Gran Colombia Gold 1Q 2018 Profits Rise, but Mineros SA Earnings Decline
Canada-based Gran Colombia Gold reported May 10 that profits from its first quarter (1Q) 2018 gold mining operations here in Antioquia rose to US$5.4 million, up from an $800,000 net loss in 1Q 2017.
The company credited “higher gold sales volumes, realized gold prices and lower total cash costs per ounce” for the year-on-year profit boost.
On the other hand, Medellin-based gold mining giant Mineros SA announced May 11 that its 1Q 2018 net profits dipped 17.9% year-on-year, to COP$19.8 billion (US$6.9 million), down from COP$24 billion (US$8.4 million) in 1Q 2017.
Mineros cited a 6.1% drop in gold-equivalent production corporate-wide, including a 13.9% decline in Colombia. That was partially offset by a 1.8% production boost in Nicaragua.
Cash cost of operations also rose in Colombia, to US$764/ounce, compared to US$596/ounce in 1Q 2017.
For the remainder of 2018, Mineros forsees continuing volatility in world gold prices, while its gold production is likely to come-in at between 195,000 to 215,000 ounces this year.
Gran Colombia Balance Sheet Improves
Commenting on its 1Q 2018 results, Gran Colombia executive co-chairman Serafino Iacono noted: “We have reached another milestone with the successful completion of our debt refinancing, which will shortly conclude with the full repayment of the principal amount of our 2020 debentures and 2024 debentures.
“We are also pleased with the continued improvement in the operating and financial results we are reporting today. With the enhanced liquidity made possible by the debt refinancing, we have a stronger balance sheet that, together with our internally generated cash flow, will allow us to forge ahead with the execution of our strategy to create value by exploring, developing and modernizing our mining operations.”
Gran Colombia added that 1Q 2018 total gold production hit 52,672 ounces with a further 16,119 ounces produced in April 2018.
“Fueled by continued growth in the company’s high-grade Segovia [Antioquia] operations, the company’s trailing 12-months’ total gold production increased to 187,485 ounces as of March 2018, up 8% over the total for 2017 of 173,821 ounces and within the company’s guidance range for 2018 of between 182,000 and 193,000 ounces,” according to Gran Colombia.
“Revenue increased 42% in the first quarter of 2018 over the first quarter last year to US$64.8 million, positively impacted this year by the increased level of gold production as described above and 10% better realized gold prices in the first quarter of 2018 as spot gold prices rose 9% compared with the first quarter last year.
“Total cash costs and all-in sustaining costs (AISC) averaged $670 per ounce and $896 per ounce, respectively, for the first quarter of 2018, down from $748 per ounce and $941 per ounce, respectively, in the first quarter last year.
“Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] doubled in the first quarter of 2018 to $27.4 million, compared with $13.6 million in the first quarter of 2017, bringing the trailing 12-months total adjusted EBITDA at the end of March 2018 to $89.3 million, up 18% compared with 2017,” the company added.