Minera unveils fall in gold production, sales and profits

Shares in Latin American gold mining company Minera IRL plunged Tuesday after reporting a fall in sales and production in the first quarter.

Shares in Latin American gold mining company Minera IRL plunged Tuesday after reporting a fall in sales and production in the first quarter.

Gold sales fell 13% to 5,660 ounces compared to a year earlier, reflecting a 13% drop in production to 5,848 at the Corihuarmi mine in Peru due to lower grade ore.

Revenue declined 17% to $9.2m and profit before tax plummeted 94% to $0.2m as the average price of gold fell 4.0% to $1,631 per ounce.

The company posted a 57% decrease in earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.9m.

Loss after tax came to $1.1m, compared to a profit of $1.7m the prior year.

Chairman Courtney Chamberlain said the results were in line with the group's expectations.

"Corihuarmi has now been in production for over five years and an outstanding success," he said.

"Production is now declining with the mining and treatment of lower grade ore but the mine continues to generate strong cash flow."

During the quarter, the company raised $15.5m in equity for the exploration of the Ollachea mine in Peru.

The business has so far completed a first phase underground drill programme on the eastern extension of the Minipampa resource zone which wielded strong results.

"The focus is now on obtaining the development permit during the second half and, in parallel, arranging of project finance," Chamberlin added.

Minera ended the period with a cash balance of $6.5m, up from $6.2m at the end of the previous quarter.

Shares tumbled 16.33% to 20.50p at 11:36 Tuesday.

RD

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022