ROBIT PLC’S ANNUAL REPORT, CORPORATE GOVERNANCE STATEMENT AND REMUNERATION REPORT FOR THE YEAR 2022 HAVE BEEN PUBLISHED

Robit Plc’s Annual Report, Corporate Governance Statement and Remuneration Report for the year 2022 have today been published in Finnish and English in PDF format on the company’s website at https://www.robitgroup.com/investor/financial-information/.

The Annual Report contains the Board of Directors’ Review and the Financial Statements 2022. The Financial Statements includes Consolidated Financial Statements, Robit Plc’s Parent Company Statements and the Auditor’s Report.

Please read the report: Robit Plc Annual Report 2022

MEGACITY GETS A NEW METRO LINE

Lima, the capital of Peru, is the second largest city in the Americas, with a population of just slightly under 10 million. Surprisingly, the megacity has only one metro line; the second line is now under construction. Once finished, it will make a huge impact on the city now troubled by congestion and pollution.

The project of building a metro network in Lima has been long and burdensome. The first plans were approved by the Peruvian government in 1974, but construction did not start until 1986. Due to various political disputes and economic issues, the project was stalled for several decades, until Line 1 finally started operations in 2012.

Plans for Metro Line 2 were initiated the same year. While Line 1 connects the northern and southern parts of the city, Line 2 will stretch from the eastern Ate district to the seaside city of Callao, Peru’s chief seaport, in the west. Construction work began in late 2014; it will include 27 stations and the excavation of some 27 km of tunnels.

Several of the stations will require some heavy foundation work. For stations 11 and 26, in the Breña district and Ate district respectively, the fortification work was awarded to Soletanche Bachy del Perú, a leading multinational company in civil and geotechnical engineering, and a strategic partner for Robit in Peru.

“We have worked from day one with Soletanche’s technical, commercial and engineering staff, advising on the different solution alternatives for carrying out the work”, says José Luis Cisneros, General Manager of Robit SAC.

“Since Soletanche has used our MU (Multi-use) Down the Hole systems in the past, we decided together to use Robit MU Tools for the project, including sizing equipment, pipes and accessories. Since early July 2022, we worked in close coordination with operations and logistics to meet the demanding deadlines.” Our DTH Sales Manager, Martín Rodríguez, played a key role in this coordination”.

Soletanche began micro-piling work for lateral support at Station 11 on July 20, using the Robit MU 114 system and Hyper 31 hammers.

“Supervised by Harold del Rosario, our Head of Geotechnical Assistance, we attended the operation to monitor the performance of our materials. We obtained excellent results in a very abrasive and challenging terrain”, José says.

August saw the beginning of micro-piling work for the structures of Station 11, with Robit pilots and ring bits from the MU 406 system and the HYPER 121 SD 12 hammer. Robit continued to provide assistance and monitor the performance and the drilling parameters. At the end of November, the fortification project of Station 11 of Lima Metro Line 2 was completed.

”Soletanche’s experience with our drilling tools has been very satisfactory, given the great performance of the MU 114 system, as well as the MU 406 system penetration rates achieved after the adjustments recommended by our drilling specialists. This project has further consolidated the relations between Robit and Soletanche for future projects”, José says.

As a whole, Lima Metro Line 2 is a gigantic, $5 billion project which will largely revolutionize mobility in the Lima Metropolitan area. Today, the typical trip from Ate to Callao is a two-hour ride; the metro line reduces the time to 45 minutes – a major improvement that will be enjoyed by more than 200 million passengers each year.

Picture: Harold Del Rosario (3rd from right) and the Soletanche team at Station 11.

A NEW STAR IN THE MEXICAN MARKET REPRESENTS ROBIT

Peñasquito Mine, located in the State of Zacatecas in Central Mexico, is the second-largest silver mine in the world and also a major producer of gold, lead, and zinc. The giant has been successfully served by a fresh partnership between a new dynamic distributor and Robit.

The scale of operation at Peñasquito is so massive that it’s more like a small city than just an open-pit mine, with its own airport, a 1,900-bed camp with full dining, laundry and recreational facilities, and even a radio station. Opened in 2010, it currently produces some 31 million ounces, or almost 900 tons, of silver per year.

Mining is a thriving industry in Mexico, with several distributors competing over their share of the drilling consumable market. Peñasquito Mine is owned by Newmont, the world’s largest gold mining corporation. This did not stop Marlous Supplies and Services, a newcomer in the field, from landing a distribution deal for Robit DTH tools with Newmont.

Marlous was founded in the spring of 2020 by Martín Ocaño, who has an accomplished track record in the business.

