Nativo Resources (NTVO) Investor update summary

Strategic focus and business model

• Operations in Peru integrate primary mining, gold ore processing, and tailings cleaning, focusing on near-term cash generation and risk mitigation.

• The Tesoro concession targets four major high-grade veins, with pilot mining achieving up to 63 g/t and a JORC resource estimate of 6,886–195,434 ounces of gold.

• Gold ore processing is anchored by the La Patona plant, a fully permitted, construction-ready facility with FEED completed, targeting 70–350 TPD capacity and phased expansion.

• Tailings cleaning leverages a scalable, low-risk opportunity, with 1.8 million tons secured and additional projects under negotiation, converting environmental liabilities into revenue.

• The business model is inspired by successful peers, emphasizing tolling, lean operations, multiple revenue streams, and strong governance.

Project development and operational updates

• Over 600 tons of material mined at Tesoro, with 46 tons stockpiled for future processing at La Patona.

• La Patona plant construction is ready to proceed upon securing $3.5 million in project finance, with first production targeted by year-end and H2 2026 priorities including final investment decision and commissioning.

• Plant design features dual-circuit flotation and cyanidation, with on-site smelter for gold doré as the preferred product for ease of sale and transport.

• Feedstock sourcing is de-risked through market studies, strong relationships with 1,500–3,000 artisanal miners, and own-ore feed from mining assets.

• All-in sustaining cost (AISC) for gold production is estimated at $2,700/oz, with ore purchased at a 70% discount.

Market environment and competitive positioning

• Gold price assumptions in financial models range from $2,700 to $3,500/oz, with upside scenarios up to $6,000/oz.

• The region faces a shortage of processing capacity, supporting strong demand for tolling services.

• Peru offers a favorable regulatory and fiscal environment, robust supply chain, and strong artisanal mining sector.

• Security and logistics are manageable, with good community relations and infrastructure access.

• Ore purchasing model validated by peers like Dynacor and Paltarumi, with sustainable margins and premium market access through LBMA alignment and digital traceability.