Canada's Mining Edge: Innovation That Leads The World
The combination of Canada's deep capital markets, skilled technical workforce, and regulatory transparency creates an ecosystem where mining companies can efficiently access funding, attract top talent, and execute complex international projects. As global resource demand intensifies and ore grades decline worldwide, Canadian technical advantages become increasingly valuable competitive differentiators.
Canadian Mining Excellence in Action
Franco-Nevada (NYSE: FNV) (TSX: FNV) exemplifies Canadian financial innovation as a leading gold-focused royalty and streaming company. The company recently acquired a C$1.05 billion royalty package comprising a 7.5% gross margin royalty covering all mineral reserves at Côté Gold Mine, demonstrating sophisticated deal structuring that provides gold exposure while limiting operational risks.
OR Royalties Inc. (NYSE: OR) (TSX: OR) showcases capital markets efficiency through its world-class 3-5% NSR royalty on the Canadian Malartic Complex and portfolio of over 195 royalties across North America. The company expects 80,000-88,000 GEOs in 2025 at 97% cash margins, proving how innovative financing structures create value while minimizing operational risk.
Agnico Eagle Mines (NYSE: AEM) (TSX: AEM) demonstrates operational excellence with strong Q1 2025 performance including operating cash flow of $1.04 billion. The company's recent O3 Mining acquisition for $1.67 per share exemplifies Canadian companies' disciplined approach to accretive consolidation and portfolio optimization.
Magma Silver: Canadian Expertise Meets Peruvian Opportunity
Magma Silver Corp. (TSX-Venture: MGMA) (OTCQB: MAGMF) represents a compelling example of how Canadian mining expertise can unlock value in international assets. The company's leadership team combines decades of Canadian capital markets experience with deep technical knowledge of Latin American geology, creating a strategic advantage in advancing the Niñobamba Project in Peru.
With access to over $14.5 million in historical exploration data from previous operators including Newmont, AngloGold, Rio Silver and Bear Creek Mining, Magma has built a comprehensive geological database that would typically cost millions to generate. This technical foundation supports the company's upcoming Q4 2025 drilling program at the Jorimina deposit, where Newmont's historical work identified extensive gold and silver anomalies through 2,813 channel samples and over 7,800 meters of drilling, with highlights including 72.3 meters of 1.19 g/t gold from hole JOR-001 and 128 meters of 1.31 oz/t silver.
The company secured all required payments under its community access agreement for the Jorimina and Randypata projects, maintaining exploration rights through 2026. With the community agreement in good standing with Comunidad Campesina De Tunsulla, Magma can immediately commence exploration activities.
Strategic Infrastructure and Technical Excellence
Magma has strategically assembled a comprehensive Peru operations team, establishing both a Lima head office and incorporating Peruvian subsidiary "Minas Sami Plata S.A.C." The company appointed Carlos Agreda Minaya as General Manager, an experienced professional with an MBA from ESAN who has been involved with the Niñobamba property since 2007, while securing Dentons as Peruvian legal counsel.
The technical team includes Senior Field Geologist Edgar Leon Choque, a geological engineer with over 30 years of experience managing projects for Canadian companies across Peru and Brazil. Overall team development has been guided by Jeffrey Reeder, P. Geo., Magma's Senior Technical Advisor with three decades of Peruvian mining experience, demonstrating the company's commitment to building trusted local partnerships and regulatory compliance.
The Niñobamba Project's geological characteristics align perfectly with Canadian technical strengths in epithermal and porphyry system exploration. The project is interpreted as a high-sulfidation epithermal system with potential transition to deeper porphyry mineralization, exactly the type of complex geological environment where Canadian technical expertise provides maximum value.
Capital Markets Advantage
Magma Silver's listing on the TSX Venture Exchange provides access to one of the world's most sophisticated capital markets for resource companies. Canadian exchanges have developed specialized regulatory frameworks and investor bases that understand exploration-stage mining companies' unique requirements, creating financing advantages that many international competitors lack.
The company's recent appointment of seasoned capital markets veteran Michael Townsend to the board demonstrates how Canadian companies leverage deep networks of technical and financial expertise. Townsend's experience raising over $180 million in equity through Altus Capital Partners represents the capital markets sophistication that enables Canadian companies to fund aggressive exploration programs.
Strategic Positioning for Growth
With full control of all three zones at Niñobamba spanning 4,100 hectares, Magma has consolidated a district-scale opportunity under Canadian management and technical oversight. This consolidation strategy reflects Canadian best practices in resource development, where controlling large, contiguous land packages enables systematic exploration and optimal resource delineation.
The company's upcoming drilling program represents a strategic inflection point where Canadian technical excellence meets proven Peruvian geology. With environmental permits in place and community agreements secured, Magma is positioned to execute a comprehensive exploration program that leverages both Canadian operational expertise and local geological knowledge.
As global resource markets become increasingly competitive and technically demanding, the advantages that Canadian companies bring to international projects become increasingly valuable. Magma Silver combines technical excellence in exploration targeting, strategic asset consolidation, and access to sophisticated Canadian capital markets. With Peru's proven geological endowment and regulatory stability combined with Canadian technical and financial capabilities, Magma Silver is strategically positioned to emerge as a significant player in the global precious metals sector.
