Mineros S.A. Earnings Call Signals Growth Push

Mineros S.A. ((TSE:MSA)) has held its Q4 earnings call. Read on for the main highlights of the call.

Mineros S.A. struck an upbeat tone on its earnings call, pointing to record results across revenue, EBITDA, net profit, and free cash flow for 2025. Management acknowledged cost and tax headwinds but stressed a strong balance sheet, improving plant recoveries, and a clear investment roadmap aimed at unlocking further value in 2026.

Record Revenue Surge Underpins Top Line

Revenue for FY2025 reached a record $800 million, up 48% year-over-year as production volumes rose and realized gold prices remained very supportive. This strong top-line performance set the tone for the call and provided the foundation for Mineros’ confident outlook on funding growth and shareholder returns.

EBITDA Expansion Highlights Margin Strength

Adjusted EBITDA climbed to $358 million in 2025, a 71% jump versus 2024 and equivalent to roughly $1 million in EBITDA per day. The company emphasized that this operating leverage reflects both higher output and improved pricing, even as cost inflation and partner payments created a tougher backdrop.

Net Profit and Gross Profit Hit New Highs

Net profit rose 68% year-over-year to $145 million, while gross profit surged 77% to $326 million. Management framed this profitability step-change as evidence that Mineros can convert stronger revenues into solid earnings despite temporary pressures from taxes and elevated operating costs.

Free Cash Flow Fuels Balance Sheet Resilience

Mineros generated a record $138 million in net free cash flow during 2025, including $32 million in the fourth quarter alone. Year-end cash and cash equivalents stood at $108 million, with a net cash position of about $93 million and $26.3 million in receivables, underpinning the company’s ability to self-fund growth.

Fourth Quarter Delivers Outperformance

In Q4 2025, revenue reached $261 million, up 74% year-over-year, while gross profit nearly doubled to $106 million and adjusted EBITDA climbed 101% to $115 million. Free cash flow of $32 million in the quarter confirmed that the business was finishing the year with strong operating momentum.

Production Exceeds Guidance Across Regions

The company said it exceeded full-year guidance with around 227,000 gold equivalent ounces produced in 2025, including 61,000 ounces in Q4. Colombia contributed 23,000 ounces in the quarter, while Nicaragua delivered roughly 36,000 ounces, highlighting balanced output from both core jurisdictions.

Realized Gold Price Provides Powerful Tailwind

Average realized gold prices were a key driver, coming in at $3,474 per ounce for the full year and a striking $4,179 per ounce in Q4. These elevated price levels materially boosted revenue and margins, amplifying the impact of volume gains and enabling record financial results.

Shareholder Returns and Market Outperformance

Mineros returned $42 million to shareholders in 2025 through $30 million in dividends and $12 million of share buybacks, aligning capital allocation with strong cash generation. The company’s share price appreciated about 275%, earning it a TSX 30 designation and ranking it as a top performer on the Colombian exchange for the second year running.

Safety Metrics Remain a Core Strength

Safety performance stayed solid, with lost time injury frequency rates at 0.9 in Colombia and 0.16 in Nicaragua. Management highlighted these low incident levels as a foundation for sustainable operations, noting that strong safety culture supports productivity and long-term license to operate.

2026 Growth and Investment Program

For 2026, Mineros is planning around $114 million in capital and exploration spending, the highest in its history, with a major focus on Nicaragua. The key initiative is expanding the Hemco plant from 1,800 to 2,500 tonnes per day, a roughly 40% increase, alongside technical work at Porvenir and La Pepa and continued recovery improvements above 90%.

Strategic Expansion with La Pepa Acquisition

The company completed the acquisition and full control of the La Pepa project in Chile’s Maricunga Gold Belt, involving a one-time outflow of around $40 million. La Pepa adds an advanced exploration asset with about 2 million ounces of resources and upside potential, expanding Mineros’ long-term growth pipeline beyond its current producing assets.

Cost Inflation Drives Higher AISC

All-in sustaining costs moved higher, reaching $2,486 per ounce at the consolidated level in the quarter, with Nicaragua at $2,828 and Colombia at $1,891. Management cited partner payments in Bonanza linked to spot gold prices, weaker U.S. dollar versus the Colombian peso, and rising labor costs as major contributors to this cost inflation.

Processing Bottlenecks and Partner Dependence

Mineros highlighted heavy reliance on Bonanza Mining Partners, whose payments rise with gold prices and thus inflate unit costs as prices climb. A processing constraint at Hemco, capped at 1,800 tonnes per day, limited the ability to treat the company’s own industrial ore, causing industrial mine production to fall from about 35,000 ounces in 2024 to roughly 22,000 in 2025.

One-Off Tax Settlement in Nicaragua

In 2025, the company settled a legacy tax dispute in Nicaragua for approximately $49 million, which management described as a one-time payment. However, there will be an ongoing incremental ad-valorem tax impact of around $8 million per year, which will modestly weigh on future earnings from the Nicaraguan operations.

Q4 Profit Trails Revenue Growth

Despite the strong revenue and EBITDA performance in Q4, net profit for the quarter was $9.4 million, underscoring the drag from exceptional and structural cost items. Management explained that one-time factors, including the tax settlement and ongoing cost pressures, constrained the conversion of top-line growth into bottom-line earnings.

Long-Term Potential but Unclear La Pepa Timeline

While La Pepa brings considerable resource potential, Mineros emphasized that it remains an advanced exploration project requiring more environmental work, drilling, and de-risking. No firm production timeline was provided, leaving investors with some uncertainty about when and how this asset will begin contributing cash flow.

Labor and Local Cost Pressures in Colombia

In Colombia, the company is facing higher labor expenses and a weaker U.S. dollar against the Colombian peso, both of which push operating costs higher. Management is responding with productivity initiatives and technology adoption but signaled that local inflation and currency trends could keep pressure on margins.

Forward Guidance and 2026 Outlook

Mineros guided 2026 consolidated production to 213,000–233,000 ounces, roughly 10,000 ounces higher than 2025, with Colombia contributing 83,000–93,000 ounces and Nicaragua 130,000–140,000. The company plans a record $114 million in capex and exploration, targets Hemco throughput of about 2,200 tonnes per day by June and 2,500 by December, and expects to sustain shareholder distributions through its net-profit-based dividend policy and buybacks backed by a strong balance sheet.

Mineros’ earnings call painted the picture of a miner in transition from record financial performance to a new phase of investment-led growth. While costs, taxes, and operational bottlenecks remain areas to watch, the company’s cash generation, solid balance sheet, and aggressive expansion plans suggest it is positioning for continued value creation in 2026 and beyond.