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Mineros S.A. reported income increase of 8% during 1Q 2021
May, 11

Mineros S.A. reported income increase of 8% during 1Q 2021

Mineros S.A. reported income increase of 8% during 1Q 2021 and announced progress in the Stock Exchange listing process

● Income increased due to a higher price of gold, 11% higher vs. 1Q 2020.
● The Company’s EBITDA was USD 45 million, which represents a 7% increase vs. 1Q 2020.
● A total production of 257,000 – 282,000 oz are estimated for year 2021.

Medellín, May 10, 2021.

Mineros S.A., a Colombian company with more than 47 years of experience, dedicated to the exploration and exploitation of precious metals, mainly gold, with operations in Colombia, Argentina and Nicaragua, presented its financial and operational results corresponding to 1Q 2021, which confirm it as a Company with attractive profitability levels and high cash flow.

“The first quarter 2021 demonstrated a good beginning of the year beginning, similar to 2020, with production rates aligned to our estimates and high investment levels. 1Q 2021 income was USD 125 million, or an increase of 8% vs. 1Q 2020”, said Andrés Restrepo Isaza, President of Mineros.
Total costs increased by 12%, or USD 88 million, result from an increase in depreciations and amortizations, a higher price of artisanal material, formalization contracts, and non-recurrent payment of external consultancies.
Administration expenses had a 15% increase, due to the annual salary increase and payment of external consultancies, partially compensated by lower expenses in technology.

The above-mentioned results allowed the Company to achieve an operating profit of USD 32.5 million, or a 3% decrease vs. Q1 2020 (29% in Q1 2020 vs. 26% in Q1 2021). EBITDA was USD 45 million, a 7% increase vs. the last quarter of 2020.

Therefore, net profit decreased by 14%, for a total of USD 13.8 million, mainly due to a greater deferred tax and the fluctuation of currency exchange rate in the compared periods.

The internal generation of funds, defined as the net profit plus depreciations and amortizations, increased by 7%, or a total of USD 26.5 million.

Results by Country


In Colombia, production in the first quarter was 20,782 ounces, which represents 9% less vs. Q1 2020. This decrease is due to the sale of Operadora Minera, because the alluvial operation had a 10% production increase. Gross profit decreased by 7%, for a total of USD 15 million, due to a non-recurrent payment USD 1.5 million for an external consultancy, a higher cost of ounces generated by formalization dredges, and higher capital investments.


HEMCO’s production during the first quarter was 30,042 ounces, 6% less than during 1Q 2020 de 2020, due to material grade 5% lower vs. the compared quarter.

Gross profit decreased from USD 16 million in 1Q 2020 to USD 13 million in 1Q 2021. This 15% decrease, among others, was due to an increase in the operation depreciations and amortizations.

As a result of this, the gross margin of HEMCO was 24%, or 23% less than in 1Q 2020.


In Argentina, quarterly production decreased by 17% vs. Q1 2020, as a result of the natural depletion of the open pit mine.

Gross profit increased approximately USD 2 million, mainly due to adjustments in gold inventories in Q1 2020, which are shown as a higher production cost.

It is important to remember that Gualcamayo was a mine in a closure process and that the Company’s goal to give it continuity. Therefore, it is necessary to continue making investments in order to include new resources and reserves and open new ore production sites.

Challenges and Perspectives
Mineros maintains its production estimates for 2021 in a range between 257,000 and 282,000 ounces. Likewise, Mineros will continue advancing in its expansion program in explorations and projects in the three (3) countries, striving to increase the base and improve the classification of resources and reserves, as well as extending the life cycle of the mine operations.
In Colombia, Mineros will continue developing and strengthening new alluvial exploitation methods.
The Company has significantly advanced in Toronto’s Stock Exchange listing process, which has implied, among other aspects, the amendment of Policies and Bylaws, and registration of all information required by both markets.
“We still have some tasks pending before making the simultaneous public stock emission. We will continue working jointly with Stock Exchanges and securities deposits to consolidate a scheme that allows fungibility; in other words, that shares listed in the Stock Exchange of Colombia may be negotiated in Canada, and vice versa”, concluded Andrés Restrepo Isaza, President of Mineros S.A.

About Mineros S.A.

For the last 47 years, Mineros S.A., a Colombian company, has been committed to the implementation of sustainable mineral management processes which contribute to protect the environment and the diversity, the wellbeing of its stakeholders, and the economic and social development of the regions where it has presence. Today, such practices convert Mineros S.A. into an important reference of responsible mining.

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