Mineros Reports First Quarter 2022 Financial and Operational Results
Mineros Reports First Quarter 2022 Financial and Operational Results
(all amounts expressed in U.S. dollars unless otherwise stated)
Medellin, Colombia – May 9, 2022 – Mineros S.A. (TSX:MSA, MINEROS:CB) (“Mineros” or the
“Company”) today reported its financial and operational results for the three months ended March
31, 2022. For further information please see the Company’s condensed interim consolidated
financial statements and management’s discussion and analysis filed under Mineros’ profile on
www.sedar.com.
“Mineros had a solid first quarter of 2022. With over 66,000 ounces of gold produced at an all-in
sustaining cost per ounce of gold sold 1 of $1,377 , the Company is on track to achieve its 2022
guidance.” commented Andrés Restrepo, President and CEO of Mineros. “Mineros continues to pay
a solid dividend with an attractive yield. At the ordinary meeting of the General Shareholders
Assembly held on March 31, 2022 , shareholders approved a 7.5% increase in the total annual
dividend per common share relative to 2021,” he continued.
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE FIRST QUARTER 2022
• Gold production: Gold production totaled 66,009 ounces, an increase of 1% from the
65,473 ounces produced in Q1 2021.
• Cash Cost and AISC: Cash Cost per ounce of gold sold 1 of $1,175 and all-in sustaining cost
(“AISC”) per ounce of gold sold1 of $1,377, compared to $1,091 and $1,469, respectively, in
Q1 2021. This represents an 8% increase in the Cash Cost per ounce of gold sold and a 6%
decrease in the AISC per ounce of gold sold relative to the same period of 2021.
• Continued strong financial liquidity: Net Debt to Adjusted EBITDA 1 ratio of 0.02x as at
March 31, 2022, compared to a Net Debt to Adjusted EBITDA ratio of 0.10x as at March 31,
2021.
• Revenue and average realized price per ounce of gold sold: Revenue of $124.7 million, an
increase of 1% compared to $125.4 million in Q1 2021, and an average realized price per
ounce of gold sold1 of $1,884, an increase of 6% from $1,785 in Q1 2021.
• Net cash flows generated by operating activities: $5.3 million in net cash flows generated
by operating activities in the first quarter 2022, a decrease of 59% compared to $13.0
million in Q1 2021.
1 Cash Cost, AISC, Adjusted EBITDA, net free cash flow and average price realized per ounce of gold sold are non-IFRS financial measures,
and Cash Cost per ounce of gold sold, AISC per ounce of gold sold, ROCE and Net Debt to Adjusted EBITDA ratio are non-IFRS ratios, with
no standardized meaning under IFRS, and therefore they 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.
• Dividend payment: $4.6 million in dividends paid in the first quarter of 2022, an increase
of 30% compared to $3.5 million in Q1 2021.
Table 1. Financial and Operating Highlights.
(All numbers in $000’s unless otherwise noted)
Three Months Ended March 31, Change
2022 2021 $ %
Financial
Revenue 124,650 125,392 (742) (1%)
Gross profit 32,645 37,060 (4,415) (12%)
Cost of sales 92,005 88,332 3,673 4%
Profit for the period 10,472 13,769 (3,297) (24%)
Basic Earnings per Share ($) 0.03 0.05 (0.02) (40%)
Adjusted EBITDA (1) 41,147 45,136 (3,989) (9%)
Net cash flows generated by operating activities 5,303 12,983 (7,680) (59%)
Net free cash flow (1) (5,779) (10,162) 4,383 43%
Return on Capital Employed (“ROCE”) (1) 22% 35% (13%) (38%)
Net Debt to Adjusted EBITDA ratio (1) 0.02x 0.10x (0.08x) (80%)
Dividends paid 4,598 3,545 1,053 30%
Operating
Average realized price per ounce of gold sold (oz) (1) 1,884 1,785 99 6%
Gold produced (oz) 66,009 65,473 536 1%
Gold sold (oz) 64,537 67,623 (3,086) (5%)
Silver sold (oz) 101,473 80,987 20,486 25%
Cash Cost per ounce of gold sold ($/oz) (1) 1,175 1,091 84 8%
AISC per ounce of gold sold ($/oz) (1) 1,377 1,469 (92) (6%)
(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.
