Mineros Reports 2021 Year-End and Fourth Quarter Financial and Operational Results
Mineros Reports 2021 Year-End and Fourth Quarter Financial and
Operational Results
(all amounts expressed in U.S. dollars unless otherwise stated)
Medellin, Colombia – February 28, 2022 – Mineros S.A. (TSX:MSA, MINEROS:CB) (“Mineros” or the
“Company”) today reported its financial and operational results for the fourth quarter and year
ended December 31, 202 1. For further information please see the Company’s Consolidated
Financial Statements and Management Discussion and Analysis filed under Mineros’ profile on
www.sedar.com.
Andrés Restrepo, President and CEO of Mineros, commented “2021 was a historic year for Mineros,
as we became the first Colombian-based company to be listed on both the Toronto Stock Exchange
and the Colombian Stock Exchange (Bolsa de Valores de Colombia). While we are new to Canadian
investors, Mineros h as a long and profitable history of gold mining in Latin America , initially in
Colombia, and more recently in Nicaragua and Argentina. In all of the jurisdictions in which we
operate, we have built mutually beneficial relationships with stakeholders , to contribute to the
socio-economic development of the local communities and establish a strong social licence.”
“Mineros continues to pay one of the highest dividends in the gold mining industry, with a total of
$17.7 million paid in 2021. This past year we produced over 260,000 ounces of gold , achieving
production guidance, and continuing to strengthen our overall capital position. While our cash
costs per ounce of gold sold 1 were within guidance, our all-in sustaining costs per ounce of gold
sold1 were slightly higher than forecast.”
“We enter 2022 with a focus both on continued solid production from our existing mining
operations and growing annual production to approximately 500,000 gold equivalent ounces by
2025 through a combination of greenfield development, brownfield expansions, joint ventures, and
potential complimentary acquisitions.” added Restrepo.
YEAR-END FINANCIAL AND OPERATING HIGHLIGHTS
• 2021 annual production guidance achieved: Gold production totaled 261,767 ounces in
2021, within the upper half of the Company’s 2021 production guidance range of 250,000
to 267,000 ounces and a 4% decrease from the proceeding year (2020: 271,647 ounces).
1 Cash costs and all-in sustaining costs (AISC) are non-IFRS financial measures, and cash costs 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 of non -IFRS financial measures to the most directly
comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release.
• Strong dividend payment: $17.7 million in dividends paid in 2021, a 33% increase from the
previous year (2020: $13.3 million).
• Solid revenue from gold sales: Gold sales of 265,806 ounces generated $479.3 million in
revenue, with an average realized price per ounce of gold sold2 of $1,803 (2020: gold sales
of 270,898 ounces generated $479.1 million in revenue, with an average realized price per
ounce of gold sold of $1,769).
• Continued strong financial liquidity: Net debt to Adjusted EBITDA2 ratio of (0.05x) in 2021
(2020: 0.06x).
• Continued cash flows from operating activities: $87.3 million in cash from operating
activities in 2021 (2020: $142.2 million).
• Cash costs3 & all-in sustaining costs 3 (“AISC”): cash costs per ounce of gold sold in 2021
were $1,178, (2020: $1,018; 2021 Guidance: $1,151 to $1,225) and AISC per ounce of gold
sold3 was $1,492 (2020: $1,226; 2021 Guidance: $1,390 to $1,473 ). While cash costs per
ounce of gold sold3 were in line with guidance, the AISC per ounce of gold sold3 was slightly
higher than forecast.
FOURTH QUARTER 2021 FINANCIAL AND OPERATING HIGHLIGHTS
• Gold production: Gold production totaled 65,133 ounces in the fourth quarter of 2021
(fourth quarter 2020: 64,908 ounces). The Company does not provide quarterly production
guidance.
• Dividend payment: $4.0 million in dividends paid in the fourth quarter of 2021, a 4%
increase from the previous year (fourth quarter 2020: $3.8 million).
• Revenue from gold sales and average realized price per ounce of gold sold: Gold sales of
64,969 ounces generated $117.1 million in revenue, with a realized price per ounce of gold
sold3 of $1,802 (fourth quarter 2020: gold sales of 64,453 ounces generated $119.2 million
in revenue, with a realized price per ounce of gold sold of $1,850).