Disclaimer: All opinions and information provided above are intended for educational and research purposes only. The information provided above should be used as a starting point for conducting any research on the public companies discussed. All readers should do their own due diligence and research when determining which investment strategies are best suited for them or seek the advice of an investment professional prior to making an investment decision. The profiles of the above discussed public companies are not in any way a solicitation or a recommendation to buy, sell or hold their securities. Magma Silver Corp. has initiated AllPennyStocks.com for digital media advertising valued at thirteen thousand five hundred dollars. Any forward-looking statements set forth in the article above are based on expectations, estimates and projections at the time such statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements may be identified through the use of words such as 'projects,' 'foresees' 'expects,' 'will,' 'anticipates,' 'estimates,' 'believes,' 'understands' or by statements indicating certain actions 'may,' 'could' or 'might' occur. There is no guarantee past performance will be indicative of future results or that any such forward-looking projections will occur. For a complete disclaimer, investors are encouraged to click here: https://www.allpennystocks.com/disclaimer/.
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Net Debt was $(84,043) as at June 30, 2025, compared with $1,898 as at June 30, 2024 due to 303% higher cash and cash equivalents of $109,657, an historical record, together with 12% lower loans and other borrowings of $25,614, reflecting a strong cash position. Dividends Paid were up 18% to $14,949 during the six months ended June 30, 2025, compared with $12,712 in the same period of 2024. The period over period increase is due to the fact that the dividend paid in the first quarter of 2024 was $0.0175 corresponding to the $0.07 annual dividend declared in 2023 and paid over four quarters with the final payment made in the first quarter of 2024. Net cash flows generated by operating activities were up 315% totaling $71,454 in the six months ended June 30, 2025, compared with $17,220 in the same period of 2024. 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Cash Cost & AISC: Cash Cost per ounce of gold sold in the six months ended June 30, 2025 was $1,554 and AISC per ounce of gold sold was $1,812, compared with Cash Cost per ounce of gold sold of $1,240 and AISC per ounce of gold sold of $1,472 for the same period in 2024. The 25% increase in Cash Cost per ounce of gold sold was due to 18% higher cost of sales, due to higher gold prices which results in higher costs to purchase ore from artisanal miners in Nicaragua. The 23% increase in AISC per ounce of gold sold is explained by the increase in Cash Cost per ounce of gold sold and a 4% increase in sustaining capital expenditures. 2025 Guidance For 2025, we expect gold production to be between 201,000 and 223,000 ounces, building on the consistent performance of our Nicaragua underground mines, our partnerships with the cooperatives representing artisanal miners in Nicaragua and the improved performance at the Nechí Alluvial Property. We remain focused on operational excellence and delivering strong returns for our shareholders. As gold prices increase, Mineros will continue to make production decisions at its Hemco Property, similar to those made in the first quarter of 2025 to maximize gold production, which may result in a different split in production between the Company's Pioneer and Panama Mines and artisanal mining production than originally anticipated and upon which the original guidance was provided. We are currently maintaining our production guidance for both the Nechí Alluvial Property and the Hemco Property. The following table summarizes the Company's production for the first six months of 2025 compared with the 2025 full-year guidance: Six months ended June 30, 2025 2025 Guidance 1 Nechí Alluvial Property 44,103 81,000 - 91,000 Hemco Property 13,069 33,000 - 36,000 Company Mines 57,172 114,000 - 127,000 Artisanal 50,978 87,000 - 96,000 Consolidated 108,150 201,000 - 223,000 1 Production guidance for silver is not provided by the Company, as we treat it as a by-product and the volumes of silver are small relative to gold production. Cost Guidance The higher gold prices are expected to result in higher Cash Costs per ounce of gold sold and AISC per ounce of gold sold at the Hemco Property as the cooperatives representing our artisanal mining partners are paid a relatively stable percentage of the spot price for gold as are the formalized miners in Colombia. We are revising our guidance on cash cost and AISC due to higher gold prices and the effects of the increase in the price of gold on our costs to acquire additional production in both Nicaragua, from the cooperatives representing artisanal mining partners, and Colombia, from formalized miners working with the Company. The following table summarizes the Company's cash cost and AISC in the first six months of 2025 compared with the 2025 full-year guidance: Cash Cost per ounce of gold sold Six months ended June 30, 2025 Revised 2025 Guidance ($/oz) 1 2025 Guidance ($/oz) Nechí Alluvial Property 1,230 1,270 - 1,370 1,220 - 1,320 Hemco Property 1,794 1,740 - 1,840 1,420 - 1,520 Consolidated 1,554 1,550 - 1,640 1,340 - 1,430 AISC per ounce of gold sold Nechí Alluvial Property 1,420 1,490 - 1,590 1,440 - 1,540 Hemco Property 1,990 2,000 - 2,100 1,680 - 1,780 Consolidated 1,812 1,880 - 1,980 1,650 - 1,750 1. These measures are forward-looking non-IFRS financial measures. Revised guidance for 2025 Cash Cost per ounce of gold sold and AISC per ounce of gold sold have been adjusted to better reflect market consensus estimates for gold prices for the balance of the year, which are in excess of US$3,000/oz, an exchange rate COP/USD of COP$4,200, and inflation of 6.5%. For further information concerning the equivalent historical non-IFRS financial measures, see 'Non-IFRS and Other Financial Measures' below in this news release. Guidance for 2025 is forward-looking information, and readers are cautioned that actual results may vary. See 'Forward-Looking Statements' below. Production Summary The following table sets forth the gold produced by the operations for the three and six months ended June 30, 2025, and 2024. 