BUDGETED COST

DDG 2021
Budget Cost 2021

TABLE OF CONTENTS
Operation
Cost by Area
Costs (OPEX)

Capital Cost
Sales
(CAPEX)

Assumptions Comparative

2
OPEX
 Operational Capital Costs

Total Budget
Operation C ost January February March April May June July August September October November December 2021 V4
Mine After Pow er Energy 1,601,614 1,562,517 1,803,181 1,648,669 1,910,503 1,804,642 2,011,793 1,988,671 2,063,087 2,163,539 2,057,492 2,110,224 22,725,930
Processing After Pow er Energy 777,190 778,801 821,900 768,089 832,848 820,165 838,330 842,330 854,024 853,142 840,804 843,688 9,871,310
Summary - Energy 367,613 323,448 355,463 344,558 368,381 362,431 378,498 380,398 366,331 373,248 366,331 376,898 4,363,600
Total - Mine Overhead Expenses 688,102 753,187 871,958 609,442 590,820 640,824 650,155 570,364 600,266 573,923 579,142 582,225 7,710,407
Summary - Cost of production 3,434,519 3,417,953 3,852,502 3,370,757 3,702,552 3,628,061 3,878,776 3,781,764 3,883,708 3,963,851 3,843,768 3,913,035 44,671,247
Cost Of Goods Sold-No DD&A (COGS) 3,434,519 3,417,953 3,852,502 3,370,757 3,702,552 3,628,061 3,878,776 3,781,764 3,883,708 3,963,851 3,843,768 3,913,035 44,671,247
Summary - Oaxaca SG&A 1,622,007 1,522,543 1,560,474 1,479,012 1,613,961 1,749,897 1,831,971 1,703,204 1,789,067 1,980,604 1,938,092 1,482,534 20,273,365
Total - Refining 1,535,763 1,443,775 1,519,910 1,375,929 1,524,014 1,688,442 1,670,360 1,666,253 1,756,512 1,978,086 1,899,734 1,399,410 19,458,188
Total Cash Cost Before by-product credits
6,592,289 6,384,271 6,932,886 6,225,699 6,840,527 7,066,401 7,381,107 7,151,220 7,429,286 7,922,541 7,681,594 6,794,979 84,402,800
By Product-Credit (6,155,133) (5,647,884) (5,923,879) (5,134,667) (5,964,759) (6,382,464) (6,653,109) (6,623,668) (7,065,431) (7,495,678) (7,138,367) (5,574,857) (75,759,896)
Total Cash Cost after by- product credits437,156 736,387 1,009,007 1,091,032 875,768 683,937 727,998 527,552 363,855 426,863 543,227 1,220,122 8,642,904
Exploration Sustaining 0 0 0 0 0 0 0 0 0 0 0 0 3,069,868
Total Capex Sustaining 3,924,332 4,312,169 4,120,340 3,894,853 2,778,666 1,810,595 1,878,645 1,567,325 1,282,456 951,725 834,386 631,635 27,987,124
All In Sustaining Cost 4,361,487 5,048,556 5,129,347 4,985,885 3,654,434 2,494,532 2,606,643 2,094,877 1,646,311 1,378,588 1,377,613 1,851,756 36,630,028
All In Cash Cost 4,361,487 5,048,556 5,129,347 4,985,885 3,654,434 2,494,532 2,606,643 2,094,877 1,646,311 1,378,588 1,377,613 1,851,756 36,630,028
Gross Sales 11,682,691 11,201,841 10,772,701 11,274,885 11,814,303 13,990,061 13,391,568 12,358,349 12,443,341 16,304,581 16,875,718 10,222,028 152,332,067
Net Sales 10,146,928 9,758,066 9,252,791 9,898,955 10,290,289 12,301,619 11,721,208 10,692,097 10,686,829 14,326,495 14,975,984 8,822,618 132,873,879
Operating Cost 5,056,525 4,940,496 5,412,976 4,849,769 5,316,513 5,377,958 5,710,747 5,484,968 5,672,775 5,944,455 5,781,860 5,395,569 64,944,612
EBITDA 4,123,111 4,226,855 3,267,723 4,452,154 4,378,884 6,320,944 4,929,486 4,611,354 4,439,139 7,991,065 8,805,808 3,140,474 60,686,999
Free Cash Before Taxes and I/C 1,163,971 503,300 (282,625) 1,152,234 2,193,010 5,110,965 4,129,716 3,637,704 3,729,499 7,428,215 8,357,638 2,793,314 39,916,943

