Minsur revenue grows on higher gold, tin prices

Peruvian miner Minsur, which operates the San Rafael tin mine in Puno region and the Pucamarca gold mine in Tacna, reported revenues of US$455 million between January and June, compared to US$305mn in 1H23.

Revenues grew mainly on higher prices in Q2, which reached US$2,338/oz for gold, up 18% year-on-year, and US$32,353/t for zinc, up 23%, according to Minsur's latest results report.

Quarterly tin sales totaled US$230mn and gold US$26.9mn, reaching US$397mn and US$57.5mn in the first half. Tin production increased 36% to 13,531t, but gold output fell 9% to 29,703oz.

Net profit fell 6% to US$176mn because of the needs of subsidiaries. Minsur has a stake in companies such as Minera Latinoamericana and Cumbres Andinas.

Considering the company's direct operations only – the two mines and a tin refinery in Pisco – adjusted profit grew from US$27.7mn to US$112mn, mainly due to higher prices and a low comparative base related to complications in 1Q23 amid protests that caused production stops.

INVESTMENTS

Capex totaled US$43.5mn in the first half, compared to US$35.5mn in 1H23. Investment in San Rafael remained flat at around US$30.9mn, while Pucamarca received US$10.6mn, mainly for the construction of leaching pad 5A, compared to US$2mn a year ago.

Exploration expenses in the first half reached US$15.9mn, of which US$9.3mn in Q2, up from US$4.7mn in the year-ago quarter.

The rise was linked to higher investments in greenfield projects and a low comparative base. In 2Q23, precautionary measures involved postponement of activities due to social protests.