Peru's Poderosa ahead of investment plans despite incidents with illegal miners

Minera Poderosa, the second largest gold producer in Peru, posted positive results for the second quarter and is ahead of plans with its investments.

The mining company invested US$37.1mn in exploration and mine development in Q2, US$6.46mn in infrastructure and US$2.94mn in machinery and equipment. In H1, Poderosa invested US$82.6mn, up from US$68.9mn in the first six months of 2023, according to its latest results report. 

The increase is despite illegal mining continuing to hit the area where Poderosa operates – Pataz province in La Libertad region. The company has reported four attacks on its facilities so far this year. The latest occurred on July 11 and left three people injured.

Investments in mine exploration and development were US$67.1mn in H1, more than what was initially planned for the whole year. In mid-February, Poderosa's corporate affairs manager Pablo de la Flor indicated that the goal was to invest US$60mn in 2024 and there are still good prospects for the second half.

REVENUES AND PRODUCTION

According to the report, revenues from the sale of gold totaled US$172mn in Q2 compared with US$121mn a year earlier. In the six months, revenues totaled US$316mn, up from US$245mn in 1H23.

Poderosa also produces some silver, which brought in sales of US$3.12mn in the first half.

Gold production grew 29% year-on-year to 74,174oz and in the six months rose 18.5% to 148,009oz. Guidance for the full year is 300,000oz, while production in 2023 was 270,000oz.

Poderosa posted net earnings of 94.0mn soles (US$25.3mn) in 2Q24, up from 67.3mn, according to its financial statements filed with securities regulator SMV. For the six months, profits were 175mn soles compared with 139mn.