Santiago, October 18, 2024.-

Pampa Camarones, the mining company controlled by Minería Activa, presented its third-quarter results today to investors, attracting over 40 participants in a virtual Zoom meeting. The purpose of the presentation was to update investors on both the operations at Pampa Camarones and the progress of the Ciclón Exploradora project.

Arturo Prieto, CEO of Minería Activa, began the meeting by introducing the new General Manager of Pampa Camarones, Rodrigo Ramírez, highlighting that the company’s current needs demand leadership like Rodrigo’s. Prieto noted that in the current situation, which requires extensive experience in feeding fine copper to the plant, Ramírez’s knowledge is key to this new phase.

Rodrigo Ramírez continued the presentation by emphasizing the success in raising US$4.1 million in a capital increase, achieved with the support of Minería Activa and Larraín Vial, sponsor of Pampa Camarones on ScaleX. The capital increase focused on maximizing shareholder value, reaching a value of US$40 per share and partially placing the shares with a 5.9% dilution. Additionally, Pampa Camarones is structuring a guaranteed loan aimed at raising an additional US$3 million to complete financing for its investment plan.

Operationally, Ramírez explained that this quarter was impacted by a rock slide at the Salamanqueja Mine in early July, where an operator was trapped for 43 hours, forcing the mining operation to halt for 10 days. Although the worker was rescued safely, production was affected by reduced ore extraction during the shutdown, as well as the temporary loss of an LHD machine that has not yet been recovered from the incident site. To mitigate the negative effects, the company acquired a new LHD machine, which began operation in late September, and modified the mine plan to avoid working near the closed stope.

Regarding investment plans, Ramírez discussed progress on the opening of the Chacota Mine, located 3.5 kilometers north of the Pampa Camarones processing plant. The vein has more than 16,000 meters of drilling and 0.4 Mt of resources with a grade of 1.48%, with resources still open at depth. According to Ramírez, Chacota is key to achieving production levels above 600 tons per month. To start exploitation, 1,800 meters of development are required with an investment of US$2.5 million.

Cristián Munchmeyer, Chief Geologist at Pampa Camarones, took the floor to describe the Drilling Plan for the Pampa Camarones district. The campaign aims to explore and identify resources in the five veins located on ENAMI property, some of which have already been geologically explored and, in some cases, drilled. In the first phase, drilling will focus on Salamanqueja Deep, Chacota Deep, and Veta Paula, areas with greater geological certainty, enabling more efficient exploration. In the second phase, the Aida and Josefa veins, with high geological potential, will be explored. The entire campaign includes 80,000 meters of drilling, with an investment of US$17 million, which will extend the operation until 2035. The first phase will require US$3 million.

Munchmeyer also announced the acquisition of a drilling rig for a reclassification drilling campaign. This aims to improve geological knowledge of the resources and extend the estimated lifespan of Salamanqueja and Chacota.

Ramírez resumed the presentation to explain two significant agreements consolidating the mining property of Pampa Camarones. The first was an agreement with ENAMI to extend the lease of its properties until 2041, with an option to purchase and a reconciliation related to royalty payment discrepancies between 2019 and 2023. The second agreement was with Haldeman Mining Company, securing the lease of an additional 9,600 hectares with high geological potential, tripling the company’s current holdings. These agreements are part of Pampa Camarones’ strategy to consolidate its mining property and develop new mineral sources to feed the plant, leveraging operational synergies. Ramírez concluded that Pampa Camarones now has extensive mining property, competitive water and electricity supply, high-standard facilities, and an operation heading in the right direction.

On the financial front, revenues were US$32.9 million, slightly below 2023 levels, while EBITDA was close to 0. Capex remained contained at US$4.6 million, and net financial debt reached US$14.2 million.

Rodrigo handed the floor to Martín Marquardt, Chief Geologist of the Ciclón Exploradora Project, who reviewed the progress of the exploration. Marquardt recalled that the recent exploration campaign identified over 13.5 Mt of potential resources in the Ciclón-Exploradora and San Carlos corridor, noting that the project still has the potential to double that amount of resources. To achieve this, geological mapping and geochemical work will be conducted in the fourth quarter, along with a target definition study in collaboration with the University of Chile, using the SpotterEx tool, which employs artificial intelligence. The goal is to delineate targets for a future drilling campaign.

Valeria Zapata, Head of Environment for the Ciclón Exploradora Project, provided an update on the progress of the Environmental Impact Study (EIA). She reported that on August 30, a request for an extension to submit the ADENDA was made, with a new deadline of November 29. This extension does not affect the overall schedule, maintaining the expectation of receiving a positive RCA in mid-2025. Zapata also noted that preparations for requesting various sectoral permits will begin later this year, with the process starting in 2025. Regarding the ADENDA, INERCO and ICASS continue as the main advisors, and work is progressing on several topics. In the case of Flora and Vegetation, an early spring campaign was requested, which was the main reason for requesting an extension. Regarding Archaeology, photogrammetric studies indicated the possible presence of the Inca road outside the project area, but with interaction in some linear works (road, transmission line, and water pipeline), so the route will be modified to avoid impacting this heritage site. Additionally, minor adjustments were made to the project layout in response to the authorities’ observations regarding hydraulic modeling.

To conclude, the General Manager updated the company’s reporting plan, noting that the first four quarterly reports have already been completed and reiterated Pampa Camarones’ commitment to transparent communication with its investors. He invited participants to remain engaged in the company’s progress.

A recording of the presentation can be found at the following link courtesy of LarrainVial.

For more information, visit https://www.pampacamarones.cl/relaciones-inversionistas/

About Pampa Camarones:

Pampa Camarones is the first copper operation developed in the Arica and Parinacota Region. The entire operation runs 100% with seawater and renewable energy from a photovoltaic plant, with an annual production capacity of 8,400 tons per year of cathode copper. In 2016, Minería Activa took control of the company’s management to restart its operations in 2019. Likewise, in 2022, through a reorganization, Pampa Camarones SpA acquired full ownership of the Ciclón-Exploradora project.

About Minería Activa:

Minería Activa is a partnership between Activa Alternative Assets, the private equity arm of LarrainVial, and a team of managing partners with extensive and recognized experience in the mining industry. The company has been dedicated for more than 15 years to the development of mining projects at all stages, from early exploration to production, always with the purpose of contributing to the energy transition through sustainable mining projects.