Summary of Mineros S.A. Conference Call Company Overview - **Company**: Mineros S.A. - **Stock Symbols**: OTCQX Best Market - MNSAF; Toronto Stock Exchange - MSA - **Industry**: Metals and Mining Key Points and Arguments Production and Operations - Mineros S.A. has a stable production base in Nicaragua and Colombia, with consistent production and cost profiles over the years [3][4] - The production base includes two underground mines in Nicaragua and alluvial recovery platforms in Colombia, contributing to a consistent production of approximately 200,000 ounces annually [6][12] - The company aims to grow production and reduce all-in sustaining costs (AISC) through low-risk projects and operational excellence [3][4] Financial Performance - The share price has increased by 100% over the last two months, yet the company remains undervalued compared to peers based on EV to consensus production metrics [4] - Anticipated return of $30 million in dividends in 2025, with $15 million already paid this year [4][19] - Free cash flow for the first half of the year was impacted by $43 million in cash tax payments, expected to decrease in the second half [5][6] Gold Price Impact - Gold prices have fluctuated significantly, with an average of $3,600 to $3,700 per ounce in Q3 and exceeding $4,000 in Q4 [5][7] - AISC is variable and linked to gold prices, providing a unique advantage where costs can flex downwards if gold prices drop [7][24] Reserves and Exploration - Proven and probable reserves total approximately 2.1 million ounces, with a production platform consistently yielding around 200,000 ounces [6][12] - The alluvial operation in Colombia has 1.4 million ounces of reserves, with a mine life of about 12 years [8] - The company has significant exploration potential across its land package of approximately 150,000 hectares, with plans for extensive drilling programs [9][14] Environmental and Community Engagement - Mineros S.A. employs a progressive reclamation program, ensuring mined areas are restored for agricultural use post-mining [11] - The company maintains strong community relations and complies with international mining standards [21][22] Growth Strategy - Future growth is expected from both organic expansions (de-bottlenecking operations) and potential inorganic M&A opportunities [29][30] - The company is focused on capital discipline and has no plans for equity issuances or bought deals [20][19] Market Positioning - Mineros S.A. is trading at a significant discount to peers, attributed to historical lack of marketing and exposure [32] - New management is focused on improving transparency and communication to enhance market awareness [32] Risks - Jurisdictional risks in Nicaragua due to sanctions and illegal mining activities in Colombia are acknowledged, but the company believes in the supportive environment for mining in Nicaragua [21][22] Additional Important Points - The company has removed grade caps on artisanal ores, allowing for higher-grade inputs that enhance production potential [15][30] - The acquisition of the La Pepa project in Chile for $40 million is expected to significantly increase mineral inventory and shareholder value [17][18]

Core Viewpoint - Northern Star Resources Limited reported a busy December quarter, focusing on strengthening its asset base for significant growth in free cash flow generation [3]. Operational Performance - The company achieved increased milling performance, selling 410,000 ounces of gold at an all-in sustaining cost of A$2,128 per ounce [4]. - The operational focus remains on performance, cost control, and capital discipline to enhance shareholder value [4]. Financial Position - Northern Star is in a strong financial position with an investment-grade balance sheet, reporting net cash at the end of the quarter [5]. - The company is well-positioned to fund all capital management initiatives and is on track to meet its full-year production and cost guidance [5].

