Mineros SA 1Q 2023 Profits Jump 47% Year-on-Year on Insurance Payment

Medellin-based multinational gold miner Mineros SA announced May 9 that its first quarter (1Q) 2023 net income rose 47% year-on-year, to US$15.4 million — all thanks to a one-time insurance payment for accidental destruction of mining equipment at its alluvial operation in Colombia.

However, revenues actually declined by 5% year-on-year, to US$118 million, “explained by the reduction in the number of ounces sold, by lower production in Gualcamayo [Argentina] and a temporary suspension in Nechí [Colombia] due to the mining strike, “according to the company.

Cost of sales declined 7% “explained by lower maintenance and material costs, lower labor costs and the effect of the devaluation of local currencies,” according to Mineros.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 1% “as the reduction in revenues was offset by lower costs,” according the company.

All-in-sustaining costs (AISC) were stable thanks to cost reductions, compensating for lower revenues, according to Mineros.

Production at its Gualcamayo, Argentina mine fell 31% year-on-year, accounting for a 51% drop in gross profit there.

As for the rest-of-2023 outlook, Mineros sees gold production “in a range between 264,000 292,000 ounces” with an estimated cash-cost-per-ounce of gold sold between US$1,160 and US$1,250. AISC per ounce of gold sold is seen at between US$1,400 and US$1,490, according to the company.