Industrias Peñoles (PE&OLES) investor relations material

Executive summary

• Net sales surged 91.6% year-over-year in 1Q'26, driven by record gold and silver prices and higher concentrate sales.

• EBITDA rose 159.8% year-over-year, reflecting strong pricing and operational recovery, especially at Tizapa.

• Net income attributable to controlling interest increased 257.7% year-over-year, with EPS at $1.67.

• Gold and silver prices reached historic highs in January 2026, with silver up 157.5% and gold up 70.4% year-over-year; copper and zinc also saw significant price increases.

• Mining operations improved ore milled by 3.9%, but ore deposited fell 18.6% due to operational delays and weather impacts.

Financial highlights

• Net sales: $3,444.5M in 1Q'26 vs $1,798.0M in 1Q'25.

• EBITDA: $1,635.4M in 1Q'26 vs $629.6M in 1Q'25.

• Gross profit: $1,696.1M, up 176.7% year-over-year.

• Operating income surged 221.4% to $1,478.6M; net income attributable to controlling interest was $665.0M, up 257.7%.

• Gross margin improved to 49.2% from 34.1% year-over-year.

Outlook and guidance

• Management highlights a sustainable vision and expects continued benefit from high metals prices, though acknowledges volatility and macroeconomic risks.

• Continued exploration in Mexico, Peru, and Chile with significant drilling progress and resource expansion plans.

• Focus on increasing inferred resources and advancing key projects such as Flobar and Reina del Cobre.