Latin America-focused Mineros (TSX: MSA; US-OTC: MNSAF) has updated its cost outlook as gold-indexed payouts under local Nicaragua unit Hemco’s artisanal model rise with record prices.
“We pay [co-operatives] a percentage of the gold price on spot, yet our margins stay the same,” CEO David Londoño told The Northern Miner during last month’s Precious Metals Summit in Colorado. Under the mechanism, the company’s all-in sustaining cost metric increases as prices trade at record levels.
In Nicaragua, Mineros plans to start building the $121 million (C$169 million) Porvenir project by mid-next year, with first production targeted by late 2028. Porvenir would lift Hemco output from about 120,000 oz to “about 180-190,000 ounces” and add zinc and silver alongside gold, Londoño said.
At the Nechí alluvial mine in Colombia, Mineros is deploying smaller dredges to work the pond edges the large units can’t reach. “With one dredge we can get an extra thousand oz. a year,” the executive said.
Mineros aims to keep total dividends at about $30 million per year while shifting more cash to growth.
Watch the full interview below with The Northern Miner’s Western Editor, Henry Lazenby.
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