Colombian Gold Miner Doubles Silver Sales, Excellent Q2 Results

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Mineros S.A. (MSA:TSX, MNSAF:OTCQX) announced sales figures for the second quarter ended June 30 and updated production guidance for the year, according to a July 7 release.

For the first half of 2026, Mineros sold a total of 122,634 gold equivalent ounces, the company said. As a result, Mineros raised the upper limit of its 2026 consolidated production guidance to 240,000 ounces.

The second quarter of 2026 saw Mineros selling 59,639 ounces of gold, marking an 11% increase from the 53,906 ounces sold in the same quarter of the previous year. This growth was attributed to ongoing operational optimizations in both Nicaragua and Colombia, Mineros said.

Additionally, the company achieved a record sale of 150,680 ounces of silver, more than doubling the 70,732 ounces sold in the second quarter of 2025, thanks to continued improvements in metallurgical recovery at the Hemco processing plant.

"The second quarter results demonstrate the strength and consistency of our operations across both jurisdictions," Mineros President and Chief Executive Officer Daniel Henao said. "In Nicaragua, production increased and reflects the sustained success of our metallurgical optimization program and the significant by-product value embedded in our operations. These are not isolated gains; they are the product of deliberate and disciplined investment in our plant and our people. In Colombia, gold [sales] of 22,482 ounces represented an 8% year-over-year increase, reflecting encouraging operational improvements."

He continued, "With 122,634 gold equivalent ounces sold in the first half of 2026, we have strong confidence in our full-year trajectory, and we are pleased to raise the top end of our 2026 consolidated production guidance to 240,000 ounces. The fundamentals of our business — disciplined operations, a growing and increasingly productive asset base, and a robust gold price environment — position Mineros well to continue delivering value for our shareholders."

According to the release, the Hemco Property in Nicaragua was particularly noteworthy, with gold sales reaching 37,157 ounces, up 12% year-over-year, and silver sales totaling 148,565 ounces, more than double the amount sold in the prior-year period, Mineros said. The processing capacity at Hemco is on track to reach the target of 2,500 tonnes per day by the end of the year.

With a 12% increase in gold equivalent ounces sold in the first half of 2026 compared to the same period last year, Mineros is optimistic about its full-year performance and has accordingly adjusted its production guidance upwards.

This strategic update reflects the company's successful scaling and optimization efforts across its operations.

Co. Pioneers Corporate Social Responsibility Mechanism

According to a June 9 release from the company, Mineros has marked a significant achievement in responsible mining in Colombia by leading the implementation of the Works for Taxes (OxI) mechanism, establishing itself as a pioneer in this innovative approach to corporate social responsibility. From 2018 to 2026, Mineros, in collaboration with its partners, has invested a substantial US$117.14 million in this initiative, with US$54.99 million being direct contributions from the company itself. These investments have significantly transformed the social landscape of Colombia's most underserved subregions.

On May 14, the Agency for Territorial Renewal (ART) approved a new set of 10 projects under this mechanism, the June 9 release said. Of the total budget sanctioned by the National Government for these projects, Mineros and its partners are set to invest US$46.54 million, with Mineros directly contributing US$13.31 million, the release said. This initiative not only bolsters Mineros' presence in Antioquia but also expands its impact to other regions like the department of Tolima, thereby enhancing the development of the country and improving the well-being of its communities.

This successful implementation of the OxI mechanism has been supported by the Government of Antioquia and facilitated by the coordination of the Proantioquia OxI Platform. This platform acts as a technical and strategic conduit between the private and public sectors, making it a national model of public-private collaboration that is now being replicated in other departments, including Norte de Santander, Caquetá, La Guajira, Chocó, Bolívar, and Caldas.

"Public-private coordination is the most powerful tool for closing social gaps," Henao said. "For Mineros, this mechanism goes beyond taxation: it is a commitment to the sustainability of the territory. When the state and the private sector align their objectives to build a school or pave a road, we are turning the wealth of the subsoil into tangible social progress and real opportunities for the subregions of Colombia."

Analyst Increases Price Target

On the day of the July 7 sales figures and guidance release, Atrium Research Analyst Ben Pirie noted that the company's sales results were "strong," and marked "another quarter of growth driven by the plant optimization at Hemco and improvements underway at Nechi."

Specifically, gold sales reached 59,600 ounces, surpassing the estimated 57,000 ounces and reflecting an 11% increase from the previous year. Silver sales were particularly strong, totaling 150,700 ounces, which is a substantial 113% increase year-over-year and well above the forecasted 86,500 ounces.

"MSA has increased 2026 gold guidance by ~3% at the midpoint to 220,000-240,000 ounces driven by the ongoing plant-capacity expansion and improved metallurgical recoveries in Nicaragua," Pirie wrote. "Cost guidance is unchanged. We are maintaining our BUY rating and increasing our target price to CA$12.50/share (previously CA$11.50/share)."

Pirie continued, "We are optimistic about the ongoing expansion at Hemco, which is expected to continue driving growth quarter-over-quarter as the facility works towards reaching a processing capacity of 2,500tpd (tonnes per day) in the latter half of the year. Our forecast for H2 consolidated gold sales is approximately 120,000 ounces, positioning the 2026 total near the upper end of the revised guidance at 238,000 ounces. We anticipate the upcoming financial results for Q2 will build on the record revenue and profits reported in Q1, which included a realized gold price of US$4,777/oz. Despite some recent pullbacks in gold prices, the incremental growth achieved in Q2 is expected to balance these fluctuations."

