Molibdenos y Metales S A : Quarterly Reporting Document

RESULTS

FIRST QUARTER 2024

P R E S S R E L E A S E

Content

PRESS RELEASE

Executive

01. Summary

Pages 03 - 05

Our

02. Company

Pages 06 - 09

Summary

03. Q1 2024

Pages 10 - 12

Analysis of

04. Results

Pages 13 - 18

Consolidated

05. Balance Sheet Analysis

Pages 19 - 24

About

06. Molymet

Pages 25 - 32

Consolidated Financial

07. Statements

Pages 33 - 36

Investor Relations Team

Tel: [phone] [e-mail]

EXECUTIVE

SUMMARY

C H A P T E R

R E S U L T A D O S Q 1 2 0 2 4

As of March 31, 2024, EBITDA reached US$36 million, a decrease of US$ 26 million compared to March 2023. This is mainly explained by the decrease of US$ 31 million in gross profit in the first quarter of 2024, partially offset by lower other operating costs and expenses of US$ 6 million compared to the previous year. In turn, the lower gross profit is mainly explained by lower commercialization margins compared to those of the first quarter of 2023, which were very high, partly benefited by the high levels of the price of molybdenum. The Company maintains a robust business model, a sustainable operating result, an adequate liquidity situation and a consolidated position as a market leader worldwide. In addition, Molymet continues to make steady progress in its sustainability agenda.

Profit attributable to Molymet shareholders, as of March 2024, was US$ 19 million, 45% lower than the US$ 35 million obtained as of March 2023. This decrease is mainly explained by the lower gross profit generated in the first quarter of 2024, which was partially offset by a lower net financial expense of US$ 9 million and lower other operating costs and expenses of US$ 6 million, compared to the same period of the previous year.

The average molybdenum oxide price was US$ 20 per pound in the first quarter of 2024, 40% lower than in the previous year. The volume of molybdenum products sold by Molymet in all its forms totaled 29 million pounds as of March 2024, 5% higher than the 28 million pounds sold in the same period of 2023. With respect to rhenium sales, these increased by 16% with respect to March 2023, reaching 26 thousand pounds. It is important to note that Molymet maintains a very stable base of medium and long-term customers for its molybdenum tolling and rhenium sales business lines. For its own molybdenum sales, Molymet has a broad base of regular customers, with most of which it has long-term relationships and contracts that are continually renewed.

The stabilization in the price of molybdenum since April 2023 led to a considerable cash generation during the last part of that year, which continued in the first quarter of 2024. This is reflected in the Company's net debt, which reached US$ 203 million at March 2024, a decrease of US$ 87 million with respect to that recorded at the end of 2023. This increase in cash allowed the Company to prepay one of its bonds (Molymet 21, Mexico) in March 2024, which implied a reduction of US$ 163 million in the company's debt (including the effect of the respective hedging derivatives). This decision was taken in order to reduce total debt, net financial expense and to make efficient use of the cash surpluses generated. In addition, this operation generated a positive effect on the financial result of approximately US$ 6 million.

Thanks mainly to the aforementioned prepayment, consolidated book debt at March 2024 was of US $576 million, a reduction of US$ 188 million when compared with year-end 2023. On the other hand, book cash decreased to US$ 372 million at March 2024, from US$ 474 million at the end of 2023.

As of March 2024, Molymet maintains its Investment Grade rating in the international market, obtained in 2007. In March 2024, Fitch Ratings downgraded Molymet's rating from BBB to BBB- on an international scale and from AA to AA- at the national level (Chile), both with a stable outlook. The Company maintains a BBB- rating with negative outlook, granted by S&P Global Ratings in 2023. The downgrade by Fitch Ratings was mainly due to the negative impacts generated by the extremely unusual volatility of the molybdenum price at the beginning of 2023. It should be noted that, for Molymet, having an Investment Grade risk rating is a priority, and all measures deemed necessary to reinforce it are being implemented.