• Continued strong financial liquidity: Net debt to Adjusted EBITDA2 ratio of (0.05x) in the
fourth quarter of 2021 (fourth quarter 2020: 0.06x).
• Cash flows from operating activities: $19.6 million in cash was generated from operating
activities in the fourth quarter 2021, a 74% decrease from the previous year (fourth quarter
2020: $75.4 million).
2 Non-IFRS disclaimer
3 Cash costs and all-in sustaining costs (AISC) are non-IFRS financial measures, and cash costs 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 of non -IFRS financial measures to the most directly
comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release.
• Cash Cost4 & AISC4: cash costs per ounce of gold sold 4 in the fourth quarter of 2021 were
$1,227, (fourth quarter 2020: $1,162) and AISC per ounce of gold sold4 was $1,463 (fourth
quarter 2020: 1,454). The Company does not provide quarterly guidance.
Table 1. Quarterly and Annual Financial and Operating Highlights
(All numbers in $000’s unless otherwise noted)
Three Months
Ended Dec. 31, Change
Year Ended Dec. 31, Change
2021 2020 # % 2021 2020 # %
Financial
Revenues 122,218 121,480 738 1% 496,247 485,301 10,946 2%
Sales of gold 117,053 119,210 (2,157) (2%) 479,363 479,128 235 0%
Gross profit 26,612 33,169 (6,557) (20%) 124,963 162,961 (37,998) (23%)
Net Profit for the period 11,060 14,155 (3,095) (22%) 43,387 63,655 (20,268) (32%)
Basic Earnings per Share ($) 0.04 0.05 (0) (20%) 0.16 0.24 (0) (33%)
Adjusted EBITDA(1) 35,449 40,210 (4,761) (12%) 154,703 187,751 (33,048) (18%)
Cash from Operating Activities 19,643 75,427 (55,784) (74%) 87,340 142,244 (54,904) (39%)
ROCE(1) 24% 37% (13%) (35%) 24% 37% (13%) (35%)
Net Debt to Adjusted EBITDA (0.05x) 0.06x (0.11x) (190%) (0.05x) 0.06x (0.11x) (190%)
Dividends Paid 4,014 3,849 165 4% 17,670 13,303 4,367 33%
Operating
Average realized price per ounce
of gold sold(1) ($/oz) 1,802 1,850 (48) (3%)
1,803 1,769 35 2%
Gold produced (oz) 65,133 64,908 225 0% 261,767 271,647 (9,880) (4%)
Gold sold (oz) 64,969 64,453 516 1% 265,806 270,898 (5,092) (2%)
Average realized price per ounce
of silver sold(1) ($/oz) 23 25 (2) (7%)
25 21 3 15%
Silver produced (oz) 108,959 64,921 44,038 68% 400,562 298,088 102,474 34%
Cash Cost per ounce of gold
sold(1) ($/oz) 1,227 1,162 64 6%
1,178 1,018 160 16%
AISC per ounce of gold sold(1)
($/oz) 1,463 1,454 9 1%
1,492 1,226 266 22%
(1) The definition and reconciliation of these non-IFRS financial measures and ratios is included in the section on Non-IFRS and
Other Financial Measures in this news release.
4 Cash costs and all-in sustaining costs (AISC) are non-IFRS financial measures, and cash costs per ounce of gold sold and AISC per ounce
of gold sold are non -IFRS ratios, with no standardized mean ing under IFRS, and therefore may not be comparable to similar measures
presented by 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.
Table 2. Quarterly and Annual Operational Highlights by Material Property
(All numbers in ounces unless otherwise noted)
Three Months Ended
Dec. 31, Change Year Ended Dec.
