(all dollar amounts - other than per share amounts - are expressed in thousands of US dollars unless otherwise stated)
On
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE FIRST QUARTER OF 2024
- Revenue increased by 15%: revenue totaled
$114,148 during the first quarter of 2024, compared with$98,869 in the first quarter of 2023, with sales of gold of$106,962 at an average realized price per ounce of gold sold from continuing operations1 of$2,067 , during the first quarter of 2024 compared with sales of gold of$94,960 at an average realized price per ounce of gold sold from continuing operations of$1,876 in the first quarter of 2023. The increase in revenue in the first quarter of 2024 is mainly explained by a 10% increase in average realized price per ounce of gold sold from continuing operations, a 2% increase in ounces of gold sold from continuing operations and a 87% increase in sales of silver of$2,606 ; - Cost of sales increased by 19% to
$80,678 during the first quarter of 2024, compared with$67,971 in the first quarter of 2023. This increase was primarily due to: (i) the higher price of gold increasing the costs related to artisanal mining to$4,969 ; (ii) greater depreciation and amortization relating to our operations of$1,117 ; and (iii) the 17% revaluation of the Colombian peso against the US dollar and higher prices across the Company's operations, thus creating increased maintenance and materials cost of$1,915 , and service and labour costs of$1,804 and$2,751 respectively; - Gross Profit from continuing operations increased by 8% to
$33,470 in the first quarter of 2024, compared with$30,898 in the first quarter of 2023, mainly due to higher revenue as explained above; - Profit for the period from continuing operations up 0.14%, to
$16,774 or$0.06 per share during the first quarter of 2024 compared with$16,751 or$0.06 per share during the first quarter of 2023. The modest increase in profit is mainly explained by higher revenue and gross profit as explained above. Profit for the period was impacted by higher foreign exchange differences of$2,157 , higher administrative expenses of$778 related to employee benefits and services, higher taxes of$469 and less other income of$3,236 ; - Adjusted EBITDA1 up 8%: Adjusted EBITDA was
$40,654 during the first quarter of 2024 compared with$37,754 during the first quarter of 2023, mainly explained by higher revenue as explained above; - ROCE1 was 32% as at
March 31, 2024 compared with a ROCE of 26% as atMarch 31, 2023 . The increase is mainly explained by 10% higher Adjusted EBITDA for the last 12 months, along with a 8% decrease in average capital employed, mainly explained by the sale of Gualcamayo and the disposal of its assets and liabilities; - Net cash flows generated by operating activities up 305%, totaling
$10,105 in the first quarter of 2024, compared with$2,498 in the first quarter of 2023, primarily explained the sale of Gualcamayo which resulted in lower payments to suppliers of$13,897 , and lower payments to employees and social security agencies of$5,626 , lower payments for premiums and claims of$1,438 partially offset with higher income tax payments of$2,156 and lower receipts from sales for$11,424 ; - Net Debt2 was
$(14,215) as atMarch 31, 2024 , compared with$12,612 as atMarch 31, 2023 ; explained by 25% higher cash and cash equivalents, along with 48% lower loans and other borrowings, reflecting strong cash position for the company and significant decrease in debt levels; - Dividends Paid up 8%: Dividends paid during the first quarter of 2024 were
$5,239 , compared with$4,837 in the same period of 2023, explained by an 8% higher dividend approved at the General Shareholders' Meeting inMarch 2023 ; - Cash Cost & AISC: Cash Cost per ounce of gold sold for continuing operations in the first quarter of 2024 was
$1,202 and AISC per ounce of gold sold from continuing operations1 was$1,429 , compared with Cash Cost per ounce of gold sold from continuing operations of$1,055 and AISC per ounce of gold sold from continuing operations of$1,252 for the first quarter of 2023. The 14% increase in Cash Cost per ounce of gold sold from continuing operations is mainly explained by the 19% increase in cost of sales, due to higher gold prices and the effects of the COP:US$ exchange rate, which was partially offset by the 2% increase in ounces of gold sold. The increase in AISC per ounce of gold sold from continuing operations is explained by the increase in cost of sales, along with a 20% increase in sustaining capital expenditures, partially offset by the 2% increase in ounces of gold sold; and - Capital investments down 4% to
$14 ,363: during the first quarter of 2024 capital investments of$14,363 were made into existing mines, and exploration & growth projects, compared with$14,982 in the first quarter of 2023; the decrease is explained by the sale of Gualcamayo.
