BVC: MINEROS 1 Mineros Reports Third Quarter 2023 Financial and Operational Results (all dollar amounts other than per share amounts are expressed in thousands of U.S. dollars
ACTIVE_CA\59513283\3
TSX: MSA
BVC: MINEROS
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Mineros Reports Third Quarter 2023 Financial and Operational Results
(all dollar amounts other than per share amounts are expressed in thousands of U.S. dollars unless otherwise stated)
Medellin, Colombia – November 9, 2023 – Mineros S.A. (TSX:MSA, MINEROS:CB) (“Mineros” or the
“Company”) today reported its financial and operational results for the three and nine months ended September
30, 2023. For further information, please see the Company’s unaudited condensed interim financial statements
and management’s discussion and analysis (“MD&A”) filed under its Mineros’ profile on www.sedarplus.com.
Andrés Restrepo, President and CEO of Mineros, commented, “During the third quarter of 2023 we sold the
Gualcamayo Property in Argentina, in line with our strategy of actively managing our portfolio and focusing
management’s efforts on high margin, long -life and lower cost assets. We have full confidence that Eris LLC,
the new owner, will levera ge their experience and knowledge to maximize and enhance the future of the
operation.”
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE THIRD QUARTER 2023
Gold Production
• 50,196 ounces of gold produced.
• A 12% decrease in gold production compared to the same period in 2022 (Q3/22: 56,930 ounces of
gold produced), explained by a two -week suspension of the main processing plant at the Hemco
Property in Nicaragua.
Cost of Sales, Cash Cost1 and All-in Sustaining Cost (“AISC”)1 from continuing operations
• Cost of sales of $75,658, a 9% increase when compared to the same period in 2022 (Q3/22: $69,691).
• Cash Cost per ounce of gold sold 1,2 of $1,222 (Q3/22: $1,007), a 21% increase relative to the same
period in 2022.
• AISC per ounce of gold sold 1,2 of $1,427 (Q3/22: $1,177), a 28% increase relative to the AISC per
ounce of gold sold during the same period in 2022.
Dividend Payment
• $5,241 in dividends paid.
• A 7% decrease in dividends paid compared to the same period in 2022 (Q3/22: $5,655), due to foreign
exchange differences.
Revenue
• Revenue of $101,371.
1 Cash Cost and AISC are non-IFRS financial measures, and 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 they may not be comparable to similar measures presented b y other issuers.
For further information and detailed reconciliations of non -IFRS financial measures to the most directly comparable IFRS measures, see Non -
IFRS and Other Financial Measures in this news release.
2 Stated in dollars.
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• Revenue increased by 2% compared to the same period in 2022 (Q3/22: $99,727).
Profitability
• Gross profit down by 14% to $25,713 compared to the same period in 2022 (Q3/22: $30,036).
• Profit for the period from continuing operations up 36% to $13,284 ($0.04/share) compared to the same
period in 2022 (Q3/22: $9,771 or $0.03/share).
• Loss for the period from discontinued operations up 539% to $45,791 compared to the same period in
2022 (Q3/22: $7,161).
Net Debt to Adjusted EBITDA ratio3
• Net Debt to Adjusted EBITDA ratio3 of 0.00x as at September 30, 2023.
• The Company continues to have a low Net Debt to Adjusted EBITDA ratio, with a 96% decrease
compared to 0.11x as at September 30, 2022.
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023
Gold Production
• 157,669 ounces of gold produced.
• A 5% decrease in gold production compared to the same period in 2022 (nine months ended
September 30, 2022: 166,308 ounces of gold produced).
Cost of Sales, Cash Cost and All-in Sustaining Cost (“AISC”)
• Cost of sales of $219,225, a 2% increase when compared to the same period in 2022 (nine months
ended September 30, 2022: $212,241)
• Cash Cost per ounce of gold sold of $1,124 (nine months ended September 30, 2022: $1,050), a 7%
increase relative to the same period in 2022, mainly explained by the 12% decrease in gold production.
• AISC per ounce of gold sold 1 of $1,311 (nine months ended September 30, 2022 : $1,234), a 10%
increase relative to the AISC per ounce of gold sold during the same period in 2022.
Dividend Payment
• $15,291 in dividends paid.
• A 16% decrease in dividends paid compared to the same period in 2022 (nine months ended
September 30, 2022: $18,128), explained by an extraordinary dividend of $0.01 per share paid in April
of 2022.
