Mineros Reports Second Quarter 2022 Financial and Operational Results
Mineros Reports Second Quarter 2022 Financial and Operational Results
(all amounts expressed in U.S. dollars unless otherwise stated)
Medellin, Colombia – August 3, 2022 – Mineros S.A. (TSX:MSA, MINEROS:CB) (“ Mineros” or the
“Company”) today reported its financial and operational results for the three months ended June
30, 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.
Andrés Restrepo, President and CEO of Mineros, commented , “I am pleased to report that the
Company has had a nother strong quarter with respect to financial and operational results and
remains on-track to achieve its annual guidance. In the second quarter of 2022, Mineros produced
74,062 ounces of gold , a 1 0% increase from the same quarter in 2021. Along with increased
production, the Company has seen reductions in both the all-in sustaining cost per ounce of gold
sold and the cash cost per ounce of gold sold compared to the same period in 2021. The Company
has a long track record of paying a strong quarterly dividend with a very attractive yield.”
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE SECOND QUARTER OF 2022
Gold Production
• 74,062 ounces of gold produced.
• A 10% increase in gold production compared to the same period in 2021 (Q2/21: 67,403
ounces of gold produced).
• A steady increase in gold production over the last four quarters.
Cash Cost1 and All-in Sustaining Cost (“AISC”)1
• Cash Cost per ounce of gold sold 1 of $1,131 (Q2/21: $1,163), representing a 3% decrease
relative to the same period in 2021.
• AISC per ounce of gold sold 1 of $1,388 (Q2/21: $1,560), representing an 11% decrease in
the AISC per ounce of gold sold relative to the same period in 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 t herefore 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
• $7.9 million in dividends paid.
• An increase of 30% in dividends paid compared to the same period in 2021 (Q2/21: $6.1
million).
Revenue
• Revenue of $137.3 million.
• An increase of 7% compared to the same period in 2021 (Q2/21: $128.4 million).
• A steady increase in revenue over the last four quarters.
Profitability
• Net profit for the period up 10% to $11.4 million ($0.04/share) compared to the same
period in 2021 (Q2/21: $10.4 million ($0.04/share)).
• Gross profit up 5% to $37.8 million compared to the same period in 2021 (Q2/21: $35.9
million).
Net Debt to Adjusted EBIDTA ratio2
• Net Debt to Adjusted EBIDTA ratio2 of 0.11x as at June 30, 2022.
• The Company has continued to have a low Net Debt to Adjusted EBITDA ratio, with a 57%
decrease compared to 0.26x as at June 30, 2021, following repayment of project acquisition
loans.
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE FIRST HALF OF 2022
Gold Production
• 140,071 ounces of gold produced.
• A 5% increase in gold production compared to the same period in 2021 (H1/21: 132,876
ounces of gold produced).
• On-track to achieve 2022 production guidance.
2 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.
Cash Cost and AISC
• Cash Cost per ounce of gold sold of $1,1 52 (H1/21: $1,127), representing a 2% increase in
the Cash Cost per ounce of gold sold relative to the same period in 2021.
• AISC per ounce of gold sold of $1,38 3 (H1/21: $1,514), representing a 9% decrease in the
AISC per ounce of gold sold relative to the same period in 2021.
• On-track to achieve 2022 cost guidance.
Dividend Payment
• $12.5 million in dividends paid.
• An increase of 30% in dividends paid compared to the same period in 2021 (H1/21: $9.6
million).
Revenue
• Revenue of $261.9 million.
• An increase of 3% compared to the same period of 2021 (H1/21: $253.8 million).
Table 1. Financial and Operating Highlights.
