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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
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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.

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