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Exploration and Evaluation Expenditures Summary The following table sets forth the gold produced by the operations of the Company for the three and six months ended June 30, 2025 and 2024 Three Months Ended June 30, Variation Six Months Ended June 30, Variation 2025 2024 $ % 2025 2024 $ % E&E expenditures capitalized 1 1,815 1,407 408 29 % 2,852 2,031 821 40 % E&E expenditures expensed 2 1,196 1,236 (40 ) (3 %) 2,091 2,533 (442 ) (17 %) Total 3,011 2,643 368 14 % 4,943 4,564 379 8 % Capitalized E&E expenditures are reflected in E&E projects in the consolidated statements of financial position. Expensed E&E expenditures are reported in the consolidated statement of profit or loss for the respective period under 'Exploration expenses' Exploration and Evaluation Expenditures (' E&E '): for the three months ended June 30, 2025, the Company incurred $1,815 in capital expenditures, an increase of 29% compared with the second quarter of 2024. The increase is due to higher expenditures of $275 at the Porvenir Project, and higher expenditures of $133 at Nechí Alluvial Property combined with a 3% decrease in additional expenditures due to lower expenses in the regional exploration program at the Hemco Property. Exploration and Evaluation Expenditures for the six months ended June 30, 2025, the Company incurred $4,943 in E&E expenditures, an increase of 8% compared with the same period of 2024. The increase for the six months ended June 30, 2025, is mainly explained by higher exploration expenditures capitalized. Health and Safety Mineros reaffirms its commitment to provide and maintain a safe and healthy work environment in which all employees and contractors conduct themselves in a responsible and safe manner. Thus, the Company is committed to achieving a high standard of Occupational Health and Safety through the implementation of all policies, procedures, and standards and the continuous improvement of management systems, setting targets and monitoring performance. Operations at the Nechi Alluvial Property and the Hemco Property (the ' Material Properties ') are ISO 45001 (Occupational Health and Safety Management) certified. The following table presents the safety statistics for the six months ended June 30, 2025, and the comparative period in 2024. Health and Safety KPIs Six Months Ended June 30, 2025 2024 Nechí Alluvial Property (Colombia) LTIFR (1) 0.35 0.38 TRIFR (2) 1.81 1.52 Hemco Property (Nicaragua) LTIFR — 0.07 TRIFR 0.93 0.60 Mineros (Weighted Average) LTIFR 0.15 0.19 TRIFR 1.28 0.97 Lost time injury frequency rate ('LTIFR') refers to the number of lost time injuries that occurred during a reporting period. Total recordable incident frequency rate ('TRIFR') combines all of the recorded fatalities, lost time injuries, cases or alternate work and other injuries requiring treatment by a medical professional. GROWTH AND EXPLORATION PROJECT UPDATES Near Mine Exploration, Hemco Property Expansion Near mine exploration is focused on the current mining operations, the Panama Mine and the Pioneer Mine. Mineralization is related to an epithermal gold system associated with multiple quartz veins. A total of 10,862 metres of diamond drilling in 71 holes was completed in the second quarter of 2025, achieving approximately 65% of the 2025 drilling plan. The objective of this campaign is to increase the Mineral Resources and Mineral Reserves at the Panama Mine and the Pioneer Mine. A total of 5,148 meters were drilled at the Panama Mine and 5,714 meters at the Pioneer Mine. Mineros is updating the Mineral Resources and Mineral Reserves for the Panama Mine and Pioneer Mine, scheduled to be published in early 2026. Brownfield Exploration, Hemco Property Expansion Brownfield exploration is centered on the Bonanza block, which encompasses the concession areas between the Panama Mine and the Pioneer Mine. The mineralization belongs to the same epithermal gold trend that comprises the Panama and Pioneer mines, characterized by multiple quartz veins. In 2025, Mineros initiated an 18,000-metre diamond drilling program focused primarily on two brownfield targets: Cleopatra and Orpheus. Brownfield drilling activities commenced at the end of the second quarter of 2025. A total of 50 metres of diamond drilling was completed in a single hole at the Cleopatra target. Porvenir Project The Porvenir Project is a pre-development stage project located 10.5km southwest of the existing Hemco Property facilities. Mineralization consists of a volcanic hosted gold-zinc-silver deposit with epithermal quartz veins of intermediate sulphidation. The Company is progressing as planned with the update of Mineral Resources and Mineral Reserves for the Porvenir Project, aiming to maximize its value, with the prefeasibility study optimization expected for publication in the first half of 2026. Guillermina Target The Guillermina Deposit is an epithermal zinc-gold-silver deposit, located four kilometres west