Peru’s only tin producer, Minsur SA, reported a 20% drop in first half profit to US$120 million, according to an official filing reported by BNAmericas. The fall was attributed to lower tin production and cost increases associated with the start-up of its Pucamarca gold mine.
Sales in H1 dropped 5% to US$359 million with the value of tin sales falling 26%. Sales costs rose 30% to US$131 million on the start-up of the company’s new gold mine, while exploration spending jumped 56% to US$4.6 million, the company said. Financing costs also rose after Minsur signed a US$200 million loan agreement with Canada’s Bank of Nova Scotia.
The volume of ore treated at the company’s San Rafael mine fell by 7% compared to the same period of last year to 465,085 tonnes, while refined tin production at the Funsur smelter declined by 15% to 11,626 tonnes. Gold production at Pucamarca was 64,236 oz.