34
 Profit & Loss 2021

Budget 2021 Version 4 Production 1550 Ton (change in Sales contract conditions) 1550 Ton
Total Budget
P &L January February March April May June July August September October November December 2021 V4
Concentrate By-Product 6,155,133 5,647,884 5,923,879 5,134,667 5,964,759 6,382,464 6,653,109 6,623,668 7,065,431 7,495,678 7,138,367 5,574,857 75,759,896.39
Gross Sales 11,682,691 11,201,841 10,772,701 11,274,885 11,814,303 13,990,061 13,391,568 12,358,349 12,443,341 16,304,581 16,875,718 10,222,028 152,332,067.46
Cost of Goods Sold 3,434,518.71 3,417,952.80 3,852,502.48 3,370,757.33 3,702,552.00 3,628,061.39 3,878,775.79 3,781,763.85 3,883,707.95 3,963,851.33 3,843,768.06 3,913,035.14 44,671,246.82
Selling Expenses 1,385,312.60 1,314,288.16 1,331,828.52 1,223,191.85 1,388,491.27 1,525,467.26 1,539,669.81 1,495,844.13 1,578,532.10 1,774,232.97 1,728,332.05 1,266,374.13 17,551,564.83
Administration Expenses 236,694.16 208,255.16 228,645.16 255,820.16 225,470.16 224,429.70 292,301.36 207,359.70 210,534.70 206,370.70 209,759.70 216,159.70 2,721,800.33
Operating Cost 5,056,525.47 4,940,496.12 5,412,976.15 4,849,769.34 5,316,513.43 5,377,958.34 5,710,746.96 5,484,967.68 5,672,774.74 5,944,455.00 5,781,859.80 5,395,568.96 64,944,611.98
Exploration Expenses 965,191.65 588,614.23 569,991.65 594,932.51 592,791.65 600,615.74 1,078,874.88 593,674.88 572,815.74 388,874.88 386,215.74 284,474.88 7,217,068.44
EBITDA 4,123,111 4,226,855 3,267,723 4,452,154 4,378,884 6,320,944 4,929,486 4,611,354 4,439,139 7,991,065 8,805,808 3,140,474 60,686,998.62
Capex Sustaining 2,959,140 3,723,555 3,550,348 3,299,920 2,185,874 1,209,979 799,770 973,650 709,640 562,850 448,170 347,160 20,770,056.00
Free Cash Before Taxes and I/C 1,163,971 503,300 -282,625 1,152,234 2,193,010 5,110,965 4,129,716 3,637,704 3,729,499 7,428,215 8,357,638 2,793,314 39,916,942.62

 This Budget is based in a daily production of 1,550 tonnes.

