Exhibit 99.1

Report of Independent Auditors

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To the Board of Directors of Minera Santa Cruz S.A.:

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Opinion

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We have audited the financial statements of Minera Santa Cruz S.A. (the Company) which comprise the statements of financial position as of December 31, 2024 and 2023, and the related statements of profit (loss) and other comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”).

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In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024 in accordance with IFRS Accounting Standards promulgated by the International Accounting Standards Board (“IASB”).

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Basis for Opinion

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We conducted our audits in accordance with auditing standards generally accepted in the United States of America (“GAAS”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Responsibilities of Management for the Financial Statements

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Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS Accounting Standards promulgated by the International Accounting Standards Board, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

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In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

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Auditor’s Responsibilities for the Audit of the Financial Statements

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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free of material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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In performing an audit in accordance with GAAS, we:

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• Exercise professional judgment and maintain professional skepticism throughout the audit.

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• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.

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• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

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• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

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We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

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Minera Santa Cruz S.A.

Statements of Profit (Loss) and Other Comprehensive Income

For the years ended December 31, 2024, 2023 and 2022

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The accompanying notes are an integral part of these financial statements.

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Minera Santa Cruz S.A.

Statements of Financial Position

As at December 31, 2024 and 2023

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The accompanying notes are an integral part of these financial statements.

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Minera Santa Cruz S.A.

Statements of Cash Flows

For the years ended December 31, 2024, 2023 and 2022

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The accompanying notes are an integral part of these financial statements.

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Minera Santa Cruz S.A.

Statement of Changes in Equity

For the years ended December 31, 2024, 2023 and 2022

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(*) In accordance with Shareholders meeting as of May 9, 2022, May 9, 2023, and May 27, 2024, based on statutory financial statements.

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The accompanying notes are an integral part of these financial statements.

Minera Santa Cruz S.A.

Notes to the financial statements

For the years ended December 31, 2024, 2023 and 2022

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1. Company information

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Minera Santa Cruz S.A. (the “Company” or “MSC”) was incorporated in 2001. The Company is a limited company incorporated and domiciled in San Martin 875, 2^nd Floor, Office B, Comodoro Rivadavia, Chubut, Argentina.

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The Company’s principal business is the mining, processing and sale of silver and gold in one operating mine (San Jose) located in Argentina. Information on the parent is presented in Note 24.

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For management purposes, the Company is organized into one business unit; therefore, there is only one reporting segment according to IFRS 8, ‘Operating Segments’.

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The financial statements of Minera Santa Cruz S.A. for the years ended December 31, 2024, 2023 and 2022 were authorized for issue in accordance with a resolution of the directors on June 26, 2025.

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2. Basis of preparation and significant accounting policies

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2.A Basis of preparation

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2.A.1 Overview

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The financial statements have been prepared in accordance with IFRS Accounting Standards promulgated by the International Accounting Standards Board (“IASB”).

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The basis of preparation and accounting policies used in preparing the financial statements for the years ended December 31, 2024, 2023 and 2022 are set out below. The financial statements have been prepared on a historical cost basis, except for the valuation of certain financial instruments that are measured at fair value at the end of each reporting period, as explained below.

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The financial statements are presented in US dollars and all values are rounded to the nearest thousand (US$ thousand), except where otherwise indicated.

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The Company has prepared the financial statements on the basis that it will continue to operate as a going concern.

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2.A.2 Foreign currencies

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The Company’s financial information is presented in US dollars, which is the Company’s functional currency. The functional currency for the Company is determined by the currency of the primary economic environment in which it operates.

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Transactions denominated in currencies other than the functional currency of the entity are recorded in the functional currency using the exchange rate prevailing at the date of the transaction.

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Monetary assets and liabilities denominated in foreign currencies are remeasured at the exchange rate prevailing at the statement of financial position date. Exchange gains and losses on settlement of foreign currency transactions which are translated at the rate prevailing at the date of the transactions, or on the translation of monetary assets and liabilities which are translated at period-end exchange rates, are recorded in the Statements of profit (loss) and other comprehensive income.

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Non-monetary assets and liabilities denominated in foreign currencies that are stated at historical cost are translated to the functional currency at the foreign exchange rate prevailing at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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2.B Significant accounting judgments, estimates and assumptions

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The preparation of the Company´s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Estimates and assumptions are continually evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Uncertainty about these assumptions and estimates could result in outcomes that require material adjustment to the carrying amount of the asset or liability affected in future periods. The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on information available at the time of financial statements preparations. These assumptions may change in the future due to market changes or circumstances arising beyond the control of the Company and the impact on the financial statements could be material.

