Documents

MILPO EARNINGS32RELEASE322Q14

Description
1 2Q14 EARNINGS RELEASE a Peruvian Polymetallic Mining Company Lima, August 18 th , 2014, Compañía Minera Milpo S.A.A. (MILPO), a Peruvian mining company dedicated to the exploration, mining, processing and marketing of zinc, copper and lead concentrates with silver and gold contents, today released its second quarter 2014 (2Q14) consolidated results. Operational and financial information, except where otherwise stated, is presented based on consolidat
Categories
Published
of 9
17
Categories
Published
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Similar Documents
Share
Transcript
    1   2Q14 EARNINGS RELEASE a Peruvian Polymetallic Mining Company Lima, August 18 th , 2014, Compañía Minera Milpo S.A.A. (MILPO), a Peruvian mining company dedicated to the exploration, mining, processing and marketing of zinc, copper and lead concentrates with silver and gold contents, today released its second quarter 2014 (2Q14) consolidated results. Operational and financial information, except where otherwise stated, is presented based on consolidated figures in American Dollars according to ISA 34  –  Interim Financial Reporting .   COMPAÑÍA MINERA MILPO S.A.A. 2Q14 CONSOLIDATED EARNINGS RELEASE Selected Operational and Financial Data 2Q14 Highlights   Milpo´s consolidated financial position improved this 2Q14, with higher revenues (+5%), EBITDA (+14%) and Net Profit (+135%), in spite of the challenging scenario with lower metal prices, mainly for copper and silver. These results proved the effectiveness of Milpo’s strategy to increase production and concentrate in the most profitable operating units.   EBITDA margin reached 39% in 2Q14, compared to 36% in 2Q13, mainly due to higher production levels and explained by the better performance in Atacocha results.   Treated ore increased by 9% quarter-on-quarter, reaching 2.4 million tonnes.   Silver content rose by 6% in the 2Q14, in comparison to that of 2Q13, reaching 1.7 million ounces included in the concentrates produced.   Consolidated Cash Cost reached US$ 34.5 /t in 2Q14, slightly below that obtained in 2Q13. In terms of zinc equivalent, cash cost reached US$ 1,071/t in 2Q14.   By the end of June 2014, the Net Debt/EBITDA ratio was 0.01x, lower than that obtained as of December 2013 (0.15x) Unit2Q142Q132Q14 vs 2Q131S141S131S14 vs 1S13Production Treated Oret2,355,647 2,170,480 9%4,534,343 4,152,898 9% Zinc concentratet117,354 113,733 3%238,480 233,707 2% Copper concentratet41,432 40,367 3%76,811 68,996 11% Lead concentratet17,020 14,986 14%33,462 26,904 24% Silver contentoz1,735,070 1,631,772 6%3,384,159 2,895,140 17% Price (USD/t) ZincUS$/t2,073 1,840 13%2,051 1,937 6% Copper US$/t6,787 7,146 -5%6,913 7,537 -8%LeadUS$/t2,095 2,054 2%2,100 2,177 -4% Silver US$/oz19.6 23.1 -15%20.1 26.6 -25% Cash CostUS$/t34.5 35.1 -2%35.4 35.8 -1% Cash Cost Zn eq.US$/t Zn eq.1,071 951 13%1,034 988 5% RevenuesUS$ MM188.7 179.3 5%377.3 352.8 7% EBITDAUS$ MM73.5 64.7 14%144.6 126.4 14% Net ProfitUS$ MM34.5 14.7 135%61.7 27.9 121% Net debt / EBITDAx times0.01 0.5 -98%0.01 0.5 -98% Cash PositionUS$ MM363.8 274.3 33%363.8 274.3 33% CAPEXUS$ MM12.5 33.9 -63%32.5 51.9 -37% EBITDA Margin %39%36%38%36%    2   2Q14 EARNINGS RELEASE a Peruvian Polymetallic Mining Company 1. FINANCIAL PERFORMANCE Milpo’s revenues were US$ 189 million in the 2Q14, 5% higher compared to 2Q13, this increase was mainly due to higher production and sales volumes of zinc (+1%) and lead (+18%) concentrates, as a result of the consolidation of Cerro Lindo 15k and El Porvenir 5.6k operations. This increase in production offset the negative effect of lower metal prices which resulted in a negative impact