Thursday, December 2, 2021

Become part of our community

Mineros SA Profits Dip on Cost Hikes in Nicaragua, Argentina Mineros SA Profits Dip on Cost Hikes in Nicaragua, Argentina Source: Mineros SA

Mineros SA 3Q 2021 Profits Drop 67% Year-on-Year on Cost Spikes

Published in Companies Written by  November 16 2021 font size decrease font size increase font size 0
Rate this item
(1 Vote)

Medellin-based multinational gold mining giant Mineros SA announced November 15 that third quarter (3Q) 2021 profits fell 67% year-on-year, to US$8.2 million, as cost hikes in Nicaragua and Argentina hurt over-all results.

Corporate-wide gold production dipped by 1% year-on year, to 63,758 ounces, “in line with the company’s updated guidance for 2021,” according to Mineros.

Revenues dipped 1% year-on-year, to US$120 million, as the average realized price per ounce sold fell to US$1,782 in 3Q 2021 versus US$1,896 in 3Q 2020. “Key drivers were a decrease in average realized price of 6%, partially offset by a 4% increase in ounces sold,” according to the company.

Average cash costs in 3Q 2021 rose to US$1,235 per ounce, from US$1,020 in 3Q 2020, while all-in sustaining costs (AISC) rose to US$1,476/ounce, versus US$1,225 in 3Q 2020.

“The increase in average cash cost and AISC was a result of purchasing more material from artisanal miners at the Hemco Property [in Nicaragua] and higher production and sustaining costs at the Gualcamayo Property [in Argentina] as the mine nears end of life,” according to Mineros.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 38%, to $32.4 million, compared to $51.9 million in 3Q 2020.

Meanwhile, capital investments rose 35% year-on-year, to $25.7 million, including investments into existing mines along with exploration and evaluation projects.

On the health and safety front, “Mineros has vaccinated 100% of its employees at the head office in Medellin and over 90% of its employees at the Nechí Alluvial Property against Covid-19,” while in Argentina and Nicaragua, “Mineros employees are beginning to be vaccinated against Covid-19 through the respective countries’ [vaccination] programs,” according to Mineros added.

Read 262 times Last modified on Last modified on November 16 2021

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

About Medellin Herald

Medellin Herald is a locally produced, English-language news and advisory service uniquely focused upon a more-mature audience of visitors, investors, conference and trade-show attendees, property buyers, expats, retirees, volunteers and nature lovers.

U.S. native Roberto Peckham, who founded Medellin Herald in 2015, has been residing in metro Medellin since 2005 and has traveled regularly and extensively throughout Colombia since 1981.

Medellin Herald welcomes your editorial contributions, comments and story-idea suggestions. Send us a message using the "contact" section.

Contact US

logo def
Medellin Herald: Find news, information, reviews and opinion on business, events, conferences, congresses, education, real estate, investing, retiring and more.
  • COL (4) 386 06 27
  • USA (1) 305 517 76 35
  •  This email address is being protected from spambots. You need JavaScript enabled to view it. 
  • Medellin, Antioquia, Colombia

Medellín Photo Galery

Medellin, contrasting colors and styles by Gabriel Buitrago