Mineros Receives Credit Ratings From S&P and Moody's for Proposed Senior Unsecured Notes
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On October 22, 2025, Mineros announced it has received initial credit ratings for a proposed offering of senior unsecured notes. S&P Global Ratings assigned a 'B+' rating with a Stable outlook, and Moody's Ratings assigned a 'B1' rating, also with a Stable outlook. The company's CFO, David Splett, described the ratings as a "pivotal achievement" and a "strong third-party validation" of the company's financial position, which optimally positions Mineros to access international debt capital markets to finance its growth projects.
This news is a material and positive development. It directly follows the October 20 announcement of the company's intention to raise US$400 million through senior notes and secure a US$100 million revolving credit facility. Obtaining these credit ratings is a critical prerequisite for such a significant debt issuance in the international markets.
- De-risking Financing: The ratings, while in the non-investment-grade "highly speculative" category, provide essential third-party validation for potential lenders. This significantly increases the probability of a successful financing and is a clear sign of progress. The 'Stable' outlook from both agencies is a vote of confidence in the company's current operating profile and strategy.
- Execution on Strategy: In August 2025, the company stated its board had instructed management to explore debt financing for its growth plans. The announcements on October 20 and 22 show swift and effective execution on this directive.
- Enabling Growth: This financing is not for sustaining capital; it is for transformational growth. The proceeds are earmarked for key projects, which include the recently acquired La Pepa project in Chile and the Porvenir Project in Nicaragua. Without this capital, the company's growth ambitions would be stalled.
- Shift in Risk Profile: While positive for enabling growth, successfully taking on ~$500 million in debt will fundamentally change the company's risk profile. It will introduce significant leverage and substantial interest expense to a company that previously had a very clean balance sheet. The company's ability to generate cash flow to service this new debt will be paramount.
In the context of the company's stated goal to become a mid-tier producer, securing the necessary financing is the most critical near-term objective. This news confirms they are on track, making it a material positive event.
Mineros S.A. is a Colombian-based gold producer with over 50 years of operating history. Its primary producing assets are the Nechí Alluvial Property in Colombia and the Hemco Property (underground and artisanal mining) in Nicaragua.
The company is pursuing a growth strategy to become a mid-tier producer. Its flagship growth projects are: 1. La Pepa Project (Chile): A recently acquired (100% ownership) advanced exploration gold project located in the Maricunga Gold Belt. The company intends to advance it towards a PEA, envisioning an open-pit, heap-leach operation. 2. Porvenir Project (Nicaragua): A pre-development stage, high-grade, polymetallic (gold-zinc-silver) underground project located near its existing Hemco operations. The company is working on an optimized prefeasibility study.