Aura Minerals, Inc. (“
Aura Minerals” or the
“
Company”) announces today that the Company has
filed its unaudited interim consolidated financial statements for
the quarter ended September 30, 2021, related management discussion
and analysis and CEO and CFO Certificates.
In addition, the Company announces that it is
updating its gold equivalent production, cash cost per gold
equivalent ounce (“GEO”) produced and capital expenditure (“Capex”)
guidance for 2021, further details on which can be found in its
third quarter 2021 Management Discussion and Analysis.
Rodrigo Barbosa, President & CEO, comments:
“We have shown consistent growth over the last 12 months, reaching
another production record for the last twelve months, with a total
of 260,000 GEO, despite a slightly lower production compared to
second quarter, due to interruption in Honduras and lower grades at
Gold Road, nevertheless reducing our cash cost. For the fourth
quarter this year, we had our capacity increased in Mexico and a
mine plan with better grades, Honduras with stable operation,
managerial continuous improvement, and better recovery rates, EPP
with gradual improvement on grades and, at last, limited losses at
Gold Road. Despite some challenges, we broke another record and we
are on track to reach our guidance”.
The Company expects improvement on its operations for the fourth
quarter of 2021, as detailed below:
-
Aranzazu: Improvements at the milling and flotation circuit during
the first half of the year led to increased margins and brought
production to an average of almost 100,000 tonnes per month (30%
higher than the capacity at the beginning of the year). Higher
production capacity, combined with better grades according to the
mine plan and favorable copper price should positively affect cash
costs, production and margins throughout the last quarter of
2021.
-
San Andres: Interruptions in the operations in July 2021 negatively
impacted the projected production for the year by about 5,000 to
6,000 Oz. In the last quarter of 2021, we expect operational
stability coupled with continued improvements in mine and plant
management. We also expect an increase of average grade, improved
productivity, and increased recovery.
-
EPP: Performance in the third quarter of 2021 was impacted by lower
performance of the Japones pit, which is operating in its final
phase (at the bottom of the pit) and unseasonall rainfall, which
made it difficult to access the high-grade ore at the bottom of the
Ernesto pit. These factors negatively impacted production and cash
costs for the year. For the fourth quarter of 2021, we expect a
gradual improvement in ore grades from the Ernesto pit.
The Company's updated gold equivalent production, cash cost per
ounce of gold equivalent produced, Capex guidance for 2021 and a
comparison to previous guidance are detailed below:
https://www.globenewswire.com/NewsRoom/AttachmentNg/db949c8e-0d5b-4940-996f-33ea4f3dcd2b
To calculate the updated GEO in Aranzazu, the Company used the
realized metal prices for the period of January to September 2021
and the following assumptions, based on market projections, for
metal prices for the period of September to December 2021: gold:
$1,800/ounce; silver: $24/ounce; copper: US$4.39/pound.
The table below shows Aura's updated projected
cash costs per gold equivalent produced in 2021 by Business
Unit:
https://www.globenewswire.com/NewsRoom/AttachmentNg/b7b4a699-6e7b-4f77-92d0-501478cb4d91
Capex:
The table below shows the breakdown of capital expenditures,
estimated by type of investment, for the updated projection:
https://www.globenewswire.com/NewsRoom/AttachmentNg/2d986cf8-f9bd-45c2-908c-f22d553aa16e
-
The reduction in Expansion Capex is due to delays in the start date
of construction of Almas.
-
The increase in Exploration Capex is due to the reclassification
from Exploration Expenses to Exploration Capex, as explained
below.
Aura believes its properties have strong geological potential
and management's goal is to expand the life of mine in its business
units. Therefore, in 2021, Aura plans to invest a total of $23
million to $27 million (previously: $24 million to $28 million)
which includes:
-
US$ 10 million to US$ 12 million (previously: US$ 9 million to US$
11 million) in capital expenditures (included in the table above);
and,
-
US$ 13 million to US$ 17 million (previously: US$ 15 million to US$
17 million) in exploration expenses, not capitalized (not included
in the table above).
As noted above, there is a slight reduction in
the Company's exploration projection due to the gradual
interruption of activities at Gold Road.
Key factors:
-
The Company's future profitability, operating cash flows and
financial position are closely related to the prevailing prices of
gold and copper. Key factors influencing the price of gold and
copper include, but are not limited to, supply and demand for gold
and copper, the relative strength of currencies (particularly the
U.S. dollar) and macroeconomic factors such as current and future
expectations for inflation and interest rates. Management believes
that the short to medium term economic environment is likely to
remain relatively favorable for commodity prices but with continued
volatility;
-
To reduce risks associated with commodity prices and currency
volatility, the Company will continue to evaluate and, if deemed
appropriate, implement available hedging programs. For additional
information, please see the Company's most recent Annual
Information Form.
-
Other key factors that influence profitability and operating cash
flows are production levels (impacted by grades, ore quantities,
recovery processes, labor, country stability, facilities and
equipment availability), production and processing costs (impacted
by production levels, prices and use of key consumables, labor,
inflation and exchange rates), among other factors.
