Industrias Peñoles (PE&OLES) investor relations material

Operating performance

• Lead, zinc and copper concentrate output increased YoY; gold and silver production declined, while copper cathode output fell on lower ore placement and recovery at Milpillas.

• Gold output was pressured by lower processing volumes and grades at Herradura; silver by lower grades, recoveries and processed volumes across several mines.

• Unscheduled smelter stoppages and lower processing of secondary materials reduced refined gold, silver and lead output; refined zinc rose on higher concentrate throughput.

• Chemical output was mixed: ammonium sulfate increased on fertilizer demand, while sodium sulfate, magnesium oxide and magnesium sulfate declined for operational, maintenance or weather-related reasons.

Financial performance

• 3Q26 net sales were $2,364.9mm, up 19.5% YoY; higher realized silver, concentrate, gold, zinc and copper matte prices outweighed lower lead prices.

• 3Q26 operating profit rose 65.8% YoY to $915.3mm and EBITDA rose 48.7% to $1,080.6mm; controlling-interest net income increased 9.8% to $331.0mm.

• 3Q26 cost of sales declined 2.6% YoY to $1,207.1mm, while production costs increased to $905.6mm from $790.5mm, reflecting peso appreciation, inflation, Tizapa restart costs, labor and energy.

• YTD26 EBITDA was $4,160.4mm versus $2,036.4mm; YTD net sales were $8,696.4mm versus $5,855.2mm.

Market environment

• 3Q26 average silver and gold prices rose 59% and 23% YoY, respectively; copper increased 44% and zinc 35%, while lead declined 6%.

• Higher precious-metal prices reflected safe-haven demand; copper benefited from electrification demand expectations and zinc from supply constraints, while lead faced weaker conditions and higher inventories.