Mineros S.A (MINEROS) Renmark Virtual Non-Deal Roadshow summary

Key business highlights

• 50-year history as a mid-tier, dividend-paying gold producer with diversified assets in Colombia and Nicaragua.

• Consistent gold production over 250,000 ounces annually for five years, with a slight decline expected in 2024 after selling the Argentinian asset Gualcamayo.

• Robust dividend history, with over $95 million paid in five years and a current yield of about 12%.

• Strong balance sheet at Q2 2024: $27 million in cash and $1.9 million net debt.

• Management team with extensive experience and a refreshed board bringing new perspectives.

Financial performance and cost structure

• Adjusted EBITDA averages above $44 million per quarter, totaling $177 million over the last 12 months.

• Revenue growth driven by higher gold prices and increased silver sales, offsetting lower gold output.

• All-in sustaining costs (AISC) have risen due to a strong Colombian peso and higher artisanal ore costs linked to gold prices.

• Profit from continuing operations decreased due to higher costs and tax expenses, while discontinued operations' losses dropped to zero after asset sale.

• Dividend payout ratio historically averages 35% of net income, but exceeded 200% in recent low-income years, supported by strong cash generation.

Operational overview and ESG initiatives

• Colombian operations use high-tech dredgers for alluvial gold mining, with annual output just under 100,000 ounces.

• Nicaraguan mines produce 123,000–133,000 ounces annually, with about 70% from artisanal ore purchases.

• Artisanal mining model in Nicaragua involves over 1,500 miners in certified co-ops, promoting social and environmental standards.

• Ongoing ESG programs include reforestation, beekeeping, and community partnerships; strong relations with indigenous groups.

• Dredging equipment is maintained and upgraded, with some units in operation since the 1930s.