Mineros Reports Third Quarter 2021 Results
MINEROS REPORTS THIRD QUARTER 2021 RESULTS
(all amounts expressed in U.S. dollars unless otherwise stated)
Medellin, Colombia – November 15, 2021 – Mineros S. A. (MINEROS:CB) (“Mineros” or the “Company”)
today reported its financial and operational results for the third quarter ended September 30, 2021.
“Mineros is on track to meet its production guidanc e for 2021. However, the Company experienced
increased costs as a result of purchasing more mate rial from artisanal miners in Nicaragua and higher
production and sustaining costs at the Gualcamayo Property in Argentina. We saw an expected increase
in capital expenditures this quarter, as we continue to invest capital both to extend the life of mine at the
Gualcamayo Property, and advance the future organic growth of the Company within our robust property
portfolio.” said Andrés Restrepo, President and CEO.
“Subsequent to quarter end, we had two significant and positive advancements for the Company. Firstly,
we received all outstanding environmental permits for the Nechí Alluvial Property in Colombia. With these
permits in place, the Company intends to move forward mining in new, higher grade areas of the mine in
2022. Secondly, Mineros entered into an underwritin g agreement and filed the final prospectus for an
initial public offering in Canada.” Restrepo continued.
OPERATIONAL HIGHLIGHTS
Gold production down 1% in the third quarter of 2021: 63,758 ounces of gold were produced in
the third quarter of 2021, compared to 64,225 ounces in the third quarter of 2020;
Total gold production was in line with the Company' s updated guidance for 2021. We do not
provide guidance for silver production as we treat it as a by-product.
Cash Costs (1) and All-in-Sustaining Costs (“AISC”) (1) in the third quarter of 2021: average cash
costs in the third quarter of 2021 were $1,235 per ounce of gold sold and AISC was $1,476 per
ounce of gold, compared to an average cash cost of $1,020 per ounce sold and an AISC of $1,225
per ounce for in the third quarter of 2020. The increase in average cash cost and AISC was a result
of purchasing more material from artisanal miners at the Hemco Property and higher production
and sustaining costs at the Gualcamayo Property as the mine nears end of life.
FINANCIAL HIGHLIGHTS
Revenues decreased by 1%: revenues totaled $120.2 million in the third quarter of 2021
compared to $121.3 million in the third quarter of 2020, with an average realized price per ounce
sold of $1,782 in the third quarter of 2021 compared to $1,896 in the third quarter of 2020. Key
drivers were a decrease in average realized price of 6% partially offset by 4% higher ounces sold;
Gross Profit decreased by 40%, to $25.4 million in the third quarter of 2021 compa red to $42.7
million in the third quarter of 2020; mainly due to higher costs from purchases of artisanal
material and higher operating costs in Argentina;
Net Profits for the period down 67%, to $8.2 million or $0.3 per share in the third quarter of 2021
compared to $24.8 million or $0.09 per share in the third quarter of 2020; this decrease is
explained mainly by higher costs (as mentioned above), higher exploration expenses in the Deep
Carbonates Project and regional exploration in Arge ntina, the Luna Roja Exploration Target and
regional exploration in Nicaragua ($3.4 million) an d lower income from hedging operations
valuation ($2.7 million);
Adjusted EBITDA (2) down 38%: Adjusted EBITDA was $32.4 million in the third quar ter of 2021
compared to $51.9 million in the third quarter of 2020;
ROCE (3) of 27%: a decrease of 26% in the third quarter of 2021 relative to the third quarter of 2020
of 36%;
Net Debt to adjusted EBITDA ratio (4) was 0.22x in the third quarter of 2021, compared to a ratio
of 0.18x in the third quarter of 2020;
Dividends Paid up 36% : Dividends Paid for the third quarter of 2021 tota led $4.0 million,
compared to $3.0 million in the third quarter of 2020;
Net Cash provided by operating activities up 36%: totaling $35.1 million in the third quarter of
2021, compared to $25.8 million in the first three months of 2020. The Company’s net free cash
flows(5) for the third quarter of 2021 totaled $23.7 millio n, up from $16.1 million in the third
quarter of 2020 due to higher cash from operating activities;
Capital investments up 35% to $25.7 million: during the third quarter of 2021, capital
investments of $25.7 million were made into existin g mines, and exploration and evaluation
projects, compared to $19.1 million in the third quarter of 2020.
