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Gold Refining at Mineros SA Gold Refining at Mineros SA Source: Mineros SA

Mineros 3Q 2022 Net Income Drops 68% Year-on-Year

Published in Companies Written by  November 16 2022 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 its third quarter (3Q) 2022 net income dropped 68% year-on-year, to US$2.6 million, from US$8.1 million in 3Q 2021.

Company president Andrés Restrepo blamed the decline on “impairment of assets related to the accident at the upgrading plant connected to the Llanuras dredger [at Nechi, Antioquia] on May 28 [2022] and for provisions for compensation in Argentina.”

That accident was the result of heavy rains and winds at its alluvial mining operation, “causing damage to the floating beneficiation plant connected to the suction dredge,” according to Mineros.

“Immediately after the accident, the company’s emergency protocols were activated. Investigations of the accident by Colombian authorities and investigators company-hired independents are underway.

“After a thorough review of the current status of the plant, as of September 30, 2022, management has not found a way to recover, repair or carry out any type of rescue or maneuver to return the plant to operations, therefore an impairment of US$4.8 million was recognized.

“Mineros has filed a claim with its insurers regarding damage to the Llanuras plant. The company has adjusted its production plan to compensate for the loss of the plant and, consequently, we do not expect any negative impact on our ability to meet our estimate of production or costs for 2022 at the Nechi alluvial property.”

As for gross revenues in 3Q 2022, Mineros reported a 13% year-on-year rise, to US$136 million, while adjusted 3Q 2022 earnings before interest, taxes, depreciation and amortization (EBITDA) rose 33% year-on year, to US$43 million, according to the company.

As for nine-months 2022 results, net income has dropped 24% year-on-year, despite a 6% hike in revenues and a 10% rise in adjusted EBITDA, according to the company.

During 3Q 2022, gold production rose 17% year-on-year, to 74,513 ounces, while all-in-sustaining-costs and cash costs both have declined year-on-year.

“The company has maintained a low ratio of net-debt to adjusted EBITDA, down 53% after paying financial obligations taken for the purchase of Luna Roja [Nicaragua gold mine],” the company added.

 

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