Mineros S.A. Commences Phase Two of Share Repurchases Through the Colombian Stock Exchange Transactional Mechanism

• Share Repurchase Phase Two: Mineros S.A. has commenced Phase 2 of its share repurchase program via the Colombian Stock Exchange (BVC) on May 28, 2026.
• Remaining Capacity: US$66.7 million remains available from the original US$80 million approved program after spending US$13.3 million in Phase 1 (completed May 26).
• Execution Limits: Repurchases are subject to daily trading volume limits (max 25% of average daily volume over preceding 90 days) and will not be conducted through Toronto Stock Exchange facilities.
• Program Duration: The program expires March 27, 2029, providing a three-year window for capital allocation flexibility.
• Regulatory Context: Repurchases are determined not subject to regulation as an "issuer bid" under Canadian securities laws, simplifying execution in Colombia.

• Capital Allocation Signal: The commencement of Phase 2 confirms management's commitment to returning excess cash to shareholders following the record Q1 2026 financial results ($87.7M net profit).
• Valuation Support: With US$66.7 million remaining against a market capitalization of approximately $1.6 billion, this represents roughly 4% of equity value available for buybacks, providing a floor for the share price if executed aggressively.
• Liquidity Management: The use of the Colombian Stock Exchange mechanism rather than Toronto suggests a focus on local liquidity and tax efficiency, consistent with the company's dual-listing structure (TSX/BVC).
• Expectation vs. Reality: This news is largely expected given the March 2026 approval of the $80M program and the May 15 completion of Phase 1 ($13.3M spent). It does not introduce new strategic pivots but rather validates execution discipline.
• Transcript Discrepancy Note: The provided transcript context refers to "MSA Safety" (Fire/Industrial Safety) and an Autronica acquisition, which is unrelated to Mineros S.A.'s gold mining operations. This data mismatch was excluded from the fundamental analysis to ensure accuracy; the rating relies solely on Mineros-specific news releases.

• Operations: Mineros S.A. operates gold mines in Colombia (Nechí Alluvial) and Nicaragua (Hemco Property: Panama, Pioneer, La Reforma).
• Flagship Project: The Porvenir Project (Nicaragua) is the primary growth engine. A 2026 Prefeasibility Study (PFS) reports an after-tax NPV of $460 million and IRR of 37.9%.
• Production Profile: Q1 2026 gold production was 57,850 ounces (+7% YoY), with silver sold at 161,766 ounces (+109% YoY). Hemco plant throughput reached 2,000 tpd.
• Exploration: Aggressive drilling program (75,000m planned for 2026) targeting resource conversion and greenfield discoveries like the Xiloa vein system.