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Significant areas of estimation uncertainty and critical judgments made by management in preparing the financial statements include:

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Significant estimates:

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There are numerous uncertainties inherent in estimating ore reserves and mineral resources. Assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the economic status of reserves and resources and may, ultimately, result in changes to reserves and resources. This estimate is important for (i) the depreciation and amortization of property, plant and equipment (“PP&E”) and intangibles, (ii) the recoverable value of mining assets and (iii) mine closure.

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The Company assesses, at each reporting date, whether there is an indication that an asset or cash-generating unit (“CGU”) may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s or CGU’s recoverable amount. The recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal (“FVLCD”) and its value in use (“VIU”).

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The assessment of asset carrying values requires the use of estimates and assumptions such as future commodity prices, future capital requirements, reserves and resources volumes, production costs, operating performance and the application of discount rates which reflect the macro-economic country risk. Changes in these assumptions will affect the recoverable amount of the property, plant and equipment, evaluation and exploration assets and intangibles assets. See Note 31.

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The Company assesses its mine closure costs provision annually. Significant estimates and assumptions are made in determining the provision for mine closure cost as there are numerous factors that will affect the ultimate liability payable. These factors include estimates of the extent and costs of rehabilitation activities, technological changes, regulatory changes, cost increases, mine life and changes in the discount rates. Those uncertainties may result in future actual expenditures differing from the amounts currently provided. The provision at the balance sheet date represents management’s best estimate of the present value of the future closure costs required. Changes to estimated future costs are recognized in the balance sheet by adjusting the mine closure cost liability and the related asset originally recognized.

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In July 2021, the mine closure law for the province of Santa Cruz in Argentina was published, establishing a period of 180 business days to present the Mine Closure Plan. The plan presented to the provincial authority, in December 2022, accomplishes law regulations and it has not been approved at the date of the financial statements. The Company considers the mine closure provision in San Jose to be largely aligned with Argentina’s new law and regulations.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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Critical Judgements:

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The determination of functional currency requires management judgement, particularly where there may be several currencies in which transactions are undertaken and which impact the economic environment in which the entity operates.

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Judgement is required in determining whether deferred tax assets are recognized on the balance sheet. Deferred tax is provided using the balance sheet method on temporary differences between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets, including those arising from unutilized tax losses require management to assess the likelihood that the Company will generate taxable earnings in future periods, in order to utilize recognized deferred tax assets. Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the balance sheet date could be impacted.

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The application of the Company´s accounting policy for Exploration and Evaluation (“E&E”) expenditure requires judgement to determine whether future economic benefits are likely from either future exploitation or sale, or whether activities have not reached a stage that permits a reasonable assessment of the existence of reserves and resources.

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In addition to applying judgement to determine whether future economic benefits are likely to arise from the Company´s E&E assets (reserves and resources), the Company has to apply numerous other estimates and assumptions. The determination of a resource is itself an estimation process that involves varying degrees of uncertainty depending on how the resources are classified (i.e., measured, indicated or inferred). These estimates directly impact the deferral (capitalization or not) of E&E expenditures.

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2.C Changes in accounting policies and disclosures

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The accounting policies adopted in the preparation of the financial statements are consistent with those applied in the preparation of the financial statement for the year ended December 31, 2023.

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Certain amendments and interpretations apply for the first time in 2024, but do not have an impact on the financial statements. The Company has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

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- Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback

- Amendments to IAS 1 - Classification of Liabilities as Current or Non-current.

- Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements.

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The Company does not foresee any tax implications from the implementation of this reform.

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2.D Standards, interpretations and amendments to existing standards that are not yet effective

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Certain new standards, amendments and interpretations to existing standards have been published and are mandatory for accounting periods beginning on or after January 1, 2025, or later periods but which the Company has not previously adopted. Management is currently assessing the potential impact, if any.

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2.E Summary of significant accounting policies

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(a) Revenue recognition

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The Company is involved in the production and sale of gold and silver from doré and concentrate containing both gold and silver. Concentrate and doré bars are sold directly to customers. Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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Revenue value is determined net of refining and treatment charges but exclude selling expenses and any applicable sales taxes.

The revenue is subject to adjustments based on inspection of the product by the customer. Revenue is initially recognised on a provisional basis using the Company’s best estimate of contained gold and silver. Any subsequent adjustments to the initial estimate of metal content are recorded in revenue once they have been determined.

