As Reported by Crux Investor: “Mineros S.A. Targets Regional Gold Growth With Disciplined Strategy”

– David Londoño, a Colombian-born mining engineer with over 30 years of experience, was appointed CEO of Mineros SA one month ago to guide growth beyond Colombia and Nicaragua.

– Mineros has $160M in revenue and $81M in cash, pays a 10 cents annual dividend, and operates efficient, environmentally conscious dredge-based gold recovery systems in Colombia.

– In Nicaragua, a new permitted mine and proposed processing plant could increase gold production by 50,000–60,000 ounces, nearing 200,000 oz annually from that region.

– The company integrates artisanal miners into its supply chain, blending high-grade ore into operations and maintaining strong social license in-country.

– With cash flow strength and local expertise, Mineros is eyeing 70k–130k oz projects across Latin America, prioritizing strategic, value-accretive acquisitions.

Mineros SA (TSX:MSA), a Latin America-focused gold producer with operations in Colombia and Nicaragua, is undergoing a pivotal leadership transition with the recent appointment of David Londoño as CEO. A Colombian national and veteran mining engineer, Londoño brings more than three decades of experience in both open-pit and underground mining across various commodities. With a clear mandate to solidify and grow Mineros’ operations beyond its historical strongholds, he aims to scale up production, improve cost efficiency, and expand the company’s regional footprint—all while maintaining Mineros’ legacy of social engagement and environmental stewardship.

The company currently produces gold through a unique dredging process in Colombia and underground mining in Nicaragua. It boasts $160 million in annual revenue, holds $81 million in cash, and pays 10 cents in annual dividend—signaling a stable operational base. Now, the focus shifts to growth through internal optimization and value-driven mergers and acquisitions (M&A).

A CEO With Deep Roots and a Vision for Expansion

David Londoño’s appointment represents both continuity and a strategic evolution for Mineros. 

“I took the head position at Mineros because I’m originally from Colombia. I’m a mine engineer, and Mineros is a great company with two great assets.”

His intent is clear: to build on Mineros’ 50-year track record while expanding geographically. 

“I want to grow the company to not only be in Colombia and Nicaragua, but also in some other jurisdictions in North and South America.” 

Early in his tenure, Londoño is focused on stabilizing operations and introducing more discipline around margins. Recognizing the cyclical nature of gold prices and the need for internal cost controls, he emphasized,

“We don’t control the price, but we control the costs and we control our performance.”

Colombia: Dredge Mining With Low Cost and Low Environmental Impact

Mineros’ Colombian operation uses a dredging method along riverbanks, recovering free gold deposited through natural erosion over decades. This method not only avoids chemical processing but also allows for reclamation in parallel with mining. 

“We don’t use any reagents to get the gold out—it’s just gravity recovery. 95% of the material goes back into the ground and we reclaim that ground as we go.”

The process is likened to open-pit mining, with layers of overburden stripped before reaching gold-bearing gravels. The method is efficient and cost-effective, aided by hydroelectric energy sources that power operations, reducing diesel use and minimizing the carbon footprint.

The deposits are long-life, with the company currently mining lower-grade materials after historically targeting high-grade zones. Still, Londoño remains optimistic about longevity: 

“This might go forever… as long as we keep good gold prices, you can still go through that lower grade.”

Nicaragua: Expansion Through Permit-Backed Development

Mineros has operated in Nicaragua since 2013, where it runs three processing plants and multiple mines. The company recently received a permit to open a new mine at the Porvenir deposit, located about 4 km from its Panama and Pioneer mines. While the environmental permit for a new processing plant is pending, ore from Polveros can be processed at existing facilities for now.

“This operation has copper and zinc, so recovery is going to be more difficult in the older plants, but you can still get the gold out.” 

The proposed new plant is key to unlocking the deposit’s full value and improving recovery of polymetallic material. Importantly, Porvenir is expected to significantly boost production. 

“We can get about 50,000 to 60,000 ounces additional from Nicaragua.”