(All numbers in $000’s unless otherwise noted)
Three Months Ended
June 30, Change Six Months Ended
June 30, Change
2022 2021 $ % 2022 2021 $ %
Financial
Revenue 137,286 128,449 8,837 7% 261,936 253,841 8,095 3%
Gross profit 37,799 35,872 1,927 5% 70,444 72,932 (2,488) (3%)
Net profit for the
period 11,399 10,408 991 10% 21,871 24,177 (2,306) (10%)
Basic earnings per
Share ($) 0.04 0.04 0 0% 0.07 0.09 (0.02) (22%)
Adjusted EBITDA (1) 46,710 41,759 4,951 12% 87,857 86,895 962 1%
Net cash flow
generated by operating
activities
17,853 19,648 (1,795) (9%) 23,156 32,631 (9,475) (29%)
Net free cash flow (1) 234 (4,851) 5,085 105% (5,545) (15,013) 9,468 63%
ROCE (1) 22% 31% (10%) (31%) 22% 31% (10%) (31%)
Net Debt to Adjusted
EBITDA ratio (1) 0.11x 0.26x (0.15x) (57%) 0.11x 0.26x (0.15x) (57%)
Dividends paid 7,875 6,076 1,799 30% 12,473 9,621 2,852 30%
Operating
Average realized price
per ounce of gold sold
($/oz) (1)
1,837 1,848 (11) (1%) 1,859 1,817 43 2%
Gold produced (oz) 74,062 67,403 6,659 10% 140,071 132,876 7,195 5%
Gold sold (oz) 73,147 67,895 5,252 8% 137,684 135,518 2,166 2%
Silver sold (oz) 93,528 95,559 (2,031) (2%) 195,001 176,546 18,455 10%
Cash Cost per ounce of
gold sold ($/oz) (1) 1,131 1,163 (32) (3%) 1,152 1,127 25 2%
AISC per ounce of gold
sold ($/oz) (1) 1,388 1,560 (172) (11%) 1,383 1,514 (132) (9%)
(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
June 30, Change Six Months Ended
June 30, Change
2022 2021 ounces % 2022 2021 ounces %
Nechí Alluvial Property
(Colombia) 23,394 19,738 3,656 19% 42,679 40,520 2,159 5%
Hemco Property
Hemco Property 10,808 8,455 2,353 28% 19,931 15,083 4,848 32%
Artisanal Mining 23,330 23,926 (596) (2%) 46,768 47,339 (571) (1%)
Nicaragua 34,138 32,381 1,757 5% 66,699 62,422 4,277 7%
Gualcamayo Property
(Argentina) 16,530 15,284 1,246 8% 30,693 29,934 759 3%
Total Gold Produced (oz) 74,062 67,403 6,659 10% 140,071 132,876 7,195 5%
Total Silver Produced (oz) 93,528 95,559 (2,031) (2%) 195,001 176,546 18,455 10%
CORPORATE HIGHLIGHTS FOR THE SECOND QUARTER 2022
Amendment of Nechí Alluvial Property Environmental Management Plan
By ANLA Resolution 812 of April 25, 2022, the Colombian National Authority of Environmental
Licenses (Autoridad Nacional de Licencias Ambientales – ANLA) approved Mineros’ application to
amend the environmental management plan (“ EMP”) for the Nechí Alluvial Property, which was
submitted on November 18, 2021. The ordinary course amendment to the EMP grants
environmental permits sufficient to support planned operations for a four year period , which is
consistent with Mineros’ expectations. Due to the mobile nature of alluvial mining operations,
Mineros must periodically apply to ANLA to amend the EMP to cover planned operations in new or
expanded operating areas. Mineros makes such applications and expects to receive amendments
to the EMP in the ordinary course of business.
Acquisition of Additional 25% Interest in the Guintar-Niverango-Margaritas (“GNM”) Exploration
Target (Colombia)
On April 6, 2022, Mineros exercised its second option to acquire a n additional 25% interest in the
GNM Exploration Target from Royal Road Minerals Limited (“ Royal Road”) under the terms of the
Mineros’ alliance agreement with Royal Road, bringing its total interest in the GNM Exploration
Target to 50%.
