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MSA: Hemco Plant Expansion on Track; Record Drill Program Underway

What you need to know:
• MSA reported material operational progress at Hemco (Nicaragua), achieving sustained plant throughput of 2,000tpd.
• The plant expansion remains on schedule and on budget, targeting 2,200tpd by June 2026 and 2,500tpd by December 2026.
• In addition, MSA has launched the most ambitious drill program in the Hemco property’s history (75,000m with eight active rigs) at a ~$60/metre cost advantage over contracted services.
• We recently conducted our first management interview with new CEO Daniel Henao. To watch the full interview, click here.

This morning, Mineros S.A. (MSA:TSX, MINEROS:CL) provided an operational update highlighting continued execution at its Hemco property in Nicaragua. The update outlines sustained improvements in plant throughput, accelerated underground development to support expanded capacity, and the launch of the most ambitious exploration program in the property’s history. We are maintaining our BUY rating and our target price of C$11.00/share on Mineros.

Hemco has now achieved sustained throughput of 2,000tpd (+14.3% from the 1,750tpd baseline). The expansion program continues to advance as planned, with major capital equipment for the next phase already procured and expected on-site in Q3/26. Management is targeting 2,200tpd by June 2026 and 2,500tpd by year-end. Alongside higher throughput, metallurgical performance has strengthened, with gold recoveries consistently above 90% and silver recoveries trending higher following process optimization initiatives. The Company is also assessing the potential installation of an additional 1,000tpd mill circuit using equipment already owned, which could further increase processing capacity beyond the current plan.

To support rising plant capacity, underground development at Panama and Pioneer has been accelerated, with surface stockpiles now exceeding 6,000oz of gold, to provide flexibility and support grade blending as throughput increases. On the Bonanza Mining Partners (BMP) front, the newly commissioned ore staging facility in Rosita is fully operational and contributing ~200tpd of additional feed to Hemco. Management is also evaluating opportunities to increase BMP mineral acquisitions ahead of planned throughput growth.