In addition, sales are ‘provisionally priced’ where the selling price is subject to final adjustment at the end of a period, normally ranging from 15 to 120 days after the start of the delivery process to the customer, based on the market price at the relevant quotation point stipulated in the contract. Revenue is initially recognised when the conditions set out above have been met, using market prices at that date. The provisionally priced metal is revalued based on the forward selling price for the quotational period stipulated in the contract until the quotational period ends. The selling price of gold and silver can be measured reliably as these metals are actively traded on international exchanges. The revaluation of provisionally priced contracts is recorded as revenue.

A proportion of the company´s sales are sold under CIF or CIP Incoterm which requires the Company to be responsible for providing freight/shipping services (as principal) after the date that the Company transfers control of the product to its customers. The Company, therefore, has separate performance obligations for freight/shipping services which are provided solely to facilitate sale of the commodities it produces.

The transaction price (as determined above) is allocated to the metal in concentrate and freight/shipping services using the relative stand-alone selling price method. Under these arrangements, a portion of consideration may be received from the customer in cash at, or around, the date of shipment under a provisional invoice. It is then recognized as revenue over time using an output method (being days of shipping/transportation elapsed) to measure progress towards complete satisfaction of the service as this best represents the Company´s performance. This is on the basis that the customer simultaneously receives and consumes the benefits provided by the Company as the services are being provided. The costs associated with these freight/shipping services are also recognized over the same period of time as incurred.

Other Incoterms commonly used by the Company are FOB, where the Company has no responsibility for freight or insurance once control of the products has passed at the loading port. For arrangements which have this Incoterm, the only performance obligations are the provision of the product at the point where control passes.

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(b) Income tax

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Income tax for the year comprises of current and deferred tax. Income tax is recognized in the income statement except to the extent that it relates to items charged or credited directly to equity, in which case it is recognized in equity.

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Current income tax expense includes the expected tax payable for the year, using tax rates enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

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Deferred income tax is estimated using the balance sheet method, providing for temporary differences between carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

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Deferred tax assets and liabilities are measured using tax rates that are expected to apply to the period when the asset is realized, or the liability is settled based on tax rates (and tax laws) that have been enacted or substantively enacted at the statement of financial position date.

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A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

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(c) Uncertain Tax positions

A tax liability is recognized when the Company has a present obligation because of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The liability is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account risks and uncertainties surrounding the obligation. Separate liabilities for interest and penalties are also recorded if appropriate.

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Tax liabilities are based on management´s interpretation of tax law and the likelihood of settlement. This involves a significant amount of judgment as tax legislation can be complex and open to different interpretation. Management uses in-house tax experts, external professional service firms and previous experience when assessing tax risks.

Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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(d) Leases (as a lessee)

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The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

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The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

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Right-of-use assets

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The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. The right-of-use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. Right-of-use assets are subject to impairment. Refer to the accounting policies in section (s) Impairment of non-financial assets.

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Lease liabilities

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At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments are recognized as expense in the period on which the event or condition that triggers the payment occurs.

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In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

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Short-term leases and leases of low-value assets

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The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of twelve months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered of low value (i.e., below $5,000). Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.  

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(e) Property, plant and equipment

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Property, plant and equipment is stated at cost less accumulated depreciation and impairment losses. Cost comprises its purchase price and directly attributable costs of acquisition or construction required to bring the asset to the condition necessary for the asset to be capable of operating in the manner intended by management. Economical and physical conditions of assets have not changed substantially over this period.

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The cost less residual value of each item of property, plant and equipment is depreciated over its useful life. Each item’s
estimated useful life has been assessed with regard to both its own physical life limitations and the present assessment of economically recoverable reserves and resources of the mine property at which the item is located. Estimates of remaining useful lives are made on a regular basis for all mine buildings, machinery and equipment, with annual reassessments for major items. Depreciation is charged to cost of production on a units of production basis for mine buildings and installations and plant and equipment used in the mining production process or charged directly to the income statement over the estimated useful life of the individual asset on a straight-line basis when not related to the mining production process. Changes in estimates, which mainly affect units of production calculations, are accounted for prospectively. Depreciation commences when assets are available for use. Land is not depreciated.

Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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An asset’s carrying amount is written-down to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

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Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income/expenses, in the income statement.