____________________________________ |
1 Average realized price per ounce of gold sold from continuing operations, Adjusted EBITDA, Net Debt, Cash Cost per ounce of gold sold, and AISC per ounce of gold sold are non-IFRS financial measures, and Cash Cost per ounce of gold sold, AISC per ounce of gold sold and ROCE is a non-IFRS ratio, with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release. |
2 Cash Cost, AISC, Adjusted EBITDA, net free cash flow, Net Debt and average price realized per ounce of gold sold are non-IFRS financial measures, and Cash Cost per ounce of gold sold, AISC per ounce of gold sold and ROCE are non-IFRS ratios, with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release. |
Financial and Operating Highlights
Three Months | Change | |||
2024 | 2023 | $ | % | |
Financial | ||||
Revenue | 114,148 | 98,869 | 15,279 | 15 % |
Cost of sales | (80,678) | (67,971) | (12,707) | 19 % |
Gross Profit | 33,470 | 30,898 | 2,572 | 8 % |
Profit for the period from continuing operations | 16,774 | 16,751 | 23 | 0 % |
Basic and diluted earnings per share from continuing operations | 0 % | |||
Loss for the period from discontinued operations | — | (1,347) | 1,347 | (100) % |
Basic and diluted earnings per share from continuing and | 9 % | |||
Adjusted EBITDA1 | 40,654 | 37,754 | 2,900 | 8 % |
Net cash flows generated by operating activities | 10,105 | 2,498 | 7,607 | 305 % |
Net free cash flow1 | (1,897) | (10,232) | 8,335 | (81) % |
ROCE1 | 32 % | 26 % | 6 % | 22 % |
Net Debt 1 | (14,215) | 12,612 | (26,827) | (213) % |
Dividends paid | 5,239 | 4,837 | 402 | 8 % |
Operating | ||||
Average realized price per ounce of gold sold from continuing | 2,067 | 1,876 | 191 | 10 % |
Total Gold Produced from continuing operations (oz) | 51,741 | 50,609 | 1,132 | 2 % |
Silver sold (oz) from continuing operations | 242,649 | 131,523 | 111,126 | 84 % |
Cash Cost per ounce of gold sold from continuing operations | 14 % | |||
AISC per ounce of gold sold from continuing operations ($/oz) 1 2 | 14 % |
1. | Adjusted EBITDA, Net free cash flow, Net Debt, Cash Cost per ounce of gold sold, AISC per ounce of gold sold and average realized price per ounce of gold sold, are non-IFRS financial measures, and ROCE is a non-IFRS ratio, with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures, see Non-IFRS and Other Financial Measures in this news release. |
2. | In Q4 of 2023, the Company restated AISC and Cash Cost to capture cash outflows related to asset retirement obligations and environmental and rehabilitation costs. |
Operational Highlights by Material Property
(All numbers in ounces unless otherwise noted)
Three Months | Change | ||||
2024 | 2023 | ||||
Ounces | Ounces | Ounces | % | ||
Nechí Alluvial Property ( | 19,212 | 17,988 | 1,224 | 7 % | |
Hemco Property | 8,182 | 10,221 | (2,039) | (20) % | |
Artisanal Mining | 24,347 | 22,400 | 1,947 | 9 % | |
32,529 | 32,621 | (92) | — % | ||
Total Gold Produced from Continuing Operations | 51,741 | 50,609 | 1,132 | 2 % | |
Gualcamayo Property ( | — | 9,639 | (9,639) | (100) % | |
Total Gold Produced from Discontinued Operations | — | 9,639 | (9,639) | (100) % | |
Total Gold Produced | 51,741 | 60,248 | (8,507) | (14) % | |
Total Silver Produced | 242,649 | 134,669 | 107,980 | 80 % |
- Gold production increased by 2%: Excluding the results of the discontinued operations at the Gualcamayo Property (disposed of in 2023), 51,741 ounces of gold were produced during the first quarter of 2024, compared with 50,609 ounces in the first quarter of 2023. The increase in production is mainly a result of 7% higher production at the Nechí Alluvial Property, explained by higher volumes.
