Poderosa Q1 bottom line sinks to US$1.89mn

Peruvian gold company Poderosa posted US$1.89mn in first quarter 2005 net profit compared with US$3.64mn net profit year-on-year, according to company documents posted on securities regulator Conasev's website. The decline came as gold production fell in the quarter and mining taxes increased. Specifically, gold output totaled 26,328oz 1Q05, down from 28,789oz year-on-year, while silver production was up to 12,108oz compared with 11,615oz 1Q04. "Sales in the first quarter of 2005 can be explained by production from the Jimena vein, which accounts for 60% of the mine's total production," the miner said. During the period Ebitda fell by US$910,000 to US$6.32mn, net sales dropped US$1.78mn to US$11.3mn and the gross margin increased three percentage points to 64%, the company said. Average gold prices came to US$424.75/oz in 1Q05 - down from the quarter's international average of US$427.36/oz - while cash cost averaged US$217.87/oz in the quarter compared with US$233.34/oz in the same period of 2004. The miner - Compañia Minera Poderosa - operates the Poderosa gold mine in northern Peru.