CORPORATE HIGHLIGHTS
On July 12, 2021, Mineros announced that it has received a positive response from the National
Authority of Environmental Licenses of Colombia (“ANLA”) to its appeal filed on April 23, 2021;
On July 19, 2021, Mineros announced the filing of its Best Corporate Governance Practices report
with the Superintendence of Finance of Colombia;
On July 27, 2021, Mineros announced the acquisition , through its subsidiary, Hemco-Nicaragua
S.A. (“Hemco”), of shares representing a 15% equity interest in Vesubio Mining, S.A. (“Vesmisa”)
for $1.5 million. Vesmisa owns one of two mineral p rocessing plants dedicated exclusively to
processing material mined by artisanal miners at the Hemco Property in Nicaragua. Following such
acquisition, Hemco holds a 100% interest in all processing infrastructure at the Hemco Property;
On September 16, 2021, Mineros filed updated techni cal reports prepared in accordance with
National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) for all of
the Nechí Alluvial Property in Colombia, the Gualca mayo Property in Argentina, and the Hemco
Property in Nicaragua, including updated Mineral Re serves and Mineral Resources estimates
effective June 30, 2021;
On September 16, 2021, Mineros announced filing and receipt preliminary prospectus with
securities regulators in each of the provinces of C anada, except Quebec (initial public offering)
and Colombia (concurrent public offering of common shares).
Subsequent to September 30, 2021:
On October 19, 2021, ANLA approved a previously sub mitted application to amend the Nechí
Alluvial Property environmental management plan (“EMP”), and granted environmental permits
sufficient to support planned operations at Nechí A lluvial Property within the 141-hectare area
covered by the EMP amendments.
On November 12, 2021, Mineros announced that it entered into an underwriting agreement and
filed its final prospectus dated November 11, 2021 in respect of its initial public offering in
Canada and Colombia.
Quarterly Financial and Operating Results
Three Months ended
Sept. 30, Change
Nine Months ended
Sept. 30, Change
2021 2020 $ % 2021 2020 $ %
Financial
Revenues 120,188 121,263 (1,075) (1%) 374,029 363,821 10,208 3%
Gross Profit 25,419 42,715 (17,296) (40%) 98,351 129,792 (31,441) (24%)
Net Profit for the period 8,150 24,795 (16,645) (67 %) 32,327 49,500 (17,173) (35%)
Basic Earnings per Share 0.03 0.09 (0.06) (67%) 0.12 0.19 (0.07) (37%)
Adjusted EBITDA (2) 32,359 51,889 (19,530) (38%) 119,254 147,541 (28,287) (19%)
Net Cash from Operating Activities 35,066 25,754 9,312 36% 67,697 66,817 880 1%
Net free cash flow (5) 23,727 16,133 7,594 47% 8,714 41,170 (32,456) (79%)
ROCE (3) 27% 36% (9%) (26%) 27% 36% (9%) (26%)
Net Debt to Adjusted EBITDA (4) 0.22x 0.18x 0.04x 20% 0.22x 0.18x 0.04x 20%
Dividends Paid 4,035 2,966 1,069 36% 13,656 9,454 4,202 44%
Operating
Average Realized Gold Price (oz) 1,782 1,896 (114) (6%) 1,793 1,736 57 3%
Total gold produced (oz) 63,758 64,225 (467) (1%) 196,634 206,739 (10,105) (5%)
Gold sold (oz) 65,319 63,020 2,299 4% 200,837 206,445 (5,608) (3%)
Silver produced (oz) 115,057 69,769 45,288 65% 291,603 233,167 58,436 25%
Total cash costs per ounce of gold
sold ($/oz) (1) 1,235 1,020 215 21% 1,162 973 190 (19%)
AISC per ounce of gold sold
($/oz) (1) 1,476 1,225 251 20% 1,502 1,154 347 30%
Quarterly Operational Highlights by Material Property
Three Months
ended Sept. 30, Change Nine Months ended
Sept. 30, Change
2021 2020 ounces % 2021 2020 ounces %
Colombia
Nechí Alluvial Property 17,085 15,496 1,589 10% 57,605 52,379 5,226 10%
Underground* 0 0 0 0% 0 6,785 (6,785) (100%)
17,085 15,496 1,589 10% 57,605 59,164 (1,559) (3%)
Nicaragua
Hemco Property Underground 9,949 9,370 579 6% 25,032 27,840 (2,808) (10%)
Hemco Property Artisanal
Mining 22,579 22,771 (192) (1%) 69,918 67,995 1,923 3%