Core Insights - Texas has reached record employment levels, particularly in the oil and gas-producing Permian Basin, with Midland and Odessa showing unemployment rates of 2.6% and 3.5% respectively [2] - U.S. oil production is on track to set a third consecutive annual record in 2024, averaging 13.2 million barrels per day, up from 12.7 million in 2023 and 12.5 million in 2022 [3] - The current slowdown in U.S. oil production growth is notable as it is occurring without a major external crisis, driven by internal factors such as capital discipline and infrastructure constraints [5][9] Production Trends - Year-to-date production growth for 2025 indicates a deceleration compared to the peak shale boom years, with producers now drilling and completing wells more selectively [7] - The Permian Basin continues to produce at record levels, but the growth in production is smaller as operators space wells farther apart to avoid rapid depletion [7][8] Market Implications - Slower U.S. production growth may lead to increased reliance on OPEC+ for supply, potentially allowing the cartel to regain pricing power [10] - A flatter U.S. production curve could stabilize oil prices, benefiting producers and investors, but may result in higher consumer prices if global demand remains strong [11] Investor Considerations - The shift towards slower growth is seen as positive for investors, as companies are prioritizing capital returns through dividends and share buybacks rather than aggressive drilling [12][13] - This transition is reflected in quarterly results, with companies like Pioneer Natural Resources and Devon Energy focusing on cash returns [13] Industry Dynamics - The U.S. oil industry is maturing, moving away from a "growth at any cost" mentality to a more disciplined approach focused on efficiency and shareholder returns [8][16] - Factors contributing to the slowdown include capital discipline, geological limits, rising service costs, and infrastructure bottlenecks [18]

Core Viewpoint - ConocoPhillips needs to enhance its capital discipline and investment priorities to remain competitive as oil prices and revenues decline, leading to significant layoffs of up to 25% of its workforce [1][2][3] Group 1: Market Conditions - The company is facing a challenging oil market, with crude prices having fallen approximately 12% this year, and further declines expected in 2026 due to supply exceeding demand [3][4] - Increased output from OPEC+ and economic uncertainties related to U.S. trade policy have contributed to a downturn in crude prices, resulting in the lowest earnings for oil companies since the COVID-19 pandemic [2][3] Group 2: Company Challenges - ConocoPhillips has undertaken large capital-intensive projects, such as the acquisition of Marathon Oil for $22.5 billion, which has diverted focus from cost control [4][5] - The company is expected to cut capital expenditures this year to between $12.3 billion and $12.6 billion, approximately 10% lower than the previous year's pro forma capex [7] Group 3: Strategic Focus - The company must prioritize key projects like the Willow oil project in Alaska and the development of its liquefied natural gas business to drive future cash flow [5][6] - Some investors believe that the company should focus more on controlling rising capital expenditures rather than solely addressing workforce reductions [5][6]

Strategy & Vision - Alpargatas is shifting its strategy to focus on core strengths, prioritizing financial discipline and sustainable growth[10, 15] - The company's vision is to "Inspire the world to walk a lighter path"[21] - A revamped strategy planning process aims for end-to-end alignment across Alpargatas' value creation priorities[25] Market & Portfolio - The company is refocusing on flip-flops, addressing consumer needs before expanding into new categories[49, 52] - In Brazil, the company aims to protect its leading position in the grocery channel and women's category while growing in specialized channels and men's/kids' segments[17, 60] - Havaianas International has a significant market opportunity, particularly in Italy, England, France, Spain and the USA, but needs to focus on gaining market share in flip-flops[61, 82] Operational Efficiency & Capital Allocation - The company is implementing a Zero-Based Budgeting (ZBB) approach and simplifying operations to improve efficiency and support future growth[26, 157] - Capital allocation will be more disciplined, focusing on automation and optimizing logistics[17, 136] - Rothy's has shown steady growth, with net sales reaching $226 million and a gross margin of 63.3%[144, 145] International Markets - The company aims to build a consistent international business by focusing on priority markets and executing a clusterization playbook[16, 41, 84] - In Europe, the company is addressing issues such as high prices and declining service levels, reallocating marketing budget to brand building, and streamlining operations[98, 101, 365, 371] - In the US, the company is transitioning to an own operation model and expanding distribution in mid-tier and sports/athletic channels[123, 107] Sustainability & Culture - The company is committed to operating according to circular economy principles, reducing the impact of operations, and promoting diversity, inclusion, and local development[597] - The company has invested R$76 million between 2003 and 2024 through the Alpargatas Institute to create opportunities for communities[598]