An Improvement Over Q1

It was an improvement over first-quarter results, data from a research note by Analyst Alina Islam for Red Cloud on May 8 revealed.

"Despite record revenue of US$292 million, MSA missed consensus EPS in Q1/26," the note said at the time. "Unlike Q4/25, where the shortfall was driven by a one- time VAT payment, Q1/26's miss was driven partly by US$4.7 million in mark-to-market losses on two gold derivative positions. Excluding these, EPS would have been US$0.31, closer to, but still below, consensus."

Mineros has been experiencing robust results, largely driven by strong gold prices, although these have also increased costs due to artisanal mining arrangements at Hemco and Nechi, where over 50% of production is linked to artisanal activities, Islam said. Despite these cost pressures, core operations at both properties are performing well, with the Hemco plant's expansion towards a 2,500 tpd capacity on schedule for completion by the end of 2026.

Recently, Mineros enhanced its asset portfolio by acquiring the exploration-stage La Colosa project from AngloGold Ashanti, marking a significant addition that could potentially yield considerable returns. The company has allocated US$69 million for growth and exploration in 2026, with key catalysts expected to include updated reserves and resources at Panama and Pioneer, permitting progress at Porvenir, drilling results from La Pepa, and initial exploration plans at La Colosa.

As Mineros continues to navigate through 2026, the company anticipates that its strong operational performance and strategic growth initiatives will further propel its stock price, the note said. Key upcoming events include the second-quarter results due in August 2026 and updates on the Porvenir project expected in the second half of the year. These developments are likely to be significant drivers for Mineros' market performance moving forward.

Islam and Red Cloud did not issue a traditional rating or price target for the stock.

The Catalyst: Gold Remains Relatively Stable

On Tuesday, gold prices remained relatively stable as investors awaited the release of the Federal Reserve's latest policy meeting minutes expected later in the week, according to Scott Kanowsky writing for Investing.com on July 6. As of 08:30 ET (12:30 GMT), spot gold was mostly unchanged at US$4,165.58 an ounce, while gold futures saw a slight increase of 0.2%, reaching US$4,176.21 an ounce.

The sentiment around gold was somewhat dampened by a strengthening U.S. dollar, which has been supported by a rise in benchmark 10-year U.S. Treasury yields, reaching a two-week high, Kanowsky noted. A stronger dollar generally makes gold more expensive for buyers using other currencies. Analysts at ING noted, "[Foreign exchange] volatility may stay capped ahead of tomorrow's FOMC minutes and given a rather empty U.S. data calendar today."

The focus for many this week is on the forthcoming minutes from the Fed's June meeting, where the central bank maintained interest rates at a range of 3.5% to 3.75%. However, several officials hinted that a rate hike might be on the horizon within the year. Adding to the mix, new Fed Chair Kevin Warsh emphasized his preference against offering forward guidance on rates, though he acknowledged at a recent event that inflation risks appear to have moderated.

Additionally, oil prices dropped following a temporary ceasefire agreement between the U.S. and Iran in June, and recent payroll data was weaker than expected. These factors contribute to the uncertainty surrounding the Fed's future rate decisions, which is particularly significant for gold, he said. Gold, a non-yielding asset, tends to become less appealing when interest rates rise.

According to the CME FedWatch Tool, the likelihood of a rate hike as soon as September has decreased slightly to 56% from 60%, following the softer employment figures. This evolving economic landscape continues to shape the outlook for gold prices, Kanowsky reported.

Gold prices have struggled to surpass the initial resistance level of US$4,200, but according to one market strategist, the intense selling pressure that has characterized the recent months-long correction may finally be subsiding, according to Neils Christensen of Kitco News on July 6. Ole Hansen, the head of Commodity Strategy at Saxo Bank, shared insights in his latest precious metals note, suggesting a shift in the gold market's dynamics from liquidation to consolidation and base-building.

"The sector has moved from being aggressively bid to selectively accumulated, and the next move will likely depend on whether macro conditions continue to ease or once again turn hostile," Hansen remarked in his Monday note, according to Christensen.

Hansen also noted that gold prices are heavily influenced by market expectations regarding U.S. monetary policy. Although there is still an anticipation that the U.S. central bank might increase interest rates this year, such aggressive forecasts have been moderated following recent disappointing employment data, which revealed that only 57,000 jobs were added in June. Concurrently, gold has found some support from optimistic statements made by Warsh, who has reiterated his dedication to price stability and achieving the central bank's inflation targets. Warsh also mentioned that inflation risks have diminished in recent weeks since he assumed leadership of the Federal Reserve.

In a discussion with Kitco News, Hansen expressed his view that he does not foresee the Federal Reserve hiking interest rates this year, aligning with Warsh's observations about easing inflation pressures.

He elaborated, "Forward inflation expectations have collapsed, so tightening when the reason for tightening is easing with energy prices slumping makes no sense. Once that becomes the general market view, the dollar will soften as a very elevated long gets squeezed while short-end bond yields will move back towards Fed Funds rates."

Ownership and Share Structure¹

About 2% of the company is owned by insiders and management, about 5% by strategic corporations, and about 73% by institutions. The rest is retail.

Its market cap is CA$2.03 billion with 295.78 million shares outstanding. It trades in a 52-week range of CA$2.42 and CA$7.84.