Revenue
• Revenue of $316,863. Revenue increased by 2% when compared to the same period in 2022 (nine
months ended September 30, 2022: $309,878).
3 Net Debt to Adjusted EBITDA ratio is a non-IFRS ratio, with no standardized meaning under IFRS, and therefore it may not be comparable to
similar measures presented by other issuers. For further information and detailed reconciliations of non -IFRS financial measures to the mos t
directly comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release.
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BVC: MINEROS
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Profitability
• Gross profit from continuing operations remained stable, standing at $97,638 compared to the same
period in 2022 (nine months ended September 30, 2022: $97,637).
• Net profit for the period from continuing operations up 36% to $51,730 ($0.17/share) compared to the
same period in 2022 (Q3/22: $37,961 or $0.05/share).
• Loss for the period from discontinued operations up 318%, to $56,281 compared to the same period
in 2022 (nine months ended September 30, 2022: $13,480).
Financial and Operating Highlights
Three Months
Ended September
30,
Change
Nine Months
Ended
September 30,
Change
2023 2022 $ % 2023 2022 # %
Financial
Revenue 101,371 99,727 1,644 2% 316,863 309,878 6,985 2%
Cost of sales (75,658) (69,691) 5,967 9% (219,225) (212,241) 6,984 3%
Gross Profit 25,713 30,036 (4,323) (14)% 97,638 97,637 1 0%
Profit for the period from
continuing operations 13,284 9,771 3,513 36% 51,730 37,961 13,769 36%
Basic and diluted earnings per
share from continuing
operations
$0.04 $0.03 $0.01 36% $0.17 $0.13 $0.05 36%
Loss for the period from
discontinued operations (45,791) (7,161) (38,630) 539% (56,281) (13,480) (42,801) 318%
Basic and diluted earnings per
share from continuing and
discontinued operations
$(0.11) $0.01 $(0.12) (1,345)% $(0.02) $0.08 $(0.10) (119)%
Adjusted EBITDA1 33,379 37,403 (4,024) (11)% 118,782 116,039 2,743 2%
Net cash flows generated by
operating activities 4,324 22,849 (18,525) (81)% 36,976 46,005 (9,029) (20)%
Net free cash flow1 911 7,807 (6,896) (88)% 12,441 3,401 9,040 266%
ROCE1 28% 21% 7% 31% 28% 21% 7% 31%
Net Debt to Adjusted EBITDA
ratio1 —x 0.12x (0.11x) (96%) —x 0.12x (0.11x) (96%)
Dividends paid 5,241 5,655 (414) (7)% 15,291 18,128 (2,837) (16)%
Operating
Average realized price per
ounce of gold sold from
continuing operations ($/oz)1
1,921 1,719 202 12% 1,922 1,817 105 6%
Total gold produced from
continuing operations (oz) 50,196 56,930 (6,734) (12)% 157,669 166,308 (8,639) (5)%
Silver sold from continuing
operations (oz) 135,776 84,427 51,349 61% 416,329 269,455 146,874 55%
Cash Cost per ounce of gold
sold from continuing operations
($/oz)1
$1,222 $1,007 $215 21% $1,124 $1,050 $74 7%
AISC per ounce of gold sold
from continuing operations
($/oz)1
$1,427 $1,177 $249 21% $1,311 $1,234 $77 6%
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1. Adjusted EBITDA, net free cash flow, and average realized price are Non-IFRS financial measures, and ROCE, Net Debt to Adjusted
EBITDA ratio, 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 and Other Financial Measures in this news release.
Operational Highlights by Material Property
(All numbers in ounces unless otherwise noted)
Three Months
Ended September
30,
Change
Nine Months
Ended
September 30,
Change
2023 2022 ounces % 2023 2022 # %
Nechí Alluvial Property (Colombia) 23,201 24,720 (1,519) (6)% 65,837 67,399 (1,562) (2)%
Hemco Property 5,514 10,918 (5,404) (49)% 23,252 30,849 (7,597) (25)%
Artisanal Mining 21,481 21,292 189 1% 68,580 68,060 520 1%
Nicaragua 26,995 32,210 (5,215) (16)% 91,832 98,909 (7,077) (7)%
Total Gold Produced from
Continuing Operations 50,196 56,930 (6,734) (12)% 157,669 166,308 (8,639) (5)%
Gualcamayo Property (Argentina) 9,032 17,583 (8,551) (49)% 31,061 48,276 (17,215) (36)%
Total Gold Produced from
Discontinued Operations 9,032 17,583 (8,551) (49)% 31,061 48,276 (17,215) (36)%
Total Gold Produced 59,228 74,513 (15,285) (21)% 188,730 214,584 (25,854) (12)%
Total Silver Produced 138,853 90,863 47,990 53% 425,549 285,864 139,685 49%
For the three months ended September 30, 2023, gold production from continuing operations was down 12%,
with 50,196 ounces of gold produced, compared to 56,930 ounces in the third quarter of 2022, summarized in
the table above. For the nine months ended September 30, 2023 , gold production from continuing operations
was down 5%, with 157,669 ounces of gold were produced during the nine months ended September 30, 2023,
compared to 166,308 ounces in the same period of 2022. In each case, the decrease in production relative to
the comparative quarter in 2022 is mainly due to a two-week suspension of operations at the Hemco Property
in Nicaragua.