Financial Data and Key Metrics Changes - EOG Resources reported adjusted earnings per share of $2.32 and adjusted cash flow per share of $4.57 for Q2 2025, with free cash flow of $973 million during the quarter [15][17] - The company returned over $1.1 billion to shareholders through dividends and share repurchases, maintaining a commitment to return at least $3.5 billion in cash during 2025 [6][31] - A 5% increase in the regular dividend was announced, bringing the annual dividend rate to $4.8 per share, yielding 3.5% at current share prices [15][31] Business Line Data and Key Metrics Changes - Oil, natural gas, and NGL volumes exceeded guidance, with strong operational performance translating into financial results [5][20] - The company updated its 2025 CapEx guidance to $6.3 billion, with forecasted average oil production of 521,000 barrels per day and total production of 1.224 million barrels of oil equivalent per day [22][31] - The Utica asset is expected to contribute significantly to growth, with a focus on operational efficiencies and cost reductions [9][24] Market Data and Key Metrics Changes - The demand for natural gas is projected to grow at a compound annual growth rate of 4% to 6% through 2030, driven by LNG and power demand [12][13] - EOG is well-positioned to capture incremental gas demand with its Dorado asset and the newly acquired Utica dry gas volumes [13][48] - The company anticipates a balanced market for oil in 2026, with less non-OPEC supply growth and historically low inventory levels [64][65] Company Strategy and Development Direction - EOG's strategy focuses on capital discipline, operational excellence, sustainability, and culture, with a commitment to being among the highest return, lowest cost producers [11][32] - The integration of the nCino assets is expected to enhance returns and growth, with a target of $150 million in annual run rate synergies within the first year post-acquisition [23][32] - The company is exploring new opportunities in the UAE and expanding its presence in the Gulf States, leveraging its technical expertise [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, citing strong operational performance and a commitment to shareholder returns [6][31] - The outlook for oil demand is expected to moderate in 2025 before increasing in 2026, with a focus on maintaining a disciplined investment approach [11][64] - The recent tax legislation is projected to provide a recurring benefit of approximately $200 million annually, supporting free cash flow [59] Other Important Information - EOG has repurchased over 46 million shares since initiating buybacks in 2023, representing approximately 8% of shares outstanding [16] - The company has a pristine balance sheet, maintaining total debt levels versus EBITDA at roughly one time [76] Q&A Session Summary Question: Sustaining capital requirements for Utica production - Management indicated it is too early to provide specific sustaining capital requirements for the Utica, but operational efficiency gains are expected to contribute to lower costs [37][40] Question: Geological concept and commercial development in UAE - Management expressed excitement about the UAE concession, highlighting good geological data and the importance of infrastructure and logistics for scaling production [42][44] Question: Marketing strategy for gas market - Management emphasized a thoughtful approach to marketing agreements, focusing on good partners and premium pricing, particularly with the new gas assets [47][50] Question: Quick wins in Utica operations - Management identified several operational efficiencies and cost-saving opportunities in the Utica, including shared infrastructure and EOG technology [79][81] Question: Impact of high-frequency sensors on costs and EUR - Management noted that while it is early in the implementation of high-frequency sensors, they expect significant improvements in well performance and cost efficiency [84][86]

Financial Performance & Capital Allocation - EOG reported adjusted net income of $1.3 billion, resulting in adjusted EPS of $2.32 and adjusted CFPS of $4.57 for 2Q 2025[9] - The company generated $1.0 billion in free cash flow during 2Q 2025[9] - EOG increased its regular quarterly dividend rate by 5%[10] - The company returned $1.1 billion to shareholders, including $0.5 billion in regular dividends and $0.6 billion in share repurchases during 2Q 2025[10] - EOG is targeting approximately $4.3 billion in free cash flow for full-year 2025, based on $65 WTI and $3.50 HH[14] - The company has committed $3.5 billion of cash return year-to-date through regular dividends and share repurchases[14] - EOG's regular dividend represents a $2.1 billion cash return commitment for 2025[63] Operational Highlights & Strategic Initiatives - EOG acquired Encino, creating a premier Utica asset position totaling 1.1 million net acres[10] - The company was awarded an onshore concession in the UAE to explore and appraise approximately 900,000 acre unconventional oil prospect[10] - EOG's average total production is projected to be 1,224 MBOED for 2025[13,16] - The company's average oil production is projected to be 521 MBOD for 2025[13,16] - EOG estimates $150 million of synergies to be realized in the first year following the Encino acquisition[27] - EOG's Janus Gas Processing Plant has a capacity of 300 MMcfd and supports Permian operations[54] Environmental Targets - EOG is targeting a 25% reduction in GHG emissions intensity rate from 2019 levels by 2030[70] - The company aims to maintain near-zero methane emissions, at 0.20% or less[69] - EOG is committed to zero routine flaring[69]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $294 million for the second quarter, exceeding consensus estimates [11] - Adjusted free cash flow for the quarter was $99 million, with a netback margin of approximately $35 per barrel of oil equivalent [12] - Capital expenditures (CapEx) for the second quarter were $126 million, with an additional $29 million spent on plugging and abandonment activities [12] - The leverage ratio improved to 0.7 times, and cash balance increased by 75% from the first quarter to $357 million [13][31] Business Line Data and Key Metrics Changes - Second quarter production averaged 93,300 barrels of