Financial Statements - 2021 3Q

Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated interim financial information (unaudited) as of

September 30, 2021 and 2020

Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated Statement of Financial Position

As of September 30, 2021 (unaudited) and as of December 31, 2020 (audited)

		September 30,		December 31,
	Note	2021	2020
		US$(000)		US$(000)
Assets
Current Assets
Cash and cash equivalents	4	176,708	114,646
Accounts receivable Trade, net		15,959	16,244
Accounts receivable from subsidiaries and affiliates		12,089	12,537
Accounts receivable Others		66,226	89,530
Other financial assets	6	-	223
Inventories, net	5	64,913	60,961
Total current assets		335,895	294,141
Non-current Assets
Other accounts receivable		9,294	9,477
Financial investments		188,977	195,346
Property, plant and equipment, net	7	751,908	772,063
Assets by right of use	8	3,774	4,285
Mining exploration and evaluation cost, net	9	779,090	790,553
Inventories, net	5	6,734	7,077
Total non-current assets		1,739,777	1,778,801
Total assets		2,075,672	2,072,942
Liabilities and Net Stockholders' Equity
Current Liabilities
Overdrafts		2,055	10,070
Financial obligations	10	444,025	37,179
Trade accounts payable		179,215	222,640
Other accounts payable		74,816	65,883
Other financial liabilities	6	4,641	15,107
Total current liabilities		704,752	350,879
Non-current Liabilities
Financial obligations	10	489,605	888,615
Provision for closing of mining units and communities		213,810	196,439
Deferred income tax liability	11	202,809	187,277
Provision for contingencies		29,634	32,811
Total non-current liabilities		935,858	1,305,142
Total liabilities		1,640,610	1,656,021
Equity
Issued capital	12	1,134,300	1,134,300
Treasury stock		(60,934)	(60,930)
Other capital reserves		10,691	11,755
Capital reserve		(173,234)	(173,231)
Unrealized gains (loss)		(9,717)	(9,265)
Retained earnings		(466,044)	(485,708)
Total net stockholders' equity		435,062	416,921
Total liabilities and net stockholders' equity, net		2,075,672	2,072,942

The accompanying notes are an integral part of this statement.

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Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated Income Statement (unaudited)

For the period from January 1, to September 30, 2021 and 2020

	For the period from July		For the cumulative period
		from January 1
	1 to September 30		to September 30
	2021	2020	2021	2020
	US$(000)		US$(000)		US$(000)		US$(000)
Sales, Note 13	222,101	173,461	663,012	355,555
Cost of Sales, Note 14	(160,417)	(136,411)	(477,404)	(354,101)
Gross Income	61,684	37,050	185,608	1,454
Operating income (expenses)
Administrative expenses	(11,920)	(10,244)	(37,006)	(26,783)
Selling expenses	(5,296)	(4,313)	(14,180)	(10,814)
Other income	10,660	9,029	30,291	28,575
Other expenses	(29,497)	(7,472)	(50,385)	(20,941)
	(36,053)	(13,000)	(71,280)	(29,963)
Operating income	25,631	24,050	114,328	(28,509)
Financial income (expenses)
Financial income, Note 15	359	1,372	716	1,614
Financial expenses, Note 15	(13,165)	(13,029)	(48,270)	(35,833)
Exchange difference, net	(4,086)	(1,344)	(9,363)	(5,200)
Total other income (expenses), net	(16,892)	(13,001)	(56,917)	(39,419)
Income before income tax	8,739	11,049	57,411	(67,928)
Income tax, Note 11 (b)	(8,037)	(3,236)	(38,812)	(1,758)
Net income	702	7,813	18,599	(69,686)
Net earnings per share	0.000	0.002	0.005	(0.018)
Weighted average of outstanding shares (in
3,857,594	3,857,602	3,857,594	3,857,602
thousands)

The accompanying notes are an integral part of this statement.

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Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated Statement of Comprehensive Income (unaudited)

For the period from January 1 to September 30, 2021 and 2020

	For the cumulative	For the cumulative
	period from April 1 to	period from January 1
	September 30	to September 30
	2021	2020	2021	2020
	US$(000)	US$(000)	US$(000)	US$(000)
Net income	702	7,813	18,599	(69,686)
Others comprehensive income (loss):
Net change in gains (losses) unrealized on derivate	(913)	1,986	(641)	(2,231)
instruments and Financial investments
Income tax	269	(586)	189	658
Other comprehesive income (loss) net of income tax	(644)	1,400	(452)	(1,573)
Total comprehesive income	58	9,213	18,147	(71,259)

The accompanying notes are an integral part of this statement.

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Volcan Compañía Minera S.A.A. and Subsidiaries

Statement of changes in the Net Stockholders' Equity (unaudited)

For the period from January 1 to September 30, 2021 and 2020

	Capital Issued	Treasury stock	Other capital	Capital reserve	Unrealized	Retained	Total
	reserves	gains (loss)	earnings
	US$(000)	US$(000)	US$(000)	US$(000)	US$(000)	US$(000)	US$(000)
Balances as of January 1, 2020	1,134,300	(60,926)	11,755	(173,217)	(5,918)	(335,265)	570,729
	-	-	-	-	-	-	-
Results integrals
Net Income of year	-	-	-	-	-	(69,686)	(69,686)
Other results integrals of year	-	-	-	-	(1,573)	-	(1,573)
Total results integrals of year	-	-	-	-	(1,573)	(69,686)	(71,259)
Others	-	(4)	-	(12)	-	-	(16)
Balances as of September 30, 2020	1,134,300	(60,930)	11,755	(173,229)	(7,491)	(404,951)	499,454
Balances as of January 1, 2021	1,134,300	(60,930)	11,755	(173,231)	(9,265)	(485,708)	416,921
Results integrals
Net loss of year	-	-	-	-	-	18,599	18,599
Other results integrals of year	-	-	-	-	(452)	-	(452)
Total results integrals of year	-	-	(1,064)	-	(452)	19,663	18,147
Others	-	(4)	-	(3)	-	1	(6)
Balances as of September 30, 2021	1,134,300	(60,934)	10,691	(173,234)	(9,717)	(466,044)	435,062

The accompanying notes are an integral part of this statement.

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