of the Pioneer deposit. On July 24, 2025, Mineros announced its initial Mineral Resource estimate for the Guillermina Deposit, which includes: Indicated Mineral Resources: 1.29 Mt @ 0.71 g/t Au, 23.3 g/t Ag, 6.60% Zn, and 3.13 g/t AuEq, Containing 30 koz Au, 962 koz Ag, 187 Mlb Zn, and 129 koz AuEq Inferred Mineral Resources: 1.29 Mt @ 1.32 g/t Au, 30.2 g/t Ag, 5.73% Zn, and 3.66 g/t AuEq, Containing 55 koz Au, 1,250 koz Ag, 162 Mlb Zn, and 152 koz AuEq The deposit remains open laterally and at depth, with excellent potential for additional mineralized zones. Guillermina is considered a promising opportunity that could materially contribute to the future development of the Porvenir Project. The 2025 drilling campaign at Guillermina commenced in July 2025 and is in progress with 2,000 meters planned. Leticia Deposit The Leticia Deposit is an epithermal gold-silver-zinc deposit, located 500m northwest of the Porvenir Project. For 2025, Mineros has planned a 1,300-metre diamond drilling campaign, with greenfield drilling activities beginning in July 2025. Mineros is planning to update the Mineral Resource estimate for the Leticia deposit, for publication in the first half of 2026. Luna Roja Deposit The Luna Roja Deposit is a skarn gold system, located 24km southeast from the existing Hemco facilities. The Company is focusing on expanding the current Mineral Resources and identifying new targets surrounding the main deposit. Mineros is advancing a Mineral Resource update for the Luna Roja Deposit, with publication in the first half of 2026. Hemco Property Regional Exploration Mineros' regional greenfield exploration is focused on two areas with early-stage targets: Rosita and Bonanza districts. The Bonanza district excludes the designated brownfield area known as the Bonanza block, see Brownfield Exploration, Hemco Property Expansion. A 14,500-metre drilling campaign is planned for 2025, with approximately 6,000 metres allocated for exploration in the Rosita District and 8,500 metres in the Bonanza District. Greenfield drilling activities have not yet commenced due to delays in finalizing the drilling contracts. Assay results from 10 diamond drill holes, totaling 1,374 metres, completed at the Okonwas Target were received during the second quarter of 2025. The results confirm the presence of anomalous gold, silver, and zinc mineralization, and indicate multiple, parallel, narrow mineralized veins. Highlighted intercepts include: Hole RIJDDH_24_002: 3.22 g/t Au and 710 g/t Ag over 0.50 m 0.91 g/t Au and 2.18% Zn over 0.60 m Hole RIHDDH_24_002: 2.06 g/t Au, 33.5 g/t Ag, and 2.40% Zn over 1.00 m Hole RIJDDH_24_003: 2.58 g/t Au over 0.50 m The results suggest that mineralization extends at depth; however, the vein structures exhibit limited continuity and are generally narrow or discontinuous. Follow-up exploration is currently focused on evaluating additional targets to the north and east within the Rosita I concession (Rosita District) to assess the potential for future drilling. Near Mine Exploration, Nechí Alluvial Property Expansion At the Nechí Alluvial Property, Mineros is exploring for alluvial gold predominantly east of the Nechí River, where the Company is currently mining within quaternary alluvial sediments. A total of 4,294 meters in 155 holes were completed in the second quarter of 2025, approximately 65% of the Company's original drilling plan. The drilling focused on infill drilling within the current production area, with 955 metres completed in 36 holes of ward drilling and 3,339 metres in 119 holes of sonic drilling. La Pepa Property, Chile The La Pepa Project is an advanced gold exploration project located in the Maricunga Gold Belt of the Atacama Region, Chile, approximately 800 km north of Santiago and 110 km east of Copiapó, at 4,200 metres above sea level in the Andes Mountains. It is 100% owned by Minera Cavancha SpA, a joint venture entity that is owned 20% by Mineros and 80% by Pan American. On August 11, 2025, the Company announced that it will acquire from Pan American Silver Corp. (' Pan American Silver ') an 80% interest in the La Pepa Project for $40 million in cash (the ' La Pepa Project Purchase '), bringing its interest in the La Pepa Project to 100%. The La Pepa Project Purchase is structured as a transaction between subsidiaries of Mineros and Pan American Silver for the purchase and sale of all shares of Minera Cavancha SpA not currently owned by Mineros. Minera Cavancha SpA currently holds the La Pepa Project pursuant to a joint venture between Mineros and Pan American Silver. In connection with the La Pepa Project Purchase, that joint venture will be terminated. CONFERENCE CALL AND WEBCAST DETAILS As a reminder the Company will host a conference call tomorrow, Wednesday, August 13, 2025, at 9:00 AM Colombian Standard Time (10:00 AM Eastern Daylight Time). Please register here to join us. The 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 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 and Nicaragua 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'. Election of Directors – Electoral Quotient System 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, available on the Company's website at and from SEDAR+ at QUALIFIED PERSON The scientific and technical information contained in this news release has been reviewed and approved by Luis Fernando Ferreira de Oliveira, MAusIMM CP (Geo), Mineral Resources and Reserves Manager for Mineros S.A., who is a qualified person within the meaning of National Instrument 43-101 - Standards of Disclosure for Mineral Projects. FORWARD-LOOKING STATEMENTS This news release contains 'forward looking information' within the meaning of applicable Canadian 