Table 2. Operational Highlights by Material Property.
(All numbers in ounces unless otherwise noted)
Three Months Ended March 31, Change
2022 2021 ounces %
Nechí Alluvial Property (Colombia) 19,285 20,782 (1,497) (7%)
Nicaragua
Hemco Property 9,123 6,628 2,495 38%
Artisanal Mining 23,438 23,413 25 0%
32,561 30,041 2,520 8%
Gualcamayo Property (Argentina) 14,163 14,650 (487) (3%)
Total Gold Produced (oz) 66,009 65,473 536 1%
Total Silver Produced (oz) 101,473 80,987 20,486 25%
CORPORATE HIGHLIGHTS FOR THE FIRST QUARTER 2022
• 2021 Profit Distribution: On March 31, 2022, a t the Company’s ordinary meeting of its
General Shareholders Assembly (the “Meeting”) a distribution of the Company’s profits for
the year was approved. This distribution included, in respect of each common share of the
Company (a “Common Share”), an annual ordinary dividend of $0.0648 , payable in four
equal quarterly installments of $0.0162, and an extraordinary dividend of $0.01, payable in
one installment, representing a tot al distribution of $0.0748 per share, or $22,384,389 in
total. This represents a 7.5% increase in the total dividend relative to 2021, and a
distribution of 51.7% of the Company’s profit for the 2021 fiscal year.
• 2020 Profit Distribution: on January 20, 2022, Mineros paid the final quarterly installment
of the 2020 annual ordinary dividend in an amount of $0.0154 per Common Share.
• 2022 Guidance: On February 16, 2022, Mineros announced 2022 guidance of 262,000 to
285,000 ounces of gold produced , an increase of between 0% and 9% from 2021
production, Cash Cost per ounce of gold sold between $1,090 and $1,180 and AISC per
ounce of gold sold between $1,350 and $1,450.
GROWTH PROJECT UPDATES
Porvenir Project, Nicaragua: Ongoing studies to assess processing and mining scenarios are
continuing for the Porvenir Project on the Hemco Property. The Company remains on track to
announce the results of a feasibility study in the second half of 2022.
Luna Roja Exploration Target, N icaragua: Mineros has planned a 3,000 metre diamond drilling
program at the Luna Roja Exploration Target commencing in the second quarter of 2022 with the
objective of better defining the geometry of the mineralization. The Company remains on track to
complete an initial Mineral Resource estimate in the first half of 2022.
Gualcamayo Property Expansion, Argentina: In 2022, Mineros is planning to complete 17,000
metres of diamond and reverse circulation drilling in proximity to existing mining operations. Th e
objective of this campaign is to upgrade mineral resources, provide material for metallurgical test
work, resource expansion and evaluation of the remaining gold in the heap leach pads.
Deep Carbonates Project, Argentina: Mineros plans to conduct a 7,750 metre diamond drill
program at the Deep Carbonates Project in 2022, with the objective of expanding the current
mineral resources at the Rodado deposit. The Company is currently advancing the above-noted drill
program and metallurgical test work and continues to evaluate the schedule for completion of a
preliminary economic assessment in respect of the Deep Carbonates Project.
La Pepa Project, Chile: On March 31, 2022, Mineros reported for the first time a mineral resource
estimate on the La Pepa Project joint venture, where the Company currently holds a 20% interest.
The progress and timeline for completion of a PEA at the La Pepa Project is currently under review.
SUBSEQUENT TO MARCH 31, 2022
• Grant of environmental permits at the Nech í Alluvial Property: On April 25, 2022, the
Colombian National Authority of Environmental Licenses (Autoridad Nacional de Licencias
Ambientales – ANLA) approved Mineros’ ordinary course application to amend the
environmental management plan (“EMP”) for the Nechí Alluvial Property. The amended
EMP grants environmental permits sufficient to support planned operations for a four-year
period, in line with the Mineros’ expectations.
