Slides
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LCM Phase 5 Impact July 2025 1
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LCM Contingency Update 2 The origin of the problem was a geomechanical instability in Phase 5 Phase 5 Impact - LCM Phase 5 was in operation with remaining reserves of ~ 2mt of concentrate to be extracted between 4Q24 and 2026 At the end of September 2024 an instability was detected in the wall of the pit For safety reasons, at the beginning of October 2024 it was decided to suspend operations in that phase and conduct an in depth evaluation of the instability, its progression and the risk of resuming operations To this end, an Independent Geomechanical Commission (IGC) was formed by internationally renowned geotechnical experts
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LCM Contingency Update 3 An Independent Geomechanical Commission (IGC) was formed to lead and validate the geomechanical instability analysis Phase 5 Impact - LCM Main work performed • Hydrogeological drilling campaign for more than 3,400m • Hydrochemical sampling of surface and ground water • Design of water drainage program • Updating of structural model and 3D models • Installation of prisms in vertical sections of the west wall • Evaluation of alternatives for the extraction of Phase 5 Conclusions • The risk of resuming the exploitation of Phase 5 cannot be completely ruled out o West wall still showing displacement, but without acceleration • Further studies and laboratory testing recommended during July and August • Option to advance processing of Phase 7 ore
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LCM Contingency Update 4 The impact of maintaining the suspension of Phase 5 is estimated at US$30-40M for 2025 Phase 5 Impact - LCM 1. Versus budget 2. This impact is added to the announced in October 2024 of US$40-60m for 2024 and 2025 2025: ↑ ~ 1-2 US$/ton1 2025²: ↓ ~ $US 30-40m 2024: 1.000 kt 2025: 250 kt + 400 kt 2026: + 400 kt Lower Production Higher Cash Cost Impact on EBITDA Material Disclosure October 2024 Material Disclosure July 2025
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LCM Contingency Update 5 As a result, the production guidance for 2025 is updated Phase 5 Impact - LCM PREVIOUS CURRENT Production Cash Cost 15,5 – 16,0 mt 52 – 57 US$/t ↓ 15,0 – 15,5 mt 52 – 57 US$/t (unchanged)