Volcan Compañía Minera A : Financial Statements - 2023 2Q

Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated interim financial information (unaudited) as of

June 30, 2023 and 2022

Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated Statement of Financial Position

As of June 30, 2023 (unaudited) and as of December 31, 2022 (audited)

		June 30,		December 31,
	Note	2023	2022
		US$(000)		US$(000)
Assets
Current Assets
Cash and cash equivalents	4	50,208	73,600
Accounts receivable Trade, net		9,812	19,191
Accounts receivable from related entities		3,009	9,395
Other accounts receivable		76,548	65,389
Other financial assets	6	1,245	-
Inventories, net	5	53,680	57,093
Total current assets		194,502	224,668
Non-current Assets
Other accounts receivable		37,206	34,262
Financial investments		189,784	186,505
Property, plant and equipment, net	7	781,386	812,912
Assets by right of use	8	16,308.00	11,385
Mining exploration and evaluation cost, net	9	695,424	699,938
Inventories, net	5	5,937	6,218
Total non-current assets		1,726,045	1,751,220
Total assets		1,920,547	1,975,888
Liabilities and Net Stockholders' Equity
Current Liabilities
Overdrafts		1,107	198
Financial obligations	10	33,341	34,697
Trade accounts payable		224,309	251,239
Other accounts payable		65,330		67,036
Total current liabilities		334,161	361,003
Non-current Liabilities
Financial obligations	10	773,603	776,771
Other accounts payable		1,600	3,200.00
Provision for closing of mining units and communities		290,707	292,895
Deferred income tax liability	11	118,109	136,277
Provision for contingencies		35,827	30,389
Total non-current liabilities		1,219,846	1,239,532
Total liabilities		1,554,007	1,600,535
Equity
Issued capital	12	906,683	1,134,300
Treasury stock		(60,934)	(60,934)
Other capital reserves		(173,234)	(173,234)
Capital reserve		9,709	10,695
Unrealized gains (loss)		(7,210)	(9,436)
Retained earnings		(308,474)	(526,038)
Total net stockholders' equity		366,540	375,353
Total liabilities and net stockholders' equity, net		1,920,547	1,975,888

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The accompanying notes are an integral part of this statement.

Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated Income Statement (unaudited)

For the period from January 1, to Jun 30, 2023 and 2022

	For the period from April	For the cumulative period
	from January 1
	1 to June 30	to June 30
	2023	2022	2023	2022
	US$(000)	US$(000)	US$(000)	US$(000)
Sales, Note 13	213,327	213,218	434,419	492,617
Cost of Sales, Note 14	(188,605)	(185,057)	(362,805)	(371,997)
Gross Income	24,722	28,161	71,614	120,620
Operating income (expenses)
Administrative expenses	(18,020)	(11,280)	(31,728)	(28,294)
Selling expenses	(7,116)	(5,914)	(14,524)	(11,328)
Other income	11,706	10,565	26,847	26,130
Other expenses	(16,708)	(21,809)	(36,345)	(40,538)
	(30,138)	(28,438)	(55,750)	(54,030)
Operating income	(5,416)	(277)	15,864	66,590
Financial income (expenses)
Financial income, Note 15	1,798	8,269	3,607	9,089
Financial expenses, Note 15	(17,240)	(15,098)	(34,122)	(28,086)
Exchange difference, net	827	(333)	927	(657)
Total other income (expenses), net	(14,615)	(7,162)	(29,588)	(19,654)
Income before income tax	(20,031)	(7,439)	(13,724)	46,936
Income tax, Note 11 (b)	8,190	(4,805)	2,680	(21,015)
Net income	(11,841)	(12,244)	(11,044)	25,921
Net earnings per share	(0.003)	(0.003)	(0.003)	0.007
Weighted average of outstanding shares (in	3,857,594	3,857,594	3,857,594	3,857,594
thousands)

The accompanying notes are an integral part of this statement.

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Volcan Compañía Minera S.A.A. and Subsidiaries

Consolidated Statement of Comprehensive Income (unaudited)

For the period from January 1 to June 30, 2023 and 2022

	For the cumulative	For the cumulative period
	period from April 1 to
	from January 1 to June 30
	June 30
	2023	2022	2023	2022
	US$(000)	US$(000)	US$(000)	US$(000)
Net income	(11,841)	(12,244)	(11,044)	25,921
Others comprehensive income (loss):
Net change in gains (losses) unrealized on derivate	546	(6,095)	3,157	(2,871)
instruments and Financial investments
Income tax	(161)	1,798	(931)	847
Other comprehesive income (loss) net of income tax	385	(4,297)	2,226	(2,024)
Total comprehesive income	(11,456)	(16,541)	(8,818)	23,897

The accompanying notes are an integral part of this statement.

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Volcan Compañía Minera S.A.A. and Subsidiaries

Statement of changes in the Net Stockholders' Equity (unaudited)

For the period from January 1 to June 30, 2023 and 2022

	Capital Issued	Treasury stock	Other capital	Capital	Unrealized	Retained	Total
	reserves	reserve	gains (loss)	earnings
	US$(000)	US$(000)	US$(000)	US$(000)	US$(000)	US$(000)	US$(000)
Balances as of January 1, 2022	1,134,300	(60,934)	10,695	(173,234)	(9,504)	(444,656)	456,667
	-	-	-	-	-	-	-
Results integrals
Net Income of year	-	-	-	-	-	25,921	25,921
Other results integrals of year	-	-	-	-	(2,024)	-	(2,024)
Total results integrals of year	-	-	-	-	(2,024)	25,921	23,897
Others	-	-	-	-	-	-	-
Balances as of June 30, 2022	1,134,300	(60,934)	10,695	(173,234)	(11,528)	(418,735)	480,564
Balances as of January 1, 2023	1,134,300	(60,934)	10,695	(173,234)	(9,436)	(526,038)	375,353
Results integrals
Net loss of year	-	-	-	-	-	(11,044)	(11,044)
Other results integrals of year	-	-	-	-	2,226	-	2,226
Total results integrals of year	-	-	-	-	2,226	(11,044)	(8,818)
Capital reduction	(227,620)	-	(986)	-	-	228,606	-
Others	3	-	-	-	-	2	5
Balances as of June 30, 2023	906,683	(60,934)	9,709	(173,234)	(7,210)	(308,474)	366,540

The accompanying notes are an integral part of this statement.

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