Volcan Compañía Minera A : Management Discussion Analysis - 2023 3Q

Management Discussion and Analysis

Volcan Compañía Minera S.A.A. and Subsidiaries

Management Discussion and Analysis

Third Quarter 2023

Principal Results:

1

Management Discussion and Analysis

1. Executive Summary

• In 3Q23, operating results were better than in the same period of the previous year. Total processed volumes grew by 3.1% due to increased treated ore volumes at Yauli, Cerro de Pasco and Alpamarca. Zinc fines production increased by 3.5%, from 58.4 thousand FMT in 3Q22 to 60.5 thousand FMT in 3Q23, lead fines production by 28.0%, from 13.2 thousand FMT to 16.9 thousand FMT, copper fines production by 12.1%, from 1.2 thousand FMT to 1.3 thousand FMT, silver by 16.8% from 3.6 MM Oz to 4.2 MM Oz, and gold production by 27.9%, from 4.2 thousand Oz in 3Q22 to 5.4 thousand Oz in 3Q23.
• Consolidated unit cost decreased by 5.2%, from 52.6 USD/MT in 3Q22 to 49.8 USD/MT in 3Q23. This is mainly explained by the implementation of operational improvement initiatives, the suspension of operations at Islay Mine, and greater volumes treated at Yauli, Cerro de Pasco and Alpamarca.
• Total investments decreased by 29.8%, from USD 64.2 MM in 3Q22 to USD 45.0 MM in 3Q23, as a result of investment prioritization in the operating units to preserve the Company's liquidity amidst a challenging environment for metals prices.
• Zinc price decreased by 26.8%, from 3,299 USD/MT in 3Q22 to 2,415 USD/MT in 3Q23, while lead increased by 8.4%, from 1,959 USD/MT to 2,123 USD/MT, and copper increased by 13.2%, from 7,210 USD/MT to 8,162 USD/MT. With regard to precious metals prices, silver price increased by 18.3%, from 19.6 USD/Oz to 23.1 USD/Oz, and gold by 10.9%, from 1,729 USD/Oz to 1,916 USD/Oz.
• Accordingly, total sales before adjustments decreased by 3.4%, from USD 232.5 MM in 3Q22 to USD 224.7 MM in 3Q23. Sales adjustments totaled USD 5.2 MM in 3Q23 as compared to USD -9.7 MM in 3Q22 and as a result, sales after adjustments increased by 3.2%, from USD 222.8 MM to USD 229.8 MM.

Figure 1: 3Q23 vs 3Q22 variations impact on net sales (USD MM)

2

Management Discussion and Analysis

• Profit before exceptionals increased from USD -18.1 MM in 3Q22 to USD 0.8 MM in 3Q23, mainly due to higher gross profit, lower exploration costs, and higher other expenses related to recovery of provisions.
  Figure 2: 3Q23 vs 3Q22 variations impact on net profit before exceptionals (USD MM)

• Exceptional expenses totaled USD -0.7 MM, mainly related to the impairment of long-term investments in Cerro de Pasco. Net profit amounted to USD 0.1 MM in 3Q23 versus USD - 30.4 MM in 3Q22.
• EBITDA increased by 65.4%, from USD 52.1 MM in 3Q22 to USD 86.1 MM in 3Q23, resulting from a higher gross margin, reduced operating costs and expenses, and better results in the energy business explained by higher spot prices.
• Year-to-date(Jan-Sep), sales after adjustments decreased by 7.1%, from USD 715.4 MM in 2022 to USD 664.3 MM in 2023, EBITDA decreased by 13.5%, from USD 239.0 MM in 2022 to USD 206.8 MM in 2023, and net profit decreased from USD -4.5 MM in 2022 to USD -10.9 MM in 2023.
• Year-to-dateresults are explained by the significant decrease of zinc price. The Company is making its utmost effort to increase production, control and reduce costs, and prioritize investments. The positive results of these efforts have begun to materialize in 3Q23.