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The expected useful lives under the straight-line method are as follows:

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Borrowing costs directly attributable to the acquisition or construction of an asset that takes a substantial time to be ready for its intended use are capitalized as part of the cost of the asset. All other borrowing costs are expensed when incurred.

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Mining properties and development costs

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Purchased mining properties are recognized as assets at their cost of acquisition. Costs associated with the development of mining properties are capitalized and are depreciated upon commencement of commercial production, using the units of production method based on the estimated economically recoverable reserves and resources to which they relate.

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When a mine construction project moves into the production stage, the capitalization of mine construction costs ceases and costs are either included in the cost of inventory or expensed, except for costs which qualify for capitalization relating tu mining asset additions or improvements, undergrounds mine development or mineable reserve development.

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Construction in progress

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Assets in the course of construction are capitalized as a separate component of property, plant and equipment. On completion, the cost of construction is transferred to the appropriate category. Construction in progress is not depreciated.

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Subsequent expenditures

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Expenditures incurred to replace a component of an item of property, plant and equipment are capitalized to replace the carrying amount of the component being written-off. Other subsequent expenditures are capitalized if future economic benefits will arise from the expenditure, otherwise are expensed in the income statement as incurred.

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(f) Evaluation and exploration assets

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Evaluation and exploration expenses are capitalized when the future economic benefit of the project can reasonably be regarded as assured, and / or from the date that the Board of Directors authorizes management to conduct a feasibility study. All other exploration and evaluation expenses are expensed as incurred.

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Expenditures are transferred to mining properties and development costs once the work completed to date supports the future development of the property and such development receives appropriate approval.

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Costs incurred in converting inferred resources to indicated and measured resources (of which reserves are a component) are capitalized as incurred. Costs incurred in identifying inferred resources are expensed as incurred.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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(g) Determination of ore reserves and mineral resources

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The Company estimates its ore reserves and mineral resources based on information compiled by internal competent persons. Reports to support these estimates are prepared each year and are stated in conformity with the 2012 Joint Ore Reserves Committee (JORC) code. It is the Company’s policy to have the report audited every two years by a Competent Person.

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Reserves and resources are used in the unit of production calculation for depreciation as well as the determination of the timing of mine closure cost and impairment analysis.

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(h) Intangible assets

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Right to use energy of transmission line

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Transmission line costs represent the investment made by the Company during the period of its use. This is an asset with a finite useful life equal to that of the mine life and amortized by applying the unit of production method for the mine.

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Other intangible assets

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Other intangible assets are primarily computer software, which are capitalized at cost and amortized on a straight-line basis over their useful life of three years.

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(i) Impairment of non-financial assets

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The carrying amounts of property, plant and equipment, intangible assets and evaluation and exploration assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable. If there are indicators of impairment, an exercise is undertaken to determine whether the carrying values are in excess of their recoverable amount. Such review is undertaken on an asset by asset basis, except where such assets do not generate cash flow independent of other assets, and then the review is undertaken at the cash-generating unit (CGU) level.

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The assessment requires the use of estimates and assumptions such as long-term commodity prices, discount rates, future capital requirements, reserves and resources volumes (reflected in the production volume). Changes in these assumptions will affect the recoverable amount of property, plant and equipment and evaluation and exploration assets.

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If the carrying amount of an asset or its cash-generating unit (CGU) exceeds the recoverable amount, a provision is recorded to reflect the asset at the lower amount. Impairment losses are recognized in the statement of profit (loss).

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Calculation of recoverable amount

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The recoverable amount of assets is the greater of their value in use (VIU) and fair value less costs for disposal (FVLCD). FVLCD is based on an estimate of the amount that the Company may obtain in a sale transaction on an arm’s length basis. VIU is based on estimated future cash flows discounted to present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

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In performing the impairment review, the Company assesses the recoverable amount of its operating assets principally with reference to fair value less costs of disposal, assessed using the traditional approach of the discounted cash flow model, which refers to a single cash flow projection.

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The Company’s CGU is the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets. The Company considers the mine site as a CGU.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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Reversal of impairment

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An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

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(j) Inventories

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Inventories are valued at the lower of cost or net realizable value. Cost is determined using the weighted average method. The cost of work in progress and finished goods (ore inventories) is based on the cost of production.

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For this purpose, the cost of production includes:

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Net realizable value is the estimated selling price in the ordinary course of business, less applicable selling expenses.

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(k) Financial instruments

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A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

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Financial assets

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- Initial recognition and measurement

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Financial assets are classified initially as assets at amortized cost and/or fair value through other comprehensive income or loss (“OCI”), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset´s contractual cash flow characteristics and the Company´s business model for managing them.

