What you need to know: • Mineros is focused on the production of gold across its two producing assets in Colombia and Nicaragua having produced 213Koz in 2024. • MSA currently pays the highest dividend amongst its peers at 5.6% and has various growth initiatives in the works. • Despite being one of the best performing gold producers amongst its peers (up 276% since January 2024), MSA is still undervalued, trading at just 3.8x 2025E cash flow of $129M. Mineros S.A. (MSA:TSXV, MINEROS:CL) is a precious metals producer with assets in Colombia and Nicaragua, producing over 200Koz of gold in 2024. The Company has posted steady production results over the last decade with strong cash flow growth due to the increasing gold price. MSA is focused on returning capital to shareholders with its 5.6% dividend yield and plans to repurchase shares. We are initiating coverage on Mineros with a BUY rating and a target price of C$4.00/share. Investment Thesis Summary Diversified LATAM Asset Base Producing 200Koz+ of Gold. MSA maintains diversified operations across Colombia and Nicaragua, with management actively pursuing acquisitions to expand into additional regions throughout the Americas. The Nechí Alluival asset in Colombia produced 82Koz in 2024 while its Nicaragua assets produced 131Koz, combining for 213Koz. Production has been very stable over the last five years. Substantial Growth Potential. While production has been stable, MSA plans to grow its operations through a mix of organic and inorganic growth. On the organic side, in Nicaragua, MSA has its Porvenir PFS-stage development project, as well as several other high probability exploration targets. Additionally, MSA is completing a mill expansion for its Hemco project in 2026, supporting production growth in the long-term. As for inorganic growth, MSA has $53.5M in net cash, which will be used to acquire additional assets in new regions, diversifying its operational and jurisdictional risk. Track Record & Robust Capital Returns. MSA has a long-term track record of effectively managing its operations, allowing it to take advantage of the rising gold price. MSA currently offers a 5.6% dividend yield, the largest amongst its mid-tier gold producer peers. The dividend has grown at a 10% CAGR since 2016. New Management. MSA is led by David Londoño, who was brought on as CEO in April 2025 and brings over two decades of experience in senior roles at OceanaGold, Kirkland Lake Gold and Barrick Gold. The rest of the management team and board are well experienced in managing Latin American projects. Valuation. MSA currently trades at 3.8x/3.1x 2025E/2026E CF compared to its peers at 10.8x/8.7x. On a P/NAV basis, MSA trades at 0.5x compared to its peers at 0.9x. We attribute the discount to the lack of production growth, while most of its peers are growing. However, this comes at a trade-off as the peers offer barely any yield compared to MSA’s 5.6% plus potential to buyback stock.