The Volcano Mining Company going through a difficult time. The global economic crisis is affecting the price of metals, which has made negative financial results for the company. And worse, in the middle of this uncertain panorama, its general director resigned.
Carlos Francisco Fernández submitted his resignation before the Peruvian mining company, and will leave the position of CEO, effectively, on May 16. The former executive joined the company in 2018 as executive vice president and took his current position in July 2021. It should be mentioned that Fernández also resigned from his position as director of Volcan and will be replaced by Alberto Rebaza Torres.
At its board meeting on Tuesday, May 2, the board accepted the resignationy he appointed Roberto Huby Guerra as his successor. The director will take the position on May 17.. war was General Manager of Corporate Affairs South America in the Copper Division of Glencoreattorney at Glencore Peru Holding and is the director-treasurer of the National Mining, Oil and Energy Society (SNMPE).
The move also comes a few weeks after announcing its intention to split the port business into minors (main assets). This in order to have a better management of its participation in the Chancay Multipurpose Port project, in which Volcan is a creditor of 40%. The rest of the stake is made by Chinese shipping company Cosco Shipping Ports.
Volcan presented negative results in the first quarter
The company recently celebrated its first 25 years. It is now a subsidiary of Swiss giant Glencore PLC, which owns 63% of the mining company’s shares. Volcan carries out its activities in five units: Ticilio, Mahr Tunel, Carahuacra, San Cristobal, Andaychagua and Carapongo, these are located in the department of JunÃn. Among the metals he works with are Zinc, Lead, Copper and Silver.
But these materials have been damaged in recent times. There sales before adjustment decreased 16.3%, going from US$263.6 billion in the first quarter of 2022 to US$220.7 billion in the latest period (January-March 2023). For Volcan, this is mainly explained by the reduction in the prices of the main metals produced.
Specifically, the price of zinc decreased 15.4%; this lead fell 7.3%; those of bronze decreased 9.3% and those of silver fell 5.4%. Volcan’s financial results were significantly affected in this first quarter of 2023 EBITDA decreased 43.2%went from US$125.6 billion to US$71.4 billion quarter to quarter.
HIM TOO: Volcan plans to divest its direct involvement in the Port of Chancay and create a new company
Moreover, net income fell 98%, going from 38.2 billion dollars in the first quarter of 2022 to 0.8 billion US dollars in the recent period. Even so, it is worth mentioning that the results of the operations were generally positive. The processed tonnage increased by 9.1%, the production of zinc fines grew by 7.1% and the unit price decreased by 7.2%, compared to the same period of the previous year.
“The outlook for base metal prices is dominated by global concerns about a possible recession in the United States, a slowdown in growth in China and interest rate hikes by the world’s largest central banks. . These concerns have been exacerbated in recent months by the global banking crisis, putting downward pressure on base metal prices and upward pressure on gold and silver.”, concluded Volcan in its quarterly report.
