Episode Details

Interview with Daniel Henao, CEO of Mineros S.A.

Our previous interview: https://www.cruxinvestor.com/posts/mineros-sa-tsxmsa-undervalued-investment-series-with-daniel-henao-10231

Recording date: 29th September 2026

Mineros S.A. (TSX:MSA) is a gold producer with more than 50 years of operating history in Latin America. It is listed in Colombia, on the TSX and on the OTCQX. For most of its life it was largely unknown to North American and European investors. That began to change after its 2021 TSX listing and, more decisively, after Sun Valley Investments became controlling shareholder in 2025 and installed new management. CEO Daniel Henao says the shares have since risen from about 60 cents to about $10, a roughly 15-fold move that is unusual for a producer rather than an explorer.

The operating base has two assets. Hemco in Nicaragua combines underground mining with partnerships with local miners, and it is where the new team has found the largest gains. Higher gold and silver recoveries, a $25 million processing expansion expected to add about 30,000 ounces, and better grade control have driven a guidance increase to 220,000-240,000 gold equivalent ounces for 2026. First-half AISC of $2,348 per ounce sits below the guided range of $2,370-$2,470. Management wants Hemco to approach 200,000 ounces a year before Porvenir.

The Nechí alluvial operation in Colombia has produced gold for more than a century. It uses gravity recovery with no chemicals and runs on hydroelectric power. It produced about 90,000 ounces last year and holds roughly 2.2 million ounces in reserves and resources. Henao sees scope for 30-40% more production, subject to government approvals.

Growth is funded internally. Mineros holds about $230 million in liquid assets, including roughly 40,000 ounces of gold bullion, and carries almost no debt. That covers the $206.8 million initial capital for Porvenir in Nicaragua. At $3,150 gold, the PFS shows a 37.9% after-tax IRR, a $460 million NPV and about 70,000 ounces a year. Major permits are in hand, two minor permits are expected by year-end, and a construction decision is targeted for the first quarter of 2027. The plant is designed at 2,000 tonnes per day with scope to double. Mineros is drilling about 85 kilometres in the district this year at around $100 per metre, roughly a quarter of what peers pay, using its own rigs.

Two larger options sit beyond Porvenir. Tolima in Colombia carries a historical estimate of about 28 million ounces from AngloGold Ashanti, which Mineros has not verified as a current resource. Development depends on community engagement, supported by Colombia's works-for-taxes mechanism. La Pepa in Chile's Maricunga belt holds about 2.5 million ounces. A PEA targeting 100,000-150,000 ounces a year is due early next year.

On Henao's figures, annualised EBITDA of about $500 million against an enterprise value near $2 billion implies about four times EBITDA. The company presentation cites 2.5 times. Neither includes value for Tolima or La Pepa. Key risks are gold-indexed partner costs, peso strength, jurisdictional exposure and the open-ended Tolima timeline. Catalysts to watch are the final Porvenir permits, the construction decision, the La Pepa PEA and progress towards 300,000 ounces a year.

Learn more: https://www.cruxinvestor.com/companies/mineros-sa

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