Industrias Peñoles (PE&OLES) Corporate presentation summary

Operating performance

• Ore milled increased due to the restart of Tizapa, while ore deposited fell mainly at Herradura because of selectivity and heavy rainfall impacting operations.

• Gold production decreased due to lower ore deposited and reduced head grades and recoveries at Herradura; silver, lead, zinc, and copper concentrate production rose, driven by Tizapa's resumption and higher grades at other mines.

• Sodium sulfate and magnesium oxide production increased, benefiting from operational continuity and recovering demand, while ammonium sulfate output rose in response to fertilizer market demand.

• Sales volumes for gold, silver, lead, and zinc declined year-over-year, while copper matte and concentrates saw significant increases.

Financial results

• Net sales nearly doubled to $3,444.5 million, driven by higher realized prices for silver, gold, and concentrates, offsetting lower volumes.

• EBITDA rose to $1,635.4 million, and net income attributable to controlling interest increased to $665.0 million, reflecting strong price effects and improved profitability.

• Cost of sales and production costs increased due to higher metal costs, increased production, and the peso's appreciation against the US dollar.

• Cash flow from operations reached $616.0 million, with a net increase in cash and equivalents to $3.7 billion.

Market and economic environment

• Gold and silver prices reached all-time highs in January 2026, with silver up 157.5% and gold up 70.4% year-over-year; copper and zinc also saw strong price gains.

• The strengthening dollar and high interest rates led to a correction, but metal prices remained elevated.

• Inflation in Mexico rose to 1.75% for the quarter, and the peso appreciated significantly against the dollar.