October 2, 2023

Mineros SA 2019 Profits Dip Year-on-Year Due to Argentina Acquisition-Cost Calculation

Medellin-based multinational gold mining giant Mineros SA on March 4 reported a 27% year-on-year profits drop for full-year 2019 — due to an accounting calculation for costs of its Argentinian mining acquisition, which it got at a relatively favorable price in 2018.

Full-year 2019 net income came-in at COP$123 billion (US$35.6 million), with the dip “explained by the accounting effect we had in 2018 on the purchase of the Argentine operation in advantageous terms,” according to Mineros.

Despite the one-off accounting effect on profits, gold-equivalent production in 2019 actually rose 41% year-on-year, to 296,443 ounces, with Nicaragua contributing 43.2% of production, Argentina 32.8% and Colombia 23.9%, according to the company.

Gross revenues soared 67.7% year-on-year, to COP$1.35 trillion (US$391 million), “helped by the new operation in Argentina and a higher gold price and [COP-to-U.S. dollar] exchange rate,” according to Mineros.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 55% year-on-year, to COP$411 billion (US$119 million), with EBITDA margin at 30.5%.

Investments in 2019 totaled COP$188 billion (US$54 million), “mainly for maintenance, exploration, mine development, projects and the implementation of [advanced practices] in Nicaragua and Argentina,” the company added.

“We closed a satisfactory 2019, reflecting the results of our growth and diversification strategy,” said Mineros SA president Andrés Restrepo. “We see 2020 with optimism, hoping to maintain production levels, accompanied by a high gold price that allows us to continue working on the plans we have drawn up,” he added.

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