31, Change
2021 2020 # % 2021 2020 # %
Colombia
Nechi Alluvial Property 15,524 17,561 (2,037) (12%) 73,129 69,940 3,189 5%
La Ye Mine(1) 0 0 0 0% 0 6,785 (6,785) (100%)
15,524 17,561 (2,037) (12%) 73,129 76,725 (3,596) (5%)
Nicaragua
Hemco Property 5,885 6,839 (954) (14%) 30,917 34,679 (3,762) (11%)
Artisanal Mining 26,316 19,821 6,495 33% 96,234 87,816 8,418 10%
32,201 26,660 5,541 21% 127,151 122,495 4,656 4%
Gualcamayo Property
(Argentina) 17,408 20,687 (3,279) (16%) 61,487 72,427 (10,940) (15%)
Total Gold Produced 65,133 64,908 225 0% 261,767 271,647 (9,880) (4%)
Total Silver Produced 108,959 64,921 44,038 68% 400,562 298,088 102,474 34%
(1) Colombia’s production in the full year ended Dec. 31, 2020, includes ounces from La Ye underground mine. The La Ye
underground mine was sold in 2020 and effective control of operations passed to the new owners on or about May 31, 2020.
CORPORATE AND PROJ ECT HIGHLIGHTS FOR THE QUARTER AND YEAR -ENDED DECEMBER 31,
2021
• Initial public offering (“IPO”) on the Toronto Stock Exchange (“TSX”) and closing of
Canadian and Colombian Offerings: On November 1 9, 2021, the Company completed a
public offering in Colombia for gross proceeds of approximately $11.5 million. On the same
date, the Company also completed its IPO in Canada (the “Canadian IPO”) with gross
proceeds close to $20.0 million and common shares of Mineros were listed for trading on
the TSX under the stock symbol “MSA”. On November 25, 2021, the co -lead underwriters
for the Canadian IPO partially exercised their over-allotment option, resulting in additional
gross proceeds of approximately $2.8 million. Total proceeds of the Canadian IPO and the
Colombian concurrent offering, net of underwriting fees and various issue cost, were $29.8
million.
• Consolidation of 100% ownership of the Luna Roja Exploration Target: On May 21, 2021,
Mineros acquired Royal Road Minerals Limited’s (“Royal Road”) 50% interest in the Luna
Roja Exploration Target, bringing the interest of Hemco -Nicaragua S.A. (“Hemco”), a
subsidiary of the Company, to 100% for consideration consisting of $24.5 million (including
withholding taxes of $3.7 million) and a 1.25% net smelter return royalty on all future
mineral production from the Luna Roja Exploration Target, starting from commercial
production. On December 7, 2021, the Company repaid debt of $15 million incurred to fund
a portion of the cash consideration for Royal Road’s interest in the Luna Roja Exploration
target, with net proceeds of the Canadian IPO.
• Initial 20% interest earned in La Pepa Project: On June 25, 2021, the Company announced
it had exercised its first option to earn a 20% beneficial interest in the La Pepa Project.
• Receipt of environmental permits at the Nech í Alluvial Property: On October 22, 2021,
the Company announced that the National Authority of Environmental Licences (Autoridad
Nacional de Licencias Ambientales) of Colombia (“ANLA”) approved a previously submitted
application to amend the Nechí Alluvial Property environmental management plan (“EMP”)
and granted environmental permits sufficient to support planned operations at Nechí
Alluvial Property within the 141 hectare area covered by the environmental management
plan amendments.
• COVID-19 Pandemic: Mineros continues to focus on the well -being of its employees,
contractors and the communities in which it operates, and mitigating risks associated with
operating during the ongoing COVID -19 pandemic. There have been confirmed cases of
COVID-19 at each of our material properties. The affected individuals have all followed local
protocols and the Company’s operations otherwise remain unaffected.
SUBSEQUENT TO DECEMBER 31, 2021
• On January 6, 202 2, Mineros announced that the payment date for the final quarter ly
installment of the ordinary dividend approved by the Company’s shareholders at the
Ordinary Meeting of Shareholders held on March 25, 2021 in an amount of $0.0154 per
common share, was to be paid on January 20, 2022.
• On February 16, 202 2, Mineros announ ced 2022 production guidance of 262,000 to
285,000 ounces in 2022, an increase of between 0% and 9% from 2021 production, c ash
costs per ounce of gold sold5 for 2022 between $1,090 and $1,180 and AISC per ounce of
gold sold5 in 2022 between $1,350 and $1,450.