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', 'potential', '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 2025; estimates for future mineral production and sales; the Company's expectations, strategies and plans for the Material Properties; the Company's planned exploration, development and production activities; statements regarding the projected exploration and development of the Company's projects; adding or upgrading Mineral Resources and developing new mineral deposits; estimates of future capital and operating costs; the costs and timing of future exploration and development; estimates for future prices of gold and other minerals; expectations regarding the payment of dividends; 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 to advance the production, development and exploration of the Company's properties and assets; future prices of gold and other metal prices; the timing and results of exploration and drilling programs, and technical and economic studies; the development of the Porvenir Project; completion of its drilling programs; the accuracy of any Mineral Reserve and Mineral Resource estimates; the geology of the Material Properties being as described in the applicable 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 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; inflation rates; availability of labour and 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 Company and there is no assurance they will prove to be correct. For further information of these and other risk factors, please see the 'Risk Factors' section of the Company's annual information form dated March 25, 2024, available on SEDAR+ at 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 accurate, 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 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. EBIT, EBITDA and Adjusted EBITDA The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use earnings before interest and tax (' EBIT'), 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 EBIT, EBITDA and Adjusted EBITDA to Net profit for the three and six months ended June 30, 2025 and 2024: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 $ $ $ $ Net Profit For The Period 43,501 18,076 81,508 34,850 Less: Interest income (843.00 ) (297 ) (1,635 ) (784 ) Add: Interest expense 1,988.00 1,992 3,962 4,031 Add: Current tax 1 21,187 12,287 40,056 22,294 Add/less: Deferred tax 1 (839 ) 1,923 (4,068 ) 970 EBIT 64,994 33,981 119,823 61,361 Add: Depreciation and amortization 12,511 12,294 26,024 24,342 EBITDA 77,505 46,275 145,847 85,703 Less: Other income (615 ) (442 ) (988 ) (2,098 ) Add: Share of results of associates 59 13 59 53 Less: Finance income (excluding interest income) (6 ) (47 ) (11 ) (53 ) Add: Finance expense (excluding interest expense) 51 44 111 92 Add: Other expenses 3,479 2,398 5,709 4,078 Add: Exploration expenses 1,196 1,236 2,091 2,533 Less: Foreign exchange differences 610 170 761 (7 ) Adjusted EBITDA 2 82,278 49,647 153,578 90,301 For additional information regarding taxes, see note 13 of our unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024. The reconciliation above does not include adjustments for (impairment) reversal of assets, because there would be a nil adjustment for the three and six months ended June 30, 2025 and 2024. Cash Cost The objective of Cash Cost is to provide stakeholders with a key indicator that reflects as close as possible the direct cost of producing and selling an ounce of gold. The Company reports Cash Cost per ounce of gold sold which is calculated by deducting revenue from silver sales, depreciation and amortization, environmental rehabilitation provisions and including cash used for retirement obligations and environmental and rehabilitation and sales of electric energy. This total is divided by the number of gold ounces sold. Cash Cost includes mining, milling, mine site security, royalties, and mine site administration costs, and excludes non-cash operating expenses. Cash Cost per ounce of gold sold is a non-IFRS financial measure used to monitor the performance of our gold mining operations and their ability to generate profit, and is consistent with the guidance methodology set out by the World Gold Council. The following table provides a reconciliation of Cash Cost per ounce of gold sold on a by-product basis to cost of sales for the three and six months ended June 30, 2025, and 2024. Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of sales $ 107,442 $ 91,991 $ 203,844 $ 172,669 Less: Cost of sales of non-mining operations 1 (567 ) (225 ) (567 ) (420 ) Less: Depreciation and amortization (12,228 ) (12,023 ) (25,497 ) (23,707 ) Less: Sales of silver (2,427 ) (6,573 ) (4,966 ) (12,167 ) Less: Sales of electric energy (1,316 ) (1,713 ) (2,925 ) (3,148 ) Less: Environmental rehabilitation provision (1,309 ) (2,349 ) (2,689 ) (3,535 ) Add: Use of environmental and rehabilitation liabilities 443 235 755 377 Add: Use of Retirement obligations 46 707 91 732 Cash Cost $ 90,084 $ 70,050 $ 168,046 $ 130,801 Gold sold (oz) 53,907 53,703 108,150 105,444 Cash Cost per ounce of gold sold ($/oz) $ 1,671 $ 1,304 $ 1,554 $ 1,240 Refers to cost of sales incurred in the Company's 'Others' segment. See note 6 of our unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2025 and 2024. The majority of this amount relates to the cost of sales of latex. Changes in Composition of Cash Cost The composition of Cash Cost was revised in the second quarter of 2024 to deduct revenue from sales of electric energy from cost of sales to better reflect the costs to produce an ounce of gold. Values for prior periods have been adjusted from amounts previously disclosed to reflect