COST BY AREA
 COST BY AREA

 BUDGET 2021

Budget 2021 Version 4 Production 1550 Ton (change in Sales contract conditions) 1550 Ton
Total
Budget 2021
Areas January February March April May June July August September October November December V4
Summary - Mine Operation 2,731,972.29 2,658,057.41 3,060,752.80 2,763,886.50 3,159,537.65 2,983,434.40 3,257,544.07 3,234,752.06 3,330,398.73 3,477,672.68 3,291,506.09 3,362,557.88 37,312,073
Summary - Mine Maintenance 574,968 569,814 663,276 580,153 667,864 619,698 660,197 669,962 696,024 693,141 671,028 682,723 7,748,849
Summary - Allocation (1,522,629) (1,500,336) (1,738,150) (1,518,566) (1,734,200) (1,621,686) (1,723,250) (1,733,344) (1,786,531) (1,824,577) (1,728,237) (1,752,358) (20,183,865)
Summary - Mining 1,784,312 1,727,535 1,985,879 1,825,474 2,093,202 1,981,447 2,194,491 2,171,370 2,239,891 2,346,237 2,234,297 2,292,922 24,877,056
Summary - Mill Operation 721,022 706,553 765,732 721,455 801,842 789,439 813,627 817,626 823,299 828,408 810,078 818,985 9,418,065
Summary - Mill Maintenance 223,933 223,778 223,933 208,987 209,039 212,952 213,003 213,003 212,952 213,033 212,952 213,003 2,580,569
Summary - Processing 944,955 930,331 989,665 930,442 1,010,881 1,002,391 1,026,630 1,030,630 1,036,250 1,041,442 1,023,030 1,031,988 11,998,634
Summary - Energy 367,613 323,448 355,463 344,558 368,381 362,431 378,498 380,398 366,331 373,248 366,331 376,898 4,363,600
Summary - Cost of production 3,434,519 3,417,953 3,852,502 3,370,757 3,702,552 3,628,061 3,878,776 3,781,764 3,883,708 3,963,851 3,843,768 3,913,035 44,671,247
Summary - Oaxaca SG&A 1,622,007 1,522,543 1,560,474 1,479,012 1,613,961 1,749,897 1,831,971 1,703,204 1,789,067 1,980,604 1,938,092 1,482,534 20,273,365
Summary - Exploration Sustaining 965,192 588,614 569,992 594,933 592,792 600,616 1,078,875 593,675 572,816 388,875 386,216 284,475 7,217,068
Summary - Capex Sustaining 2,959,140 3,723,555 3,550,348 3,299,920 2,185,874 1,209,979 799,770 973,650 709,640 562,850 448,170 347,160 20,770,056

 This Budget is based in a daily production of 1,550 tonnes.

10
CAPEX
 CAPEX

 BUDGET 2021 MILLED TONNES

10
 CAPITAL COST

 CAPEX

Budget 2021 Version 4 Production 1550 Ton (change in Sales contract conditions) 1550 Ton
Total Budget
Areas January February March April May June July August September October November December 2021 V4
Summary - Exploration Sustaining 965,191.65 588,614.23 569,991.65 594,932.51 592,791.65 600,615.74 1,078,874.88 593,674.88 572,815.74 388,874.88 386,215.74 284,474.88 7,217,068.44
Summary - Capex Sustaining 2,959,140.00 3,723,555.00 3,550,348.00 3,299,920.00 2,185,874.00 1,209,979.00 799,770.00 973,650.00 709,640.00 562,850.00 448,170.00 347,160.00 20,770,056.00
Total Capex Sustaining 3,924,331.65 4,312,169.23 4,120,339.65 3,894,852.51 2,778,665.65 1,810,594.74 1,878,644.88 1,567,324.88 1,282,455.74 951,724.88 834,385.74 631,634.88 27,987,124.44

 This Budget is based in a daily production of 1,550 tonnes.

