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Mineros Gold Mining Profits Improve Mineros Gold Mining Profits Improve Source: Mineros SA

Mineros 2Q 2021 Profits Rise Year-on-Year

Published in Companies Written by  August 15 2021 font size decrease font size increase font size 0
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Medellin-based multinational gold mining giant Mineros SA announced August 10 that its second quarter (2Q) 2021 consolidated net profit rose to US$10.4 million, up from US$8.7 million in 2Q 2020.

Revenues likewise rose, to US$128.4 million, up from US$126.3 million in 2Q 2020. But earnings before interest, taxes, depreciation and amortization (EBITDA) dipped to US$41.8 million, from US$53.4 million in 2Q 2020.

“During the second quarter of 2021, the world price of gold was US$1,770 per ounce, an increase of 3.7% compared to the end of first quarter 2021 and 5% higher than the end of the second quarter of 2020,” according to Mineros.

“Despite the positive news of economic recovery worldwide, the price of gold remained at strong levels due to economic stimuli packages, low central bank interest rates and high inflation in the United States.

“At the beginning of the third quarter 2021, the gold price continues to be strong, while the main concerns focus on the behavior of the Delta variant [of Covid-19] and the monetary policy of large economies,” the company added.

For all of 2Q 2021, Mineros produced 67,403 ounces of gold, of which 19,738 ounces were from alluvial production in Colombia; 32,381 ounces from underground mining at Hemco-Nicaragua; and 15,284 ounces from open-pit mining at Gualcamayo-Argentina.

As for its core alluvial mining operations in Antioquia, Colombia, “on June 23, the Colombian environmental authority [ANLA] replied to an appeal filed by the company in April. A good part of previous [negative] decisions were reconsidered. In that sense, once the impact was analyzed, even when not all the requested areas [for alluvial mining] were granted, the company will be able to continue with its alluvial operation.

“In September and October, a new request for environmental permits will be submitted, seeking to give continuity to the alluvial operation in the mid and long term,” according to Mineros.

On another front, “on July 30, in Colombia, we launched the ‘Llanuras Aluviales’ project, a new alluvial production unit that uses lighter technology, with easier transportation and allows for process optimization,” according to Mineros.

“Llanuras will give access to smaller areas with lower average ore grades. With an investment of around US$18 million, Llanuras will generate new development and employment opportunities in the area, promoting technology and business innovation in the Bajo Cauca region [in Antioquia],” the company added..

Total gold production for 2Q 2021 “was 4% lower than in the second quarter of 2020, explained by a drop in production in Gualcamayo (Argentina), given the natural depletion of a sector of the open pit mine and the sale of Operadora Minera in Colombia in June of last year,” according to Mineros.

Total cash costs rose 24% and the all-in sustaining cost rose 41% “mainly explained by higher production costs in Argentina and by the cost of purchases of artisanal material in Nicaragua, in addition to the development of the open pit mine in Argentina which requires the movement of a large amount of sterile material,” according to Mineros.

 

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