these changes. Changes in Composition of Cash Cost - Nechí Alluvial Property (Colombia) Segment The composition of Cash Cost for the Nechí Alluvial Property (Colombia) segment was revised in the fourth quarter of 2024 to exclude an intercompany royalty, which reduces Cash Cost and Cash Cost per ounce of gold sold for that segment. The Company notes that guidance provided for the Nechí Alluvial Property (Colombia) segment has always excluded the intercompany royalty, even though disclosure of historical Cash Cost performance for the segment did not, which resulted in an inconsistency in reporting of this measure between guidance and historical measures. Disclosure of Cash Cost and Cash Cost per ounce of gold sold for the Nechí Alluvial Property (Colombia) segment has been adjusted from amounts previously disclosed in historical MD&A and news releases to reflect this change. For greater certainty, this change does not affect Cash Cost and Cash Cost per ounce of gold sold of the Company on a consolidated basis, or for any other segment. All-in Sustaining Costs The objective of AISC is to provide stakeholders with a key indicator that reflects as closely as possible the full cost of producing and selling an ounce of gold. AISC per ounce of gold sold is a non-IFRS ratio that is intended to provide investors with transparency regarding the total costs of producing one ounce of gold in the relevant period. The Company reports AISC per ounce of gold sold on a by-product basis. The methodology for calculating AISC per ounce of gold sold is set out below and is consistent with the guidance methodology set out by the World Gold Council. The World Gold Council definition of AISC seeks to extend the definition of total Cash Cost by deducting cost of sales of non-mining operations and adding administrative expenses, sustaining exploration, sustaining leases and leaseback and sustaining capital expenditures. Non-sustaining costs are primarily those related to new operations and major projects at existing operations that are expected to materially benefit the current operation. The determination of classification of sustaining versus non-sustaining requires judgment by management. AISC excludes current and deferred income tax payments, finance expenses and other expenses. Consequently, these measures are not representative of all the Company's cash expenditures. In addition, the calculation of AISC does not include depreciation and amortization cost or expense as it does not reflect the impact of expenditures incurred in prior periods. Therefore, it is not indicative of the Company's overall profitability. Other companies may quantify these measures differently because of different underlying principles and policies applied. Differences may also occur due to different definitions of sustaining versus non-sustaining. The following table provides a reconciliation of AISC per ounce of gold sold to cost of sales for the three and six months ended June 30, 2025, and 2024 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of sales $ 107,442 $ 91,991 $ 203,844 $ 172,669 Less: Cost of sales of non-mining operations 1 (567 ) (225 ) (567 ) (420 ) Less: Depreciation and amortization (12,228 ) (12,023 ) (25,497 ) (23,707 ) Less: Sales of silver (2,427 ) (6,573 ) (4,966 ) (12,167 ) Less: Sales of electric energy (1,316 ) (1,713 ) (2,925 ) (3,148 ) Less: Environmental rehabilitation provision (1,309 ) (2,349 ) (2,689 ) (3,535 ) Add: Use of environmental and rehabilitation liabilities 443 235 755 377 Add: Use of Retirement obligations 46 707 91 732 Add: Administrative expenses 5,194 4,040 11,565 8,904 Less: Depreciation and amortization of administrative expenses 2 (283 ) (271 ) (527 ) (635 ) Add: Sustaining leases and leaseback 3 2,885 1,897 5,619 4,839 Add: Sustaining exploration 4 148 74 226 118 Add: Sustaining capital expenditures 5 6,546 5,515 11,032 11,220 AISC from operations $ 104,574 $ 81,305 $ 195,961 $ 155,247 Gold sold (oz) 53,907 53,703 108,150 105,444 AISC per ounce of gold sold ($/oz) 1,940 1,514 1,812 1,472 Cost of sales of non-mining operations is the cost of sales excluding cost incurred by non-mining operations and the majority of this cost comprises cost of sales of latex. Depreciation and amortization of administrative expenses is included in the administrative expenses line on the unaudited condensed consolidated interim financial statements and is mainly related to depreciation for corporate office spaces and local administrative buildings at the Hemco Property. Represents most lease payments as reported in the unaudited consolidated financial statements of cash flows and is made up of the principal of such cash payments, less non-sustaining lease payments. Lease payments for new development projects and capacity projects are classified as non-sustaining. Sustaining exploration: Exploration expenses and exploration and evaluation projects as reported in the unaudited consolidated interim financial statements, less non-sustaining exploration. Exploration expenditures are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Sustaining capital expenditures: Represents the capital expenditures at existing operations including, periodic capitalized stripping and underground mine development costs, ongoing replacement of mine equipment and overhaul of existing equipment, and is calculated as total additions to property, plant and equipment (as reported on the consolidated statements of cash flows), less non-sustaining capital. Non-sustaining capital represents capital expenditures for major projects, including projects at existing operations that are expected to materially benefit the operation and provide a level of growth, as well as enhancement