oil equivalent per day, with oil comprising 69% of total production [11] - The company aims to generate an additional $100 million in free cash flow annually starting in 2026, with $25 million expected in 2025 [7][14] Market Data and Key Metrics Changes - The company is focused on high-margin projects in the Gulf of America and is evaluating opportunities in other deepwater basins [8] - The current hedge portfolio has a mark-to-market value of $56 million as of June 30, providing cash flow stability [30] Company Strategy and Development Direction - The company has outlined a corporate strategy with three pillars: continuous improvement, growth through high-margin projects, and building a portfolio with scale and longevity [7][8] - The focus is on capital discipline, operational excellence, and free cash flow generation to enhance shareholder value [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic resilience of key projects, which are estimated to break even at an average oil price of $35 per barrel [27] - The company is optimistic about the increasing role of offshore and deepwater in meeting global energy needs [33] Other Important Information - The company repurchased 3.8 million shares for $33 million, totaling $100 million in repurchases under the program [13][32] - A non-cash impairment of $224 million was recorded due to historical non-productive capital expenditures [26] Q&A Session Summary Question: Free cash flow priorities with leverage at 0.7 times - Management emphasized a capital discipline framework, balancing investments in the business while maintaining a strong balance sheet and returning cash to shareholders [36][37] Question: Decision to maintain the West Vella rig - The West Vella rig was retained due to its outstanding performance and cost advantages, allowing for efficient execution of projects [40][42] Question: Update on Zama project and potential operatorship - The transaction related to Zama is expected to close by the end of the third quarter, with ongoing collaboration with Pemex to progress the project [46][48] Question: Acquisition targets and market state for deepwater offshore - Management is exploring various opportunities in the Gulf of America and internationally, with a positive outlook for deepwater investments [51][53] Question: Impact of new regulations on organic growth plans - New regulations are seen as positive, with plans to actively participate in upcoming lease sales in the Gulf of Mexico [57][58] Question: Near-term targets for the $100 million savings plan - Focus areas include capital efficiency, commercial opportunities, and supply chain optimization to achieve the savings target [72][74] Question: Cadence of incremental share repurchases - The company plans to continue share repurchases, targeting up to 50% of annual free cash flow, with a quarterly run rate of around $33 million [75][76] Question: Details on the shutdown of Sunspear and Marmalade Greenfield - The Sunspear well was shut in due to a safety valve failure, with repairs planned to be completed within 30 days [82][93]

Financial Data and Key Metrics Changes - In the second quarter, Chevron reported earnings of $2,500 million or $1.45 per share, with adjusted earnings of $3,100 million or $1.77 per share, reflecting a net charge of $215 million due to special items [16][18] - Organic capital expenditures (CapEx) were $3,500 million, the lowest quarterly total since 2023, while adjusted free cash flow increased by 15% quarter on quarter to $4,900 million despite a 10% decrease in crude prices [18][19] - The company returned over $5,000 million to shareholders for the thirteenth consecutive quarter [7] Business Line Data and Key Metrics Changes - Adjusted upstream earnings decreased due to lower realizations and higher depreciation, depletion, and amortization (DD&A) from increased production, while adjusted downstream earnings improved due to better refining margins and higher volumes [18] - Second quarter oil equivalent production increased by over 40,000 barrels per day from the previous quarter, with expectations for production growth to be closer to the top end of the 6% to 8% guidance range [19] Market Data and Key Metrics Changes - Chevron's overall US production is nearly 60% higher than it was two years ago, with significant contributions from the Permian Basin, which averaged over 1,000,000 barrels of oil equivalent per day [6][9] - The company is now the largest leaseholder in the Gulf of America, with a combined upstream portfolio forecasted to lead the industry in total cash generation over the remainder of the decade [9] Company Strategy and Development Direction - Chevron aims to establish a scalable domestic lithium business following the acquisition of lithium-rich acreage in Texas and Arkansas [7] - The company is focused on capital discipline and has reduced the number of reporting units by approximately 70% to enhance operational efficiency and standardization [14][15] - Chevron anticipates realizing $1,000 million in annual run rate synergies from the Hess merger by the end of the year, six months ahead of schedule [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong free cash flow and maintain a balanced portfolio of short and long cycle investments [45][46] - The integration of Hess assets is expected to contribute additional free cash flow, more than covering the incremental dividend from the merger share issuance [20] - Management acknowledged the need for a balanced and diversified portfolio, emphasizing the importance of exploration in future growth [72][76] Other Important Information - The company completed the sale of its interest in the Thailand and Malaysia joint development area [10] - Chevron's operational efficiency has improved, with the highest US refinery crude throughput in over twenty years [13] Q&A Session Summary Question: Insights