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E X E C U T I V E

S U M M A R Y

Million pounds

totaled the volume of molybdenum products sold by Molymet in Q1 2024

R E S U L T S Q 1 2 0 2 4

The exceptional increase in the price of molybdenum that occurred at the beginning of 2023 generated an increase in the Company's working capital requirements, which resulted in an increase in indebtedness and, consequently, in net financial expenses starting in the second quarter of 2023. This situation caused a decrease in the ratio of the EBITDA / Net Financial Expenses covenant, effective for all of Molymet's bonds, starting in that quarter. At the end of 2023, the Company projected a potential fall of this indicator below its contractual limit (5.0x), by the end of December 2023. In anticipation of this situation, in December 2023, meetings were held with the majority of Molymet's bondholders in both Mexico and Chile to request a temporary waiver of this covenant. Due to the solid financial situation of the Company at year-end and very adequate levels maintained for the other covenants, a waiver was obtained for the covenant for 5 quarterly closings starting in December 2023. Considering the above, as of March 31, 2024, the Company is in compliance with all its financial commitments.

On December 27, 2023, the Board of Directors of Molymet agreed to appoint Mr. Edgar Pape Arellano, then Vice President of Operations America, as Interim Chief Executive Officer, temporarily replacing Mr. John Graell Moore, who retired from his duties for health reasons. On January 17, 2024, the Board of Directors accepted the voluntary resignation of Mr. John Graell from his position as Chief Executive Officer, presented for strictly personal reasons, which became effective on January 31, 2024. It was agreed to maintain Mr. Pape as Interim Chief Executive Officer, until the appointment of a definitive successor for the position. On March 21, 2024, the Board of Directors appointed Mr. Pape as Chief Executive Officer of Molibdenos y Metales S.A., who began his term of office on March 26, 2024.

At the Ordinary Shareholders' Meeting of Molymet, held in April 2024, it was agreed to distribute the final dividend No.94 out of the profits for the year 2023, for a total of US$ 0.094 per share. The final dividend of US$ 13 million was paid on April 29, 2024.

During the year 2020, Molymet defined its purpose: "To create value for the evolution of humanity, through products developed by people, who care about the well-beingof the planet". This is the essence and the basis that defines our identity, mission, values, and is also the inspiration to think strategically and sustainably about the future. On the other hand, in 2023 the Company's Board of Directors presented Molymet's new Vision: "To be leaders in the molybdenum, rhenium and other strategic metals markets, through the permanent creation of sustainable value for all its stakeholders, driving a continuous process of innovation and advancing in a diversification related to its business and purpose". This new Vision emerges from Molymet's purpose, thus maintaining coherence and consistency with the work done in recent years.

Molymet is committed to the implementation of the new Sustainability Strategy so that, in addition to permanently complying with legal regulations, it will be a global benchmark in the industry, consolidating the link with the communities, the environment and stakeholders in general. An example of this commitment is the rating awarded by the DJSI within the top 5% of the metals and mining industry during 2023. Additionally, the sixth Sustainability Report (2023) was launched in April 2024, which is published on the Company's website: www.molymet.com.

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E X E C U T I V E

S U M M A R Y

Positioned within the

5%

of the companies evaluated by the DJSI,

in the metals and mining industry.

OUR

COMPANY

C H A P T E R

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O U R

C O M P A N Y

Molymet is the global leading processor of molybdenum and rhenium concentrates, with an approximate share in world processing capacity of 35% and 70%, respectively, at the

R E S U L T S Q 1 2 0 2 4

end of 2023.

It currently has industrial subsidiaries in four countries: Chile, Mexico, Belgium and Germany, and commercial offices in the United Kingdom, China, the United States, Brazil and Chile. The Company has built its global leadership based on strong policies of innovation, sustainability and operational excellence.

Molybdenum is mainly used for special steel alloys, in which it significantly improves the hardness, resistance to high temperatures and corrosion of the materials, thereby increasing the durability and improving the efficiency of the parts and machinery in which it is applied. There are also uses of molybdenum in fertilizers, catalysts and lubricants, among others. The most relevant molybdenum products are: technical grade molybdenum oxide, ferromolybdenum, ammonium dimolybdate, pure grade molybdenum oxide and metallic molybdenum. As part of its operations, Molymet recovers by-products from molybdenum processing, the most important being rhenium.

Molymet's leadership in the international market is based on the permanent development of competitive advantages, through technological advances, efficiency and a coherent portfolio of high quality products and services, which satisfy the needs of its customers in the mining, industrial and technological areas, both with molybdenum and rhenium products.

In addition, its extensive international presence has enabled Molymet to establish close integration with the markets, its suppliers and its customers.