3

Management Discussion and Analysis

2. Consolidated Results

2.1 Production

Table 1: Consolidated Production

Consolidated	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
Production	2023	2023	2023	2022	2023	2022
Mineral extraction (thousands MT)	2,149	2,406	2,414	2,092	15.4	6,970	6,127	13.8
Polymetallic ore	1,911	2,167	2,166	1,842	17.6	6,244	5,411	15.4
Oxides ore	238	239	248	249	-0.5	726	716	1.3
Mineral treatment (thousands MT)	2,274	2,404	2,426	2,352	3.1	7,103	6,631	7.1
Concentrator Plants	2,035	2,165	2,177	2,102	3.6	6,378	5,915	7.8
Silver Oxides Plant	238	239	248	249	-0.5	726	716	1.3
Fine Content
Zinc (thousands FMT)	56.5	62.6	60.5	58.4	3.5	179.6	163.5	9.8
Lead (thousands FMT)	13.2	15.3	16.9	13.2	28.0	45.4	40.1	13.0
Copper (thousands FMT)	1.3	1.5	1.3	1.2	12.1	4.1	3.0	34.4
Silver (millions Oz)	3.5	3.8	4.2	3.6	16.8	11.5	10.7	8.0
Gold (thousands Oz)	3.7	5.5	5.4	4.2	27.9	14.6	17.5	-16.4
Source: Volcan Cia. Minera

Extracted ore volumes increased by 15.4%, from 2,092 thousand MT in 3Q22 to 2,414 thousand MT in 3Q23, due to higher extracted volumes at Yauli, Cerro de Pasco and Alpamarca. Treated volumes increased by 3.1%, from 2,352 thousand MT in 3Q22 to 2,426 thousand MT in 3Q23, as a result of increased ore extraction.

Production of zinc fines increased by 3.5%, from 58.4 thousand FMT in 3Q22 to 60.5 thousand FMT in 3Q23, mainly due to greater volumes and grades of the ore treated at Yauli and Alpamarca; lead fines production increased by 28.0%, from 13.2 thousand FMT to 16.9 thousand FMT, due to higher processed ore grades at Yauli; copper production increased by 12.1%, from 1.2 thousand FMT to 1.3 thousand FMT; silver by 16.8% from 3.6 MM Oz to 4.2

1. Oz, mainly due to higher grades in the ore processed at Yauli; and gold production by 27.9%, from 4.2 thousand Oz in 3Q22 to 5.4 thousand Oz in 3Q23.

Year-to-date(Jan-Sep), the extraction volume increased by 13.8% as compared to the same period in the previous year, from 6,127 thousand MT to 6,970 thousand MT. Treated volumes increased by 7.1%, from 6,631 thousand MT to 7,103 thousand MT. Regarding fines, zinc production increased by 9.8%, from 163.5 thousand FMT to 179.6 thousand FMT; lead grew by 13.0%, from 40.1 thousand FMT to 45.4 thousand FMT; copper increased by 34.4%, from

1. thousand FMT to 4.1 thousand FMT; and silver increased by 8.0%, from 10.7 MM Oz to

1. MM Oz. Gold production decreased by 16.4%, from 17.5 thousand Oz to 14.6 thousand
   Oz.

2.2 Cost of Production

The absolute cost of production, without infill drilling cost, decreased by 2.1%, from USD 123.6

1. in 3Q22 to USD 121.0 MM in 3Q23. This is mainly explained by the implementation of improvement initiatives in the operating units, and the suspension of operations at Islay Mine. The unit cost decreased by 5.2%, from 52.6 USD/MT in 3Q22 to 49.8 USD/MT in 3Q23, because of improvement initiatives and increased extracted and treated volumes.

4

Management Discussion and Analysis

Year-to-date, the absolute cost of production, not considering infill drilling, increased by 1.2%, from USD 355.3 MM to USD 359.7 MM, while unit cost decreased by 5.5%, from 53.7 USD/MT to 50.7 USD/MT.

The Company is permanently making its utmost effort to control and reduce production costs and expenses at all levels. New reduction initiatives are currently under assessment and being implemented in Lima and all the operations, always maintaining workers' safety as the main value of the Company.

