Nativo Resources (NTVO) Investor update summary

Strategic focus and business model

• Operations in Peru integrate primary mining, gold ore processing, and tailings cleaning, focusing on near-term cash generation and risk mitigation.

• The Tesoro concession targets high-grade gold veins with a JORC exploration target of 6,500–195,000 ounces across four systems, with grades up to 63 g/t and pilot mining producing over 600 tons.

• Gold ore processing is prioritized, leveraging the construction-ready, fully permitted La Patona plant, with project finance of $3.5 million being sought.

• Tailings cleaning is a scalable, ESG-friendly business, converting environmental liabilities into revenue streams, with 1.8 million tons secured and a pipeline of additional projects.

• Expansion includes evaluating new artisanal mining and plant opportunities, with a disciplined, phased approach to plant build-out.

Gold ore processing plant development and supply chain

• La Patona plant is part-built and construction-ready, with FEED completed, groundworks, and phased build-out from 70 to 350 TPD planned.

• The plant will operate dual-circuit flotation and cyanidation, with an on-site smelter for gold doré, targeting 2.5–6 kg gold/day at full capacity.

• Feedstock will primarily come from third-party artisanal miners, supported by 1,500–3,000 regional producers, with robust local supply and competitive terms.

• Own-ore feed from mining assets mitigates supply volatility, with digital traceability for premium refinery offtake.

• Lean workforce and phased build sequence limit capital at risk and optimize operational efficiency.

Market, competition, and financial outlook

• Market studies confirm strong demand for processing capacity, with artisanal miners willing to transport high-grade ore for favorable terms.

• Peer benchmarking highlights Dynacor and Paltarumi as models, with sustainable margins and strong governance.

• Financial modeling uses a base gold price of $3,500/oz, with sensitivities down to $2,700/oz and upside to $6,000/oz.

• Project financing is being pursued through non-dilutive means (streaming, royalty, offtake), aiming for payback within two years.

• Multiple revenue streams from mining, processing, and tailings recovery support capital-efficient, self-funding growth.