International Organization for Standardization (“ISO”) Certification at the Hemco Property
(Nicaragua)
In the second quarter of 2022 the Company received ISO 14001:2015 (Environmental Management
System) and ISO 45001 (Occupational Health and Safety Management) certification at its Hemco
Property. These certifications are issued for an initial period of three years. Operations at all three
of the Company’s Material Properties are now ISO 14001:2015 and ISO 45001 certified.
Mineros Strengthens Commitment to Sustainability
In the second quarter of 2022, the Company created the new executive role of Vice President, Legal
and Sustainability to reflect the Company’s commitment to sustainability at all of its operations and
exploration projects. As a result, Ms. Ana Isabel Gaviria’s title changed from General Counsel to
Vice President, Legal and Sustainability. Ms. Gaviria continues as Corporate Secretary.
CORPORATE HIGHLIGHTS – SUBSEQUENT TO JUNE 30, 2022
Luna Roja Deposit Initial Mineral Resource Estimate
On July 7, 2022, the Company announced an initial mineral resource estimate for the Luna Roja
Deposit, which included 1.164 million tonnes of indicated mineral resources averaging 2.46 grams
of gold per tonne (“g/t Au”), for approximately 92,000 ounces of gold and 0.504 million tonnes of
inferred mineral resources averaging 2.31 g/t Au, for approximately 37,000 ounces of gold. See the
Company’s July 7, 2022 press release entitled, “Mineros Announces Initial Mineral Resource
Estimate for the Luna Roja Deposit, Nicaragua”.
Appointment of Vice President, Nicaragua
On July 11, 2022, Mineros announced the appointment of Mr. Luis Villa as Vice Pre sident,
Nicaragua, effective October 1, 2022. Mr. Villa has been with the Company and its subsidiaries for
sixteen years, most recently in the position of Manager of Projects and Supply Chain for Mineros
Alluvial S.A.S. BIC.
Mr. Villa will replace Mr. Carlos Mario Gomez, who will be retiring later this year following 14 years
of service with the Company.
GROWTH PROJECT UPDATES
Porvenir Project, Nicaragua: Ongoing studies are being completed to assess processing and mining
scenarios for the Porvenir Project. Based on a project re-evaluation, which included a review of
economic parameters and the timeline to complete environmental baseline studies, and building
on the work completed to date, the Company now anticipates completing a pre-feasibility study in
the second half of 2022 and not a feasibility study, as previously announced.
Luna Roja Deposit , Nicaragua : A 3,000 metre diamond drill campaign originally planned to
commence in the second quarter of 2022 is currently planned for the second half of 2022. This
campaign will include a series of short, near-surface drill holes into the deposit, designed to increase
the confidence level in areas previously tested with channel samples, as well as an initial drill testing
of three geophysical anomalies.
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. The
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: In the first quarter of 2022 Mineros announced plans to
conduct a 7,750 metre diamond drill program with the objective of expanding the current mineral
resources at the Rodado deposit. A total of 3,050 metres has been drilled in the first half of 2022
and the Company is re-evaluating plans for the next stage of drilling . Metallurgical test work to
support advancement of the Deep Carbonates Project is underway. The Company expects to use
the preliminary results from the test work to make a determination as to whether it will move
forward with a preliminary economic assessment (“PEA”) in respect of th e Deep Carbonates
Project.
La Pepa Project, Chile: At the La Pepa Project, the Company is focused on developing and expanding
the Cavancha deposit, a porphyry-style gold system. The progress and timeline for completion of a
PEA at the La Pepa Project is still under review.
CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call on Thursday August 4, 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
Pin for English: 13926178 #
Pin for Spanish: 11955143 #
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/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=E47A39A
B-2A3F-4268-9ECD-438B1ECE896D&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 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:
Patricia Ospina
Investor Relations Manager
+1 (647) 496-3011
(+57) 42665757
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 Colombi an 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”).