Medellin-Based Gold Mining Giant Mineros Sees 2016 Profits Jump 36%

Medellin-based gold miner Mineros SA announced March 22 that its full-year 2016 profit rose 36% year-on-year, to COP$98.8 billion (US$33.8 million), while sales in Colombia rose 8.3%, to COP$382 billion (US$130.7 million).

While most of the company’s gold mining operations are in Antioquia, the “Hemco” division in Nicaragua saw gold output rise 20.7% last year, delivering US$6.7 million in profit on sales of US$99.9 million, according to Mineros.

The alluvial mining output in Colombia rose 4.17% year-on-year, but underground mining output dropped 25% year-on-year.

The 2016 average selling price of gold was US$1,145.90 per ounce, up 8.1% year-on-year, according to the company.

Full-year 2016 earnings before interest, taxes, depreciation and amortization hit COP$190.6 billion (US$65 million), the company added.

As for its hydroelectric power generation operations in Anori, Antioqia, Mineros boasted that it was able to “maintain the average cost of energy generated” and sell power surpluses that added COP$5.5 billion (US$1.8 million) in extra revenue and COP$12.2 billion (US$4 million) to 2016 profits.

As for 2016 investments, Mineros put COP$26.7 billion (US$9 million) into new projects, including COP$15.9 billion (US$5.4 million) in “greenland exploration with an emphasis on Nicaragua” and COP$10.8 billion (US$3.7 million) in Colombia, the latter “mainly focused on sustaining the operation,” according to the company.

As for 2017 investments, the Nicaragua operation will get another US$5.8 million in new investments this year, the company added.