10
SALES
 Sales 2021

 Net Sales 2021

Total Budget
Sales January February March April May June July August September October November December 2021 V4
Revenues 11,682,690.93 11,201,841.11 10,772,701.00 11,274,884.85 11,814,303.01 13,990,060.96 13,391,568.11 12,358,349.05 12,443,340.76 16,304,581.43 16,875,718.12 10,222,028.13 152,332,067.46
Total - Revenues Gold 3,057,304.42 2,984,412.49 2,254,357.67 2,602,452.84 3,126,371.50 3,489,684.30 4,219,104.01 3,141,313.04 2,536,458.07 3,900,406.91 4,941,359.89 2,530,086.69 38,783,311.83
Total - Revenues Silver 2,470,253.59 2,569,544.18 2,594,464.42 3,537,765.33 2,723,172.76 4,117,912.97 2,519,354.66 2,593,367.94 2,841,451.72 4,908,496.48 4,795,991.03 2,117,084.15 37,788,859.24
Revenues Copper 763,307.80 804,866.18 905,809.70 746,639.59 812,311.51 840,113.64 1,070,029.98 1,107,739.33 1,181,241.34 1,063,101.45 1,065,141.67 893,786.01 11,254,088.20
Revenues Lead 1,039,801.00 1,080,441.28 909,371.51 860,640.27 1,184,562.14 1,260,149.39 1,284,997.56 1,194,648.13 1,522,259.23 1,494,206.65 1,317,403.62 1,044,005.19 14,192,485.98
Revenues Zinc 4,352,024.12 3,762,576.98 4,108,697.71 3,527,386.83 3,967,885.09 4,282,200.66 4,298,081.91 4,321,280.60 4,361,930.40 4,938,369.94 4,755,821.90 3,637,066.08 50,313,322.21
Summary - Reven 11,682,690.93 11,201,841.11 10,772,701.00 11,274,884.85 11,814,303.01 13,990,060.96 13,391,568.11 12,358,349.05 12,443,340.76 16,304,581.43 16,875,718.12 10,222,028.13 152,332,067.46
Concentrate By-Product 6,155,132.92 5,647,884.43 5,923,878.92 5,134,666.69 5,964,758.74 6,382,463.69 6,653,109.44 6,623,668.06 7,065,430.98 7,495,678.04 7,138,367.19 5,574,857.28 75,759,896.39
Gross Sales 11,682,690.93 11,201,841.11 10,772,701.00 11,274,884.85 11,814,303.01 13,990,060.96 13,391,568.11 12,358,349.05 12,443,340.76 16,304,581.43 16,875,718.12 10,222,028.13 152,332,067.46
Discount By Treatment & Refining 1,535,763.07 1,443,775.30 1,519,909.83 1,375,929.44 1,524,013.61 1,688,442.45 1,670,360.24 1,666,252.53 1,756,511.71 1,978,086.12 1,899,734.27 1,399,409.85 19,458,188.42
Net Sales 10,146,927.86 9,758,065.81 9,252,791.17 9,898,955.41 10,290,289.40 12,301,618.51 11,721,207.87 10,692,096.52 10,686,829.05 14,326,495.32 14,975,983.85 8,822,618.27 132,873,879.04

34
 Cash Cost Sales 2021

 Unit Production Cost USD/ DMT Milled

Total Budget
Cash Cost of Sale
January February March April May June July August September October November December 2021 V4
Mining $/t Mined 40 40 37 41 38 41 42 40 40 42 42 43 40
Mining $/t Milled 40 40 37 41 38 41 42 40 40 42 42 43 40
Processing 20 20 17 19 17 19 17 17 16 16 17 17 18
Energy 9 8 7 9 7 8 8 8 7 7 7 8 8
Mine Overhead Expenses 17 19 18 15 12 15 13 12 12 11 12 12 14
Cost of production 86 87 78 84 74 82 80 77 75 77 79 79 79
Inventory Change 0 0 0 0 0 0 0 0 0 0 0 0 0
Cost Of Goods Sold-No DD&A (COGS) 86 87 78 84 74 82 80 77 75 77 79 79 79
Comercial w hith Freight & Royalties 35 34 27 30 28 35 32 30 30 34 35 26 31
Oaxaca SG&A 6 5 5 6 5 5 6 4 4 4 4 4 5
Refining 39 37 31 34 31 38 35 34 34 38 39 28 35
Cash Cost Before by-product credits 166 163 141 155 137 160 153 145 143 153 157 137 150
By Product-Credit (155) (144) (120) (128) (120) (145) (138) (134) (136) (145) (146) (113) (135)
Cash Cost after by- product credits 11 19 20 27 18 16 15 11 7 8 11 25 15
Exploration Sustaining 24 15 12 15 12 14 22 12 11 8 8 6 13
Capex Sustaining 74 95 72 82 44 27 17 20 14 11 9 7 37
All In Sustaining Cost 110 129 104 124 73 57 54 43 32 27 28 37 65
Filtration Plant 43 42 24 28 12 0 0 0 0 0 0 0 11
All In Cash Cost 110 129 104 124 73 57 54 43 32 27 28 37 65
Exploration & Sustaining Capex 99 110 84 97 56 41 39 32 25 18 17 13 50

