Mineros Full-Year 2022 Net Income Drops 88% Year-on-Year

Medellin-based multinational gold miner Mineros SA announced February 20 that its full-year 2022 net income fell 88% year-on-year, to COP$19 billion (US$3.8 million), from COP$$162 billion (US$32.6 million) in 2021.

“The net result was significantly impacted by COP$196 billion [US$39.5 million] of asset impairment expenses, mainly on the Gualcamayo mine property in Argentina due to higher exploration expenses and an increase in current and deferred taxes,” according to Mineros.

Corporate-wide revenues rose 21% year-on-year, to COP$39 billion (US$7.8 million), boosted by an increase in gold production along with a 7% devaluation of the Colombian peso versus the U.S. dollar, “partially offset due to lower coverage income,” the company added

Cash cost per ounce of gold sold dipped 5%, while all-in-sustaining-costs (AISC) per ounce of gold sold likewise declined 9% year-on year, according to the company.

Those declines are “explained by the greater number of ounces of gold sold, thanks to operating efficiencies at the Nechí [Antioquia] alluvial property in Colombia. and the Hemco property in Nicaragua and the reduction in sustaining capital expenditures, which were partially offset by the increase in cost of sales excluding depreciation and amortization,” according to the company.

For full-year 2022, Mineros boosted gold production 10% year-on-year, to 287,152 ounces. The Nechi alluvial operation by itself saw gold recoveries rise 26% year-on-year.

“The increase in production in 2022 over the prior year is a result of increased operating efficiencies, the approval of environmental permits that were delayed in 2021, and additional gold production from our artisanal mining formalization program,” according to Mineros.

In Nicaragua, total 2022 production rose 4%, to 132,520 ounces, while in Argentina, gold production at the Gualcamayo mine rose 1% year-on-year, to 62,247 ounces, according to the company.