on Permian production and future capital spending - Management highlighted the strong performance in the Permian and indicated that capital spending for 2025 is expected to be at the lower end of the $4.5 to $5 billion range due to efficiencies [25][26] Question: Confidence in the $10 billion standalone and Hess integration - Management expressed high confidence in the de-risking of the $10 billion standalone, with synergies and production growth contributing to the $2,500 million guidance for Hess [30][32] Question: Details on business reorganization and expected benefits - Management explained that the new organizational structure aims to enhance operational execution and efficiency, with a focus on applying best practices across asset classes [36][39] Question: Role of tight oil in the overall portfolio - Management emphasized the importance of the tight oil portfolio, which now constitutes a substantial portion of overall production, and the focus on generating free cash flow [44][45] Question: Update on Venezuela operations - Management confirmed ongoing operations in Venezuela and the expectation of limited oil flows to the US, which will help satisfy some debt owed [60][61] Question: LNG strategy and market placement - Management discussed the strategy of building a globally connected LNG portfolio, with ongoing efforts to optimize the system and place volumes in favorable markets [106][108] Question: Capital distribution outlook post-Hess deal - Management indicated that share repurchases will be reviewed at the upcoming Investor Day, with a focus on maintaining capital discipline while supporting shareholder returns [113][124]

Financial Data and Key Metrics Changes - Adjusted funds flow was CAD 367 million or CAD 0.48 per basic share, with net income of CAD 152 million [8] - Free cash flow generated was CAD 3 million, with CAD 21 million returned to shareholders, including CAD 4 million in share repurchases and CAD 17 million in dividends [8] - Net debt decreased by CAD 96 million or 4% to CAD 2.3 billion, supported by a strengthening Canadian dollar [8][9] Business Line Data and Key Metrics Changes - Heavy oil production grew by 7% quarter over quarter, while production averaged 148,095 BOE per day, a 2% increase in production per share compared to the same quarter last year [6][11] - In the Pembina Duvernay, the first pad achieved average thirty-day peak production rates of 1,865 BOE per day per well, with a second pad averaging 1,264 BOE per day per well [11][12] - In the Eagle Ford, 15 wells were brought on stream, with an approximate 11% improvement in drilling and completion costs [13] Market Data and Key Metrics Changes - The commodity backdrop in Q2 was soft, with WTI averaging CAD 64 per barrel [6] - Approximately 84% of the company's production is weighted toward crude oil and liquids, indicating significant exposure to oil price fluctuations [16] Company Strategy and Development Direction - The company plans to transition to full commercialization in the Pembina Duvernay through 2026 and into 2027, targeting drilling 18 to 20 wells per year [12] - The focus remains on capital discipline, prioritizing free cash flow and reducing net debt, with a target of approximately CAD 2 billion in net debt by year-end [16] - The company is committed to rigorous capital allocation and regularly evaluates opportunities within its portfolio to maximize shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality of the asset portfolio and the ability to execute through volatile market conditions [15] - The company expects to generate approximately CAD 400 million of free cash flow in 2025, with the majority weighted to the second half of the year [16] - Every USD 5 per barrel change in WTI impacts annual adjusted funds flow by approximately CAD 225 million on an unhedged basis, positioning the company well for potential oil price recovery [16] Other Important Information - The company maintains substantial financial flexibility with CAD 1.1 billion in credit facility capacity, less than 25% drawn, maturing in June 2029 [9] - The average well cost in the Duvernay is CAD 12.5 million, with a target for lower costs over time [20][21] Q&A Session Summary Question: What is the average well cost in the Duvernay? - The average well cost so far this year has been CAD 12.5 million for a 12,000-foot lateral, which is approximately CAD 1,000 per completed lateral foot [20][21] Question: Should we expect a one rig program for 2026? - The company is targeting 12 to 15 wells in 2026, moving to a one rig levelized program in 2027, which will generate 18 to 20 wells per year [22][23] Question: Is the decline rate different post the refracs in Eagle Ford? - It is still early to determine decline rates, but initial rates and pressure performance are strong, indicating positive reservoir characteristics [24][25] Question: What improvements have been made in Eagle Ford? - Improvements are attributed to service cost reductions and efficiency gains, including the use of field gas instead of diesel for fracking operations [30][32] Question: Can you discuss the variability across the three wells in the Pembina Duvernay? - Performance across the wells is consistent, but there are differences due to rock and reservoir characteristics [37][39] Question: What is the expected infrastructure spending for Pembina Duvernay? - Infrastructure spending is expected to be CAD 25 million to CAD 30 million per year in the early years, with significant capacity already in place for gas processing [40][42] Question: How is the refrac program being layered in Eagle Ford? - The company intends to step up the pace of refracs, targeting 6 to 10 refracs in 2026 [43][44] Question: What is the hedging strategy going forward? - The company is targeting a CAD 60 floor for oil prices and aims to have 40% hedged by the end of the year [48][49]