BVC: MINEROS 1 Mineros Reports Second Quarter 2024 Financial and Operating Results (all dollar amounts - other than per share amounts - are expressed in thousands of US dollars
TSX: MSA
BVC: MINEROS
1
Mineros Reports Second Quarter 2024 Financial
and Operating Results
(all dollar amounts - other than per share amounts - are expressed in thousands of US dollars
unless otherwise stated)
Medellin, Colombia – August 14, 2024 – Mineros S.A. (TSX:MSA, MINEROS:CB)
(“Mineros” or the “Company”) today reported its financial and operating results for
the three and six months ended June 30, 2024. For further information, please see
the Company’s unaudited condensed interim financial statements and management’s
discussion and analysis posted on Mi neros’ website
https://mineros.com.co/en/investors/financial-reports and filed under its Mineros’
profile on www.sedarplus.com.
Andrés Restrepo, President and Chief Executive Officer of Mineros, commented: “The
second quarter was good from both a financial and an operational perspective. Our
revenues, gross profit and Adjusted EBITDA were all higher in the second quarter due
to the high price of gold. Cash Cost and all-in sustaining costs were at the higher end
of guidance for our operations due to the weakening of the US dollar against the
Colombian peso and stronger gold prices resulting in the mineral bought from our
artisanal mining partners being more expensive. Our gold production from Company-
owned mines was modestly behind expectations in Colombia and in line with
expectations in Nicaragua. Because we processed more artisanal material in
Nicaragua we stockpiled material coming from our Panama and Pioneer underground
mines for processing in the third quarter of 2024. At this time we are maintaining our
cost and production guidance but will be closely monitoring certain cost inputs and
production at our Nechí operation in order to alleviate the bottlenecks experienced in
the second quarter of 2024.”
On September 21, 2023, Mineros sold all of the outstanding share capital of Mineros’
subsidiary, Minas Argentinas S.A., which holds a 100% interest in the Gualcamayo
Property in Argentina, to Eris LLC. Accordingly, the financial and operating results of
the Company herein are presented for continuing operations comprising the Hemco
Property and the Nechí Alluvial Property and omit the discontinued operations
comprising the Gualcamayo Property. Certain results set out below have been restated
to reflect only the continuing operations of the Company by removing amounts
TSX: MSA
BVC: MINEROS
2
pertaining to the discontinued operations from previous totals. These restatements
are reflected in the first and second quarter 2023 results in order to more
appropriately compare the results from the second quarter of 2024 with the second
quarter of 2023 and the first six months of 2024 with the first six months of 2023.
CORPORATE HIGHLIGHTS FOR THE THREE AND SIX JUNE 30, 2024
• Produced 105,444 ounces of gold, 65,641 ounces from our Nicaraguan
operations, up 1% from the first six months of 2023 and 39,803 from our
Colombian operations, down a modest 7% from the same period in 2023.
• Produced 466,745 ounces of silver in the first six months of 2024, up 63% from
the same period in 2023.
• Paid $7,473 in dividends in April 2024.
• Projects financed with income tax payable by Mineros Aluvial S.A.S. BIC
(“Mineros Aluvial”) and approved by the government:
• Provided $5,006 for library collections for educational institutions in Bajo
Cauca.
• A pedestrian bridge will be constructed in the municipality of Caceres,
Antioquia, in Bajo Cauca for $3,495.
• Provided $2,014 for sports equipment for schools in Bajo Cauca.
Dividends declared
On March 26, 2024, the General Shareholders Assembly approved the distribution of
the Company’s profits by way of: (i) an annual ordinary dividend of $0.075 per share,
payable quarterly, in four equal installments of $0.01875, and (ii) an extraordinary
dividend of $0.025 per share, payable quarterly, in four equal installments of
$0.00625, representing a total annual distribution of $0.10 per share, or
approximately $29,974 in total for the year, calculated based on the number of shares
TSX: MSA
BVC: MINEROS
3
issued and subscribed as at March 31, 2024. This represents a payout increase of
42.8% compared with last year’s dividend.
