What rout? This gold miner’s getting near record-high prices
Tags: Gold
As the meltdown in metal prices batters miners around the world, Colombia’s biggest gold producer is broadening its search for acquisitions.
Mineros SA, based in Medellin, is getting a boost from gold prices that are approaching record highs in Colombian pesos. The currency has lost 16 percent against the U.S. dollar in the past three months and 37 percent in the past year, more than making up for gold’s 11 percent decline in U.S. dollars.
“It’s going to be a good year,” Andres Restrepo, who took over as chief executive officer in May, said Monday in an interview.
Mineros continues to hunt for new assets in Latin America and has extended its search to Canada and the U.S. as part of a goal to lift production from 183,296 ounces in 2014 to as much as 500,000 ounces by 2020. It bought a 90 percent stake in Hemco Nicaragua SA in March 2013 and has budgeted US$200 million for one or two more acquisitions, anywhere from Alaska to Patagonia.
“As long as we have healthy operations we will be safe to invest in new ones,” Restrepo said. Even so, finding existing mines or mature projects with significant expansion potential isn’t easy, he said.
Gold is trading at about US$1,140 an ounce, or about 3.5 million pesos. A year ago, the price was US$1,287, or 2.5 million pesos. After hedging, Mineros is getting about 3 million pesos an ounce from its Colombian mines, which is close to a record for the company, Restrepo said.
Output from both the Colombian and Nicaraguan operations is sold to refineries in Europe and the U.S.
Mineros SA, based in Medellin, is getting a boost from gold prices that are approaching record highs in Colombian pesos. The currency has lost 16 percent against the U.S. dollar in the past three months and 37 percent in the past year, more than making up for gold’s 11 percent decline in U.S. dollars.
“It’s going to be a good year,” Andres Restrepo, who took over as chief executive officer in May, said Monday in an interview.
Mineros continues to hunt for new assets in Latin America and has extended its search to Canada and the U.S. as part of a goal to lift production from 183,296 ounces in 2014 to as much as 500,000 ounces by 2020. It bought a 90 percent stake in Hemco Nicaragua SA in March 2013 and has budgeted US$200 million for one or two more acquisitions, anywhere from Alaska to Patagonia.
“As long as we have healthy operations we will be safe to invest in new ones,” Restrepo said. Even so, finding existing mines or mature projects with significant expansion potential isn’t easy, he said.
Gold is trading at about US$1,140 an ounce, or about 3.5 million pesos. A year ago, the price was US$1,287, or 2.5 million pesos. After hedging, Mineros is getting about 3 million pesos an ounce from its Colombian mines, which is close to a record for the company, Restrepo said.
Output from both the Colombian and Nicaraguan operations is sold to refineries in Europe and the U.S.
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