capital for significant infrastructure improvements at existing operations. Non-sustaining capital expenditures during the three and six months ended June 30, 2025, are primarily related to major projects at the Hemco Property and the Nechí Alluvial Property. The sum of sustaining capital expenditures and non-sustaining capital expenditures is reported as the total of additions of property plant and equipment in the .unaudited condensed interim consolidated financial statements. Changes in Composition of AISC - Nechí Alluvial Property (Colombia) Segment The composition of AISC for the Nechí Alluvial Property (Colombia) segment was revised in the fourth quarter of 2024 to exclude an intercompany royalty, which reduces AISC and AISC per ounce of gold sold for that segment. The Company notes that guidance provided for the Nechí Alluvial Property (Colombia) segment has always excluded the intercompany royalty, even though disclosure of historical AISC performance for the segment did not, which resulted in an inconsistency in reporting of this measure between guidance and historical measures. Disclosure of AISC and AISC per ounce of gold sold for the Nechí Alluvial Property (Colombia) segment has been adjusted from amounts previously disclosed in historical MD&A and news releases to reflect this change. For greater certainty, this change does not affect AISC and AISC per ounce of gold sold of the Company on a consolidated basis, or for any other segment. Cash Cost and All-in Sustaining Costs by Operating Segment The following table provides a reconciliation of Cash Cost per ounce of gold sold and AISC per ounce of gold sold by operating segment 3 to cost of sales, for the three and six months ended June 30, 2025, and 2024. Three months ended June 30, 2025 Nechí Alluvial Hemco Property Cost of sales $ 39,651 $ 72,912 Less: Depreciation and amortization (4,500 ) (7,690 ) Less: Sales of silver (66 ) (2,361 ) Less: Sales of electric energy (1,316 ) — Less: Intercompany royalty (4,909 ) — Less: Environmental rehabilitation provision (1,309 ) — Add: Use of environmental and rehabilitation liabilities 443 — Add: Use of Retirement obligations — 46 Cash Cost $ 27,994 $ 62,907 AISC Adjustments Less: Depreciation and amortization of administrative expenses (3 ) (31 ) Add: Administrative expenses 707 1,342 Add: Sustaining leases and Leaseback 747 2,138 Add: Sustaining exploration 148 — Add: Sustaining capital expenditure 2,950 3,596 AISC $ 32,543 $ 69,952 Gold sold (oz) 20,859 33,048 Cash Cost per ounce of gold sold ($/oz) 1,342 1,904 AISC per ounce of gold sold ($/oz) 1,560 2,117 Three months ended June 30, 2024 Nechí Alluvial Hemco Property Cost of sales $ 34,197 $ 61,475 Less: Depreciation and amortization (4,348 ) (7,648 ) Less: Sales of silver (57 ) (6,516 ) Less: Sales of electric energy (1,713 ) — Less: Intercompany royalty (3,458 ) — Less: Environmental rehabilitation provision (2,349 ) — Add: Use of environmental and rehabilitation liabilities 235 — Add: Use of Retirement obligations — 707 Cash Cost $ 22,507 $ 48,018 AISC Adjustments Less: Depreciation and amortization administrative expenses (3 ) (7 ) Add: Administrative expenses 758 897 Add: Sustaining leases and Leaseback 800 1,097 Add: Sustaining exploration 74 — Add: Sustaining capital expenditure 2,784 2,731 AISC $ 26,920 $ 52,736 Gold sold (oz) 20.591 33.112 Cash Cost per ounce of gold sold ($/oz) 1,093 1,450 AISC per ounce of gold sold ($/oz) 1,307 1,593 Six months ended June 30, 2025 Nechi Alluvial Hemco Property Cost of sales $ 77,942 $ 136,059 Less: Depreciation and amortization (8,980 ) (16,430 ) Less: Sales of silver (133 ) (4,833 ) Less: Sales of electric energy (2,925 ) — Less: Intercompany royalty (9,740 ) — Less: Environmental rehabilitation provision (2,689 ) — Add: Use of environmental and rehabilitation liabilities 755 — Add: Use of Retirement obligations — 91 Cash Cost $ 54,230 $ 114,887 AISC Adjustments Less: Depreciation and amortization of administrative expenses (7 ) (55 ) Add: Administrative expenses 1,813 2,332 Add: Sustaining leases and Leaseback 1,430 4,189 Add: Sustaining exploration 226 — Add: Sustaining capital expenditure 4,942 6,090 AISC $ 62,634 $ 127,443 Gold sold (oz) 44,103 64,047 Cash Cost per ounce of gold sold ($/oz) 1,230 1,794 AISC per ounce of gold sold ($/oz) 1,420 1,990 Six months ended June 30, 2024 Nechi Alluvial Hemco Property Cost of sales $ 63,699 $ 115,864 Less: Depreciation and amortization (8,516 ) (15,107 ) Less: Sales of silver (96 ) (12,071 ) Less: Sales of electric energy (3,148 ) — Less: Intercompany royalty (6,319 ) — Less: Environmental rehabilitation provision (3,535 ) — Add: Use of environmental and rehabilitation liabilities 377 — Add: Use of Retirement obligations — 732 Cash Cost $ 42,462 $ 89,418 AISC Adjustments Less: Depreciation and amortization of administrative expenses (7 ) (14 ) Add: Administrative expenses 1,439 1,588 Add: Sustaining leases and Leaseback 1,401 3,438 Add: Sustaining exploration 118 — Add: Sustaining capital expenditure 5,337 5,883 AISC $ 50,750 $ 100,313 Gold sold (oz) 39,803 65,641 Cash Cost per ounce of gold sold ($/oz) 1,067 1,362 AISC per ounce of gold sold ($/oz) 1,275 1,528 Reconciliation of Cash Cost per ounce of gold sold and AISC per ounce of gold - Nechí Alluvial Segment (Colombia) The following tables provide a reconciliation of the calculation of Cash Cost per ounce of gold sold and the AISC per ounce of gold sold for the Nechí Alluvial Property (Colombia) segment for the three and six months ended June 30, 2025, reflecting changes made to the composition of those measures in the 2024 financial year and to align with the manner in which guidance is reported. Cash Cost Reconciliation AISC