Table 2: Consolidated Cost of Production

Consolidated	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
Production Cost		2023		2023		2023		2022		2023		2022
Production Cost (MM USD)		0.0		0.0		0.0		0.0		0.0		0.0		0.0		0.0
Mine Cost		67.8		73.3		70.7		54.2	30.4		211.9		158.5	33.7
Plant and Other Cost		46.4		51.1		50.4		69.4	-27.4		147.9		196.8	-24.9
Sub total Production Cost (MM USD)		114.3		124.4		121.0		123.6		-2.1		359.7		355.3		1.2
Inflill drilling cost		2.3		3.4		3.1		3.6	-12.2		8.8		10.6	-16.7
Total Production Cost (MM USD)		116.6		127.7		124.2		127.2		-2.4		368.5		365.9		0.7
	S/.	-	S/.	-	S/.	-	S/.	-	S/.	-	S/.	-	S/.	-	S/.	-
Unit Cost (USD/MT)		0.0		0.0		0.0		0.0		0.0		0.0		0.0		0.0
Mine Cost		30.0		30.6		29.1		23.0	26.1		29.9		24.0	24.6
Plant and Other Cost		20.4		21.2		20.8		29.5	-29.7		20.8		29.7	-29.9
Sub total Unitary Cost (USD/MT)		50.4		51.8		49.8		52.6		-5.2		50.7		53.7		-5.5
Infill drilling cost		1.0		1.4		1.3		1.5	-15.1		1.2		1.6	-22.3
Total Unitary Cost (USD/MT)		51.5		53.2		51.1		54.1		-5.5		51.9		55.3		-6.0

• Mine unit cost considers the adjustment of Alpamarca unit cost Source: Volcan Cia. Minera

The evolution of the unit cost over the last five years is shown in the figure below. As observed, unit cost in 3Q23 is even lower than in 3Q21.

Figure 3: Evolution of the Unit Cost without Infill Drilling (USD/MT)

8.8%

								53.4	54.3	54.2		54.9
						52.8
						52.5			52.6		51.8
					51.6
					50.6
											50.4	49.8
						48.8
47.8
					47.3
45.8		46.1
45.2	45.3	44.3	45.2
						41.3

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Source: Volcan Cía. Minera

2.3 Investments

Operating unit investments fell by 31.1%, from USD 61.0 MM in 3Q22 to USD 42.0 MM in 3Q23.

5

Management Discussion and Analysis

Growth investments related to the Romina project totaled USD 2.7 MM in 3Q23, and, accordingly, total investments decreased by 29.8%, from USD 64.2 MM in 3Q22 to USD 45.0 MM in 3Q23.

Year-to-date(Jan-Sep), total investments decreased by 24.6%, from USD 164.6 MM to USD 124.0 MM, mainly due to lower investments in plants and tailings dams, electric infrastructure and support areas.

Table 3: Consolidated Investment

Consolidated Investment	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
(MM USD)	2023	2023	2023	2022	2023	2022
Mining	36.2	42.7	44.7	64.0	-30.1	123.7	164.3	-24.7
Mining Units	33.4	40.3	42.0	61.0	-31.1	115.7	155.2	-25.4
Local Exploration	2.6	3.2	3.8	4.0	-6.3	9.6	8.2	17.0
Development	18.4	19.2	19.7	21.9	-10.2	57.2	59.8	-4.2
Plants and Tailings Facilities	4.1	6.0	7.7	17.5	-55.9	17.7	40.8	-56.6
Mine and Infrastructure	7.3	9.2	8.3	10.9	-24.0	24.8	28.5	-13.0
Electrical Infrastructure in Units	0.7	2.2	1.9	3.7	-47.3	4.9	9.4	-47.9
Support and Others	0.3	0.5	0.7	3.1	-77.8	1.5	8.6	-82.4
Growth and Others	2.9	2.4	2.7	3.0	-9.1	8.0	9.1	-12.1
Energy	0.0	0.0	0.3	0.2	46.1	0.3	0.3	14.0
Total	36.2	42.7	45.0	64.2	-29.8	124.0	164.6	-24.6

