As the meltdown in metal prices batters miners around the world, Colombia's biggest gold producer is broadening its search for acquisitions.
Mineros SA, based in Medellin, is getting a boost from gold prices that are approaching record highs in Colombian pesos. The currency has lost 16 per cent against the dollar in the past three months and 37 per cent in the past year, more than making up for gold's 11 per cent decline in dollars. "It's going to be a good year," Andres Restrepo, who took over as chief executive officer in May, said Monday in an interview.
Mineros continues to hunt for new assets in Latin America and has extended its search to Canada and the US as part of a goal to lift production from 183,296 ounces in 2014 to as much as 500,000 ounces by 2020. It bought a 90 per cent stake in Hemco Nicaragua SA in March 2013 and has budgeted $200 million for one or two more acquisitions, anywhere from Alaska to Patagonia.
"As long as we have healthy operations we will be safe to invest in new ones," Restrepo said. Even so, finding existing mines or mature projects with significant expansion potential isn't easy, he said.
Gold is trading at about $1,140 an ounce, or about 3.5 million pesos. A year ago, the price was $1,287, or 2.5 million pesos. After hedging, Mineros is getting about 3 million pesos an ounce from its Colombian mines, which is close to a record for the company, Restrepo said.
Output from both the Colombian and Nicaraguan operations is sold to refineries in Europe and the US.