Reconciliation Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 AISC per ounce of gold sold ($/oz) - Previously reported $ 1,475 $ 1,434 Adjustments ($/oz) Less: Intercompany royalty (168 ) (159 ) AISC per ounce of gold sold ($/oz) restated $ 1,307 $ 1,275 Net Free Cash Flow The Company uses the financial measure 'net free cash flow', which is a non-IFRS financial measure, to supplement information regarding cash flows generated by operating activities. The Company believes that in addition to IFRS financial measures, certain investors and analysts use this information to evaluate the Company's performance with respect to its operating cash flow capacity to meet recurring outflows of cash. Net free cash flow is calculated as cash flows generated by operating activities less non-discretionary sustaining capital expenditures and interest and dividends paid related to the relevant period. The following table sets out the calculation of the Company's net free cash flow to net cash flows generated by operating activities for the three and six months ended June 30, 2025, and 2024: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 $ $ $ $ Net cash flows generated by operating activities $ 59,820 $ 7,115 $ 71,454 $ 17,220 Non-discretionary items: Sustaining capital expenditures (6,546 ) (5,515 ) (11,032 ) (11,220 ) Interest paid (680 ) (945 ) (1,432 ) (2,003 ) Dividends paid (7,473 ) (7,473 ) (14,949 ) (12,712 ) Net cash flows used in (generated from) discontinued operations 1 — — — — Net free cash flow $ 45,121 $ (6,818 ) $ 44,041 $ (8,715 ) Return on Capital Employed ('ROCE') The Company uses ROCE as a measure of long-term operating performance to measure how effectively management utilizes the capital it is provided. This non-IFRS ratio 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. The calculation of ROCE, expressed as a percentage, is Adjusted EBIT (calculated in the manner set out in the table below) divided by the average of the opening and closing capital employed for the 12 months preceding the period end. Capital employed for a period is calculated as total assets at the beginning of that period less total current liabilities. Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 2025 2024 2025 2024 Adjusted EBITDA (last 12 months) $ 273,376 $ 177,044 $ 273,376 $ 177,044 Less: Depreciation and amortization (last 12 months) (50,230 ) (47,833 ) (50,230 ) (47,833 ) Adjusted EBIT (A) $ 223,146 $ 129,211 $ 223,146 $ 129,211 — — Total assets at the beginning of the period $ 582,036 $ 493,757 $ 582,036 $ 493,757 Less: Total current liabilities at the beginning of the period (106,022 ) (84,765 ) (106,022 ) (84,765 ) Opening Capital Employed (B) $ 476,014 $ 408,992 $ 476,014 $ 408,992 Total assets at the end of the period $ 679,108 $ 521,183 $ 679,108 $ 521,183 Less: Current liabilities at the end of the period (151,040 ) (106,302 ) (151,040 ) (106,302 ) Closing Capital employed (C) $ 528,068 $ 414,881 $ 528,068 $ 414,881 Average Capital employed (D)= (B) + (C) /2 $ 502,041 $ 411,937 $ 502,041 $ 411,937 ROCE (A/D) 44 % 31 % 44 % 31 % Net Debt Net Debt is a non-IFRS financial measure that provides insight regarding the liquidity position of the Company. The calculation of net debt shown below is calculated as nominal undiscounted debt including leases, less cash and cash equivalents. The following sets out the calculation of Net Debt as at June 30, 2025 and 2024. Average Realized Price The Company uses 'average realized price per ounce of gold sold' and 'average realized price per ounce of silver sold', which are non-IFRS financial measures. Average realized metal price represents the revenue from the sale of the underlying metal as per the statement of operations, adjusted to reflect the effect of trading at the holding company level (parent company) on the sales of gold purchased from subsidiaries. Average realized prices are calculated as the revenue related to gold and silver sales divided by the number of ounces of metal sold. The following table sets out the reconciliation of average realized metal prices to sales of gold and sales of silver for the three and six months ended June 30, 2025 and 2024: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales of gold ($) 178,573 124,976 334,845 231,938 Gold sold (oz) 53,907 53,703 108,150 105,444 Average realized price per ounce of gold sold ($/oz) 3,313 2,327 3,096 2,200 Average realized price per ounce of gold sold ($/oz) 3,313 2,327 3,096 2,200 Sales of silver ($) 2,427 6,573 4,966 12,167 Silver sold (oz) 70,733 224,096 147,992 466,745 Average realized price per ounce of silver sold ($/oz) 34 29 34 26 Average realized price per ounce of silver sold ($/oz) 34 29 34 26 ____________________ 1 Average realized price per ounce of gold sold, Cash Cost per ounce of gold sold, and all in sustaining costs ('AISC') per ounce of gold sold, are non-IFRS financial measures with no standardized meaning under IFRS, and therefore may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations to the most directly comparable IFRS measures, see 'Non-IFRS and Other Financial Measures' in this news release. 2 Capital investments refers to additions to exploration, property, plant and equipment, and intangibles (which includes asset retirement obligation amounts and leases) for the Nechí Alluvial Property, the Hemco Property, and the La Pepa Project segments. It excludes additions to property, plant and equipment, exploration or intangibles of Mineros and other segments. For additional information as additions to exploration, property, plant and equipment, and intangibles, see Note 7 of our unaudited condensed interim consolidated financial statements for the six months ended June 30, 2025.
