Peruvian refined tin producer Minsur has reported third quarter group revenue of US$322.6 million, up 19% year-on-year, driven by higher tin production on improved grades.
Minsur’s tin metal output from its Pisco smelter was 8,699 tonnnes, up 7% from the same quarter last year, driven largely by increased mine production. This represented a 23% increase from the previous quarter when the company undertook smelter maintenance.
Combined production from the San Rafael underground mine and B2 tailings rose 4% y/y to 361 kt ore. Average grades increased by 8% y/y to 2.70% Sn, giving tin-in-concentrate production of 8,978 tonnes (up 8.1% y/y).
Minsur’s cash cost of production at the mine fell 8% y/y to US$7,985/t, which the company attributed to fewer metres of mine development due to mine design optimisations and higher tonnages.
Capital expenditure at the San Rafael mining unit totalled US$32.3 million, mainly relating to the construction of the B4 tailings dam and infrastructure development at San Germain—a high-grade satellite deposit of San Rafael—as in previous quarters.
Exploration spending increased 30% from Q3 2024 to US$24.2 million, due to increased work to expand the tin resource at San Rafael and ongoing studies for the Nazareth tin-polymetallic project.
Tin revenue represented 91% of Minsur’s total revenue. Gold revenue fell 4% y/y due to lower production from Pucamarca in line with the mine plan, partially offset by higher average gold prices. Group EBITDA rose 17.9% from the same quarter last year.
Our view: With the company set to achieve a 15-year high in tin production, Minsur continues to benefit strongly from elevated prices throughout the year. Ongoing work to expand mine life at San Rafael and further expansionary work highlights the positive outlook for the company.
