Aura Minerals Inc. (TSX: ORA) (B3: AURA33)
(“
Aura” or the “
Company”) is
pleased to announce production results from the Company’s three
producing operations for the third quarter of 2022. Total
production reached 58,175 gold equivalent ounces (“GEO”)1 during Q3
2022.
Highlights
-
Total production in GEO increased by 5% when calculated based on
current prices and by 8% at constant prices relative to Q2
2022.
-
Aranzazu concentrate production increased 6% relative to Q2 2022 as
a result of consistently high production rates above 100,000 tons
per month and achieving a quarterly record of 104,400 tons monthly
average of material processed at the plant. Production on a GEO
basis was impacted by lower copper prices in the quarter.
-
At EPP, the mine operation focused on phase II of the Ernesto pit
resulting in higher grades. The Company expects that this will
drive significantly higher production in Q4 2022. For Q3 2022, the
Company also focused on blending mid/low grade material in order to
reduce inventory, thus optimizing cashflows. Production was
slightly better than management’s expectations, achieving close to
18,000 oz of gold; production ramped up in September 2022,
achieving 8,378 ounces. Aura expects EPP to deliver strong
production in Q4 2022.
-
Production at San Andres was below management’s expectations. In
July of 2022, Aura engaged a new contractor for mine operations,
which is expected to increase production levels and drive down cash
costs in the coming quarters. During Q3 2022, heavy rains, above
the historical average for the quarter, and lower productivity
levels as result of the negotiations and transition to a new mine
contractor, had a negative impact on production. Aura expects San
Andres production levels to increase in Q4 2022.
Rodrigo Barbosa, the Company’s President and
CEO, noted, “Despite the weather, lower copper prices and lower
productivity in Honduras, this quarter we increased our production
by 5% compared to Q2 2022. We look forward to strengthening our
output across all three operations as we move into the fourth
quarter, particularly at EPP with higher grades and San Andres
where operational efficiencies are expected to take effect.”
Production Results
Preliminary GEO production volume for the three
months ended September 30, 2022, when compared to the previous
quarter and the same period of 2021 is shown below:
|
For the threemonths endedSeptember 30,
2022 |
For the threemonths endedJune
30,2022 |
For the threemonths endedSeptember 30,
2021 |
% changevs. Q22022 |
% changevs. Q32021 |
Ounces produced (GEO) |
|
|
|
|
|
San Andres |
14,065 |
16,800 |
17,552 |
-16% |
-20% |
EPP Mines |
17,915 |
12,492 |
15,191 |
43% |
18% |
Aranzazu |
26,196 |
26,352 |
26,745 |
-1% |
-2% |
Total GEO produced excluding Gold Road - current
prices2 |
58,175 |
55,645 |
59,488 |
5% |
-2% |
Gold Road |
- |
- |
2,100 |
- |
- |
Total GEO produced - current
prices3 |
58,175 |
55,645 |
61,588 |
5% |
-6% |
|
|
|
|
|
|
Total GEO produced excluding Gold Road - constant
prices4,5 |
58,175 |
53,720 |
56,888 |
8% |
2% |
The last twelve months’ production (LTM)
exceeded 250,000 GEO at the end of Q3 2022, when production from
Gold Road, which had its operation suspended during Q4 2021, is
excluded. LTM has remained stable at constant prices compared to
the previous quarters.
The chart below shows the quarterly consolidated
GEO production measured in current and constant prices since the
third quarter of 2020, as well as the LTM at the end of each
reporting period:
Consolidated GEO Production per Quarter
and LTM
(000 GEO, current and constant prices as
reported)
A summary of the performance by each operating mine during the
Q3 2022 is set out below:
EPP
Mines: Production was 18% above the same quarter of 2021
and 43% above Q2 2022. Grades reached 1.43 g/t Au with the focus on
Phase II of the Ernesto deposit, which also provided a softer
mineral and enabled a 18% increase in material processed compared
to previous quarter.
San
Andres: Production was 20% below the same quarter of 2021
and 16% below Q2 2022 mainly due to lower mine production as result
of a new mine contractor and heavy rains. Material mined was 25%
less than Q2 2022. For Q4 2022, the Company is focusing on the
upper zone of Esperanza, which it expects will provide higher
grades with oxidized material.
