Mineros S.A (MINEROS) Q2 2024 earnings summary

Executive summary

• Q2 2024 gold production was just under 54,000 ounces, with silver output up 47% year-over-year to 224,096 ounces; H1 gold production reached 105,444 ounces, keeping annual guidance on track.

• Revenue increased 40% year-over-year in Q2, driven by an 18% rise in average gold price and a significant increase in silver sales, despite a 6% drop in gold ounces sold.

• Adjusted EBITDA grew 4% year-over-year to $49.6M, while net profit from continuing operations was $18.1M; losses from discontinued operations were eliminated after the Gualcamayo sale in September 2023.

• Over $10 million committed to Colombian social projects, including education, infrastructure, and sports equipment.

Financial highlights

• Gross profit increased 1% year-over-year to $41.4M, with cost of sales rising due to higher artisanal material costs and depreciation.

• Adjusted EBITDA for Q2 increased 4% year-over-year, reflecting higher gold prices and silver sales.

• Net income from continuing operations declined due to higher artisanal material costs, exchange rate expenses ($2.6M), and increased taxes ($7.7M).

• Cash and cash equivalents fell 41% during Q2, closing at $27.2M, mainly due to $27.5M in Colombian tax payments and investments.

• Net debt dropped 85% year-over-year to $1.9M, reflecting lower debt levels.

Outlook and guidance

• 2024 production guidance is 209,000–229,000 ounces of gold, with H1 2024 production at 105,444 ounces; guidance is maintained, but cost compliance may be challenged if gold prices rally further.

• Cash cost and AISC guidance per ounce are $1,180–$1,270 and $1,430–$1,530, respectively; actuals are trending above guidance due to higher gold prices and Colombian peso strength.

• Porvenir project pre-feasibility delayed to 2025 due to ongoing metallurgical analysis; Luna Roja resource update expected early 2025.

• Ongoing exploration at Porvenir and Luna Roja in Nicaragua aims to expand resources and prepare for future growth.