MSA: Q1 Production Beat Driven by Hemco
What you need to know:• Mineros reported strong Q1 production with 60.8Koz AuEq, displaying 10% YoY growth.
• Production of 57.9Koz of gold and 162Koz of silver beat our estimates of 55.6Koz and 87Koz, driven by outperformance at Hemco.
• The plant capacity expansion at Hemco remains a key focus in 2026 and has already achieved 2,100tpd vs. the 2,500tpd year-end target.
• Q1’s solid performance is tracking to the upper end of annual guidance.
This morning, Mineros S.A. (MSA:TSX, MINEROS:CL) reported strong Q1 production of 60.8Koz AuEq, displaying 10% YoY growth from 55.1Koz AuEq in Q1/25, which was driven by significant growth in Nicaragua. Consolidated production included 57.9Koz of gold (+7% YoY) and 162Koz of silver (+109% YoY), beating our estimates of 55.6Koz and 87Koz. The processing capacity expansion at Hemco continues to progress, and Mineros is tracking to the upper end of annual guidance (213-233Koz AuEq) at ~27% to the midpoint following the solid performance in Q1. We are maintaining our BUY rating and target price of C$11.50/share on Mineros.
Hemco
Significant growth at the Hemco Property in Nicaragua resulted in a 22% YoY increase in gold production to 37.9Koz, which solidly beat our 33.9Koz estimate, and is tracking at ~28% to the midpoint of 130-140Koz guidance. Similarly, silver production in Nicaragua of 159.9Koz came in well ahead of our 84.7Koz forecast, more than doubling YoY from 75.1Koz in Q1/25. Stronger YoY production at Hemco was attributed to improved recovery rates and the ongoing plant expansion. Throughput has already achieved 2,100tpd following 2,000tpd in March, and Mineros is targeting 2,500tpd by year-end. This expansion remains a key driver of production growth that we will be monitoring throughout the year.
Nechí
Q1 gold production at the Nechí Property in Colombia of 19.9Koz Au came in broadly in line with our 21.7Koz forecast and is tracking at ~23% to the midpoint of 83-93Koz guidance. The YoY decline from 23.2Koz Au in Q1/25 aligned with mine plan expectations and is anticipated to return to normal production levels in Q3, which we anticipate will facilitate full-year production within guidance. Mineros is advancing initiatives to increase production rates and metallurgical recoveries through disciplined execution, while formalizing additional partner operational units
Mineros is primarily engaged in the mining of gold, as well as in related activities pertaining to the mining industry in general, including the mining of precious metals, metallic or non-metallic mineral substances or hydrocarbons.
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