Profits from Minera Volcano rose 14.7% in the second quarter of 2018 | news

Volcano is one of the world's leading producers of zinc, lead and silver . " Profits reached $ 17.9 million (14.7%) and were quite close to our forecasts, differing only because of the actual tax burden of 49.6% (49% in the second 2017 quarter), above the expected 43.1% "said Credicorp Capital.

The financial company noted that the positive effect of the higher prices of zinc (20.7%), lead (12.2%) and copper (22%) were partially subtracted by Negative net adjustments and a decline in production and, once again, no third-party concentrate was purchased.

"The EBITDA of $ 81.6 million (10.9%) coincides with our expectations with a margin of 38.8% (38.9% expected), as we anticipate non-recurring costs related to the suspension of Animon and Islay, "said Credicorp.

Similarly, he indicated that the lower cost of production (thanks to the efficiencies of Chungar and Alpamarca), the lack of third-party concentrates and the lower ore processed by Chungar contributed to a decrease in COGS indicator.

Consolidated unit cost was reduced by 1.6% to $ 47.8 per metric ton as expected

"Despite lower production, overall costs remain low EBITDA margin (Earnings before interest, taxes , depreciation and amortization) continues to record a solid performance, "said Credicorp.

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Published on: 26/07/2018