Source: Volcan Cia. Minera

Figure 4: Evolution of Consolidated Investment

6

Management Discussion and Analysis

2.4 Income Statement Table 4: Income Statement

Income Statement	Jan-Mar	Apr-Jun	Jul-SepJul-Sep	var %	Jan-SepJan-Sep	var %
(MM USD)	2023	2023	2023	2022	2023	2022
Sales before adjustments	220.7	227.9	224.7	232.5	-3.4	673.2	740.9	-9.1
Sett. of prior periods adjustments	8.9	-10.3	-6.1	-17.6	0.0	-7.5	2.9
Adj. open positions	-8.5	-4.7	9.3	7.8	18.7	-3.9	-28.4	-86.4
Hedging	0.0	0.4	1.9	0.0		2.4	0.0
Sales after adjustments	221.1	213.3	229.8	222.8	3.2	664.3	715.4	-7.1
Cost of Goods Sold	-174.2	-188.6	-184.3	-191.6	-3.8	-547.1	-563.6	-2.9
Gross Profit	46.9	24.7	45.5	31.2	45.8	117.1	151.8	-22.9
Gross Margin	21%	12%	20%	14%	6 pp	18%	21%	-4 pp
Administrative Expenses	-8.7	-12.8	-9.4	-9.5	-1.5	-30.8	-29.7	3.8
Exploration Expenses	-5.0	-5.2	-3.3	-8.4	-61.3	-13.5	-16.6	-18.2
Sales Expenses	-7.4	-7.1	-6.8	-6.5	4.0	-21.3	-17.9	19.4
Other income (Expenses) 1	-3.8	-4.0	6.4	-9.7		-1.5	-15.7	-90.8
Operating Profit	22.0	-4.4	32.5	-2.9		50.0	72.0	-30.6
Operating Margin	10%	-2%	14%	-1%	15 pp	8%	10%	-3 pp
Financial income (expense)	-15.1	-15.4	-18.3	-12.1	51.5	-48.9	-31.1	57.1
Exchange difference (net)	0.1	0.8	-1.6	-0.6	162.6	-0.7	-1.3	-45.0
Royalties	-3.3	-2.3	-2.7	-2.3	18.1	-8.3	-10.6	-21.8
Income Tax	-2.2	10.5	-8.9	-0.1		-0.7	-12.8	-94.6
Net Profit before Exceptionals	1.5	-10.8	0.8	-18.1		-8.6	16.3
Net Margin	1%	-5%	0%	-8%	8 pp	-1%	2%	-4 pp
Exceptional adjustments2	-0.7	-1.0	-0.7	-12.3	-94.3	-2.4	-20.7	-88.5
Net Profit	0.8	-11.8	0.1	-30.4		-10.9	-4.5	144.7
Net Margin	0%	-6%	0%	-14%	14 pp	-2%	-1%	-1 pp
EBITDA3	0%	0%	0%	0%	0%	0%	0%	0%
71.4	49.3	86.1	52.1	65.4	206.8	239.0	-13.5
EBITDA Margin	32%	23%	37%	23%	14 pp	31%	33%	-2 pp

1. Includes sales and cost of sales of the energy division
2. Long term assets deterioration in Cerro de Pasco
3. Does not consider exceptional adjustments

Source: Volcan Cia. Minera

• Sales Analysis

Table 5: Average Sales Prices

Sales Prices	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
2023	2023	2023	2022	2023	2022
Zinc (USD/MT)	3,117	2,578	2,415	3,299	-26.8	2,693	3,620	-25.6
Lead (USD/MT)	2,143	2,110	2,123	1,959	8.4	2,124	2,140	-0.8
Copper (USD/MT)	8,900	8,491	8,162	7,210	13.2	8,504	8,646	-1.6
Silver (USD/Oz)	22.5	24.0	23.1	19.6	18.3	23.2	22.1	5.2
Gold (USD/Oz)	1,892	1,976	1,916	1,729	10.9	1,933	1,843	4.9

Source: Volcan Cia. Minera

The prices shown in the table above are initial invoice prices and they are adjusted when the final invoice is issued. Open commercial provisions at the end of each period estimate adjustments on open shipments/deliveries resulting from future metals prices variations, using a specific forward price curve.

