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Colombia Results Boost Mineros Gold Mining Results Colombia Results Boost Mineros Gold Mining Results Source: Mineros SA

Mineros Full-Year 2021 Profits Dip 31% Year-on-Year

Published in Companies Written by  February 28 2022 font size decrease font size increase font size 0
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Medellin-based multinational gold mining giant Mineros SA announced February 28 that its full-year 2021 net income dropped 31% year-on-year, to COP$162 billion (US$41.3 million).

However, revenues increased 4% year-on-year, to COP$1.8 trillion (US$459.6 million), versus COP$1.79 trillion (US$457 million) in 2020.

The revenue boost came from a “slight increase in gold prices and higher revenues from energy sales and hedges, which managed to offset lower gold production, given the delay of some environmental permits in Colombia and the natural depletion of the mine in Argentina,” according to Mineros.

On the other hand, gross profit fell 25% year-on-year, to COP$464 billion (US$118 million), “mainly due to higher purchase costs of artisanal [gold mining] mineral, which translates into higher production. The decline was also due to the increase in depreciation and amortization, an increase in payroll costs, higher maintenance costs and higher inventory consumption, along with an increase in administration expenses and by the increase in exploration expenses,” according to Mineros.

On the upside, Mineros President Andrés Restrepo commented that “2021 was a historic year for Mineros, as we became the first Colombia-based company to be listed on both the TSX [Toronto exchange] and the Colombian Stock Exchange.

“We continue to pay dividends consistently, with COP$66 billion [US$16.8 million) in total dividends paid in 2021.

“Our production was above 260,000 ounces of gold, according to our estimates, allowing us to continue to strengthen our overall capital position. Cash costs per ounce of gold sold were also within the expected range, while the AISC [all-in sustaining cost] was slightly higher than expected.

“We entered 2022 with a focus on maintaining strong production levels at our current operations and pursuing annual production growth through a combination of brownfield exploration at current operations, greenfield exploration (exploration in areas that are not in operation) and evaluating possible acquisitions,” Restrepo added.

In Colombia, alluvial gold production rose 5% year-on-year, to 73,129 ounces, “thanks to the nearly 10,000 ounces produced under the formalization program” of formerly irregular artisanal miners, the company noted.

“The formalization is a collaborative work scheme, through contracts with third parties, in which previously informal miners are working on the company’s mining titles, with emphasis on the reprocessing of tailings from massive extraction. Currently, the formalization process includes nine operating units and generates nearly 200 direct jobs,” the company added..

In Nicaragua, the Hemco mining operation produced 127,151 ounces of gold, up 4% year-on-year, “largely explained by higher purchases of artisanal material, an increase in milled tons and a higher grade” of mined rock, according to the company.

In Argentina, mining operations dipped 14% year-on-year, to 61,487 ounces of gold, “explained by the natural depletion of the open-pit deposit and the slow recovery process in the leach pads,” according to Mineros.

Colombian Output Seen Rising in 2022

As for its year-2022 projections, Mineros foresees consolidated production in the range of 262,000 to 285,000 ounces.

“This projection foresees an increase in production in Colombia, including the new ounces from the formalization program, the maintenance of production levels in Nicaragua and a slight decrease in production in Argentina in accordance with the depletion of the mine, while new fronts are being explored.

“For 2022, cash cost is estimated in a range between US$1,090 and US$1,180 per ounce and AISC between US$1,350 and US$1,450 per ounce,” the company added.

Read 196 times Last modified on Last modified on February 28 2022

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