Mineros S.A. closes the 2nd quarter, 2020 with positive results and growth of its main indicators
Note: Variations shown compare 2Q 2020 vs. 2Q 2019.
• Operating profit was USD 45 million, increasing 167% vs. Q2 2019.
• EBITDA was USD 53 millions, increasing by 82%.
• Net profit increased by 182%, for a total of USD 6.7 million.
• Consolidated quarterly production from April to June was 72,542 ounces, or a 3.4% increase vs. 2Q 2019.
Mineros S.A., a Company dedicated for 47 years to the exploration and exploitation of precious metals, mainly gold, with operations in Colombia, Argentina and Nicaragua, reported today its financial and production results, corresponding to the 2Q 2020.
Mineros S.A.’s total income was USD 126 million, which represents a 35% increase vs. the same quarter of 2019, mainly resulting from a 3% increase in production and a 29% increase in the price of gold.
The Company’s income mainly results from the sale of gold, in which case Nicaragua contributed with 45% of the production, Colombia with 29% and Argentina, 26%.
On the other hand, the Company had an EBITDA of USD 53 million, which represents an 82% increase compared to the same quarter, 2019. The EBITDA margin increased from 31% in 2019, to 42% in 2020, representing a 35% margin increase.
The Company’s operating profit was USD 45 million, growing 167% vs. 2019. The operating margin almost doubled, going from 18% in 2019, to approximately 36% in 2020.
Net profit increased by 182% vs. the same quarter in 2019, for a total of USD 6.7 million. The Company’s net margin had a 2-fold increase comparing both quarters, going from 2.7% to 5.3%.
Likewise, it is important to mention the good performance of Mineros shares, being to date, the most valued share with a price increase of approximately 23%.
Results by Country
Colombia’s operation indicators reflect alluvial operation recovery, after delays in obtaining environmental licenses in 2019.
Gold ounces increased by 37%, EBITDA increased by 180% and there was a 13% decrease in the All-in Sustaining Cost, in comparison to the 2Q 2019. comparado con el segundo trimestre de 2020.
There was a production decrease of approximately 2,000 oz. with respect to 1Q 2020 due to the movement of some of the dredges and the final closing of the sales agreement of shares of Operadora Minera to Soma Gold, last June.
Operations cash flow in Colombia closed at USD 6.1 million, with a yearly EBITDA close to 50%.
Production increased by 3.9% during 2Q 2020, EBITDA almost by 62% and the All-in Sustaining Cost decreased 3.2%.
Total cash was approximately USD 22 million, the EBITDA margin increased from 35% during 1Q 2020, to 44% in the second quarter.
Quarterly production decreased by 19% vs. 2Q 2019, the EBITDA margin decreased by 27% and the All-in Sustaining Cost increased almost by 59%, due to gold inventory costs, since the recovery percentage of the leach heps was lower than expected.
Cash flow in the 2Q 2020 was USD 3.4 million, with an EBITDA margin of 33%.
Measures against COVID-19
In spite of the situation, our operations have continued in the three countries.
“We continue taking strict care of ourselves, with isolation practices, social distancing, personnel turnover and remote work. We developed the Good Neighbor and Wellbing for All Plan, seeking to help the communities in our areas of influence”, stated Andrés Restrepo, President of Mineros.
All our operations continue following recommendations made by the World Health Organization, as well as government entities and Occupational Safety and Health teams in the three countries.
“Thanks to the solidarity of our workers and the contribution of Mineros, we have collected over USD 540,000. We continue making internal donation campaigns becasue our goal is to exceed that amount to continue supporting the communities. We will continue searching for ways to help while in this situation”, added Andrés Restrepo.
In the three countries where Mineros has operations, more than 20,000 food and hygiene kits have been delivered. In some communities where drinking water is scarce, we have delivered over 25,000 liters of bottled water. Likewise, investment has been made to improve the health infrastructure in areas of influence.
Apart from donations made, Mineros continues supporting local enterprises in the manufacturing of protection elements, such as masks. Help continues being give at dining areas and health centers in our areas of influence, and strengthening community campaigns for the prevention, protection and self-diagnosis, in order to continue generating wellbeing for all.
About Mineros S.A.
For 47 years, Mineros S.A., a Colombian company, has worked with the commitment to implement sustainable mineral management processes which contribute to protect the environment and diversity, the wellbeing of all its stakeholders and the economic and social development of regions where Mineros S.A. has operations. Today, such good practices convert Mineros S.A. into an important reference of the responsible mining sector.
Click here to access our Q2 Results presentation