Mineros 1Q 2024 Net Income Unchanged From 1Q 2023
Medellin-based multinational gold miner Mineros SA announced May 9 that its first quarter (1Q) 2024 net income on continuing operations came-in at US$16.77 million, almost unchanged from US$16.75 million in 1Q 2023.
“The modest increase in profit is mainly explained by higher revenue and gross profit,” but that was offset by “higher foreign exchange differences” along with higher administrative expenses and higher taxes, according to the company.
Commenting on the results, Mineros CEO Andrés Restrepo added that “our cash costs and all-in-sustaining costs were at the lower end of guidance for our operations.
“Our gold production from company-owned mines was largely as expected and we processed more artisanal material in Nicaragua, showing the tremendous flexibility of our operations to compensate for unanticipated downtime in our processing plant.”
Since Mineros sold all its holdings in Minas Argentinas last year, this year’s results only reflect continuing operations in Nicaragua along with the alluvial mining operations here in Antioquia, Colombia, the company noted.
During 1Q 2024, revenues rose 15% year-on-year, hitting US$$114 million, with average realized price per ounce of gold sold at US$2,067, up 10% from $1,876 in 1Q 2023.
“Cost of sales increased by 19% to $80.6 million during 1Q 2024, compared with $67.9 million in 1Q 2023,” mainly because of higher costs of artisanal mining, greater costs of depreciation and amortization, higher labor costs and a 17% revaluation of the Colombian peso against the U.S. dollar, the company added.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7.7% year-on-year, to US$40.6 million, “ mainly explained by higher revenue,” according to Mineros.
Gold production for 1Q 2024 rose 2% year-on-year. “Excluding the results of the discontinued operations at the Gualcamayo property [in Argentina], 51,741 ounces of gold were produced during 1Q 2024, compared with 50,609 ounces in 1Q 2023. The increase in production is mainly a result of 7% higher production at the Nechí alluvial property [in Antioquia],” the company added.