7

Management Discussion and Analysis

Table 6: Volumes of Fine Contents Sales

Fines Sales	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
2023	2023	2023	2022	2023	2022
Zinc (thousands FMT)	57.1	63.7	60.7	57.1	6.4	181.6	160.8	12.9
Lead (thousands FMT)	12.9	15.8	17.0	14.7	15.7	45.8	41.7	9.6
Copper (thousands FMT)	1.3	1.6	1.4	1.5	-4.9	4.3	3.7	17.0
Silver (millions Oz)	3.4	4.0	4.2	3.7	14.5	11.6	10.7	8.6
Gold (thousands Oz)	3.7	5.7	5.8	4.9	19.9	15.3	19.2	-20.2
Source: Volcan Cia. Minera
Table 7: Sales in USD
Sales	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
(millions USD)	2023	2023	2023	2022	2023	2022
Zinc	123.0	105.1	93.8	136.8	-31.5	321.9	423.3	-24.0
Lead	24.0	28.7	32.6	23.1	41.2	85.4	72.7	17.3
Copper	6.4	8.3	7.1	6.8	3.1	21.7	19.6	10.6
Silver	61.8	76.5	82.0	59.3	38.2	220.3	195.6	12.6
Gold	5.4	9.3	9.2	6.7	38.4	23.9	30.3	-21.3
o Sales before adjustments	220.7	227.9	224.7	232.5	-3.4	673.2	740.9	-9.1
Sett. of prior period adjust.	8.9	-10.3	-6.1	-17.6	-65.5	-7.5	2.9
Adjust. for open positions	-8.5	-4.7	9.3	7.8	18.7	-3.9	-28.4	-86.4
Hedging results	0.0	0.4	1.9	0.0		2.4	0.0
Sales after adjustments	221.1	213.3	229.8	222.8	3.2	664.3	715.4	-7.1
Source: Volcan Cia. Minera

Company's sales before adjustments decreased by 3.4%, from USD 232.5 MM in 3Q22 to USD 224.7 MM in 3Q23, mainly explained by the significantly decrease of zinc price. Sales adjustments increased from USD -9.7 MM in 3Q22 to USD 5.2 MM in 3Q23. In 3Q23, sales adjustments included final settlements of USD -6.1 MM, provisions related to open shipments/deliveries of USD 9.3 MM, and positive silver hedge results of USD 1.9 MM. As a result, sales after adjustments increased by 3.2%, from USD 222.8 MM in 3Q22 to USD 229.8 MM in 3Q23.

Year-to-date(Jan-Sep), sales after adjustments declined by 7.1%, from USD 715.4 MM in 2022 to USD 664.3 MM in 2023, due to the important decrease of zinc price.

• Cost of Goods Sold Table 8: Cost of Goods Sold

Cost of Goods Sold	Jan-Mar	Apr-Jun	Jul-Sep	Jul-Sep	var %	Jan-Sep	Jan-Sep	var %
(millions USD)	2023	2023	2023	2022	2023	2022
Volcan Production	173.0	187.7	184.8	192.2	-3.9	545.5	559.0	-2.4
Volcan Production Cost	116.6	127.7	124.2	127.2	-2.4	368.5	365.9	0.7
D&A from Production Cost	47.6	51.8	51.8	53.5	-3.3	151.1	162.5	-7.0
Other expenses	6.9	5.8	6.3	10.3	-39.0	19.0	26.9	-29.4
Inventories variation	1.9	2.4	2.6	1.2	106.8	6.9	3.6	89.8
Workers Profit Sharing	1.1	0.9	-0.4	-0.6	-32.5	1.6	4.6	-64.8
Total	174.2	188.6	184.3	191.6	-3.8	547.1	563.6	-2.9

Source: Volcan Cia. Minera

8

Management Discussion and Analysis

Total cost of goods sold decreased by 3.8%, from USD 191.6 MM in 3Q22 to USD 184.3 MM in 3Q23, mainly explained by a lower absolute cost of production, lower depreciation and amortization, and a decrease of other expenses related to employees dismissal and suspension of operations.

Year-to-date(Jan-Sep), the total cost of goods sold declined by 2.9%, from USD 563.6 MM in 2022 to USD 547.1 MM in 2023.

• Gross Margin and Gross Profit

The Company's gross margin increased from 14% in 3Q22 to 20% in 3Q23, mainly explained by positive sales adjustments and lower cost of goods sold. Gross profit increased by 45.8%, from USD 31.2 MM in 3Q22 to USD 45.5 MM in 3Q23, due to an improved gross margin and greater volumes sold.

Year-to-date(Jan-Sep), gross margin decreased from 21% in 2022 to 18% in 2023. Gross profit decreased from USD 151.8 MM in 2022 to USD 117.1 MM in 2023, mainly due to the lower zinc price.

