Mineros SA (TSX:MSA) - Record $800M Revenue in 2025 Sets Up 2026 Nicaragua Growth Surge

Mettos: 2026 Growth Strategy & Performance – A Detailed Summary

Key Concepts:

• Hekco (Nicaragua): Mettos’ largest mine, producing approximately 140,000 ounces of gold annually.
• Colombia Operations: A long-standing, reliable producer of around 90,000 ounces of gold, utilizing a unique river-based, gravity-separation mining process.
• Chilean Development Asset: An advanced exploration/development project in Northern Chile representing future growth potential.
• Bonanza Mining Partners (Nicaragua): Independent miners operating within Mettos’ concessions, delivering high-grade ore.
• 43-101 Compliance: A standard for mineral resource and reserve estimation, ensuring transparency and reliability.
• IBIDA (Adjusted): Earnings Before Interest, Taxes, Depreciation, and Amortization – a key profitability metric.
• Throughput: The amount of material processed by a plant, a key factor in production capacity.
• Reserve Conversion: The process of upgrading mineral resources into proven and probable reserves.
• Greenfield Exploration: Exploration on previously undeveloped land.
• Brownfield Exploration: Exploration around existing mines to expand resources.

I. 2025 Performance & Transformational Changes

2025 was a “transformational year” for Mettos, marked by record production and financial results. The company produced 227,000 ounces of gold equivalent, exceeding guidance. Strong gold prices (approximately $3,500/ounce) drove record revenues of $800 million, a 50% increase over 2024. Adjusted IBIDA reached $360 million, equating to roughly $1 million per operating day. This performance is attributed to changes implemented following investment from Sun Valley Investments in 2024, which is now driving the company’s strategy. Mettos, a 50-year-old company that went public in 2021, is positioning itself as a significant international gold producer. The company’s market capitalization has increased by 1000% in the last two years.

II. Asset Portfolio Overview

Mettos currently operates three assets in Latin America:

• Hekco (Nicaragua): The largest producer, contributing approximately 140,000 ounces of gold annually. Focus in 2026 will be on debottlenecking operations to increase processing capacity.
• Colombia: Producing around 90,000 ounces of gold, with comparable profitability to Hekco. The company is developing a growth plan for Colombian operations, aiming to extend the mine’s 12-year life and capitalize on a million ounces of existing resources.
• Chilean Development Asset: An advanced exploration/development project in Northern Chile, representing a future growth opportunity.

III. Colombia Operations: A Unique Approach

The Colombian operation is a long-standing, reliable producer with over a century of history. Mining occurs adjacent to a river, utilizing a unique process: drilling to the north, creating a flooded open pit, and extracting ore via pumping or bucket dredges. The process relies entirely on gravity separation – no chemicals are used. Mettos implements extensive reclamation and closure practices, compensating 7-10 hectares for every hectare mined. The operation is powered by its own hydroelectric facilities. The current life of mine is 12 years with an extra million ounces in resources.

IV. 2026 Growth Strategy: Nicaragua as the Primary Focus

The primary focus for 2026 is Nicaragua, specifically addressing processing capacity constraints. While there’s an abundance of gold and mineral resources, the existing infrastructure limits processing capabilities. The company is investing in expanding the Hekco plant from 1,800 tons per day to 2,500 tons per day, with potential for further expansion. This 40% increase in throughput will allow Mettos to fully utilize its resources and process ore from Bonanza mining partners. Improvements in Colombia are also planned, alongside preparation for future growth.

V. Bonanza Mining Partners & Exploration Potential in Nicaragua

Mettos collaborates with Bonanza mining partners in Nicaragua, who are delivering increasingly high-grade ore (hundreds of grams per ton). The company is now analyzing the geological data provided by these partners to identify new exploration targets within its 450,000-hectare land package – the historic Bonanza gold triangle. Carlos Rios, formerly of Collective Mining and Continental Gold, has joined Mettos to lead exploration efforts. The district has a history of producing close to 10 million ounces of gold, but remains largely unexplored. Exploration will focus on both brownfield (around existing mines) and greenfield opportunities.

VI. Financial Strategy: Dividends, Capital Allocation & Valuation

Mettos intends to maintain its strong dividend payout, having returned $145 million to investors over the past five years. The company is generating significant cash flow, particularly with current gold prices at $5,000/ounce (compared to $3,500/ounce in 2025). This allows Mettos to simultaneously invest in its business and return capital to shareholders.

The company is actively exploring M&A opportunities but will remain disciplined, prioritizing per-share metrics. Currently, Mettos trades at 2x revenue and 4x IBIDA (based on $800 million revenue and $360 million IBIDA generated at a $3,500 gold price). Management believes the company remains undervalued, with significant potential for re-rating as it executes its growth strategy. Mettos is also working towards inclusion in key indexes like the GDXJ.

VII. Operating Environment in Nicaragua

Mettos has operated in Nicaragua for 12 years, maintaining a positive relationship with local communities and the government. The company’s remote location in the northern part of the country minimizes exposure to political instability. Mettos emphasizes responsible operations, including community investment, tax payments, and environmental stewardship.

VIII. Key Performance Indicators & Improvements

Beyond increasing throughput, Mettos is focused on improving gold recovery rates at the Hekco plant, increasing from 87% to 90%. Efforts are also underway to optimize silver recovery and improve ore grades through incentivizing Bonanza mining partners and implementing smart mine planning.

Notable Quotes:

• “2025 was a transformational year for Mettos.” – Daniel, CEO of Mettos SEA
• “We can continue returning capital to our shareholders and we can invest in our business.” – Daniel
• “We’re harvesting the information as well that they are delivering to us and we’re asking ourselves, okay, where is this mineral coming from? It's all coming from our from our concessions.” – Daniel, regarding Bonanza mining partners.

Conclusion:

Mettos is undergoing a significant transformation, driven by new investment and a focused growth strategy. The company’s strong 2025 performance provides a solid foundation for future expansion, with Nicaragua as the primary focus. By addressing processing capacity constraints, leveraging the expertise of Bonanza mining partners, and pursuing strategic exploration, Mettos aims to increase production, improve margins, and unlock the full potential of its asset portfolio. The company’s commitment to dividends, combined with its growth prospects, positions it as an attractive investment opportunity in the precious metals sector.