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Companies 368

Written by November 13 2020 0

Medellin-based multinational gold mining giant Mineros SA announced November 12 that its third quarter (3Q) 2020 net profit rose 25% year-on-year, to US$24.8 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 39% year-on-year, to US$51.9 million, while revenues rose 14%, to US$121 million, according to the company.

Costs also rose by 4% year-on-year, to US$78.5 million, “explained by higher cost of artisanal mining in Nicaragua,” according to the company.

Higher revenues came from the 28% jump in world gold prices, plus a US$1.1 million gain from an insurance claim in alluvial mining in Colombia.

As for nine-months 2020 results, net profit jumped 74% year-on-year, to US$50.2 million, while EBITDA jumped 54%, to US$146.8 million.

In Colombia, 3Q 2020 gold production rose 2.7% year-on-year, while EBITDA margin jumped 82% and cash flow more-than-tripled, according to the company.

Because Soma Gold took control of Mineros’ relatively higher-cost rock-mining operation in June, the remaining, lower-cost alluvial mining operation cut over-all costs of operations in Colombia, year-on-year, the company noted.\

In Nicaragua, production dipped 2.7% year-on-year, while costs rose 9%. In Argentina, gold production fell 30% year-on-year as the remaining gold deposit in an open-pit mine neared its end-of-life.

As for the full-year 2020 outlook, Mineros foresees corporate-wide gold production of 270,000 ounces. The company also aims to complete an economic analysis for the La Pepa mine in Chile, and continue in a joint-venture with Royal Road in Nicaragua and Colombia, the company added.

Written by November 12 2020 0

Toronto-based Gran Colombia Gold – whose principal mining operations are in Antioquia – announced November 11 that its third quarter (3Q) adjusted net income rose to U.S$29.5 million, up from US$16 million in 3Q 2019.

As for the first nine months of 2020, adjusted net income rose to US$68.2 million, from US$43 million in the first nine months of 2019.

“The year-over-year improvement in adjusted net income for the third quarter and first nine months of 2020 largely reflects the positive impact of higher gold prices in 2020, partially offset by the Covid-19 impact on gold sales volumes in the second quarter of 2020,” according to the company.

Gross revenues jumped 36% in 3Q 2020 versus 3Q 2019, to a new quarterly record of US$113.1 million “as the 30% year-over-year improvement in spot gold prices increased the company’s realized gold price to an average of $1,875 per ounce sold,” according to the company

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for 3Q 2020 jumped 51% year-on-year, to US$56.7 million, while nine-months adjusted EBITDA rose 36% year-on-year, to US$144.7 million, according to the company.

Gold production in 3q 2020 was 58,454 ounces, up 4% year-on-year and up 21% over 2Q 2020 when the Covid-19 crisis hit, the company noted.

As for the cash situation, “the company’s balance sheet remained solid with total cash of US$138.2 million at the end of September 2020, including $43.0 million in Caldas Gold, of which $34.7 million represents the net proceeds of Caldas Gold’s special warrant financing completed in the third quarter of 2020 that will be used as part of the funding for its Marmato Deep Zone (“MDZ”) project,” the company stated.

“The 53.5%-owned Caldas Gold continues to advance its plan to build Colombia’s next major gold mine. Following the release of its preliminary feasibility study for its Marmato Project in early July, Caldas Gold completed a CA$50 million [US$38 million] bought deal private placement of special warrants in late July, of which Gran Colombia acquired CA$20 million [US$15 million] to maintain its equity ownership above 50%,” the company added.

Written by November 11 2020 0

Medellin-based multinational paints, chemicals, piping and hardware giant Grupo Orbis announced November 10 that its third quarter (3Q) 2020 net income rose 12% year-on-year, to COP$14.6 billion (US$4 million), excluding the effect of the sale of a non-operating property in Central America.

Orbis brands include Pintuco paints, Andercol chemicals, O-tek piping and Mundial hardware supplies.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were essentially flat year-on-year, at COP$88 billion (US$24 million), “thanks to the results in the plan of profitability in the midst of the challenges generated by the [Covid-19] pandemic,” according to the company.

Favorable returns “have made it possible to continue with the debt payment plan, which reaches an indicator of net financial debt-to-EBITDA of 1.7-times compared to 2.8-times as of September 2019,” according to Oribs.

“The chemical business has focused on implementing its profitability model, focused on topics such as innovation and entrepreneurship, product differentiation and modernization of the portfolio around sustainable chemistry.

“For its part, the hardware distribution unit has achieved a rapid recovery of its sales in a profitable way thanks to the strengthening of the link with its customers and suppliers, and the implementation of a new market-arrival model,” the company added.

Profitable mass-market product launches this year included a new line of antibacterial gels along with aerosol air and surface disinfectants that kill Covid-19, according to Orbis.

As for the Pintuco paints division, “results were [negatively] affected as it was the only business that had a total closure of its operations as a result of the pandemic, especially in April and May. However, in the third quarter of 2020 [Pintuco] presented a growth in sales of 4%,” despite relatively weakness in the broader market, according to the company.

