September 30, 2023
Business Companies

Mineros SA 2Q 2023 Net Income Rises 25% Year-on-Year

Medellin-based multinational gold miner Mineros SA announced August 3 that its second quarter (2Q) 2023 net income rose 25% year-on-year, to COP$56 billion (US$13.8 million).

“This increase is largely explained by a higher gross profit, along with higher revenues from fiduciary rights totaling COP$10.5 billion [US$2.6 million] and higher deferred tax credit for totaling COP$35.75 billion [US$8.8 million] due to the exchange differential that affects property, plant and equipment; and partially offset by higher other expenses related to provisions for layoffs at the Gualcamayo mine [in Argentina] and by exchange difference totaling COP$$15.7 billion [US$3.8 million],” according to Mineros.

Gross revenues rose 14% year-on-year, hitting COP$615 billion (US$152 million), “mainly explained by the effect of a 13% increase in the representative market rate, plus a 6% increase in the average gold price, which offset the 6% decrease in gold ounces sold,” according to the company.

Meanwhile, cost of sales increased 13%, hitting COP$440 billion (US$108.6 million).

“This increase is explained mainly due to the exchange effect via a 13% increase in the representative market rate, along with an increase in direct mining costs [up COP$54 billion/US$13 million] from inflation and labor costs, as well as the write-off effect of inventories in the Gualcamayo segment. This was partially offset by the decrease in depreciation and amortization and lower maintenance and material costs,” according to Mineros.

“We had positive results in the second quarter of 2023, thanks to our management of costs and administrative expenses, which offset a 6% decrease in gold production,” commented Mineros President Andrés Restrepo.

“During the second quarter of 2023 we continue with our exploration campaign at the Porvenir project in Nicaragua. Our plan is to finish the metallurgical drilling campaign in the third quarter of 2023,” he added.

During 2Q 2023, Mineros produced 69,254 ounces of gold. “The lower production in the quarter is explained by unscheduled maintenance stoppages in the area of crushing at the Hemco property [in Nicaragua] and reduced production at the Gualcamayo property [in Argentina], which is nearing the end of its useful life,” the company added.

Colombia alluvial-mining production in Antioquia rose 5% year-on-year, to 24,648 ounces of gold, but Nicaragua Hemco production dropped 30% and Gualcamayo dropped 25%, the company added.

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