The future Canadian record dates and Canadian/Colombian payment dates for the
ordinary and extraordinary dividends are set out in the table directly below:
Amount per share
Record Date Payment Date ($) (COP$)
Ordinary Dividend October 9, 2024 October 17, 2024 0.01875 74.1
January 9, 2025 January 16, 2025 0.01875 74.1
Extraordinary Dividend October 9, 2024 October 17, 2024 0.00625 24.7
January 9, 2025 January 16, 2025 0.00625 24.7
TSX: MSA
BVC: MINEROS
4
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE SECOND
QUARTER OF 2024
The following table summarizes quarterly financial highlights for the three and six
months ended June 30, 2024 and 2023.
Three Months
Ended
June 30, Change
Six Months
Ended
June 30,
Change
2024 2023 2024 2023
($) ($)2 ($) (%) ($) ($)2 ($) %
Revenue 133,384 116,623 16,761 14% 247,532 215,492 32,040 15%
Cost of sales (91,991) (75,596) (16,395) 22% (172,669) (143,567
) 29,102 20%
Gross Profit 41,393 41,027 366 1% 74,863 71,925 2,938 4%
Profit for the period from continuing
operations 18,076 21,695 (3,619) (17)% 34,850 38,446 (3,596) (9%)
Loss for the period from
discontinued operations — (9,143) 9,143 (100)% — (10,490) 10,490 (100)%
Net Profit for the period 18,076 12,552 5,524 44% 34,850 27,956 6,894 25%
Basic and diluted earnings per
share from continuing operations
($/share)
0.060 0.072 (0.012) (17)% 0.12 0.13 (0.01) (9%)
Basic and diluted earnings per
share from continuing and
discontinued operations ($/share)
0.060 0.042 0.018 44% 0.12 0.09 0.02 25%
Average realized price per ounce
of gold sold ($/oz) 1 2,327 1,966 361 18% 2,200 1,926 273 14%
Average realized price per ounce
of gold sold from continuing
operations ($/oz)1
2,327 1,964 363 18% 2,200 1,923 277 14%
Average realized price per ounce
of gold sold from discontinued
operations ($/oz) 1
— 1,973 (1,973) (100%) — 1,943 (1,943) (100)%
Adjusted EBITDA1 49,647 47,649 1,998 4% 90,301 85,403 4,898 6%
Cash Cost per ounce of gold sold
from continuing operations ($/oz) 1 1,304 1,044 261 25% 1,240 1,040 200 19%
AISC per ounce of gold sold from
continuing operations ($/oz) 1 1,514 1,225 289 24% 1,472 1,238 234 19%
Net cash flows generated by
operating activities 7,115 30,154 (23,039) (76%) 17,220 32,652 (15,432) (47%)
Net free cash flow1 (6,818) 21,762 (28,580) (131%) (8,715) 11,530 (20,245) (176%)
ROCE1 31% 27% 4% 15% 31% 27% 4% 15%
Net Debt 1 1,898 (3,820) 5,718 (150%) 1,898 (3,820) 5,718 (150%)
Dividends paid 7,473 5,213 2,260 43% 12,712 10,050 2,662 26%
1.Average realized price per ounce of gold sold, average realized price per ounce of gold sold from
continuing operations, average realized price per ounce of gold sold from discontinued operations,
Adjusted EBITDA, Cash Cost per ounce of gold sold from cont inuing operations, all -in sustaining
TSX: MSA
BVC: MINEROS
5
costs (“AISC”) per ounce of gold sold from continuing operations, net free cash flow and Net Debt
are non-IFRS financial measures, and return on cash employed (“ROCE”) is a non -IFRS ratio, with
no standardized meaning under IFRS, and therefore may not be c omparable to similar measures
presented by other issuers. For further information and detailed reconciliations to the most directly
comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release.
2.The Gualcamayo Property was sold in September of 2023 and, accordingly, certain amounts have
been restated to reflect the continuing operations of the Company by removing amounts pertaining
to the discontinued operations. This restatement is reflected in the first six months of 2023 in order
to more appropriately compare the results period over period.