• Acquisition of additional 25% interest in the GNM Exploration Target, Colombia: On April
6, 2022, Mineros exercised its second option to acquire a 25% interest in the GNM
Exploration Target joint venture from Royal Road Minerals Limited (“Royal Road”) under
the terms of its strategic allian ce agreement in Colombia with Royal Road ( see Mineros
annual information form for the year ended December 31, 2021 for additional information),
bringing its total interest in the GNM Exploration Target joint venture to 50%.
CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call Tuesday May 10, 2022, at 9:00 am ET (8:00 am COT) to
discuss the results. The conference call will be in Spanish with simultaneous translation in English.
Participant conference call dial in:
Canada Toll-Free: 1 (866) 455-3403
US Toll-Free: 1 (888) 374-5140
Colombia Toll-Free: 01 (800) 519-0788
PIN for English: 99878428#
PIN for Spanish: 38745764#
The list of all local and international dial in numbers can be found at the end of this document. A
live webcast of the conference all will be available at:
https://onlinexperiences.com/Launch/QReg/ShowUUID=97D7F934-543D-4421-831D-
35F7DEF619D9&LangLocaleID=1034
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 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 Toronto Stock Exchange under the symbol “MSA”, and
on the Colombia Stock Exchange under the symbol “MINEROS”.
For further information, please contact:
Fiona Childe
Investor Relations
+1 (647) 496-3011
Patricia Ospina
Investor Relations Manager
(+57) 42665757
Joshua Lavers
Renmark Financial Communications Inc.
+1 (416) 644-2020 or +1 (212) 812-7680
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.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 (“NI 43-101”).
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”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”,
“continue”, “potent ial”, “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 pla ns and expectations with respect to production, exploration,
development, and expansion at its properties and projects; timing, completion and results of mineral resource estimates
and mining studies; 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 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 this news 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 Company’s material properties be ing as described in the applicable NI 43 -101 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 favourab le 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 Comp any 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 describ ed 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 31, 2022, available on SEDAR at www.sedar.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 materially 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 a ccurate, 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 AND OTHER FINANCIAL MEASURES
The Company has included certain non -IFRS financial measures and non -IFRS ratios in this news release.
Management believes that non -IFRS financial measures and non -IFRS ratios, when supplementing measures
determined in accordance with IFRS, provide investors with 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 measures and reconciliations thereof to the most directly comparable IFRS measures, see below.
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, 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.
The following table sets out the calculation of EBITDA and Adjusted EBITDA for the three months ended March 31, 2022
and 2021:
Three Months Ended March 31, 2022 2021
Profit for the Period 10,472 13,769
Less: Interest income (315) (370)
Add: Interest expense 936 1,119
Add: Current tax (1) 9,247 9,267
Add/less: Deferred tax (1) (1,306) 1,842
Add: Depreciation and Amortization 13,939 12,684
EBITDA 32,973 38,311
Less: Other income (748) (547)
Less: Finance income (excluding interest income) (53) (16)
Add: Finance expense (excluding interest expense) 1,382 995
Add: Other expenses (2) 2,204 4,241
Add: Exploration Expenses (3) 2,685 1,140
Less: Foreign currency exchange differences 2,704 1,012
Adjusted EBITDA 41,147 45,136
1. For additional information regarding taxes, see Note 16 of our condensed interim consolidated financial statements.
2. For additional information regarding other expenses, see Note 10 of our condensed interim consolidated financial
statements.
3. For additional information regarding exploration expenses, see Note 11 of our condensed interim consolidated financia l
statements.
Cash Cost & All-in Sustaining Costs
The Company reports Cash Cost per ounce of gold sold which is calculated by deducting revenues 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 and AISC per ounce of gold sold are non -IFRS
financial measures used to monitor the performance of our gold mining operations and their ability to generate profit.
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.