September 30, 2023

Mineros SA 2Q 2020 Profits Nearly Triple Year-on-Year

Medellin-based multinational gold mining giant Mineros SA on August 10 reported a US$6.7 million net profit for second quarter (2Q) 2020, up from US$2.4 million in 2Q 2019.

Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 82% year-on-year, to US$52.8 million, with EBITDA margin hitting 34%.

Revenues likewise rose by 35% year-on-year, to US$126 million, according to the company.

The full-year 2020 gold production estimate for Mineros continues at between 290,000 to 310,000 ounces of gold equivalent.

As for first half (1H) 2020, “accumulated results reflect a similar behavior, where EBITDA grew 62%, to US$94.8 million, with an EBITDA margin of 39%, and the net profit reached US$22.7 million, up 150%,” according to Mineros.

Production in Colombia during 2Q 2020 rebounded by 37% year-on-year, mainly due to environmental permitting delays in 2019 that had penalized Mineros’ alluvial operations in Antioquia. As a result, alluvial gold production in Colombia during 2Q 2020 rose to 17,960 gold-equivalent ounces, up from 11,727 ounces in 2Q 2019. But Colombian underground mining production fell to 2,871 gold-equivalent ounces in 2Q 2020 versus 3,445 ounces in 2Q 2019.

Meanwhile, since the definitive sale of Mineros SA’s underground mining operations at El Bagre, Antioquia, to Soma Gold on May 13, 2020, those underground operations are no longer contributing to corporate earnings. Mineros received an initial US$1 million payment on that sale and will receive the remaining US$4.5 million over the next 90 days, according to the company.

Elsewhere, Nicaragua production rose to 32,844 gold equivalent ounces in 2Q 2020 versus 31,610 ounces in 2Q 2019. Argentina 2Q 2020 production dipped to 18,867 equivalent ounces, down from 23,395 ounces in 2Q 2019, according to Mineros.

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