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The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

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On July 2023, the Company purchased AL41 bonds, which are sovereign bonds issued by the Republic of Argentina, denominated in U.S. dollars that were paid with Argentine pesos and that pay income in U.S. dollars in local accounts. They are national public securities issued in dollars with a fixed step-up rate of 3.50% per year from (and including) 9 July 2022 until (and including) 8 July 2029 and 4,875% from (and including) 9 July 2029 until maturity (9 July 2041).

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Its technical value is 101,32 with a residual value of 100.00%

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On October 2024, the Company purchased BPJ25 bonds, which are public bonds issued by the Central Bank of Argentina denominated in U.S. dollars that were paid with Argentine pesos and that pay principal in U.S. dollars in local accounts (no interest is paid under the BPJ25). The BPJ25 have been issued in U.S. dollars with a maturity date of 30 June 2025. Its technical value is US$41.69 with a residual value of 41.69%. They are measured at amortized cost.

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Trade receivable that do not contain a significant financing component are measured at the transaction price.

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- Subsequent measurement

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For purposes of subsequent measurement, the Company’s financial assets are classified in the following categories

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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- Financial assets at amortized cost

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The Company measures financial assets at amortized cost if both of the following conditions are met:

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Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment.

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Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.

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The Company’s financial assets at amortized cost include trade and other receivables and BPJ25 bonds.

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- Financial assets at fair value through profit or loss

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Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term.

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Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss.

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The Company considers whether a contract contains an embedded derivative when the entity first becomes a party to it. The embedded derivatives are no longer separated from the host and therefore the revaluation of provisionally priced contracts is disclosed within the receivable of the host contract in “Trade and other receivables. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required.

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There are no financial assets designated at fair value through OCI (equity instruments).

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- Derecognition

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A financial asset (or, where applicable, a part of a financial asset) is primarily derecognized (i.e., removed from the Company’s statement of financial position) when:

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When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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- Impairment of financial assets

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The Company recognizes an allowance for expected credit losses (ECLs) for debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk but instead recognizes a loss allowance based on lifetime ECLs at each reporting date.

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Financial liabilities

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- Initial recognition and measurement

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Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, and financial liabilities measured at amortized cost, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables, loans and borrowings.

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- Subsequent measurement

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- Financial liabilities at fair value through profit or loss

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Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

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‒ Financial liabilities measured at amortized cost

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This is the most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (“EIR”) method.

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Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit or loss.

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-Derecognition

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A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

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(l) Trade and other receivables

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Current trade receivables are carried at the original invoice amount less provision made for impairment of these receivables. Non-current receivables are stated at amortized cost. A provision for impairment of trade receivables is established using the expected credit loss impairment model according to IFRS 9. The amount of the provision is the difference between the carrying amount and the recoverable amount and this difference is recognized in the income statement. The revaluation of provisionally priced contracts stated in 2.E(a) is recorded as trade receivables.

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(m) Provisions

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Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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Mine closure costs

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Provisions for mine closure costs are made in respect of the estimated future costs of closure and restoration and for environmental rehabilitation costs (which include the dismantling and demolition of infrastructure, removal of residual materials and remediation of disturbed areas) in the accounting period when the related environmental disturbance occurs.

The provision is discounted and the unwinding of the discount is included in finance costs. At the time of establishing the provision, a corresponding asset is capitalized and is depreciated over future production from the mine to which it relates.

The provision is reviewed on an annual basis for changes in cost estimates, discount rates and the expected life of mine.

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Changes to estimated future costs are recognized in the statement of financial position by adjusting the mine closure cost liability and the related asset originally recognized. If, for mature mines, the related mine assets net of mine closure cost provisions exceeds the recoverable value, the portion of the increase is charged directly to the income statement. Similarly, for reductions to the estimated costs exceeding the carrying value of the mine asset, such portion of the decrease is credited directly to the income statement. For closed sites, changes to estimated costs are recognized immediately in the income statement.

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Actual rehabilitation costs will ultimately depend upon future market prices for the necessary rehabilitation works required that will reflect market conditions at the relevant time. Furthermore, the timing of rehabilitation is likely to depend on when the mine ceases to produce at economically viable rates. This, in turn, will depend upon future gold and silver prices, which are inherently uncertain.

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The discount rate used in the calculation of the provision as at December 31, 2024, was 2.12% (2023: 1.73%).