34
 Cash Cost Sale 2021

 Unit Production Costs USD / AuEq Oz. Sold

Total Budget
Cash Cost of Sale
January February March April May June July August September October November December 2021 V4
Mining 523 508 671 485 590 428 539 626 692 443 381 820 536
Processing 254 253 306 226 257 195 225 265 287 175 156 328 233
Energy 120 105 132 101 114 86 101 120 123 76 68 146 103
Mine Overhead Expenses 225 245 325 179 182 152 174 180 201 118 107 226 182
Cost of production 1,122 1,111 1,434 991 1,143 861 1,039 1,190 1,304 812 713 1,520 1,053
Inventory Change 0 0 0 0 0 0 0 0 0 0 0 0 0
Cost Of Goods Sold-No DD&A (COGS) 1,122 1,111 1,434 991 1,143 861 1,039 1,190 1,304 812 713 1,520 1,053
Comercial incluye Fletes & Royalties 452 427 496 360 428 362 412 471 530 364 320 492 414
Oaxaca SG&A 77 68 85 75 70 53 78 65 71 42 39 84 64
Refining 502 469 566 404 470 401 447 524 590 405 352 544 459
Cash Cost Before by-product credits 2,153 2,075 2,581 1,830 2,111 1,677 1,977 2,251 2,494 1,623 1,424 2,639 1,990
By Product-Credit (2,010) (1,836) (2,205) (1,509) (1,841) (1,514) (1,782) (2,085) (2,371) (1,536) (1,323) (2,165) (1,786)
Cash Cost after by- product credits 143 239 376 321 270 162 195 166 122 87 101 474 204
Exploration Sustaining 315 191 212 175 183 143 289 187 192 80 72 110 170
Capex Sustaining 966 1,210 1,322 970 674 287 214 306 238 115 83 135 490
All In Sustaining Cost 1,424 1,641 1,909 1,466 1,128 592 698 659 553 282 255 719 863
Filtration Plant 555 529 431 336 189 0 0 0 0 0 0 0 147
All In Cash Cost 1,424 1,641 1,909 1,466 1,128 592 698 659 553 282 255 719 863

34
COMPARATIVE
2020 – 2021
 Budget 2020 vs 2021
 AICC
AICC
Budget 2020 Budget 2021 Var %
Summary - Mining 30,779,035.19 24,877,055.60 - 5,901,979.59 -24%
Mine Energy - 3,060,680.33 - 2,151,125.22 909,555.11 -42%
Mine After Power Energy 27,718,354.86 22,725,930.38 - 4,992,424.48 -22%
-
Summary - Processing 14,574,486.28 11,998,634.47 - 2,575,851.81 -21%
Processing Energy - 3,012,799.07 - 2,127,324.39 885,474.68 -42%
Processing After Power Energy 11,561,687.21 9,871,310.09 - 1,690,377.12 -17%
-
Summary - Energy 6,073,479.27 4,363,599.60 - 1,709,879.67 -39%
-
Total - Mine Overhead Expenses 8,617,692.09 7,710,406.75 - 907,285.34 -12%
-
Summary - Cost of production 53,971,213.43 44,671,246.82 - 9,299,966.61 -21%
-
Inventory Change 1,300,194.00 - - 1,300,194.00
Cost Of Goods Sold-No DD&A (COGS) 55,271,407.43 44,671,246.82 - 10,600,160.61 -24%