- Exploration and Evaluation Expenditures: for the three months ended
March 31, 2024 , the Company incurred$2,228 in exploration and evaluation ("E&E") expenditures, an increase of 20% compared with the first quarter of 2023. The increase is mainly explained by higher exploration expenditures which were capitalized in the Hemco Property, related to thePorvenir Project . The increase in exploration expenses is mainly due to higher regional exploration in the Hemco Property and the sale and subsequent disposal of the Ataco project mining rights inColombia . The following table summarizes E&E expenditures for the current and comparative periods.
Three | Change | |||
2024 | 2023 | $ | % | |
E&E expenditures capitalized 1, 3 | 624 | 525 | 99 | 19 % |
E&E expenditures expensed 2 | 1,604 | 1,338 | 266 | 20 % |
Total | 2,228 | 1,863 | 365 | 20 % |
1. | Capitalized E&E expenditures are reflected in E&E projects in the consolidated statements of financial position. |
2. | Figures in the table reflect expenditures capitalized from continuing operations. E&E expenditures capitalized from discontinued operations as discussed in this MD&A are nil. |
3. | Expensed E&E expenditures are reported in the consolidated statement of profit or loss for the respective period under "Exploration expenses". |
CORPORATE HIGHLIGHTS FOR THE THREE
Dividends declared
On
The Canadian record dates and Canadian/Colombian payment dates for the ordinary and extraordinary dividends are set out in the table directly below:
Amount per share | ||||
Record Date | Payment Date | ($) | (COP$) | |
Ordinary Dividend | 0.01875 | 74.1 | ||
0.01875 | 74.1 | |||
0.01875 | 74.1 | |||
0.01875 | 74.1 | |||
Extraordinary Dividend | 0.00625 | 24.7 | ||
0.00625 | 24.7 | |||
0.00625 | 24.7 | |||
0.00625 | 24.7 |
Change in Board of directors
At the
GROWTH AND EXPLORATION PROJECT UPDATES
The two key growth and exploration projects the Company is advancing are the
The infill drilling campaign is confirming Mineros' view that mineralization extends below the current resource estimate and that mineralization remains open at depth.
Luna Roja Deposit,
OUTLOOK
The following section of this news release represents forward-looking information, and readers are cautioned that actual results may vary. We refer readers to the risks and assumptions contained in Section 14 – Cautionary Notes and Additional Information - Cautionary Statement on Forward-Looking Information in the Company's MD&A for the interim financial period ended
Gold production guidance
The following table presents the Company's gold production guidance for 2024 and actual production for the three months ended
Actual (oz) | Guidance (oz) | |
31 March | 2024 | |
19,212 | 86,000 - 96,000 | |
8,182 | 33,000 - 35,000 | |
Total Company Mines | 27,394 | 118,500 - 131,000 |
24,347 | 90,000 - 98,000 | |
Total gold production (ounces) | 51,741 | 209,000 - 229,000 |
Given the operating results for the period ended
Cost outlook
The following table outlines the Company's Cash Cost per ounce of gold sold and AISC per ounce of gold sold for the three months ended
Actual | Cash Cost | Actual | AISC ($/oz) | |
Country (principal mine) | 31 March | 2024 | 31 March | 2024 |
1,262 | 1,389 | |||
1,273 | 1,463 | |||
Consolidated | 1,202 | 1,429 |
Cash Costs per ounce of gold sold and AISC per ounce of gold sold outlooks were prepared assuming an average selling price of gold of
CONFERENCE CALL AND WEBCAST DETAILS
The Company will host a conference call on
A live webcast of the conference all will be available at:
https://app.webinar.net/yRqkbmzw260
The live webcast requires previous registration, and interested parties are advised to access the webcast approximately ten minutes prior to the start of the call. The webcast will be archived on the Company's website at www.mineros.com.co for approximately 30 days following the call.
