Mineros SA First-Half 2017 Net Profits Dip 2.9% Year-on-Year
Medellin-based gold mining giant Mineros SA announced August 17 that its first-half (1H) 2017 net profits dipped 2.9% year-on-year, to COP$74 billion (US$24.7 million), while operating income dipped 4%, to COP$199 billion (US$66.6 million).
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 12.2% year-on-year, to COP$100 billion (US$33 million), while operating costs rose 1.6%, to COP$106 billion (US$35 million).
Consolidated revenues rose 14.4% year-on-year, to COP$402 billion (US$134 million), but Colombia revenues fell 4% year-on-year as gold prices (in Colombian pesos) fell 7.24%, according to the company.
Revenues in its Nicaragua operations rose 40% year-on-year thanks to production increases, while EBITDA margin in Nicaragua hit 26%, versus 50% in Colombia.
The company foresees future annual gold production in Nicaragua hitting 120,000 ounces “over the médium term” and predicts economical synergies between its Colombian and Nicaraguan operations.
Most of the Colombian gold production by Mineros is alluvial (river barge dredging) whereas most of the Nicaraguan production is via underground mines. Colombian production dipped slightly to 54,983 ounces in 1H 2017, versus 56,409 ounces in 1H 2016, while Nicaraguan production rose 36.6% year-on-year, to 53,725 ounces, according to the company.