October 2, 2023

Mineros SA 3Q 2020 Profits Jump 25% Year-on-Year

Medellin-based multinational gold mining giant Mineros SA announced November 12 that its third quarter (3Q) 2020 net profit rose 25% year-on-year, to US$24.8 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) likewise rose 39% year-on-year, to US$51.9 million, while revenues rose 14%, to US$121 million, according to the company.

Costs also rose by 4% year-on-year, to US$78.5 million, “explained by higher cost of artisanal mining in Nicaragua,” according to the company.

Higher revenues came from the 28% jump in world gold prices, plus a US$1.1 million gain from an insurance claim in alluvial mining in Colombia.

As for nine-months 2020 results, net profit jumped 74% year-on-year, to US$50.2 million, while EBITDA jumped 54%, to US$146.8 million.

In Colombia, 3Q 2020 gold production rose 2.7% year-on-year, while EBITDA margin jumped 82% and cash flow more-than-tripled, according to the company.

Because Soma Gold took control of Mineros’ relatively higher-cost rock-mining operation in June, the remaining, lower-cost alluvial mining operation cut over-all costs of operations in Colombia, year-on-year, the company noted.\

In Nicaragua, production dipped 2.7% year-on-year, while costs rose 9%. In Argentina, gold production fell 30% year-on-year as the remaining gold deposit in an open-pit mine neared its end-of-life.

As for the full-year 2020 outlook, Mineros foresees corporate-wide gold production of 270,000 ounces. The company also aims to complete an economic analysis for the La Pepa mine in Chile, and continue in a joint-venture with Royal Road in Nicaragua and Colombia, the company added.

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