
economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could
cause actual actions, events, conditions, results, performance or achievements to be materially different from those
projected in the forward-looking information. Many assumptions are based on factors and events that are not within the
control of the Company and there is no assurance that they will prove to be correct. Although the Company has
attempted to identify important factors that could cause actual actions, events, conditions, results, performance or
achievements to differ materially from those described in forward-looking information, there may be other factors that
cause actions, events, conditions, results, performance or achievements to differ from those anticipated, estimated or
intended. For further information of these and other risk factors, please see the “Risk Factors” section of the Company’s
annual information form dated March 30, 2023, and management’s discussion and analysis for the three and nine
months ended September 30, 2023, available on SEDAR+ at www.sedarplus.com.
There can be no assurance that forward-looking information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. Forward-looking information contained herein is made as of the date of this
news release and the Company disclaims any obligation to update or revise any forward-looking information, whether
as a result of new information, future events or results or otherwise, except as and to the extent required by applicable
securities laws.
NON-IFRS FINANCIAL MEASURES
This news release includes Cash Cost per ounce sold, and AISC per ounce of gold sold, which are non-IFRS ratios
that are respectively based on Cash Cost and AISC, which are non-IFRS financial measures. The Company believes
that these non-IFRS ratios, in addition to conventional measures prepared in accordance with IFRS, provide investors
an improved ability to evaluate the underlying performance of the Company. The non-IFRS ratios are intended to
provide additional information and should not be considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. These ratios are not standardized financial measures under IFRS, and therefore
may not be comparable to similar financial measures disclosed by other issuers. Certain additional disclosures for these
non-IFRS ratios are incorporated by reference and can be found in “Section 10: Non-IFRS and Other Financial
Measures” in the Company’s management’s discussion and analysis for the three and nine months ended September
30, 2023, available on SEDAR+ at www.sedarplus.com.
Cash Cost
The objective of Cash Cost is to provide stakeholders with a key indicator that reflects as close as possible the direct
cost of producing and selling an ounce of gold. The Company reports Cash Cost per ounce of gold sold which is
calculated by deducting revenue from silver sales and depreciation and amortization from costs of sales, and dividing
the difference by the number of gold ounces sold. Production Cash Cost includes mining, milling, mine site security,
royalties, and mine site administration costs, and exclude non-cash operating expenses. Cash Cost per ounce of gold
sold is a non-IFRS financial measure used to monitor the performance of our gold mining operations and their ability to
generate profit, and is consistent with the guidance methodology set out by the World Gold Council.
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All-In Sustaining Cost (“AISC”)
The objective of AISC is to provide stakeholders with a key indicator that reflects as close as possible the full cost of
producing and selling an ounce of gold. AISC per ounce of gold sold is a non-IFRS ratio that is intended to provide
investors with transparency regarding the total costs of producing one ounce of gold in the relevant period. The
Company reports AISC per ounce of gold sold on a by-product basis. The methodology for calculating AISC per ounce
of gold sold is set out below and is consistent with the guidance methodology set out by the World Gold Council. The
World Gold Council definition of AISC seeks to extend the definition of total Cash Cost by deducting administrative
expenses, cost of sales of non-mining operations, sustaining exploration, sustaining leases and leaseback and
sustaining capital expenditures. Non-sustaining costs are primarily those related to new operations and major projects
at existing operations that are expected to materially benefit the current operation. The determination of classification
of sustaining versus non-sustaining requires judgment by management. AISC excludes current and deferred income
tax payments, finance expenses and other expenses. Consequently, these measures are not representative of all of
the Company’s cash expenditures. In addition, the calculation of AISC does not include depreciation and amortization
cost or expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative
of the Company’s overall profitability. Other companies may quantify these measures differently because of different
underlying principles and policies applied. Differences may also occur due to different definitions of sustaining versus
non-sustaining.