• Administrative Expenses

Administrative expenses in 3Q23 totaled USD 9.4 MM, similar to the USD 9.5 MM recorded in 3Q22. Year-to-date(Jan-Sep), the administrative expenses increased from USD 29.7 MM in 2022 to USD 30.8 MM in 2023.

• Exploration Expenses

Exploration expenses decreased by 61.3%, from USD 8.4 MM in 3Q22 to USD 3.3 MM in 3Q23, in line with the adjusted plan of greenfield and brownfield explorations. Year-to-date(Jan-Sep), the exploration expenses decreased from USD 16.6 MM to USD 13.5 MM.

• Sale Expenses

Sale expenses increased by 4.0% as compared to the same period of the previous year, amounting to USD 6.8 MM in 3Q23 versus USD 6.5 MM in 3Q22, due to increased sales volumes. Year-to-date(Jan-Sep), sale expenses increased from USD 17.9 MM to USD 21.3 MM.

• Other Income and Expenses

In 3Q23, the net amount of other income and expenses was USD 6.4 MM, as compared to USD -9.7 MM in 3Q22, mainly explained by tax returns in Chungar and Cerro de Pasco, reversal of provisions, and better results in the energy business related to increased spot prices. Year-to-date(Jan-Sep), the net amount of other income and expenses was USD -1.5 MM in 2023 versus USD -15.7 MM in 2022.

• Financial Expenses and Exchange-Rate Difference

Net financial expenses increased by 51.5%, from USD 12.1 MM in 3Q22 to USD 18.3 MM in 3Q23, explained by higher interests on the syndicated loan resulting from the increased

9

Management Discussion and Analysis

reference rates. Year-to-date(Jan-Sep), net financial expenses totaled USD 48.9 MM in 2023, as compared to the USD 31.1 MM reported in 2022.

The exchange-rate difference amounted to USD -0.6 MM in 3Q22 and USD -1.6 MM in 3Q23. Year-to-date(Jan-Sep), the exchange-rate effect was USD -0.7 MM in 2023, as compared to the USD -1.3 MM reported in 2022.

• Royalties and Income Tax

Royalties grew from USD -2.3 MM in 3Q22 to USD -2.7 MM in 3Q23 due to better results. Income tax amounted to USD -0.1 MM in 3Q22 and USD -8.9 MM in 3Q23, mainly explained by higher profit in this period and the impact of the depreciation of the national currency at the end of the quarter (USD -5.1 MM).

Year-to-date(Jan-Sep), royalties decreased from USD -10.6 MM in 2022 to USD -8.3 MM in 2023, while income tax decreased from USD -12.8 MM in 2022 to USD -0.7 MM in 2023.

• Net Profit and EBITDA

Profit before exceptionals increased from USD -18.1 MM in 3Q22 to USD 0.8 MM in 3Q23, mainly due to higher gross profit, lower exploration costs, and higher recovery related to other income. Exceptional expenses totaled USD -0.7 MM, mainly related to the impairment of long- term investments in Cerro de Pasco. Consequently, net profit after exceptional items amounted to USD 0.1 MM in 3Q23 versus USD -30.4 MM in 3Q22.

EBIDTA increased from USD 52.1 MM in 3Q22 to USD 86.1 MM in 3Q23, mainly explained by higher net sales, lower cost of production, lower operating expenses, and higher other income.

Year-to-date(Jan-Sep), profit before exceptionals decreased from USD 16.3 MM in 2022 to USD -8.6 MM in 2023, net profit after exceptional items decreased from USD -4.5 MM in 2022 to USD -10.9 MM in 2023, and EBITDA decreased from USD 239.0 MM in 2022 to USD 206.8 MM in 2023.

2.5 Liquidity and Creditworthiness

In 3Q23, cash generated by mining operations after operating investments was positive and totaled USD 33.3 MM. Mining growth investments and other miscellaneous investments totaled USD -4.8 MM and the payment of financial obligations and interests amounted to USD -24.2 MM.

Therefore, during 3Q23, the cash flow was positive and amounted to USD 4.4 MM, and the cash balance at the end of 3Q23 totaled USD 54.6 MM.

As of September 30, 2023, the net debt/EBITDA ratio was 2.7, an improvement over 2Q23, mainly due to the higher EBITDA accumulated in the last 12 months.

10