CORPORATE HIGHLIGHTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023
Disposition of Minas Argentinas S.A. (“MASA”)
On September 8, 2023, Mineros announced that it had signed a share purchase and sale agreement with Eris
LLC dated September 7, 2023 to sell all of the outstanding shares of Mineros’ subsidiary, Minas Argentinas S.A.
(“MASA”). MASA holds a 100% interest in the Gualcamayo Property, which includes the Gualcamayo Mine and
the Deep Carbonates Project. The transaction was completed on September 21, 2023. The disposed business,
MASA (including its main asset, the Gualcamayo Property), has been presented as a discontinued operation in
the Company’s unaudited condensed interim financial statements for the period ending September 30, 2023.
Temporary suspension of the main processing plant at the Hemco Property in Nicaragua
On July 31, 2023, Mineros suspended operations at the Hemco Plant, its main process ing plant at the Hemco
Property, for two weeks. The Hemco Plant processes 89% of the material and disposal of tailings at the Hemco
Property. The suspension was precautionary in nature, to allow for the swift completion of tailings detoxification
capacity enhancements at the San José Tailings Dam, the primary tailings processing facility at the Hemco
Property, prior to hurricane season in Nicaragua. Mineros resumed full operations at the He mco Property on
August 15, 2023, after making significant enhancements to its tailings detoxification capacity.
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GROWTH AND EXPLORATION PROJECT UPDATES
Porvenir Project, Nicaragua: In the third quarter of 2023, with the aim of increasing or upgrading the category
of Mineral Resources and Mineral Reserves, the Company completed 4,433 metres of diamond drilling in 14
holes, achieving approximately 102% of the 2023 drilling plan. Analytical results and geological model updates
are expected to be completed in the fourth quarter of 2023, with a Mineral Resource update anticipated for 2024.
Luna Roja Deposit, Nicaragua: In the third quarter of 2023, the Company completed the geological model
update of the Luna Roja Deposit and is currently focused on an internal Mineral Resource update.
OUTLOOK
Based on the sale of the Gualcamayo Property, on September 22, 2023, Mineros announced revisions to its
2023 consolidated production and cost guidance, as provided in the Company’s MD&A for the three months and
year ended December 31, 2022, dated February 17, 2022.
The following table sets out original and revised production and cost guidance for 2023, as well as actual results
for the nine months ended September 30, 2023.
As at
September 30, 2023
Updated
2023 Guidance
Original
2023 Guidance
Gold production oz 188,730 239,000 - 262,000 264,000 - 292,000
Cash costs per ounce of gold sold $/oz 1,286 1,170 - 1,270 1,160 - 1,250
AISC per ounce of gold sold $/oz 1,497 1,440 - 1,540 1,400 - 1,490
Mineros is not revising its 2023 guidance for the Hemco Property or the Nechí Alluvial Property. On a
consolidated basis, guidance for 2023 for the Hemco Property and the Nechí Alluvial Property is as follows: total
gold production is 209,000 – 229,000 oz, Cash Cost per ounce of gold sold is $1,060 – $1,150, and AISC per
ounce of gold sold is $1,310 – $1,410. Mineros expects gold production for the Hemco Property to be close to
the low end of 2023 guidance and AISC at the Nechí Alluvial Property close to the high end of 2023 guidance.
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CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call on Friday, November 10, 2023, at 8:00 am EST (8:00 am COT) to
discuss the results. The conference call will be in Spanish with simultaneous translation in English.