ABOUT
Mineros is a gold mining company headquartered in
The board of directors and management of Mineros have extensive experience in mining, corporate development, finance and sustainability. Mineros has a long track record of maximizing shareholder value and delivering solid annual dividends. For almost 50 years Mineros has operated with a focus on safety and sustainability at all its operations.
Mineros' common shares are listed on the
QUALIFIED PERSON
The scientific and technical information contained in this news release has been reviewed and approved by
FORWARD-LOOKING STATEMENTS
This news release contains "forward looking information" within the meaning of applicable Canadian securities laws. Forward looking information includes statements that use forward looking terminology such as "may", "could", "would", "will", "should", "intend", "target", "plan", "expect", "budget", "estimate", "forecast", "schedule", "anticipate", "believe", "continue", "potential", "view" or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Such forward looking information includes, without limitation, statements with respect to the Company's outlook for 2024; estimates for future mineral production and sales; the Company's expectations, strategies and plans for the
Forward looking information is based upon estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this news release including, without limitation, assumptions about: favourable equity and debt capital markets; the ability to raise any necessary additional capital on reasonable terms to advance the production, development and exploration of the Company's properties and assets; future prices of gold and other metal prices; the timing and results of exploration and drilling programs, and technical and economic studies; the accuracy of any Mineral Reserve and Mineral Resource estimates; the geology of the
For further information of these and other risk factors, please see the '"Risk Factors" section of the Company's annual information form dated
The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward looking information contained herein. There can be no assurance that forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information.
Forward looking information contained herein is made as of the date of this news release and the Company disclaims any obligation to update or revise any forward looking information, whether as a result of new information, future events or results or otherwise, except as and to the extent required by applicable securities laws.
NON-IFRS AND OTHER FINANCIAL MEASURES
The Company has included certain non-IFRS financial measures and non-IFRS ratios in this news release. Management believes that non-IFRS financial measures and non-IFRS ratios, when supplementing measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-IFRS financial measures and non-IFRS ratios do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. This data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a discussion of the use of non-IFRS financial measures and reconciliations thereof to the most directly comparable IFRS measures, see below.
In the fourth quarter of 2023, in order to accommodate the transactions that occurred during the period, the Company aligned its definitions of non-IFRS measures to more accurately reflect the economic reality of its operations. Management implemented certain changes including the removal of the non-IFRS financial measure Net Debt to Adjusted EBITDA ratio and included Net Debt instead. This change aligns the non-IFRS financial measures to those used by the business to evaluate the performance of the Company. AISC and Cash Cost have been restated to capture cash outflows related to asset retirement obligations and environmental and rehabilitation costs. No other changes to the determination of the remaining non-IFRS financial measures have been made.
EBIT, EBITDA and Adjusted EBITDA
The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use the earnings before interest and tax ("EBIT"), earnings before interest, tax, depreciation and amortization ("EBITDA"), and adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA"), which excludes certain non-operating income and expenses, such as financial income or expenses, hedging operations, exploration expenses, impairment of assets, foreign currency exchange differences, and other expenses (principally, donations, corporate projects and taxes incurred). The Company believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results because it is consistent with the indicators management uses internally to measure the Company's performance and is an indicator of the performance of the Company's mining operations. Certain amounts under each set of results have been restated to reflect continuing operations of the Company (removal of amounts pertaining to discontinued operations in Gualcamayo). The first quarter of 2023 has been restated to this effect.
