Asset retirement obligations (“ARO”)

12 Months Ended

Dec. 31, 2025

Asset Retirement Obligations

Asset retirement obligations (“ARO”)

20. Asset retirement obligations (“ARO”)

The balance of provisions for assets retirement obligations is as follows:

	12/31/2025		12/31/2024
Xuxa Mine (1)		2,924		2,169
Barreiro Mine (2)		954		734
Total		3,878		2,903

¹ - Related to Phase I classified within property, plant and equipment.

² - Related to Phase II classified within Deferred exploration and evaluation expenditure.

In December 2025 the Company updated the previous appraisal, which resulted in an increase of the provision by $372, mainly due to:

· review of the affected area;

· cash outflow estimate update; and

· updating the discount rate to 7.04% from 7.42% used in December 2024.

The changes in asset retirement obligations are shown in the following table:

	12/31/2025		12/31/2024
Opening balances		2,903		2,893
Accretion of asset retirement obligation		239		156
Addition of fixed assets		305		614
Addition (reversal) of exploration assets		67		(100	)
Foreign currency translation adjustment of subsidiary		364		(660	)
Asset retirement obligation total		3,878		2,903

Accounting Policy

Mining processing activities normally give rise to legal or constructive obligations for environmental rehabilitation and the decommissioning of facilities. These activities can include, among others, removal or treatment of waste materials and land rehabilitation, according to environmental regulations. The extent of costs associated with the retirement of assets are based on the requirements of authorities and environmental policies.

The provision reflects the risks and probability of future cash flows required to settle the obligation. The expected rehabilitation costs are estimated based on the cost of external contractors performing the work. This provision is updated each reporting period for changes to expected cash flows and for the effect of changes in the discount rate, and the change in estimate is added or deducted from the related asset and depreciated over the expected economic life of the operation to which it relates. The unwinding of the discount, referred to as accretion expense, is included in finance costs and results in an increase in the amount of the provision.

When provisions for closure and rehabilitation are initially recognized, the corresponding cost is capitalized as an asset, representing part of the cost of the future economic benefits of the operation. The capitalized cost of closure and rehabilitation activities is recognized in property, plant and equipment and depreciated over the expected economic life of the operation to which it relates.