of US$ 15 million. Cost of sales increased by 6% quarter-on-quarter, due to the higher sales volume. However it is worth mentioning that the consolidated cash cost decreased from US$ 35.1 /t in 2Q13 to US$ 34.5 /t in 2Q14. In addition, depreciation decreased by 20% in 2Q14 in comparison to that of 2Q13 due to a lower depreciation expense registered in the copper units currently on hold. Gross profit increased by 15% quarter-on-quarter, reaching US$ 78 million. This result was supported by the higher volume sold and the lower cash cost during 2Q14.  Administrative expenses decreased by 18% quarter-on-quarter, primarily due to the Corporate Office optimization. Also, the amortization decreased by 69% in 2Q14 due to the increase in  Atacocha’s life of mine which allowed the company to amortize the intangible related to its acquisition for a longer period. EBITDA reached US$ 74 million in 2Q14, compared to the US$ 65 million obtained in 2Q13 which was driven by the higher revenues as well as the positive impact of Atacocha’s EBITDA. It is worth mentioning that the EBITDA registered in 2Q14 was the highest in the last 10 quarters. The net financial expenses are related to the interests accrued by the bonds issued in the international capital market in March 2013, which allowed the company to improve its financial flexibility to address market volatility. Finally, the Company totaled a consolidated net profit of US$ 34 million in 2Q14, robust growth of 135% quarter-on-quarter due to the higher EBITDA. It is worth mentioning the net profit obtained by  Atacocha of US$ 1.2 million in the 2Q14 in comparison of the net loss of US$ 10.6 million in 2Q13. US$ 0002Q142Q132Q14 vs 2Q131S141S131S14 vs 1S13 Revenues188,715 179,298 5%377,309 352,762 7% Cost of Sales(88,198) (83,472) 6%(175,259) (160,840) 9% Depreciation(22,073) (27,451) -20%(46,083) (57,370) -20% Gross Profit78,444 68,375 15%155,967 134,552 16%  Amortization(1,786) (5,679) -69%(4,059) (10,638) -62% Selling Expenses(5,973) (5,730) 4%(12,430) (10,667) 17%  Administrative Expenses(7,182) (8,774) -18%(15,053) (17,202) -12% Other Operating Results, net 1 (13,836) (17,983) -23%(29,935) (39,006) -23% Operational Profit49,667 30,209 64%94,490 57,039 66% Financial Expenses, net(4,334) (4,657) -7%(8,384) (6,397) 31% Taxes 2 (10,849) (10,899) 0%(24,362) (22,758) 7% Net Profit34,484 14,653 135%61,744 27,884 121%   EBITDA73,526 64,711 14%144,632 126,419 14% EBITDA Margin (%)39%36%38%36% (1)EBITDAisnotaffectedbytheimpairmentoflandsfortheamountofUS$1,372thousandasofJune2013,thisamount is recorded in Other Operating Results account.(2)Forpurposeofthisreport,theSpecialMiningTaxwhichappearsinthefinancialstatementsaspartofIncomeTax, was reclassified in the Other Operating Results account.    3   2Q14 EARNINGS RELEASE a Peruvian Polymetallic Mining Company 2. BUSINESS AND OPERATIONAL PERFORMANCE Cerro Lindo Unit During the 2Q14, Cerro Lindo increased its concentrate production by 7% quarter-on-quarter, due to the higher zinc (+9%), copper (+3%) and lead (+15%) concentrate production, related to higher treated ore. Cerro Lindo revenues amounted to US$ 126 million, 4% up on 2Q13, mainly due to the higher concentrate production. The unit ’s  cash cost was of US$ 30.5/t during 2Q14, slightly higher than that obtained in 2Q13, due to higher maintenance costs, and to an increase in the exploration and development activities in the mine. In terms of EBITDA, Cerro Lindo totaled US$ 70 million during 2Q14, a 3% increase compared to that of 2Q13, mainly due to the higher revenues. El Porvenir Unit Unit2Q142Q132Q14 vs 2Q131S141S131S14 vs 1S13Production Zinc Concentratet69,709 63,800 9%142,829 137,063 4% Copper Concentratet38,530 