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Other

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Other provisions are accounted for when the Company has a legal or constructive obligation for which it is probable there will be an outflow of resources for which the amount can be reliably estimated.

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(n) Cash-settled share-based payments

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The fair value of cash-settled share plans is recognized as a liability over the vesting period of the awards. Movements in that liability between accounting dates are recognized as an expense. The fair value of the awards is taken to be the market value of the shares at the date of award adjusted by a factor for anticipated relative Total Shareholder Return (“TSR”) performance. Fair values are subsequently remeasured at each accounting date to reflect the number of awards expected to vest based on the current and anticipated TSR performance.

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Uncertainties in estimating the award include potential changes in the TSR, the number of participants in the plan, and levels of interest rates.

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(o) Finance income and costs

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Finance income and costs mainly include, among others, interest expense on borrowings, the accumulation of interest on provisions, unwinding of discount, and interest income on funds invested.

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Interest income is recognized as it is incurred, taking into account the effective yield on the asset.

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(p) Dividend distributions

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Dividend distributions to the Company’s shareholders are recognized as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders.

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(q) Cash and cash equivalents

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Cash and cash equivalents are carried in the statement of financial position at cost. For the purposes of the statement of financial position, cash and cash equivalents include cash on hand and deposits held with banks for varying periods of between one day and three months and which are subject to insignificant risk of changes in value.

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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Liquid investments are classified as cash equivalents if the amount of cash that will be received is known at the time of the initial investment and the risk of changes in value is considered insignificant.

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(r) Short-term investments

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Include deposits held with banks for periods higher than three months.

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(s) Fair value measurement

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The Company measures financial instruments at each statement of financial position date.

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Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

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The principal or the most advantageous market must be accessible by the Company.

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The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their best economic interest.

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All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, as described in note 30.e.

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For assets and liabilities that are recognized in the financial statements on a recurring basis at fair value, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

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The Company determines the policies and procedures for both recurring fair value measurement and unquoted financial assets, and for non-recurring measurement.

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At each reporting date, the Company analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

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The Company, in conjunction with its external valuers where applicable, also compares the changes in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

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For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

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(t) Contingencies

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A contingent liability is a possible obligation depending on whether some uncertain future event occurs, or a present obligation where payment is not probable or the amount cannot be measured reliably. Contingent liabilities are not recognized in the financial statements and are disclosed in notes to the financial statements unless their occurrence is remote.

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A contingent asset is a possible asset that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent assets are not recognized in the financial statements but are disclosed in the notes if their recovery is deemed probable.  

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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3. Revenue

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Revenue from the sale of doré and concentrate is recognized at a point in time when control is transferred and revenue from freight is recognized over time as services are provided. Included within revenue was a gain of $8,193 relating to provisional pricing adjustments (2023: gain of $1,160, 2022: loss of $489) arising on sales of concentrates and doré.

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4. Cost of sales

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5. Administrative expenses

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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6. Exploration expenses

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7. Selling expenses

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8. Personnel expenses

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Personnel expenses are included in costs of sales, administrative, exploration and other expenses (Notes 4, 5, 6 and 9) or capitalized to property, plant and equipment, E&E assets and inventory as follows: year ended December 31, 2024 – $10,030 (2023: $11,883, 2022: $9,847). For year ended December 2024 $-nil, was classified as COVID-19 expenses in costs of sales (2023: $- nil, 2022: $1,479).

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The average number of employees for 2024, 2023 and 2022 was as follows:

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(*) Unaudited

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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9. Other income and expenses

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1 Benefit arising from being able to access the Argentina government's export incentive program, allowing certain tariff positions to translate a certain proportion of US dollar sales at a preferential market exchange rate (refer to note 28).

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Other income and expenses for the year ended December 31, 2024, included mainly non-cash expense of $1,322 (2023 and 2022 non-cash income and charges of $883 and $418, respectively).

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10. Finance income and costs

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1 Financial costs for the year ended December 31,2024, 2023, and 2022 mainly represent charges for the acquisition of dollars through the sales of bonds.

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2 Corresponds to interests over labor claims $2,275 (2023: $2,604, 2022: $1,487), interests of leasing equipment $ 242 (2023: $34, 2022: $nil) and interests over clients prepayments $381 (2023: $92, 2022: $255).

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Minera Santa Cruz S.A.

Notes to the financial statements (continued)

For the years ended December 31, 2024, 2023 and 2022

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11. Property, plant and equipment

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