“O-tek, for its part, although it has achieved an important geographic expansion developing projects in the southern cone [of South America] and positioning itself in the United States, it was affected by the suspension and postponement of infrastructure works” because of Coronavirus quarantine orders.

“For the last quarter of 2020, the Group will continue to focus on boosting sales and closing the accumulated gap of -7% in its commercial results compared to 2019, as it did in the third quarter, a period in which, even with the current conditions of uncertainty, achieved a growth of 4.4% compared to the previous year,” the company added.

Written by November 11 2020 0

Medellin-based multinational cement/concrete giant Cementos Argos reported November 10 in a filing with Colombia’s Superfinanciera oversight agency that its third quarter (3Q) 2020 net income more-than doubled year-on-year, to COP$73 billion (US$20 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) also rose 9% year-on-year, to COP$479 billion (US$132 million), according to the company.

However, gross revenues dipped 5.6% year-on-year, to COP$2.36 trillion (US$649 million).

As for nine-months 2020, cumulative net income so far has dipped to COP$113 billion (US$31 million) versus COP$147 billion (US$40 million) in nine-months 2019, according to the company.

EBITDA rose in 3Q 2020 “despite the impact on volumes originated, mainly due to hurricanes and heavy rains in the United States,” according to Cementos Argos.

In the latest quarter, corporate-wide consolidated shipments of cement fell by 8.4% and concrete declined by 19.5%.

Corporate overhead reductions and “big-data” analytical innovations “allowed the company to achieve significant optimizations in costs and expenses, accompanied by better prices in Colombia and the United States,” the company added.

“Argos advanced in the implementation of artificial intelligence to analyze historical data on cement kiln and mill [operations] and thus obtain the optimal energy and raw materials mixtures to produce cement. The expected savings are US$13 million annually starting in 2022,” according to the company.

In the U.S. market, demand for cement and concrete “continued to show strength even amid the [Covid-19] pandemic and the political uncertainty surrounding the presidential elections,” according to Cementos Argos.

“The macroeconomic context continues to be moderately positive in relation to the construction sector. In infrastructure, the renewal of the ‘Fast Act’ for a year with US$13.6 billion added to the Highway Trust Fund and the announcement of the Florida 2020-2021 budget, which includes US$9.9 billion in funding for the Florida Department of Transportation, ensure the financing necessary to continue infrastructure projects,” according to the company.

In Colombia, “cement volumes of the company improved [in 3Q 2020] compared to the prior quarter, in-line with the market, but still remained below those of the third quarter of 2019,” according to the company.

Colombian government-subsidized home sales “increased during September by 43% compared to the same month of 2019 and continue with a positive trend” even in the face of the Coronavirus crisis, according to Cementos Argos. Non-subsidized home sales during September 2020 likewise increased 16% year-on-year.

As for major Colombian infrastructure projects, “the formal start of the construction of the Bogotá Metro, together with the investments announced by the government for more than COP$30 trillion [US$8.2 billion] in the first wave of ‘5G’ [highway] projects” along with completion of previously-started highway projects “reaffirm the commitment to continue investing in this sector and establish strong drivers for the consumption of cement for the next 10 years,” according to the company.

As for Caribbean and Central America markets, “this region benefited during the quarter due to the trend of [home improvement] self-construction that prevails in emerging markets, leading to improvements in EBITDA and volumes of cement especially in Honduras, Dominican Republic, Haiti and Puerto Rico,” the company added.

Written by November 06 2020 0

Medellin-based multinational electric-power transmission, highway concessionaire and telecom infrastructure giant ISA announced November 5 that third quarter (3Q) net income rose 19% year-on-year, to COP$483 billion (US$128 million).

Operating revenues for the latest quarter jumped 21% year-on-year, to COP$2.4 trillion (US$638 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 18.8%, to COP$1.5 trillion (US$399 million), while EBITDA margin hit 61.9%, according to the company.

“ISA's extraordinary results, obtained amidst the pandemic, were possible not only due to the resiliency of its business but also due to a financial strategy based on the efficient management of [corporate overhead] expenses, as well as the profitability of its operations,” according to the company.

During the latest quarter, new investments in construction projects totaled COP$3.5 trillion (US$930 million).

Corporate debt/EBITDA and net debt/EBITDA indicators closed at 3.8-x and 3.1-x, respectively, “which are adequate levels to maintain the current credit rating,” according to ISA.

For the nine months of January through September 2020, net income rose 17.9%, to COP$1.4 trillion (US$372 million), while net margin reached 19.8%.

Operating revenues for nine months 2020 totaled COP$7.1 trillion (US$1.89 billion), up 21.3% year-on-year. Nine-months 2020 EBITDA rose 19.4%, to COP$4.7 trillion (US$1.25 billion), while EBITDA margin came-in at 65.1%, according to the company.

In the latest quarter, operating revenues rose mainly thanks to start-up of energy transmission and substation projects in Brazil, Colombia and Peru, as well as an increase in construction revenues from road concessions mainly in Peru, Brazil, and Chile, the company added.

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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.

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