Mineros S.A. (TSX: MSA) reported record first-quarter net profit of $87.7 million, a 131% surge from the prior year, as the miner benefited from soaring gold prices and a 10% increase in production.
"Q1 2026 demonstrates the earnings leverage embedded in our growing production profile," President and CEO Daniel Henao said in a statement. "With costs tracking below the lower end of guidance and production at the top end, we generated the strongest quarter in the Company's history."
The Colombia-based gold producer's revenue jumped 82% to $291.8 million from $160.6 million in the same period last year. The company achieved an average realized gold price of $4,777 per ounce, up 66% year-over-year.
Production and Costs
The company's total gold-equivalent production rose to 60,785 ounces, a 10% increase from the first quarter of 2025. The growth was driven by a 22% increase in output from its Hemco Property in Nicaragua, which produced 37,941 ounces of gold.
Mineros kept costs in check despite inflationary pressures. All-in sustaining costs (AISC) were $2,235 per ounce, below the company's 2026 guidance range of $2,370 to $2,470 per ounce. This cost discipline helped drive the adjusted EBITDA margin to 53%.
Strategic Outlook
Mineros reaffirmed its full-year 2026 production guidance of 213,000 to 233,000 ounces of gold. The company also highlighted a strategic move to increase its balance sheet exposure to physical gold, ending the quarter with gold-backed assets equivalent to 31,623 ounces.
"This position is modest in scale, and reflects our view that gold remains an effective long-term store of value in the current macroeconomic environment," Henao said.
The strong performance positions Mineros to fund its growth projects, including the Hemco expansion in Nicaragua, from operating cash flow. Investors will watch the upcoming Q2 results to see if the company can maintain its low-cost profile amid industry-wide inflationary pressures.
This article is for informational purposes only and does not constitute investment advice.