Mineros Achieves 2024 Production Guidance and Provides Production and Cost Guidance for 2025
Mineros Achieves 2024 Production Guidance and Provides Production and
Cost Guidance for 2025
MEDELLIN, Colombia--(BUSINESS WIRE)--January 22, 2025--Mineros S.A. (TSX:MSA,
MINEROS:CB) (“Mineros” or the “Company”) is pleased to announce that it achieved its
production guidance for 2024 with the production of 213,245 ounces of gold. The Company had
adjusted guidance in the third quarter of 2024 to better give stakeholders an idea of how the
Nechi Alluvial Property and the Hemco Property were each performing against guidance, and to
provide better information with where cash costs (“Cash Cost”) per ounce of gold sold and all-in
sustaining costs (“AISC”) per ounce of gold sold were trending.
Mineros plans to release its fourth quarter 2024 and year-end financial and operating results on
Monday, February 17, 2025. Senior management will host a conference call on Tuesday,
February 18, 2025, at 9:00 AM Eastern Standard Time (9:00 AM Colombian Standard Time).
Please register here to join us.
Mineros is also pleased to provide its production and cost guidance for 2025. Please note that
unless otherwise noted, all amounts are expressed in U.S. dollars.
2024 Full Year and Fourth Quarter Production:
213,245 ounces of gold produced for the full year, within the Company’s 2024 revised
production guidance range of 203,000 to 218,000 ounces and at the lower end of the
Company’s original production guidance of between 209,000 and 229,000 ounces. This is
a testament to the hard work at Nechí to mitigate for lower than originally anticipated
production earlier in the year and to the consistent operations in Nicaragua at our Hemco
Property.
54,189 ounces of gold produced in the fourth quarter.
2025 Consolidated Production Guidance:
Produce between 201,000 and 223,000 ounces of gold in 2025 from our Hemco Property
and our Nechí Alluvial Property.
Achieve Cash Cost1 per ounce of gold sold between $1,340 - $1,430 in 2025.
Achieve AISC per ounce of gold sold1 between $1,650 - $1,750 in 2025.
Andrés Restrepo, President and CEO of Mineros, commented: “We finished 2024 with a strong
operational fourth quarter, successfully meeting our production guidance despite challenges
encountered earlier in the year. This achievement highlights the underlying strength of our
operations and our ability to deliver on our commitments. We are confident in our ability to
continue generating value for our shareholders through efficient and profitable operations.”
2024 Production
Total annual production from all operating sites is set out in Table 1 below:
Table 1. 2024 Full Year Production
Production 20241 Production Guidance
20241,2
Nechi Alluvial Property (Colombia) 82,017 77,000 - 85,000
Hemco Property (Nicaragua) 34,344 33,000 - 35,000
Company Mines 116,361 110,000 - 120,000
Artisanal (Nicaragua) 96,884 93,000 - 98,000
Total Nicaragua 131,228 126,000 - 133,000
Consolidated 213,245 203,000 - 218,000
Notes:
1. Guidance for silver is not provided by the Company, as we treat it as a by-product and the volumes of silver are
rather small relative to gold production.
2. 2024 production guidance was revised lower in November. For more information, see the press release dated
November 13, 2024, titled “Mineros Reports Third Quarter 2024 Financial and Operating Results”, which can be
found on SEDAR+ and on the Company’s webs ite at www.mineros.com.co.
The Nechí Alluvial Property produced 82,017 ounces of gold in the year which was within
revised guidance and approximately 13% below 2023 production. The decrease in production in
2024 relative to the previous year was a result of greater challenges with the availability of
dredges and scheduling issues at the Nechí Alluvial Property.
In Nicaragua, total combined annual production of 131,228 ounces of gold was at the top end of
our 2024 guidance which was refined in the third quarter with the lower end of the range being
raised and was 4% higher than 2023 annual production.
2025 Guidance
For 2025, we expect gold production to be between 201,000 and 223,000 ounces, building on the
consistent performance of our Nicaragua underground mines and partnerships with artisanal
miners and the diligence with which our teams at the Nechí Alluvial Property resolve issues as
they arise. We remain focused on operational excellence and delivering strong, reliable returns
for our shareholders.
Table 2. 2025 Production and Cost Guidance
Production and Cost Guidance 2025
Colombia (Nechí Alluvial Property)
Gold production oz 81,000 - 91,000
Cash Cost per ounce of gold sold $/oz $1,220 - $1,320
AISC per ounce of gold sold $/oz $1,440 - $1,540
Nicaragua (Hemco Property & Artisanal)
Hemco Property production oz 33,000 - 36,000
Artisanal production oz 87,000 - 96,000
Total gold production oz 120,000 - 132,000
Cash Cost per ounce of gold sold $/oz $1,420 - $1,520
AISC per ounce of gold sold $/oz $1,680 - $1,780
Consolidated
Gold production oz 201,000 - 223,000
Cash Cost per ounce of gold sold $/oz $1,340 - $1,430
AISC per ounce of gold sold $/oz $1,650 - $1,750
Annual gold production for 2025 at the Nechí Alluvial Property in Colombia is expected to be
between 81,000 and 91,000 ounces. At the Nechí Alluvial Property in Colombia, the Company
anticipates Cash Cost per ounce of gold sold and AISC per ounce of gold sold to decrease
significantly compared with 2024 due to a change in the way the Company calculates both
metrics. Going forward Mineros will eliminate a royalty payable by Mineros Aluvial S.A.S. to
Mineros, its parent company, which distorted both Cash Cost per ounce of gold sold and AISC
per ounce of gold sold, increasing each by about $170 per ounce of gold sold in 2024.
As the influence of the intercompany royalty disappears on consolidation it was deemed
appropriate to discontinue the inclusion of this royalty in order that readers of reports on our
financial and operating results might better compare these results to the results of other publicly
listed gold producers. All royalties due and payable to external entities remain part of the
calculation. For a more detailed account of how both Cash Cost per ounce of gold sold and AISC
per ounce of gold sold are calculated see the Non-IFRS Financial Measures section below.
At the Hemco Property in Nicaragua, the Company anticipates annual production in 2025 of
120,000 - 132,000 ounces of gold, including 87,000 - 96,000 ounces of gold from artisanal
production. We have cultivated strong relationships with the artisanal mining community,
creating a strategic advantage in sourcing gold. This collaborative approach ensures consistent
access to high-quality minerals, allowing us to maintain stable production levels and deliver on
our guidance commitments with greater confidence. The Company anticipates both Cash Cost
per ounce of gold sold and AISC per ounce of gold sold to increase due to higher assumed gold
prices resulting in 2025, which would increase the cost of Artisanal production.
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.
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”.
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; the Company’s continuous improvement initiatives and project
performance, the timing, amount and stability 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 and gold price fluctuations; future shareholder returns; the continuation of partnerships
with artisanal miners.
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
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, 2024, and
management’s discussion and analysis for the three and nine months ended September 20, 3024,
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 into this press release 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 20, 2024, 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.
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.
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.
Contacts
For further information, please contact:
Ann Wilkinson
Vice President, Investor Relations
(+57) 6042665757