37,557 3%71,303 62,741 14% Lead Concentratet5,397 4,694 15%10,486 9,296 13% Fine Metal in Concentrate Production Zinct38,505 35,421 9%79,951 76,143 5% Coppert10,235 9,629 6%19,078 16,052 19% Leadt3,593 3,031 19%6,969 6,048 15% Silveroz726,311 750,355 -3%1,347,071 1,311,128 3% Cash CostUS$ / t30.5 29.3 4%31.7 29.3 8% Cash Cost Zn eq.US$/t Zn eq.973 828 17%931 849 10% RevenuesUS$ MM125.6 120.6 4%247.4 232.5 6% EBITDAUS$ MM69.8 67.5 3%133.9 132.7 1% EBITDA Margin%56%56%54%57%Unit2Q142Q132Q14 vs 2Q131S141S131S14 vs 1S13Production Zinc Concentratet30,783 28,535 8%61,369 55,175 11% Copper Concentratet1,577 1,386 14%2,956 3,324 -11% Lead Concentratet6,345 6,381 -1%13,271 10,186 30% Fine Metal in Concentrate Production Zinct15,371 15,120 2%31,012 29,393 6% Coppert371 309 20%703 749 -6% Leadt3,575 3,616 -1%7,721 5,766 34% Silveroz525,629 517,364 2%1,128,390 870,845 30% Cash CostUS$ / t38.5 42.2 -9%39.0 44.1 -12% Cash Cost Zn eq.US$/t Zn eq.1,228 1,148 7%1,161 1,224 -5% RevenuesUS$ MM35.2 36.8 -5%76.2 70.7 8% EBITDAUS$ MM9.0 12.5 -28%23.8 24.0 -1% EBITDA Margin%26%34%31%34%    4   2Q14 EARNINGS RELEASE a Peruvian Polymetallic Mining Company During the 2Q14, El Porvenir increased its concentrate production by 7% quarter-on-quarter, due to the higher treated ore, which allowed the increase of zinc (+8%) and copper (+14%) concentrates. The silver content in the concentrates grew 2% in 2Q14. El Porvenir revenues were US$ 35 million in 2Q14, a 5% decrease compared to those of 2Q13 due to the negative price effect of US$ 3 million. The unit´s cash cost was US$ 38.5/t in 2Q14, 9% down quarter-on-quarter due to the optimization in exploration and development activities in the mine. The unit´s EBITDA was US$ 9 million in 2Q14, a 28% decrease due to the lower revenues and the retirement incentive program. Atacocha Unit Revenues were US$ 26 million during 2Q14, a robust growth of 39% due mainly to the increase in lead concentrate production (+35%) and silver content in concentrates (+33%) which by far pffset the decrease in zinc and copper production. Furthermore , as a result of the cost reduction plan implemented in the Unit, Atacocha’s cash cost in 2Q14 was US$ 44.4/t, 5% lower when compared to that of 2Q13 (US$ 46.6/t). This reduction was achieved mainly due to the optimization of supplies consumption in all operating areas.  Atacocha generated an EBITDA of US$ 7 million in 2Q14 from a negative EBITDA of US$ -2 million in 2Q13 mainly due to the higher revenues and lower cash cost. In the 1S14, the EBITDA was 703% higher than 1S13, clearly a different trend compared to the previous year. It is worth mentioning the Net Profit generated by the unit in 2Q14 of US$ 1 million in comparison to the Net Loss in 2Q13 of US$ 11 million. 3. CAPEX During the 2Q14, Milpo invested US$ 12 million in sustaining Capex for its mining units. Among the most important investments is the installation of the third mill at Cerro Lindo Unit, which will provide Unit2Q142Q132Q14 vs 2Q131S141S131S14 vs 1S13Production Zinc Concentradet16,862 21,398 -21%34,282 41,469 -17% Copper Concentradet1,325 1,424 -7%2,551 2,931 -13% Lead Concentradet5,278 3,911 35%9,705 7,422 31% Fine Metal in Concentrate Production Zinct8,935 11,435 -22%18,262 22,202 -18% Coppert335 358 -6%644 744 -13% Leadt3,054 2,342 30%5,592 4,456 26% Silver oz483,131 364,054 33%908,698 713,167 27% Cash CostUS$ / t44.4 46.6 -5%44.5 47.9 -7% Cash Cost Zn eq.US$/t Zn eq1,327 1,352 -2%1,314 1,328 -1% RevenuesUS$ MM26.1 18.8 39%50.4 42.3 19% EBITDAUS$ MM7.0 -2.2 n.a.12.6 1.6 703% EBITDA Margin%27%-12%25%4%
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks
SAVE OUR EARTH

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!

x