GROWTH PROJECT UPDATES
The Deep Carbonates Project at the Gualcamayo Property in Argentina refers to undeveloped
mineral resources below the existing oxide gold mineralization at the Gualcamayo Mine which are
not amenable to the heap leach pro cessing method being used currently on the property . The
5 Cash costs and all-in sustaining costs (AISC) are non-IFRS financial measures, and cash costs 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 of non -IFRS financial measures to the most directly
comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release,
Company previously announced that it anticipated completing a preliminary economic assessment
(“PEA”) of the Deep Carbonates Project by the end of the first quarter of 2022. Mineros is currently
advancing with additional drill testing of the Deep Carbonates Project and is re -evaluating the
anticipated timing for completion of the PEA.
The Porvenir Project is an advanced -stage gold -silver-zinc project on the Hemco Property in
Nicaragua. Ongoing studies are being completed to assess processing and mining scenarios and
additional work is underway to complete a feasibility study. Initially, this study was expected to be
complete by the end of the first quarter of 2022. However, as a result of delays and refinement of
project parameters, this work is now anticipated to be completed in the second half of 2022.
The La Pepa Project is located within Chile’s Maricunga Gold Belt, which is known worldwide for
important gold, copper, and other mineral deposits. At the La Pepa Project, the Company is focused
on exploring a porphyry-style gold system, similar to other gold systems in the Maricunga Gold Belt.
A mineral resource estimate and a PEA at the La Pepa Project was initially scheduled to be
completed in the first quarter of 2022. However, as a result of the Company’s internal strategic
analysis, the progress and timeline for completion of the PEA is under review.
CONFERENCE CALL AND WEBCAST DETAILS
The company will host a conference call Thursday March 3, 2022 at 8:00 am (GMT -5), where senior
management will discuss its financial and operational results for the fourth quarter and year ended
December 31, 2021. The conference call will be in Spanish with simultaneous translation in English.
Please dial in:
Canada Toll Free: 1 (866) 215-5508
US Toll Free: 1 (888) 771-4371
Pin for English: 50285031#
Pin for Spanish: 50285030#
The list of all local and international dial in numbers can be found at:
http://web.meetme.net/r.aspx?p=12&a=UxrYUvQXMwFYoq
A live webcast of the conference all will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=FC3D0D32-EE93-435C-9474-
9B51CF66FAAF&LangLocaleID=1034
Live webcast requires previous registration, it is 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.
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, Nicaragua and Argentina 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 TSX under the symbol “MSA”, and on the Colombia Stock
Exchange under the symbol “MINEROS”.
For further information, please contact:
Fiona Childe
Investor Relations
(647) 496-3011
Patricia Ospina
Investor Relations Manager
(+57) 42665757
Scott Logan
Renmark Financial Communications Inc.
(416) 644-2020 or (212) 812-7680
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 final prospectus
dated November 11, 2021 (the “Final Prospectus”), available on SEDAR at www.sedar.com
QUALIFIED PERSON
The scientific and technical information contained in this news release has been reviewed and
approved by Jorge Aceituno, a Registered Member of the Chilean Mining Commission and the
Planning Manager, Resources and Reserves for Mineros and a qualified person within the meaning
of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
FORWARD-LOOKING STATEMENTS
This press 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”, “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 2022; the Company’s plans and expect ations with respect to production, exploration,
development, and expansion at its properties and projects; timing, receipt and maintenance of necessary approvals,
licenses and permits from applicable governments, regulators or third parties; timing, completion and results of mineral
resource estimates and mining studies; our goal of growing annual production to approximately 500 koz of gold
equivalents by 2025; estimates of future capital and operating costs; future financial or operating performance and
condition of the Company and its business, operations and properties; and any other statement that may predict,
forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.
Forward-looking information is ba sed 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 circumstance s, as of the date of this press release including,
without limitation, assumptions about: favourable equity and debt capital markets; the ability to raise any necessary
additional capital on reasonable terms; 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 Material Properties being as described in the applicable NI 43 -101 techni cal 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; availability of 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 Company’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, 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 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 final long form prospectus dated November 11, 2021, available on SEDAR at www.sedar.com.
For clarity, mineral resources that are not mineral reserves do not have demonstrated economic viability and inferred
resources are considered too geologically speculative for the application of economic considerations.
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 materially from those estimate d or projected and expressed in, or