The following table provides a reconciliation of the Adjusted EBITDA for the three months ended
Three Months Ended | ||
2024 | 2023 | |
Profit for the Period | 16,774 | 15,404 |
Less: Interest income | (487) | (282) |
Add: Interest expense | 2,039 | 1,192 |
Add: Current tax 1 | 10,007 | 11,563 |
Add/less: Deferred tax 1 | (953) | (2,978) |
EBIT | 27,380 | 24,899 |
Add: Depreciation and amortization | 12,048 | 10,942 |
EBITDA | 39,428 | 35,841 |
Less: Other income 2 | (1,963) | (5,199) |
Less: Finance income (excluding interest income) | (6) | (27) |
Add: Finance expense (excluding interest expense) | 48 | 840 |
Add: Other expenses 3 | 1,680 | 1,635 |
Add: Exploration expenses | 1,604 | 1,338 |
Less: Foreign exchange differences | (177) | 1,979 |
Add: Loss for the period from discontinued operations 4 | — | 1,347 |
Adjusted EBITDA | 40,654 | 37,754 |
1. | For additional information regarding taxes, see Note 14 of our unaudited condensed interim consolidated financial statements, for the three months ended |
2. | For additional information regarding other income, see Note 10 of unaudited condensed interim consolidated financial statements,unaudited condensed interim consolidated financial statements for the three months ended |
3. | The reconciliation above does not include adjustments for (impairment) reversal of assets, because there would be a nil adjustment for the three months ended |
4. | Composition of Adjusted EBITDA has been revised to include loss for the year from discontinued operations. |
Cash Cost
The objective of Cash Cost is to provide stakeholders with a key indicator that reflects as closely as possible the direct cost of producing and selling an ounce of gold.
The Company reports Cash Cost per ounce of gold sold which is calculated by deducting revenue from silver sales, depreciation and amortization, environmental rehabilitation provisions and including cash used for retirement obligations and environmental and rehabilitation. This total is divided by the number of gold ounces sold. Production Cash Cost includes mining, milling, mine site security, royalties, and mine site administration costs, and excludes non-cash operating expenses. Cash Cost per ounce of gold sold is a non-IFRS financial measure used to monitor the performance of our gold mining operations and their ability to generate profit, and is consistent with the guidance methodology set out by the
The following table provides a reconciliation of Cash Cost per ounce of gold sold on a by-product basis to cost of sales for the three months ended
Three Months Ended | ||
2024 | 2023 | |
Cost of sales | 80,678 | 67,971 |
Less: Cost of sales of non-mining operations 1 | (195) | (107) |
Less: Depreciation and amortization | (11,684) | (10,567) |
Less: Sales of silver | (5,594) | (2,916) |
Less: Environmental rehabilitation provision 2 | (1,186) | (987) |
Add: Use of environmental and rehabilitation liabilities | 142 | — |
Add: Use of Retirement obligations | 25 | — |
Cash Cost from continuing operations | 62,186 | 53,394 |
Gold sold (oz) from continuing operations | 51,741 | 50,609 |
Cash Cost per ounce of gold sold from continuing operations ($/oz) | ||
Cash Cost from discontinued operations | — | 15,710 |
Gold sold (oz) from discontinued operations | — | 10,084 |
Cash Cost per ounce of gold sold from discontinued operations ($/oz) | ||
Cash Cost | 62,186 | 69,104 |
Gold sold (oz) | 51,741 | 60,693 |
Cash Cost per ounce of gold sold ($/oz) |
1. | Refers to cost of sales incurred in the Company's "Others" segment. See Note 7 of our unaudited condensed interim financial statements for the three months ended March 31, 2024 and 2023. The majority of this amount relates to the cost of sales of latex. |
2. | For additional information regarding environmental rehabilitation provision, please refer to Note 19 of the consolidated financial statements for the three months ended |
The following table provides a reconciliation of Cash Cost per ounce of gold sold on a by-product basis to cost of sales, before and after the change of definition of this metric, modified to capture cash outflows related to asset retirement obligation and environmental rehabilitation provisions, for the three months ended
Three Months | |
Cash Cost per ounce of gold sold ($/oz) - Previously reported | 1,155 |
Adjustments ($/oz) | |
Less: Environmental rehabilitation provision | (16) |
Add: Use of environmental and rehabilitation liabilities | — |
Add: Use of Retirement obligations | — |
Cash Cost per ounce of gold sold ($/oz) - restated | 1,139 |
All-in Sustaining Costs
The objective of AISC is to provide stakeholders with a key indicator that reflects as close as possible the full cost of producing and selling an ounce of gold. AISC per ounce of gold sold is a non-IFRS ratio that is intended to provide investors with transparency regarding the total costs of producing one ounce of gold in the relevant period.
