MINEROS: CB - MSA: TSX Bandera de Chile Bandera de Colombia Bandera de Nicaragua

News Releases

Mineros S.A. announces its 2021 production forecasts and its positive results during the last quarter of 2020.
Mar, 9

Mineros S.A. announces its 2021 production forecasts and its positive results during the last quarter of 2020.

Mineros S.A. announces its 2021 production forecasts and its positive results during the last quarter of 2020.

● The Company’s income was benefitted by higher prices of gold during the quarter, with a stable behavior and a slight rise of 0.7%.
● Income is mainly represented by the sale of gold produced in Argentina, Nicaragua, and Colombia.
● The Company estimates 2021 gold production to range between 257,000 and 282,000 ounces.

Medellín, March 9, 2021.

Mineros S.A., a company with more than 47 years of experience in exploration and exploitation of precious metals, mainly gold, with operations in Colombia, Argentina y Nicaragua, presented its financial and operational results for the 4th quarter of 2020, which confirms it as one of the most profitable companies in the region.

“During the pandemic, gold became stronger, demonstrating its safe-haven asset characteristics during uncertain times. This is preferred by many investors, as it is a tangible asset. Although our operations were affected by the global situation, the performance herein is satisfactory, and a result of the Company’s resiliency and fast adaptation to change shown by our teams in the different regions”, indicated Andrés Restrepo Isaza, CEO of Mineros S.A.
Income during the last quarter of 2020 was US$122 million, or a 2% increase compared to the same period of 2019, caused by the 28% increase in the price of gold vs. the 4Q 2019, which is partially offset by the lower production.

Total costs decreased by 7%, for a total of US$ 88 million, due to gold inventory adjustments made during 2019 in Argentina, the devaluation of the Colombian peso, and lower costs due to lower production in Argentina.

Administrative expenses increased by 61%, due to payment of consultation services for the Company’s listing in a stock market abroad.

These results allowed the Company to attain an operating profit of US$ 29 million, which represents a 39% growth. The operational margin increased from 17% in Q4 2019 to 24% in Q4 2020. EBITDA was US$ 40 million, or a 24% increase compared to the last quarter of 2019. EBITDA margin was 33% (vs. 27% in 2019).

As result, total net profit for the quarter increased by 54%, for a total of US$ 13 million, and a net margin of 11%.

Results by Country


In Colombia, total production during the 4Q 2020 was 17,561 ounces, representing a 14% decrease vs. 4Q 2019. This decrease was due to a lower average grade, the sale of Operadora Minera, and delays in obtaining some environmental licenses due to difficulties in the coordination of meetings with Colombian authorities due to COVID-19.

On the other hand, gross profit increased by 29%, for a total of US$ 11 million, as result of higher prices of gold and lower costs expressed in US dollars. Gross margin increased from 27% during the last quarter of 2019, to 38% during the same quarter of 2020.

It is important to point out that Mineros Aluvial received the Sustainability Seal from Corantioquia for the second time, and the award as “Best Company Committed with Gender Equality”, for the first time. This second award was granted by the Secretariat of Mining of the Government of Antioquia.


At the end of 2020, Hemco’s operation was affected by hurricanes IOTA and ETA, which affected the Company’s general production and a continuous supply of energy.

Total production during 4Q 2020 was 26,660 ounces, or 21% less compared to 4Q 2019. Gross profit of the operation decreased from US$ 16 million during Q4 2019, to US$ 10 million in 4Q 2020. This 36% decrease was due to adjustments in the functional currency and an increase in depreciations and amortizations of the operation, apart from the above-mentioned reasons.

Quarterly production in Argentina was 19% lower in comparison with 4Q 2019, as result of the natural depletion of a sector of the open pit mine. However, permits for the initiation of a new open pit exploitation zone were obtained. Therefore, gold ounces are expected to be produced during the second semester of 2021.

Gross profit of the operation increased by approximately US$ 9 million due to gold inventory adjustments made during the last quarter of 2019, which were reflected as a higher cost in an amount of approximately US$ 10 million.

Challenges and Perspectives
For 2021, the Company estimated a production range between 257,000 and 282,000 oz Au. Within the main priorities for the year is to extend the life cycle of Gualcamayo Mine in Argentina, through different technical studies currently in progress. Additionally, internal technical studies are being made for the Porvenir Mine and the Company’s new acquisition, Luna Roja (in Nicaragua). Progress is also made in the DCP exploration program (Argentina), La Pepa (Chile), and the plan is to continue with the strategic alliance with Royal Road Minerals in Nicaragua and Colombia.

In Colombia, Mineros S. A. estimates to develop new alluvial exploitation forms with the purpose of increasing annual production and diversify its operations. Currently, an internal project is being initiated using suction dredges to reach areas unfit for the use of bucket dredges. The Company is also working on a formalization model to hire third parties operating within our mining titles in those areas which do not allow the access of our dredges.

When closing the results presentation, Andrés Restrepo Isaza, CEO of Mineros, expressed the "confirmation of the commitment of all of us, as the Management of this Company, to continue working for the wellbeing of all, workers, investors, the communities where we operate, and therefore, benefit the countries where we have operations. When we work in the mining sector and arrive in a different country, the people do not ask what you do; they ask why you are there. Our answer in that case is: We are here for the wellbeing of all".

About Mineros S.A.
For 47 years Mineros S.A., a Colombian company, has worked strongly committed to implement sustainable processes for a better use of minerals, contributing to the protection of the environment and the diversity, the wellbeing of all its stakeholder groups, and the economic and social development of the regions in which it operates. Today, such best practices convert Mineros S.A. in an important reference within the responsible mining practices.

Please login or register to post comments.


Mineros S.A. subsidiaries