• Revenue increased by 14%: Revenue totaled $133,384 during the second
quarter of 2024, compared with $116,623 in the second quarter of 2023, with
sales of gold of $124,976 at an average realized price per ounce of gold sold
from continuing operations of $2,327, during the second qu arter of 2024
compared with sales of gold of $111,708 at an average realized price per ounce
of gold sold from continuing operations of $1,964 in the second quarter of 2023.
The increase in revenue in the second quarter of 2024 is mainly explained by an
18% increase in average realized price per ounce of gold sold from continuing
operations and a 83% increase in sales of silver of $2,973, offset by a 6%
decrease in ounces of gold sold;
• Cost of sales increased by 22% to $91,991 during the second quarter of
2024, compared with $75,596 in the second quarter of 2023. This increase was
primarily due to: (i) the higher price of gold increasing the costs to purchase
material from artisanal miners of $7,825; (ii) greater dep reciation and
amortization relating to our operations of $1,753; (iii) the 13% devaluation of
the US dollar against the Colombian peso and higher prices across the
Company’s operations, created increased maintenance and mater ials cost of
$2,266, and service and labour costs of $2,002 and $1,067 respectively;
• Gross Profit from continuing operations increased by 1% to $41,393 in
the second quarter of 2024, compared with $41,027 in the second quarter of
2023, mainly due to higher revenue as explained above;
• Profit for the period from continuing operations down 17%, to $18,076
or $0.06 per share during the second quarter of 2024 compared with $21,695
or $0.07 per share during the second quarter of 2023. The decrease in profit
was due mainly to higher costs to purchase material from artisanal miners,
modestly fewer ounces of gold sold and higher costs due to the strong Colombian
TSX: MSA
BVC: MINEROS
6
peso. Profit for the period was also impacted by higher foreign exchange
differences of $2,607 and higher taxes of $7,731;
• Adjusted EBITDA1 up 4%: Adjusted EBITDA was $49,647 during the second
quarter of 2024 compared with $47,649 during the second quarter of 2023,
mainly explained by higher revenue;
• Net cash flows generated by operating activities were down 76%,
totaling $7,115 in the second quarter of 2024, compared with $30,154 in the
second quarter of 2023, The Company’s net free cash flow was negative $6,818
for the three months ended June 30, 2024 , down from $21,762 in the same
period of 2023, due to the timing issues of the payment of income tax $20,361
in Colombia;
• Dividends paid up 43% - Dividends paid during the second quarter of 2024
were $7,473, compared with $5,213 in the same period of 2023, explained by
the extraordinary dividend approved at the ordinary meeting of the General
Shareholders’ Assembly in March 2024;
• Cash Cost & AISC: Cash Cost per ounce of gold sold from continuing operations
in the second quarter of 2024 was $1,304 and AISC per ounce of gold sold from
continuing operations was $1,514, compared with Cash Cost per ounce of gold
sold from continuing operations of $1,044 and AISC per ounce of gold sold from
continuing operations o f $1,225 for the second quarter of 2023. The 25%
increase in Cash Cost per ounce of gold sold from continuing operations is mainly
explained by the 22% increase in cost of sales, due to higher gold prices and the
effects of the COP:US$ exchange rate, along with the 6% decrease in ounces of
gold sold. The increase in AISC per ounce of gold sold from continuing operations
is explained by the increase in the Cash Costs per ounce of gold sold from
continuing operations, along with a 12% increase in sustaining capital
expenditures.1
1 For information regarding the composition of sustaining capital expenditures, see Non-IFRS and Other
Financial Measures – All-In Sustaining Costs in this news release.
TSX: MSA
BVC: MINEROS
7
• Capital investments2 up 46% to $16,662: during the second quarter of 2024
capital investments of $16,662 were made into existing mines, and exploration
& growth projects, compared with $11,439 in the second quarter of 2023; the
increase is explained by higher investments at the Hemco Property.
