July 12, 2024
Companies

Mineros, Gran Colombia Gold Post Better Year-on-Year Profits in 3Q 2018

Medellin-based gold mining giant Mineros SA on November 20 reported a 10.2% boost year-on-year in third quarter (3Q) 2018 net income, to COP$19.7 billion (US$6 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) for 3Q 2018 also rose 7.6% year-on-year, while EBITDA margin rose 13.5%, according to the company.

Cash cost of operations dipped 2.9% year-on-year, to US$824 per ounce versus US$873/ounce in 3Q 2017.

A stronger U.S. dollar this year has hurt world gold prices, but Mineros managed to offset some of this penalty by dollar hedging.

Colombian alluvial output has dipped this year (down 1.9%), but 3Q 2018 operations still were profitable, with net income up 23%. Nicaragua net income has been even better in the latest quarter, up 49.7% this year versus last, and production rose 7.7%.

A pending deal announced last month with Argentina-based Yamana Gold is expected to be completed by year-end 2018. That deal and related plans to boost gold production elsewhere in South America could help Mineros win a stock listing on the Toronto Stock Exchange (TSX), coveted by major miners.

Gran Colombia Gold Results

Meanwhile, Toronto-based Gran Colombia Gold (GCG) announced November 13 that its 3Q 2018 net income rose to US$12.4 million, up sharply from a US$1 million net loss in 3Q 2017.

However, for the first nine months of 2018, GCG reported a net loss of US$13.0 million, , versus a net profit of US32 million in nine-months 2017.

“The net loss reported for the first nine months of 2018 includes $22.2 million of losses on financial instruments, primarily triggered by the extinguishment of the 2020 and 2024 debentures in the second quarter, and a $7.6 million charge for the costs associated with the offering completed in the second quarter of 2018.,” GCG explained.

In addition, “the net earnings in the first nine months of 2017 included a reversal of impairment of the Segovia [Antioquia] gold mining operations in the amount of US$45.3 million,” according to the company.

Commenting on the results, GCG executive co-chairman Serafino Iacono said: “We are very pleased with the continuing improvements in our operating and financial results and the strengthening of our financial position . . .

“Our senior debt is now down to US$88 million and our cash position increased further in the third quarter to reach US$29 million at the end of September.

“With our trailing 12-months adjusted EBITDA surpassing the US$100 million level at the end of September, our focus on our high-grade Segovia operations to drive our cash flow generation is providing the funding required to support our ongoing exploration and capital programs.

“We are encouraged by the initial exploration results we reported in October from this year’s drilling campaigns at each of Segovia, Marmato and Zancudo and we will have further results to report as these program progress,” he added.

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