With this, the region’s output could reach nearly 200,000 ounces per year.

Interview with CEO David Londoño

Integrating Artisanal Miners: A Social and Operational Strategy

A distinctive feature of Mineros’ operations is its partnership with artisanal miners in Nicaragua. By law, 1% of concessions are allocated to these miners, who are also required to sell their ore to the company. This model helps maintain social license and improves plant feed quality.

“We’re keeping the artisanal miners in there because they’re finding things… and we’re getting higher grade.” 

Although buying ore from these miners is more expensive, the company sees it as a win-win. “It’s to our advantage to get more of that,” he added, citing the ability to blend higher-grade material into the process. Moreover, Mineros assists these miners with blasting in transitional zones, reinforcing its role as both operator and community partner.

Capital Structure and Dividend Stability

With $81 million in cash and consistent profitability, Mineros maintains a disciplined balance sheet. Although some debt is retained for flexibility, Londoño is cautious. 

“The idea is to keep a little bit of debt because that way it gives us leverage to look for opportunities.”

The company pays a 10 cents annual dividend, which reflects management’s confidence in the business and helps distinguish Mineros among peers.

M&A Outlook: Value, Not Volume

As the mining M&A cycle matures, Mineros is actively scanning for opportunities—but with restraint. The company is targeting assets that produce between 70,000 and 130,000 ounces annually, which would increase group output to around 350,000 to 500,000 ounces.

“We’re going to be smart… it’s just as important to say yes as to say no to an acquisition.”

With a healthy balance sheet and operational cash flow, Mineros is positioned to pursue acquisitions without overpaying or diluting shareholder value. Mineros’ regional expertise gives it an edge in jurisdictions where others may hesitate. 

“We know how to operate in Nicaragua. We know how to operate in Colombia.” 

He also sees opportunity in underdeveloped jurisdictions like Brazil and parts of Central America.

Market Awareness and Shareholder Momentum

Mineros has seen a marked improvement in market visibility. 

“A couple of years ago, the share price in Canada was less than a dollar. You look at the share price last week and it’s $2.40.”

The stock’s appreciation reflects growing recognition of Mineros as a dividend-paying, cost-disciplined growth story. Londoño aims to reinforce this trajectory by increasing operational efficiency and broadening investor outreach across Europe and the Americas.

The Investment Thesis for Mineros SA

– Stable Cash Flow and Dividends: The company is generating $160M in revenue and pays a 10 cent dividend, reflecting strong operational cash flow and shareholder commitment.

– Low-Cost Gold Production: Unique dredging operations in Colombia offer low-cost, environmentally friendly gold recovery, powered by company-owned hydroelectric systems.

– Permitted Expansion Potential: The new mine permit at Porvenir in Nicaragua could add 50,000–60,000 ounces of gold annually, with feasibility underway for a dedicated processing facility.

– Geographic Expertise and Social License: Long-standing operations in Colombia and Nicaragua with strong government relationships and integration of artisanal miners enhance operational security.

– Disciplined Growth and M&A Strategy: The company is targeting smaller, accretive acquisitions (70–130k oz/year assets) across Latin America without compromising balance sheet integrity.

Macro Thematic Analysis

Mineros SA operates in a geopolitical zone increasingly pivotal to global gold supply. With North American producers hesitant to invest in jurisdictions like Nicaragua and parts of Colombia due to perceived risk, companies like Mineros, with deep regional expertise and embedded local relationships, are positioned to benefit from under appreciated assets.

While permitting can be more complex in some Latin American jurisdictions, Mineros’ recent success in securing permits at Porvenir highlights its effective navigation of local regulatory environments. Additionally, gold’s role as a safe-haven asset amid global economic uncertainty enhances the attractiveness of reliable mid-tier producers operating in lower-cost environments.

With artisanal mining support, green energy infrastructure, and rising regional influence, Mineros offers exposure to a diversified and socially integrated gold growth story rooted in underexploited Latin American gold belts.

Read the original article in cruxinvestor.com published on may 16, 2025: Click here.