Mineros S.A. ((TSE:MSA)) has held its Q3 earnings call. Read on for the main highlights of the call.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Mineros S.A. Reports Strong Financial Performance Amid Challenges
The recent earnings call from Mineros S.A. highlighted a robust financial performance, characterized by record net income and significant revenue growth. The positive sentiment was driven by higher gold prices and increased production, despite challenges such as rising costs and a decline in production in Nicaragua. Overall, the company’s strategic acquisitions and financial growth overshadowed the concerns, indicating a favorable outlook.
Record Net Income
Mineros S.A. reported a record net income of $50 million for the third quarter, with an accumulated net income of $136 million for the first nine months of 2025. This marks a remarkable 114% growth compared to $63.4 million in the same period of 2024, showcasing the company’s strong financial performance.
Significant Revenue Growth
The company achieved a 39% increase in revenue during the third quarter, reaching a record $196 million. This growth was primarily driven by a 40% increase in the average realized gold price, highlighting the favorable market conditions for gold.
Increased Gold Production
Gold production saw a modest increase of 2.5%, totaling 163,000 ounces in the first nine months of 2025 compared to the same period in 2024. This increase in production contributed to the company’s overall financial success.
Successful Share Buyback Program
Mineros completed a share buyback program, repurchasing 3.9 million shares at COP 12,000 each. This move reflects the company’s confidence in its financial stability and commitment to enhancing shareholder value.
Acquisition of La Pepa Project
The acquisition of 80% of the La Pepa project for $40 million, resulting in full ownership of the gold exploration asset in Chile, demonstrates Mineros’ strategic expansion efforts and commitment to growing its asset base.
Cash Flow Growth
The company generated positive free cash flow of $62 million in the third quarter and a total of $106 million for the first nine months of 2025, indicating strong cash management and operational efficiency.
Adjusted EBITDA Growth
Adjusted EBITDA increased by 59% to $244 million for the first nine months of 2025, reflecting improved profitability and operational performance.
Increased Cost of Sales
The cost of sales rose by 23% during the first nine months of the year, driven by higher costs of purchasing material from artisanal miners and increased taxes and royalties. This increase highlights the challenges faced by the company in managing production costs.
Nicaragua Production Decline
Production in Nicaragua declined by 5.4% in the third quarter compared to the same period in 2024, due to a 9.5% decrease in tonnes milled. However, this was partially offset by a 4.6% increase in process grades.
Higher AISC
The All-In Sustaining Cost (AISC) increased by 34%, reaching $1,982 per ounce. This rise was primarily due to higher costs associated with artisanal mining, posing a challenge to maintaining cost efficiency.
Forward-Looking Guidance
Looking ahead, Mineros S.A. continues to focus on increasing gold production and maintaining strong financial performance. The company expects to build on its record net income and revenue growth, driven by favorable gold prices and strategic acquisitions like the La Pepa project. Despite the challenges of rising costs, Mineros remains optimistic about its future prospects.
In summary, Mineros S.A.’s earnings call painted a picture of strong financial health and strategic growth, despite some operational challenges. The company’s record net income, significant revenue growth, and strategic acquisitions underscore its positive trajectory, making it an attractive prospect for investors interested in the gold mining sector.