Financial Highlights for six months ended June 30, 2024
• Revenue increased by 15%: revenue totaled $247,532 during the six months
ended June 30, 2024, compared with $215,492 in the six months ended June
30, 2023, with sales of gold of $231,938 at an average realized price per ounce
of gold sold from continuing operations of $2,200 in the six months ended June
30, 2024, compared with sales of gold of $206,668 at an average realized price
per ounce of gold sold from continuing operations of $1,923 in the six months
ended June 30, 2023;
• Cost of sales increased by 20%, to $172,669 in the six months ended June
30, 2024, compared with $143,567 in the six months ended June 30, 2023; The
increase in costs is primarily due to higher cost of purchasing artisanal material
of $12,794 due to higher gold prices, higher labour cost s of $3,818, higher
services of $3,806 and higher taxes and royalties of $237;
• Gross Profit from continuing operations increased by 4%, amounting to
$74,863 in the six months ended June 30, 2024, compared with $71,925 in the
six months ended June 30, 2023; mainly due to an 15% increase in revenue,
which was partially offset by a 20% increase in cost of sales as explained above;
• Profit for the period from continuing operations was down by 9% to
$34,850 or $0.12 per share during the six months ended June 30, 2024
compared with $38,446 or $0.13 per share during the six months ended June
30, 2023; the decrease in profit is mainly explained by the modest increase in
gross profit offset by an incre ase in costs. Profit was positively impacted by
higher foreign exchange differences of $4,763. Profits were also impacted by
2 Capital investments refers to additions to exploration, property, plant and equipment, and intangibles
(which includes asset retirement obligation amounts and leases) for the Nechí Alluvial Property, the
Hemco Property, and the La Pepa Project segments. It excludes additions to property, plant and
equipment, exploration or intangibles of Mineros and other segments. For additional information as
additions to exploration, property, plant and equipment, and intangibles, see Note 7 of our unaudited
condensed interim financial statements for the three months and six months ended June 30, 2024.
TSX: MSA
BVC: MINEROS
8
lower other income of $2,598 due to the receipt of an insurance payment of
$4,889 related to the overturning of the Llanuras Plant in the first quarter of
2023, higher deferred taxes of $8,653 and lower current taxes of $813;
• Adjusted EBITDA up 6%: Adjusted EBITDA was $90,301 during the six
months ended June 30, 2024 compared with $85,403 during the six months
ended June 30, 2023 due to a 15% increase in revenue, offset by a 20% increase
in cost of sales and a 10% increase in administrative expenses;
• Loss for the period from discontinued operations decreased by 100%, to
$0 during the six months ended June 30, 2024, compared with a loss of $10,490
during the six months ended June 30, 2023, due to the sale of the Gualcamayo
Property;
• ROCE was 31% as at June 30, 2024 compared with ROCE of 27% as at
June 30, 2023; the increase is mainly explained by 9% higher Adjusted EBITDA
for the last 12 months, along with a 6% decrease in average capital employed,
mainly explained by lower gold inventories after the sale of the Gualcamayo
Property, fewer exploration and evaluation projects and lower value attributable
to property, plant and equipment;
• Net Debt was $1,898 as at June 30, 2024, compared with $(3,820) as at
June 30, 2023; explained by 74% lower cash and cash equivalents, along with
50% lower loans and other borrowings;
• Dividends Paid up 26%: Dividends paid of $12,712 during the six months
ended June 30, 2024, compared with $10,050 in the same period of 2023,
explained by an extraordinary annual dividend approved at the ordinary meeting
of the General Shareholders’ Assembly in March 2024;
• Net cash flows generated by operating activities were down 47% totaling
$17,220 in the six months ended June 30, 2024, compared with $32,652 in the
same period of 2023. The Company’s net free cash flow was negative for the six
months ended June 30, 2024 and totaled $8,715, down from $11,530 in the
same period of 2023 , due to timing issues of the payment of income tax of
$22,517 in Colombia. While the sale of the Gualcamayo Property resulted in
lower receipts from the sale of goods, commissions and other rev enue, and