Summary - Oaxaca SG&A 21,077,936.55 20,273,365.16 - 804,571.39 -4%

Total - Refining 31,643,008.80 19,458,188.42 - 12,184,820.38 -63%
Total Cash Cost Before by-product credits 107,992,352.78 84,402,800.40 - 23,589,552.38 -28%
Total - Copper Concentrates - 13,238,647.02 - 11,254,088.20 1,984,558.82 -18%
Total - Lead Concentrates - 17,041,922.03 - 14,192,485.98 2,849,436.05 -20%
Total - Sales Zinc Cons - Zinc - 55,756,291.91 - 50,313,322.21 5,442,969.70 -11%
By Product-Credit - 86,036,860.96 - 75,759,896.39 10,276,964.57 -14%
Total Cash Cost after by- product credits 21,955,491.82 8,642,904.01 - 13,312,587.81 -154%
Summary - Capex Sustaining 16,632,588.04 20,770,056.00 4,137,467.96 20%
Total Capex Sustaining 23,017,588.04 27,987,124.44 4,969,536.40 18%
All In Cash Cost 44,973,079.86 36,630,028.45 - 8,343,051.41 -23%

10
 Budget 2020 vs 2021
 AICC

Production Budget 2020 Budget 2021

Milled Tonnes 766,110 562,047
Mined Tonnes 717,846 562,047
Gold Equivalent Ounces Produced 46,864 47,586
Gold Equivalent Ounces Sold 41,890 42,422

Price Metal AVG

AG 17.50 21.50
AU 1,450.00 1,805.00
CU 6,062.60 6,172.94
PB 1,873.89 1,763.70
ZN 2,314.81 2,292.80

10
 Budget 2020 vs 2021

 Free Cash

Revenues 146,777,613.00 152,332,067.46 5,554,454.46 4%

Total - Revenues Gold 34,749,923.72 38,783,311.83 4,033,388.11 10%
Total - Revenues Silver 25,990,828.32 37,788,859.24 11,798,030.92 31%
Total - Copper Concentrates 13,238,647.02 11,254,088.20 - 1,984,558.82 -18%
Total - Lead Concentrates 17,041,922.03 14,192,485.98 - 2,849,436.05 -20%
Total - Sales Zinc Cons - Zinc 55,756,291.91 50,313,322.21 - 5,442,969.70 -11%
Summary - Reven 146,777,613.00 152,332,067.46 5,554,454.46 4%
Concentrate By-Product 86,036,860.96 75,759,896.39 - 10,276,964.57 -14%
Gross Sales 146,777,613.00 152,332,067.46 5,554,454.46 4%
Discount By Treatment & Refining 31,643,008.80 19,458,188.42 - 12,184,820.38 -63%
Net Sales 115,134,604.20 132,873,879.04 17,739,274.84 13%
Cost of Goods Sold 55,271,407.43 44,671,246.82 - 10,600,160.61 -24%
Selling Expenses 18,363,954.14 17,551,564.83 - 812,389.31 -5%
Administration Expenses 2,713,982.41 2,721,800.33 7,817.92 0%
Operating Cost 76,349,343.98 64,944,611.98 - 11,404,732.00 -18%
Exploration Expenses 6,385,000.00 7,217,068.44 832,068.44 12%
Total - Other Income/Expenses - 24,999.96 25,200.00 50,199.96 199%

EBITDA 32,425,260.18 60,686,998.62 28,261,738.44 47%

Capex Sustaining 16,632,588.04 20,770,056.00 4,137,467.96 20%

Free Cash Before Taxes and I/C 15,792,672.14 39,916,942.62 24,124,270.48 60%

10
ASSUMPTIONS
 Assumptions 2021

 COMMENTS

1. The cost of Production and G&A were obtained from the average costs
of the year 2020 of the full months (January, February, March, June,
July, August and September), to determine the cost per tonne in Mina
and Plant.
2. Inventory Change is considered zero, because it is not estimated to have
inventories at the end of 2020 and during 2021 it will be shipped.

3. The Filter Plant Capex is considered from the 2021 budget sent by Eng.
Ricardo Garcia.

4. The Capex and Opex mine meters increase for 2021 is not considered.

10