A live webcast of the conference all will be available at:
https://app.webinar.net/QMA7B586zWg
Live webcast requires previous registration, and interested parties are advised to access the webcast
approximately ten minutes prior to the start of the call. The webcast will be archived on the Company’s website
at www.mineros.com.co for approximately 30 days following the call.
ABOUT MINEROS S.A.
Mineros is a 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.
The board of directors and management of Mineros have extensiv e 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 John Robert McClintock
Investor Relations Manager Investor Relations
(+57) 42665757 +1 (44) 7718 576395
[email protected] [email protected]
The Company has been granted an exemption from the individual voting and majority voting requirements
applicable to listed issuers under Toronto Stock Exchange 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 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 NI 43-101.
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FORWARD-LOOKING STATEMENTS
This news release contains “forward looking information” within the meaning of applicable Canadian securities
laws. Forward looking information includes statements that use forward looking terminology such as “may”,
“could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”,
“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 the Company’s outlook for 2023; estimates for future mineral production and sales;
the Company ’s expectations, strategies and plans for the Material Properties; the Company ’s planned
exploration, development and production activities; completion of the drilling program; statements regarding the
projected exploration and development of the Company’s projects; adding or upgrading Mineral Resources and
developing new mineral deposits; estimates of future capital and operating costs; the costs and timing of future
exploration and development; the timing, receipt and maintenance of necessary approvals, licenses and permits
form applicable governments, regulators or third parties; estimates for future prices of gold and other minerals;
future fi nancial or operating performance and condition of the Company and its business, operations and
properties, including, without limitation, expectations regarding liquidity, capital structure, competitive position
and payment of dividends; expectations regarding future currency exchange rates; and any other statement that
may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, p erformance or
achievements.
Forward looking information is based upon estimates and assumptions of management in light of management’s
experience and perception of trends, 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 th is news
release including, without limitation, assumptions about: favourable equity and debt capital markets; the ability
to raise any necessary additional capital on reasonable terms to advance the production, development and
exploration of the Company’s properties and assets; future prices of gold and other metal prices; the timing and
results of exploration and drilling programs, and technical and economic studies; the accuracy of any Mineral
Reserve and Mineral Resource estimates; the geology of the Mat erial Properties being as described in the
applicable technical reports; production costs; the accuracy of budgeted exploration and development costs and
expenditures; the price of other commodities such as fuel; future currency exchange rates and interest rates;
operating conditions being favourable such that the Company is able to operate in a safe, efficient and effective
manner; 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, licenses and
permits on favourable terms; requirements under applicable laws; sustained labour stability; stability in financial
and capital goods markets; inflation rates; availability of labour and equipment; positive relations with local
groups, including artisanal mining cooperatives in Nicaragua, and the Company’s ability to meet its obligations
under its agreements with such groups; and satisfying the terms and conditions of the Co mpany’s current loan
arrangements. 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, conti ngencies 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 they will prove to be correct.
For further information of these and other risk factors, please see the “Risk Factors” section of the Company’s
most recent annual information form filed on SEDAR+ at www.sedarplus.com.
The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other
events or circumstances could cause actual results to differ ma terially from those estimated or projected and
expressed in, or implied by, the forward looking information contained herein. There can be no assurance that
forward looking information will prove to be accurate, as actual results and future events could di ffer materially
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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 AND OTHER FINANCIAL MEASURES
The Company has included certain non -IFRS financial measures and non -IFRS ratios in this MD&A.
Management believes that non-IFRS financial measures and non-IFRS ratios, when supplementing measures
determined in accordance with IFRS, provide investors w ith an improved ability to evaluate the underlying
performance of the Company. Non-IFRS financial measures and non-IFRS ratios do not have any standardized
meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by
other companies. This data is 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. For a discussion of
the use of non -IFRS financial measur es and reconciliations thereof to the most directly comparable IFRS
measures, see below.
EBIT, EBITDA and Adjusted EBITDA
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
investors use the earnings before interest and tax ( “EBIT”), earnings before interest, tax, depreciation and
amortization (“EBITDA”), and adjusted earnings before interest, tax, depreciation and amortization ( “Adjusted
EBITDA”), which excludes certain non-operating income and expenses, such as financial income or expenses,
hedging operations, exploration expenses, impairment of assets, foreign currency exchange differences, and
other expenses (principally, donations, corporate projects and taxes incurred). The Company believes that
Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our
operating results because it is consistent with the indicators management uses internally to measure the
Company’s performance, and is an indicator of the performance of the Company’s mining operations.