The Company reports AISC per ounce of gold sold on a by-product basis. The methodology for calculating AISC per ounce of gold sold is set out below and is consistent with the guidance methodology set out by the
The following table provides a reconciliation of AISC per ounce of gold sold to cost of sales for the three months ended
Three Months Ended | ||
2024 | 2023 | |
Cost of sales | 80,678 | 67,971 |
Less: Cost of sales of non-mining operations 1 | (195) | (107) |
Less: Depreciation and amortization | (11,684) | (10,567) |
Less: Sales of silver | (5,594) | (2,916) |
Less: Sales of electric energy | (1,435) | (961) |
Less: Environmental rehabilitation provision 2 | (1,186) | (987) |
Add: Use of environmental and rehabilitation liabilities | 142 | — |
Add: Use of Retirement obligations | 25 | — |
Add: Administrative expenses | 4,864 | 4,086 |
Less: Depreciation and amortization of administrative expenses 3 | (364) | (375) |
Add: Sustaining leases and leaseback 4 | 2,942 | 2,114 |
Add: Sustaining exploration 5 | 44 | 132 |
Add: Sustaining capital expenditures 6 | 5,705 | 4,972 |
AISC from continuing operations | 73,942 | 63,362 |
Gold sold (oz) from continued operations | 51,741 | 50,609 |
AISC per ounce of gold sold from continuing operations ($/oz) | ||
AISC from discontinued operations | — | 21,268 |
Gold sold (oz) from discontinued operations | — | 10,084 |
AISC per ounce of gold sold from discontinued operations ($/oz) | ||
AISC | 73,942 | 84,630 |
Gold sold (oz) | 51,741 | 60,693 |
AISC per ounce of gold sold ($/oz) |
1. | Cost of sales of non-mining operations is the cost of sales excluding cost incurred by non-mining operations and the majority of this cost comprises cost of sales of latex. |
2. | For additional information regarding environmental rehabilitation provision, please refer to Note 19 of the unaudited condensed interim consolidated financial statements for the three months ended |
3. | Depreciation and amortization of administrative expenses is included in the administrative expenses line on the unaudited condensed interim consolidated financial statements and is mainly related to depreciation for corporate office spaces and local administrative buildings at the Hemco Property. |
4. | Represents most lease payments as reported on the unaudited condensed interim consolidated financial statements of cash flows and is made up of the principal component of such cash payments, less non-sustaining lease payments. Lease payments for new development projects and capacity projects are classified as non-sustaining. |
5. | Sustaining exploration: Exploration expenses and exploration and evaluation projects as reported on the unaudited condensed interim consolidated financial statements, less non-sustaining exploration. Explorations are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and so are included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non- sustaining. |
6. | Sustaining capital expenditures: Represents the capital expenditures at existing operations including, periodic capitalized stripping and underground mine development costs, ongoing replacement of mine equipment and overhaul of existing equipment, and is calculated as total additions to property, plant and equipment (as reported on the consolidated statements of cash flows), less non-sustaining capital. Non-sustaining capital represents capital expenditures for major projects, including projects at existing operations that are expected to materially benefit the operation and provide a level of growth, as well as enhancement capital for significant infrastructure improvements at existing operations. Non-sustaining capital expenditures during the three months ended |
The following table provides a reconciliation of AISC per ounce of gold sold on a by-product basis to cost of sales, before and after the change of definition of this metric, modified to capture cash outflows related to asset retirement obligation and environmental rehabilitation provisions, for the three months ended
Three Months | |
AISC per ounce of gold sold ($/oz) - Previously reported | 1,411 |
Adjustments ($/oz) | |
Less: Environmental rehabilitation provision | (16) |
Add: Use of environmental and rehabilitation liabilities | — |
Add: Use of Retirement obligations | — |
AISC per ounce of gold sold ($/oz) restated | 1,394 |
Net Free Cash Flow
The Company uses the financial measure "net free cash flow", which is a non-IFRS financial measure, to supplement information regarding cash flows generated by operating activities. The Company believes that in addition to IFRS financial measures, certain investors and analysts use this information to evaluate the Company's performance with respect to its operating cash flow capacity to meet recurring outflows of cash.
