Mining Companies Shine During 1Q21By Paloma Duran | Thu, 04/29/2021 - 17:11
Major mining companies such as Newmont, Capstone Mining, MAG Silver and Grupo México announced their 1Q21 results, showing good performance and solid financial standings. . In addition, Defiance Silver provided a drill update for its San Acacio project. Argonaut Gold also announced that it has discovered high-grade gold veins at its Sonora project, demonstrating potential for a future underground mine.
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The company announced its 1Q21 results, reporting a solid financial performance with a US$ 1.5 billion in adjusted EBITDA and US$442 million of free cash flow. Additionally, Newmont said it will continue to promote ESG practices as it creates value and improves lives through responsible mining. The company's forecast for 2021 is to continue with gold production and continued investment in its assets. However, the company also announced that if COVID-19 risks increase, it will reduce operations to protect its workforce and communities.
Capstone Mining reported a record operating cash flow of US$95 million and zero long-term debt on its balance sheet in its 1Q21 results. According to the company, the cash flow was achieved by operating performance and cost containment in this copper price environment. Capstone Mining also announced that its production at Cozamin, Zacatecas was 31 percent higher than during the same period in 2020 due to the completion of the Calicanto one-way ramp that has facilitated an increase in mining rates.
MAG Silver announced its 1Q21 production from the Juanicipio Project in Zacatecas, in which 36,395 tons of development material were processed. Total production based on provisional estimates totaled 462,321 oz of silver and 697 oz of gold. MAG Silver highlighted that 203,421 oz of silver and 307 oz of gold are attributable to the company and announced that the associated production of lead and zinc will be reported soon. In addition, MAG Silver said these types of results will continue, especially during 4Q21 due to the transition to the Juanicipio processing plant.
Grupo México registered a net profit of US$1.1 billion in 1Q21, a 50 percent increase due to the rise in copper prices during the first three months of 2021. Grupo México's total revenues in the three months were US$3.4 billion, which represents 40 percent more compared to 1Q20 data. According to mining.com, during this quarter, copper prices increased about 50 percent, while silver prices increased 56 percent.
Defiance Silver provided an update to its drilling program at its Zacatecas silver project, San Acacio, where the company discovered a new zone of mineralization in the Veta Grande vein system. The company said this high-grade mineralization shows the project's resource and exploration potential. Additionally, Defiance Silver announced it will increase its drilling program, and further surface exploration at the Lucita project, while obtaining additional exploration permits.
Argonaut Gold (Argonaut) has discovered high-grade gold veins below the El Crestón at its La Colorada mine in Sonora. "It has always been our intention to drill test below the El Crestón pit to determine whether the La Colorada mine has the potential to transition from an open pit mine to an underground mine in the future. These results vastly exceeded our expectations and obviously warrant follow up drilling,” said Peter Dougherty, President & CEO of Argonaut.
Santacruz Silver announced the acquisition of the Zimapan Mine assets from Minera Cedros, which include the Zimapan mill facility, 34 mining concessions and surface and underground infrastructure to carry on day-to-day operations. The transaction was funded by Trafigura Mexico, which facilitated a US$17.6 million loan for the transaction. “This acquisition is expected to pave the way for the future growth of Santacruz toward becoming a mid-tier silver producer,” said Carlos Silva, CEO of Santacruz.