Since 2007, Molymet has maintained an Investment Grade rating.

As of the end of March 2024, Molymet's total processing capacity is of 207 million pounds of molybdenum per year, which compares to a worldwide consumption of approximately 630 million pounds* per year.

Molybdenum and rhenium are considered metals of high strategic value globally, due to their valuable technological applications and the important role they play in global infrastructure development, environmental care, urban development, and in the manufacture of more efficient, safer and more durable metal alloys.

Molymet maintains a base of long-term contracts that provide commercial and operational stability to its business. In the toll manufacturing business unit, long-term contracts are maintained and periodically updated and renewed. Among these maquila clients, Codelco stands out, a company to which Molymet has been providing services for more than thirty years. Also noteworthy are the contracts with Sierra Gorda (recently renewed for 3 years, starting in 2024) and with Rio Tinto Commercial Americas, which is yearly renewed.

* Correspond to pounds of molybdenum content

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O U R

C O M P A N Y

Investment

Projects

R E S U L T S Q 1 2 0 2 4

On May 29, 2019, the Board of Directors of Molymet approved the necessary investment for the modernization of certain facilities of the plant of the subsidiary MolymetNos, San Bernardo, the "Modernization of Roasting Gas Cleaning Systems", in order to improve the gas cleaning processes making them more efficient and robust.

This project contemplates an investment of US$ 51 million over a period of 4 years, which will be financed entirely with the company's own resources.

On June 23, 2020, Molymet's Board of Directors decided to make an additional economic effort to maximize the contribution to environmental care and, with this, to the sustainability of the operations at Nos, increasing the planned investment level by US$ 8 million, by deciding to install a new acid plant with greater capacity and maximum SO2 conversion efficiency, resulting in an estimated total investment of US$ 59 million. As of March 2024, this project has a physical progress of 78% and a budget execution of US$ 44 million, which corresponds to 74% of the total estimated dismbursement.

R E S U L T S Q 1 2 0 2 4

Molymet has a unique geographic diversification in the industry. The strategic location of its processing plants and commercial offices has allowed it to achieve commercial and supply advantages, through a more complete and efficient service to its customers.

In order to preserve the knowledge and expertise developed by the Company, Molymet has reformulated its corporate Intellectual Property Policy, which incorporates the highest standards in terms of protection, management and enforcement of Intellectual Property rights, thus adopting the appropriate measures to prevent the loss of this knowledge.

The Company has filed patent applications for some processes that have been developed, such as removal of arsenic from arsenic containing materials and selective removal of copper compounds and other impurities to separate it from molybdenum and rhenium. In addition, improvements designed for multideck roasting furnaces have been patented to improve the efficiency of molybdenum oxide production. These patents are at different levels of advancement throughout the world, in countries such as Chile, USA, Mexico, Canada, Australia, South Korea and the European Union, among others.

Molymet is a company whose development and growth is based on the use of innovation as a fundamental way to introduce processes and technologies that support its leadership role in the molybdenum and rhenium industries. This same capacity has led Molymet to innovate in other strategic metals industries, seeking business opportunities to increase its product portfolio.

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O U R

C O M P A N Y

Year after year, Molymet actively participates in independent measurements to strengthen its strategy, responding to the highest global standards and indexes in the industry. In this context, the Dow Jones Sustainability Index (DJSI), which evaluates the sustainability of thousands of companies listed on the main world stock exchanges, ratified Molymet in 2023 as one of the most sustainable companies in the metals and mining industry at a global level, positioning it within the top 5% of the best evaluated companies in the industry. This rating reflects the Company's high level of commitment to environmental, social and corporate governance issues.

This rating reflects the company's high level of commitment to environmental, social and corporate governance issues. An example of this is the inauguration in 2023 of a wind turbine at Molymet Belgium, which means that, as of 2024, 80% of the subsidiary's electricity consumption will come from renewable sources.

Molymet, through its subsidiary Inmobiliaria San Bernardo, has among its assets an area of 123 hectares planted with organic walnut trees, which surround Molymet's facilities and the MolymetNos plant. In order to maintain and preserve the green areas of this sector of Nos, Molymet established the first Environmental Conservation Right in the commune of San Bernardo, in the Metropolitan Region.

SUMMARY

Q1 2024

C H A P T E R