Technical Disclosure
Reference should be made to the following technical reports for
further details and assumptions with respect to certain of the
properties described herein:
- the
technical report with an effective date of January 31, 2018,
entitled “Feasibility Study of the Re-Opening of the Aranzazú Mine,
Zacatecas, Mexico,” prepared for Aura Minerals by F. Ghazanfari,
P.Geo. (Farshid Ghazanfari Consulting), A. Wheeler, C.Eng.
(Independent Mining Consultant), C. Connors, RM-SME (Aura Minerals
Inc.), B. Dowdell, C.Eng. (Dowdell Mining Limited), P. Cicchini
P.E. (Call & Nicholas, Inc.), G. Holmes, P.Eng. (Jacobs
Engineering), B. Byler, P.E. (Wood Environment and Infrastructure
Solutions), C. Scott, P.Eng. (SRK Canada), D. Lister, P.Eng.
(Altura Environmental Consulting), F. Cornejo, P.Eng. (Aura
Minerals Inc), available under the Company’s SEDAR profile;
- the
technical report dated July 2, 2014, with an effective date of
December 31, 2013, entitled “Mineral Resource and Mineral Reserve
Estimates on the San Andrés Mine in the Municipality of La Union,
in the Department of Copan, Honduras” prepared for Aura Minerals by
Bruce Butcher, P.Eng.,former Vice President, Technical Services,
Ben Bartlett, FAusiMM, former Manager Mineral Resources and Persio
Rosario, P. Eng., former Principal Metallurgist, available under
the Company’s SEDAR profile;
- the
technical report dated January 13, 2017, with an effective date of
July 31, 2016, entitled “Feasibility Study and Technical Report on
the EPP Project, Mato Grosso, Brazil” prepared for Aura Minerals by
a group of third-party consultants, including P&E Mining
Consultants Inc., MCB Brazil and Knight Piesold Ltd., available
under the Company’s SEDAR profile; and
- the
technical report dated May 3, 2018, titled “NI 43-101 Technical
Report, Preliminary Economic Assessment of the Gold Road Mine,
Arizona, USA” prepared for Soma Gold Corp. (formerly Para Resources
Inc., the vendor of the Gold Road Project) by RPM Global, available
under Soma’s Gold Corp.’s SEDAR profile.
Non-IFRS Financial Measures
The Company has included certain non-IFRS
financial measures in this news release which are not recognized
under IFRS and do not have a standardized meaning prescribed by
IFRS. Further details on non-IFRS financial measures are provided
in the Company’s Management’s Discussion and Analysis accompanying
its financial statements filed from time to time on SEDAR at
www.sedar.com and at the Company’s website
(ir.auraminerals.com).
Forward-Looking Information
This press release contains “forward-looking
information” and “forward-looking statements”, as defined in
applicable securities laws (collectively, “forward-looking
statements”) which include, without limitation, expected production
from, and the further potential of the Company’s properties, and
the ability of the Company to achieve its short-term outlook and
the anticipated timing and results thereof, future production
across the business units of the Company, cash cost of operation
per ounce of gold equivalent produced and capital expenditures.
Known and unknown risks, uncertainties and other
factors, many of which are beyond the Company’s ability to predict
or control, could cause actual results to differ materially from
those contained in the forward-looking statements if such risks,
uncertainties or factors materialize. Forward-looking statements
are necessarily based upon a number of estimates and assumptions
that, while considered reasonable by the Company, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Specific reference is made to the
most recent Annual Information Form on file with certain Canadian
provincial securities regulatory authorities for a discussion of
some of the factors underlying forward-looking statements, which
include, without limitation the ability of the Company to achieve
its short-term outlook and the anticipated timing and results
thereof, the ability to lower costs and increase production, the
ability of the Company to successfully achieve business objectives,
copper and gold or certain other commodity price volatility,
changes in debt and equity markets, the uncertainties involved in
interpreting geological data, increases in costs, environmental
compliance and changes in environmental legislation and regulation,
interest rate and exchange rate fluctuations, general economic
conditions and other risks involved in the mineral exploration and
development industry. Readers are cautioned that the foregoing list
of factors is not exhaustive of the factors that may affect the
forward-looking statements.
About Aura 360° Mining
Aura is focused on mining in complete terms –
thinking holistically about how its business impacts and benefits
every one of our stakeholders: our company, our shareholders, our
employees, and the countries and communities we serve. We call this
360° Mining.
Aura is a mid-tier gold and copper production
company focused on the development and operation of gold and base
metal projects in the Americas. The Company’s producing assets
include the San Andres gold mine in Honduras, the Ernesto/Pau-a
-Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in
Mexico and the Gold Road mine in the United States. In addition,
the Company has two additional gold projects in Brazil, Almas and
Matupá, and one gold project in Colombia, Tolda Fria.
For further information, please visit Aura’s website at
www.auraminerals.com or contact:
Rodrigo Barbosa
President
&
CEO 305-239-9332
Aura Minerals (TSX:ORA)
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