32,528 32,141 387 1% 94,950 95,835 (885) (1%)
Argentina
Gualcamayo Property 14,145 16,588 (2,443) (15%) 44,079 51,740 (7,661) (15%)
Total Gold Produced (oz) 63,758 64,225 (467) (1%) 196,634 206,739 (10,105) (5%)
Total Silver Produced (oz) 115,057 69,769 45,288 65 % 291,603 233,167 58,436 25%
* Colombia’s production in the nine months ended September 30, 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.
IMPACT OF COVID-19
Mineros has actively responded to the global COVID- 19 pandemic. The Company activated its crisis
response team in the early phases of the COVID-19 o utbreak, the members of which are the senior
executives and operational leaders, to ensure that it was in a position to take quick and decisive action in
what remains a fluid and fast-moving environment. A lthough Argentina temporarily closed its borders,
this had no impact on the Company’s operations.
Mineros joined the initiative of the Colombian Government called “ Companies for Vaccination ”. Through
this initiative Mineros has vaccinated 100% of its employees at the head office in Medellin and over 90%
of its employees at the Nechí Alluvial Property aga inst COVID-19. In Argentina and Nicaragua, Mineros
employees are beginning to be vaccinated against COVID-19 through the respective countries' programs.
HEALTH AND SAFETY
Mineros is committed to providing and maintaining a safe and healthy work environment where all
employees and contractors conduct themselves in a r esponsible and safe manner. The Company is
committed to achieving a high standard of Occupational Health and Safety through implementation of all
related policies, procedures, standards and continu ous improvement of management systems, setting
targets and monitoring performance. Two of our three operations are OHSAS 18001 certified.
Despite year-over-year improvements in our total recordable injury frequency rate and lost time injuries
indicators, two fatal accidents occurred at operati ons in the third quarter, one in Argentina and one in
Nicaragua.
On July 21, 2021, an employee of the Company’s Arge ntinian subsidiary was killed in a motor vehicle
accident in the open pit on the Gualcamayo Property. Mining operations were temporarily suspended to
conduct investigations by the Company and local authorities. New security measures with respect to the
operation of motor vehicles were put in place to prevent future injury or loss of life.
On September 30, 2021, an employee of the Company’s Nicaraguan subsidiary was killed in a rock blast
underground at the Panama Mine. Mining operations w ere temporarily suspended and investigations
were conducted by the Company and local authorities . A set of corrective actions were identified and
implemented to prevent future injury or loss of life.
APPROACH TO SUSTAINABILITY
Sustainability is fundamental to Mineros’ business strategy. The Company believes that maintaining
strong stakeholder support for its operations is critical to success, and accordingly aims to maintain such
support to create long-term value for all stakehold ers. Mineros does this by embedding environmental,
social and economic considerations into all of its business decisions, promoting the health, well-being and
development of its personnel, maintaining strong re lationships with host communities and proactively
managing the impact of the business on the environment. The corporate strategy focuses on fostering the
positive transformation of the communities where it operates. Throughout 2021, the Company has
worked hard to implement this strategy by defining key performance indicators, implementing various
programs and enhancing monitoring and reporting sys tems. Each operation has a community relations
team that maintains a constant dialogue and engages with local communities both formally and
informally.
