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Mineros S.A.’s Net Profit increased by 20 % during 2Q 2021.
Aug, 10

Mineros S.A.’s Net Profit increased by 20 % during 2Q 2021.

Mineros S.A.’s Net Profit increased by 20 % during 2Q 2021.

● The Company’s net profit was approximately USD 10 million.
● EBITDA during 2Q 2021 was USD 42 million, equivalent to a 33% margin.
● The price of gold during 2Q 2021 was USD 1,770 per ounce, or an increase of 3.7% vs. 1Q 20.

Medellín, August 10, 2021.

Mineros S.A., with more than 47 years of experience dedicated to the exploration and exploitation of precious metals, especially gold, and operations in Colombia, Argentina, and Nicaragua, presented its financial and operational results for 2Q 2021, which consolidates Mineros S.A. as a profitable, responsible, and solid company to face the challenges and perspectives for the rest of year 2021.

“The second quarter of 2021 had a good production level, still characterized by the high price of gold, with higher costs and investment levels, especially in Argentina. This was a period of solid results to continue growing and investing to ensure our business continuity throughout time”, stated Andrés Restrepo Isaza, President of Mineros.

The Company’s income increased by 2%, as a result of a 5% increase in the average selling price of gold compared to the same period of 2020, and higher income generated by the sale of energy and hedges, which partially offset the lower productivity.

Production during 2Q 2021 was 4% lower than in the same period in 2020, explained by a production decline in Argentina, due to the natural depletion of the open pit mine and the sale of Operadora Minera in Colombia, in the middle of year 2020.
EBITDA was a total of USD 42 million, representing a 21% decrease vs. 2Q 2020.
Net profit increased by 20%, for a total of approximately USD 10 million, mainly due to impairment of the investment made in Argentina in 2020, in an amount close to USD 8 million.
Results by Country


Llanuras Aluviales, a new plant which will produce approximately 9,000 ounces of gold per year, was inaugurated at the end of July, 2021. Other relevant events in Colombia include the recognition of Luz Milena Miranda Falón, who became the formalized miner No. 5,000 participating in the Minería a lo Legal initiative of the Ministry of Mines and Energy of Colombia (watch video).

On the other hand, the operation has made relevant progress in terms of the vaccination program against COVID-19, with approximately 1,100 of its workers/employees vaccinated as of August 5, 2021.

Production during 2Q 2021 was a total of 20,000 oz., which represents a 5% decrease vs. 2Q 2020. This decrease was caused by the sale of Operadora Minera, considering that the alluvial operation had a 10% production increase.


By the end of July, a purchase agreement was subscribed through Hemco for the purchase of 15% of the shares of Vesmisa, for USD 1.5 million, consolidating 100% of its property. Vesmisa is an ore processing plant for mineral from artisanal mining, which has capacity to process 140 tons per day.

Hemco’s production during 2Q 2021 was very similar to production during 2Q 2020, with a total of 32,000 oz. au. produced. Gross profit in Nicaragua decreased from USD 22 million during 2Q 2020, to USD 17 million in 2Q 2021. This 22% decrease, among other factors, was due to a higher operation depreciation and amortization, and a higher cost for the purchase of artisanal material.

As result, Hemco’s gross margin was 29%, compared to 39% during the same quarter in 2020.


In Argentina, production during 2Q 2021 decreased 12% vs. 2Q 2020, due to the natural depletion of a sector of the open pit mine. Additionally, there was a decrease in gross profit due to higher production costs per extracted ounce.

Since the purchase of the Gualcamayo mine, an additional USD 4 million have been invested in capital. During the first six months of the year, the mine has generated USD 25 million, which have been re-invested in accordance with the Company’s plans.

Future Challenges and Perspectives

Mineros will continue advancing in its explorations’ expansion programs and projects in the four countries, aiming to increase the baseline and improve the classification of Resources and Reserves, as well as extending the life cycle of its mines.

In Colombia, Mineros will continue developing and strengthening new alluvial exploitation forms and working in the exploration of Güintar-Niverengo with Royal Road Minerals, its partner.

Finally, the Company will continue with its dual listing process in the stock exchange of Toronto, Canada, and Colombia.

“We start a second semester full of new challenges, because we are at a stage which demands high investments for the continuity and sustainability of our Company. That is definitely part of the nature of this industry”, concluded Restrepo Isaza.


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