Net free cash flow is calculated as cash flows generated by operating activities less non-discretionary sustaining capital expenditures and interest and dividends paid related to the relevant period. As the Gualcamayo Property was sold in
The following table sets out the calculation of the Company's net free cash flow to net cash flows generated by operating activities for the three months ended
Three Months Ended | ||
2024 | 2023 | |
Net cash flows generated by operating activities | 10,105 | 2,498 |
Non-discretionary items: | ||
Sustaining capital expenditures (excluding Gualcamayo) | (5,705) | (4,972) |
Interest paid | (1,058) | (1,937) |
Dividends paid | (5,239) | (4,837) |
Net cash flows used in (generated from) discontinued operations 1 | — | (984) |
Net free cash flow | (1,897) | (10,232) |
1. | Composition of net free cash flow has been revised to exclude net cash flows used in (generated from) discontinued operations. |
Return on Capital Employed
The Company uses ROCE as a measure of long-term operating performance to measure how effectively management utilizes the capital it has provided. This non-IFRS ratio is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The calculation of ROCE, expressed as a percentage, is Adjusted EBIT (calculated in the manner set out in the table below) divided by the average of the opening and closing capital employed for the 12 months preceding the period end. Capital employed for a period is calculated as total assets at the beginning of that period less total current liabilities. Certain amounts under each set of results have been restated to reflect continuing operations of the Company (removal of amounts pertaining to discontinued operations in Gualcamayo).
The first quarter of 2023 has been restated to this effect. The following table sets out the calculation of ROCE as at
As at | ||
2024 | 2023 | |
Adjusted EBITDA (last 12 months) | 175,046 | 159,077 |
Less: Depreciation and amortization (last 12 months) | (46,205) | (43,969) |
Adjusted EBIT (A) | 128,841 | 115,108 |
Total assets at the beginning of the period | 493,757 | 569,543 |
Less: Total current liabilities at the beginning of the period | (84,765) | (134,581) |
Opening Capital Employed (B) | 408,992 | 434,962 |
Total assets at the end of the period | 500,585 | 576,771 |
Less: Current liabilities at the end of the period | (105,075) | (134,581) |
Closing Capital employed (C) | 395,510 | 442,190 |
402,251 | 438,576 | |
ROCE (A/D) | 32 % | 26 % |
Net Debt
Net Debt is a non-IFRS financial measure that provides insight regarding the liquidity position of the Company. The calculation of net debt shown below is calculated as nominal undiscounted debt including leases, less cash and cash equivalents. The following sets out the calculation of Net Debt as at
As at | ||
2024 | 2023 | |
Loans and other borrowings | 31,661 | 46,881 |
Less: Cash and cash equivalents | (45,876) | (34,269) |
Net Debt | (14,215) | 12,612 |
Average Realized Price
The Company uses "average realized price per ounce of gold sold" and "average realized price per ounce of silver sold", which are non-IFRS financial measures. Average realized metal price represents the revenue from the sale of the underlying metal as per the statement of operations, adjusted to reflect the effect of trading at holding level (parent Company) on the sales of gold purchased from subsidiaries. Average realized prices are calculated as the revenue related to gold and silver sales divided by the number of ounces of metal sold. The following table sets out the reconciliation of average realized metal prices to sales of gold and sales of silver for the three months ended
Three Months Ended March | ||
2024 | 2023 | |
Sales of gold from continuing operations | 106,962 | 94,960 |
Gold sold from continuing operations (oz) | 51,741 | 50,609 |
Average realized price per ounce of gold sold from continuing | 2,067 | 1,876 |
Sales of gold from discontinued operations | — | 19,239 |
Gold sold from discontinued operations (oz) | — | 10,084 |
Average realized price per ounce of gold sold from | — | 1,908 |
Average realized price per ounce of gold sold ($/oz) | 2,067 | 1,882 |
Sales of silver from continuing operations | 5,594 | 2,988 |
Silver sold from continuing operations (oz) | 242,649 | 131,523 |
Average realized price per ounce of silver sold from | 23 | 23 |
Sales of silver from discontinued operations | — | 106 |
Silver sold from discontinued operations (oz) | — | 4,937 |
Average realized price per ounce of silver sold from | — | 21 |
Average realized price per ounce of silver sold ($/oz) | 23 | 23 |
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