CONFERENCE CALL AND WEBCAST DETAILS
The company will host a conference call Monday, Nov ember 22 at 8:00 am (GMT -5), where senior
management will discuss its financial and operational results for the third quarter of 2021. The conference
call will be in Spanish with simultaneous translation in English. Please dial in:
1 (866) 215 -5508 Canada Toll Free
1 (888) 771 -4371 US Toll Free
Pin for English 50255414#
Pin for Spanish 50255413#
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=52C75708-EE20-4BC1-8BAE-
3959EB27500C&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 hea dquartered in Medellin, Colombia. The Company
has a diversified asset base, with mines in Colombi a, Nicaragua and Argentina and a pipeline of
development and exploration projects throughout the region.
The board of directors and management of Mineros ha ve 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 5 0 years Mineros has operated with a focus on safety
and sustainability at all our operations. Mineros’ common shares are listed on the Colombian Stock
Exchange (Bolsa de Valores de Colombia ) under the symbol “MINEROS:CB”.
For further information, please contact:
Fiona Childe
Investor Relations
(647) 496-3011
Patricia Ospina
Investor Relations Manager
(574) 2665757
Mineros has received conditional listing approval f rom the Toronto Stock Exchange (the “TSX”) for the
listing of its common shares on the TSX. Listing remains subject to Mineros fulfilling all of the requirements
of the TSX on or before December 15, 2021. In conne ction with its listing application, the Company has
been granted an exemption from the individual votin g 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 el ectoral quotient system. For further information,
please see the Company’s final prospectus dated Nov ember 11, 2021, available on SEDAR at
www.sedar.com.
QUALIFIED PERSON
The scientific and technical information in this press release has been reviewed and approved by Mr.
Sean Horan, P.Geo., Principal Geologist, SLR Consulting (Canada) Ltd., independent of Mineros. By
virtue of his education and relevant experience, Mr. Horan is “qualified person" for the purpose of NI
43-101.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking inform ation” within the meaning of applicable securities
laws. Forward-looking information includes statemen ts that use forward-looking terminology such as
“may”, “could”, “would”, “will”, “should”, “intend” , “target”, “plan”, “expect”, “budget”, “estimate”,
“forecast”, “schedule”, “anticipate”, “believe”, “c ontinue”, “potential”, “view” or the negative or
grammatical variation thereof or other variations t hereof or comparable terminology. Such forward-
looking information includes, without limitation, s tatements with respect to the Company’s outlook for
the balance of 2021 and future periods; estimates for future mineral production and sales; the Company’s
expectations, strategies and plans for its material properties; the Company’s planned exploration,
development and production activities; statements regarding the projected exploration and development
of the Company’s growth projects; estimates of futu re capital and operating costs; the costs and timin g
of future exploration and development; the timing, receipt and maintenance of necessary approvals,
licenses and permits from applicable governments, regulators or third parties; the impact of the COVID-
19 pandemic on the Company’s business; future financial or operating performance and condition of the
Company and its business, operations and properties; completion and proceeds of the Company’s initial
public offering in Canada and the concurrent public offering in Colombia; 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 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 Reser ve and Mineral Resource estimates; the geology of
the Material Properties being as described in the applicable NI 43-101 technical reports; production costs;
the accuracy of budgeted exploration and developmen t 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 arti sanal
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, politica l, 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 differ ent 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 descri bed 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 fi nal 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 re sults to differ materially from those estimated or
projected and expressed in, or implied by, the forw ard-looking information contained herein. There can
be no assurance that forward-looking information will prove to be accurate, as actual results and futu re
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 press release and the C ompany disclaims any obligation to update or revise
any forward-looking information, whether as a resul t of new information, future events or results or
otherwise, except as and to the extent required by applicable securities laws.