Aura Minerals Inc. (TSX: ORA, B3: AURA33 and OTCQX: ORAAF)
(“Aura” or the “Company”) is pleased to announce
preliminary production results from the Company’s three operating
mines for the fourth quarter of 2022. Total production reached
67,663 gold equivalent ounces (“GEO”)1 during Q4 2022. Excluding
Gold Road, it was the second highest production achieved in a
single quarter, behind its Q4 2021 production. Total production for
2022 reached 242,524 GEO at current prices – also the second
highest production in a single year in the history of the Company.
1 Gold equivalent ounces, or GEO, is calculated
by converting the production of silver, copper and gold 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 gold, silver and copper realized from
sales at the Aranzazu Complex during the relevant period.
Highlights
-
Total production in GEO increased 16% in Q4 2022 compared to Q3
2022, when calculated based on current prices. Based on constant
prices, production in Q4 2022 was 5% lower than in Q4 2021, when
Aura recorded its highest quarterly production in its history.
-
At EPP, production in GEO increased by 50% compared to Q3 2022 and
by 56% compared to Q4 2021 as operations accessed phase II of the
Ernesto pit, resulting in higher grades. This was the highest
quarterly production at EPP in the history of the Company.
-
At Aranzazu, production in GEO increased by 9% relative to Q3 2022
as a result of high tonnage processed (> 99k tons per month) and
increase in gold and copper grades due to mine sequencing.
-
At San Andres production in GEO was 13% lower than in the previous
quarter. Lower production in Q4 2022 was due to longer than
expected leaching cycle during the quarter; however, ore mined
increased 44% compared to the previous quarter.
-
Due to the leaching cycle, an estimated additional 1,600 Oz were
produced and not sold during the quarter and are in the circuit by
year end and expected to be recovered and sold in early 2023.
Therefore, production at San Andres is expected to increase in Q1
2023 once the leaching process of the ore fed during Q4 2022 is
completed and gold is recovered at the mill.
Rodrigo Barbosa, the Company’s President and CEO
comments, “Last quarter we had the second highest production in
Aura’s history, which demonstrates consistency in our growth plans.
In addition, during the quarter we advanced Almas’s construction,
finishing the year with 87% of the construction completed and on
track to deliver the project early this year. The end of 2022 was
an important quarter as we made progress on our understanding of
the Borborema project and updated our guidance to achieve 400,000
GEO (annualized) in 2024 and 450,000 GEO in 2025, while paying
US$20 million in dividends and US$10 million in share buybacks
resulting in total yield of about 6% in 2022 only. We are now set
up for an even stronger 2023 with a continued focus on growth while
returning capital to our shareholders.”
Production Results
Preliminary GEO production volume for the three
months ended December 31, 2022, when compared to the previous
quarter and the same period of 2021 is shown below:
|
For the threemonths endedDecember
31,2022 |
For the threemonths endedSeptember
30,2022 |
For the threemonths endedDecember
31,2021 |
% changevs. Q32022 |
% changevs. Q42021 |
Ounces produced
(GEO1) |
|
|
|
|
|
San Andres |
12,171 |
14,065 |
26,652 |
-13% |
-54% |
EPP Mines |
26,901 |
17,915 |
17,274 |
50% |
56% |
Aranzazu |
28,591 |
26,196 |
32,901 |
9% |
-13% |
Total GEO produced excluding Gold Road - current
prices¹ |
67,663 |
58,175 |
76,827 |
16% |
-12% |
Gold Road |
- |
- |
767 |
- |
- |
Total GEO produced - current prices¹ |
67,663 |
58,175 |
77,594 |
16% |
-13% |
|
|
|
|
|
|
Total GEO produced excluding Gold Road - constant
prices12 |
67,663 |
58,648 |
71,314 |
15% |
-5% |
1 Total may not add due to rounding.2
Considers metal sale prices realized on Q4’2022, being: Copper
price = 3.68/lb; Gold Price = 1,756.98/oz; Silver Price =
22.07/oz.
Production for the last twelve months (LTM)
exceeded 242,000 GEO at the end of Q4 2022. When measured at
constant prices, LTM production has remained between 240,000 GEO
and 260,000 GEO since Q3 2021; Aura expects production to increase
after Almas enters production by Q2 2023.
The chart below shows the quarterly consolidated
GEO production measured in current and constant prices since Q1
2021, 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)
The table below shows production by each type of
metal at Aranzazu. Production increased for all three metals during
Q4 2022 compared to Q3 2022:
|
For the threemonths endedDecember
31,2022 |
For the threemonths endedSeptember
30,2022 |
For the threemonths endedDecember
31,2021 |
% changevs. Q32022 |
% changevs. Q42021 |
|
|
|
|
|
|
Gold Production (oz) |
6,898 |
6,679 |
7,445 |
3% |
-7% |
Silver Production (oz) |
135,708 |
112,949 |
123,490 |
20% |
10% |
Copper Production (klbs) |
9,563 |
8,869 |
8,784 |
8% |
9% |
Total GEO produced - current prices1 |
28,591 |
26,196 |
32,901 |
9% |
-13% |
|
|
|
|
|
|
Total GEO produced - constant prices12 |
28,591 |
26,669 |
27,388 |
7% |
4% |
1 Total may not add due to
rounding.2 Considers metal sale prices realized on Q4’2022,
being: Copper price = 3.68/lb; Gold Price = 1,756.98/oz; Silver
Price = 22.07/oz.
Qualified Person
Tiãozito V. Cardoso, FAusIMM, Technical Services
Director for Aura Minerals Inc. has reviewed and confirmed the
scientific and technical information contained within this news
release and serves as the Qualified Person as defined in National
Instrument 43-101 – Standards of Disclosure for Mineral
Projects.
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 EPP gold mine in
Brazil and the Aranzazu copper-gold-silver mine in Mexico. In
addition, the Company has the Tolda Fria gold project in Colombia
and four gold projects in Brazil: Almas, which is under
construction; Borborema and Matupá, which are in development; and
São Francisco, which is on care and maintenance.
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, the timing and effect of the Company’s Almas
project entering production, and the timing and effect of
completion of the leaching cycle at San Andres for material fed in
Q4 2022. 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,
volatility in the prices of gold, copper and certain other
commodities, 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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ea2a64c8-df8a-4daf-bd3e-4cc4ef4251a2
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