Aranzazu: Concentrate production was 9% above the
same quarter of 2021 and 6% above Q2 2022, partially offsetting a
reduction in copper sale price, which was 18% below the same
quarter of 2021 and also 18% below the previous quarter. Copper
production was 12% above the same quarter of 2021 and 10% above the
previous quarter, as a result of higher head grade and better mine
and plant performance.
Additionally, as a result of a 19% drop in the
copper price during the period, the Company anticipates earnings to
be affected by provisional pricing adjustments in accordance with
the offtake agreement6 between Aranzazu and Trafigura México, S.A.
de C.V. Aura will provide additional discussion and analysis
regarding its Q3 2022 production and sales when the Company reports
its quarterly results on November 8, 2022.
The table below shows production by each type of
metal at Aranzazu. Production increased for all types of metals
during Q3 2022 compared to both Q2 2022 and Q3 2021:
|
|
For the threemonths endedSeptember 30,
2022 |
For the threemonths endedJune
30,2022 |
For the threemonths endedSeptember 30,
2021 |
% changevs. Q2 2022 |
% changevs. Q3 2021 |
|
|
|
|
|
|
|
|
Gold Production (oz) |
6,679 |
6,464 |
6,404 |
3% |
4% |
|
Silver Production (oz) |
112,949 |
103,104 |
106,097 |
10% |
6% |
|
Copper Production (klbs) |
8,998 |
8,201 |
8,048 |
10% |
12% |
|
Total GEO produced - current prices7 |
26,196 |
26,352 |
26,745 |
-1% |
-2% |
|
|
|
|
|
|
|
|
Total GEO produced - constant
prices8,9 |
26,196 |
24,274 |
23,935 |
8% |
9% |
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 and the Aranzazu copper-gold-silver mine
in Mexico. In addition, the Company has four additional gold
projects in Brazil: Almas, under construction; Borborema and
Matupá, in development, and São Francisco, in care &
maintenance, 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
& CEO305-239-9332
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 may include, but is not limited to, statements
with respect to the activities, events or developments that the
Company expects or anticipates will or may occur in the future,
including, without limitation, production levels, cash costs across
its operations and the effects of a new contractor for mine
operations at San Andres. Often, but not always, forward-looking
statements can be identified by the use of words and phrases such
as “plans,” “expects,” “is expected,” “budget,” “scheduled,”
“estimates,” “forecasts,” “intends,” “anticipates,” or “believes”
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results “may,”
“could,” “would,” “might” or “will” be taken, occur or be
achieved.
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. 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,
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.
All forward-looking statements herein are
qualified by this cautionary statement. Accordingly, readers should
not place undue reliance on forward-looking statements. The Company
undertakes no obligation to update publicly or otherwise revise any
forward-looking statements whether as a result of new information
or future events or otherwise, except as may be required by law. If
the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements.
1 Gold equivalent ounces, or GEO, is calculated
by converting the production of silver and copper into gold using a
ratio of the prices of these metals to that of gold. The prices
used to determine the gold equivalent ounces are based on the
weighted average price of silver and copper realized from sales at
the Aranzazu Complex during the relevant period.2 Considers
realized sale prices3 Considers realized sale prices4 Considers
metal sale prices realized on Q3’2022, being: Copper price =
3.47/lb; Gold Price = 1,710.32/oz; Silver Price = 19.03/oz5
Considers weighted average sale prices from latest quarter applied
to the previous quarters6 According to contractual provision which
exists in the Offtake agreement between Aranzazu and Trafigura, in
a monthly basis Trafigura is entitled to select effective copper
sale price between (a) average market price of subsequent month or
(b) average market price of fourth month after invoice is issued.
Both alternatives are subject to cash adjustments. Trafigura has
selected (b) to average market price of fourth month after invoice
is issued since the beginning of 2022.7 Considers realized sale
prices8 Considers metal sale prices realized on Q3’2022, being:
Copper price = 3.47/lb; Gold Price = 1,710.32/oz; Silver Price =
19.03/oz9 Considers weighted average sale prices from latest
quarter applied to the previous quarters
A graphic accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/8e1b6e60-818a-4afd-bf0e-9b872cff0c08
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