“I have dedicated 24 years to the commercialization of products and services, in mining and public and private companies. For years I had been working on the idea of forming a company dedicated to supplying different products to the mining industry”, Martín says.

“Our key strength against the competition is that we focus completely on giving good attention and service to our clients, always covering their needs, interests and concerns, including after-sales. This has distinguished us and helped us enter and gain ground in the toughly competed mining market.”

In the search for a reliable supplier for drilling tools in their portfolio, Marlous decided the best option was Robit, given their experience and product quality. In the case of Newmont Peñasquito, Marlous was in the right place at the right time.

“Newmont’s main supplier of drilling tools was failing to deliver products in time. We had a similar product available, so we were able to help them out, and from then on we were allowed to start serious testing”, Martín recalls.

Currently, Marlous is supplying a major part of the DTH drilling tools used at Peñasquito. These include Robit D88 and WH4 hammers as well as QL80 and TD40 drill bits.

A key factor in their success at Peñasquito has been the technical personnel working on-site in close cooperation with the Newmont staff. This includes monthly meetings where the results of the previous month are analyzed and points of improvement can be identified.

“We are always open to feedback and encourage our customers to comment on any detail, anomaly or possible improvement. They appreciate it when their comments and observations are taken into account and implemented as soon as possible”, says Martín.

Still a young and small company, Marlous has already established a firm foothold in the Mexican mining sector. Growing steadily, the company is building on a balanced synergy between the quality of products and impeccable customer service.

Picture: The Marlous team, from left; Martín Tapia, Erik Coronado, Guadalupe Rivera, Ignacio Beltran, Carlos Tapia, Rodrigo Aravena. Martín Ocaño, Narciso Beltrán and Miguel Beltrán were out on business.

GROUNDBREAKING DTH CONTRACT IN PERU

Rich in copper, silver, gold, and lead reserves, Peru is a global giant in the mining industry. Iron ore is also a significant export, although known deposits are limited to a single region.

Antonio Raimondi was an exceptionally versatile scientist. Born in Milan, Italy in 1826, he emigrated to Peru in 1850. A year later he became a professor of natural history at the National University of San Marcos in Lima. In the following years, he founded a medical school and a chemistry department there. Raimondi was also a passionate geographer, traveling extensively across the country conducting geological, botanical, and zoological studies. It was on one of these journeys that he discovered a vast iron ore deposit in the Marcona District in the Nazca province, some 500 km south of Lima, in 1870.

It wasn’t until the 1950s that the exploitation of iron ore in Marcona began. Since 1992 the open pit operation has been run by the Chinese-owned company Shougang Hierro Perú, during which time the production of iron has grown sixfold.

A large share of the drilling and earthmoving operations at Shougang Hierro Perú is conducted by Cosapi Mineria, a subsidiary of Cosapi S.A., one of Peru’s biggest construction and engineering companies. Cosapi Mineria specializes in massive earthworks and the development of open pit mines.

An open pit operation typically makes extensive use of Down-the-Hole tools for pre-split and buffer drilling. That’s why Shougang Hierro Perú was an attractive target for Robit SAC to approach with their offering.

“The iron deposit at Shougang Hierro Perú consists of very hard and abrasive materials. You can find competent soils with compressive strengths of 250 to 300 MPa”, says José Luis Cisneros, General Manager of Robit SAC.

“We contacted Cosapi Mineria and carried out the first test in early 2020 with 7-inch bits and a D65 hammer. Since then, we have been working ever more closely with Cosapi, providing them with material innovations to increase performance.”

“In recent months we have been working together with Cosapi in a testing process of the main DTH providers in the market. Thanks to the constant monitoring by our Assistance Engineer Kevin Salas, and the development of the right products through our DTH Sales Manager, Martín Rodríguez, we have been able to generate new ways of improving the operation and proposing drilling targets with higher standards”, José says.

The open pit operation requires a lot of double bench pre-splitting, performed with D45 HD hammers and 5-inch bits, ballistic buttons, and a convex face. The bits have obtained an average duration of 1,400 meters, and an average speed of 32 m/h.

Recently, Cosapi signed an extension contract for their operations in two of the open pits at Shougang Hierro Perú. Impressed by the tests conducted with Robit, they granted a consignment agreement, trusting Robit with 60% of the consumption of drilling tools over the competition.

“This is the first contract of consumption for DTH tools in Latin America where we will provide assistance and stock for the client’s operation, including technical service, maintenance of hammers and management of drill bits”, says José.

“We hope to show Cosapi Mineria and the market that Robit SAC has the necessary resources to keep exceeding the expectations of our strategic partners.”