Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (OTCQX:
ORAAF) (“
Aura” or the
“
Company”) announces that it has filed its
unaudited consolidated financial statements and management
discussion and analysis (together, “Financial and Operational
Results”) for the period ended March 31, 2023 (“Q1 2023”). The full
version of the Financial and Operational Results can be viewed on
the Company’s website at www.auraminerals.com or on SEDAR at
www.sedar.com. All amounts are in U.S. dollars unless stated
otherwise.
Rodrigo Barbosa, President and CEO of Aura,
commented: “Despite lower production in Q1 2023 compared to Q4
2022, due to mine sequencing at EPP and Aranzazu, higher metal
prices and control of our costs resulted in an EBITDA in line with
Q4 2022. Looking ahead, second quarter should also reflect lower
grades while we expect improved operating results across all our
producing mines during the second half of the year. We remain on
track to achieve our 2023 production guidance of between 254,000
and 292,000 GEO at our All-In Sustaining Costs (“AISC”) guidance of
between $1,037 and $1,193/GEO.”
Mr. Barbosa continued: “Importantly, following
the end of the quarter, we brought our first greenfield project
online in 16 months with almost no deviation from the budget,
demonstrating our ability to execute. Almas is on track to achieve
commercial production in Q3. We remain focused on adding ounces to
our production while we prepare for construction plans at
Borborema.”
Q1 2023 Financial and Operational
Highlights:
- Total production
was 53,265 GEO1 and decreased by 9% in Q1 2023 compared to Q1 2022,
when calculated based on constant2 prices.
- At Aranzazu, the
operation was stable. Based on constant prices, production in GEO
decreased by 5% compared to Q1 2022 and by 9% compared to Q4 2022
as a result of slightly lower gold and copper grades mined, in line
with expectations.
- At EPP,
production in GEO increased by 4% compared to Q1 2022. Compared to
Q4 2022, production decreased 53% as result of mine sequencing and
depletion of high-grade ore from the Ernesto pit. The Company
expects production from EPP to increase during the second half of
the year with improved mine sequencing and return to average
grades.
- At San Andres
production was 16% higher than Q4 2022, gradually increasing when
compared with the previous quarter. Production was 23% lower than
Q1 2022, due to the challenges faces during H2 2022. Production is
expected to continue to improve over the next quarters.
- Realized metal
prices in Q1 2023 moved favorably when compared to Q4 2022, with
appreciation for gold, reaching an average of $1,888/oz (+9% vs. Q4
2022) and copper, which reached an average of $4.11/lb (+12% vs. Q4
2022). When compared to the same period in 2022, there was a 4%
increase in realized gold price and a 10% decrease in realized
copper price.
- Adjusted EBITDA
was $36,605 thousand in Q1 2023, compared to $36,584 thousand in Q4
2022, as result of higher sales prices despite lower sales volume
and positive price adjustments at Aranzazu.
- During Q1 2023,
AISC was $1,156/GEO, representing an increase of $151/GEO when
compared to Q4 2022 ($1,005/GEO) mainly due to lower production
related to mine sequencing in Aranzazu and EPP.
- At the end of Q1
2023, the Company’s Net Debt position achieved $88,854 thousand, an
increase vs. $77,422 thousand recorded at the end of Q4 2022,
primarily due to expansion capex (approximately $22,000 thousand)
and annual tax payment in Aranzazu (approximately $10,000
thousand).
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.2
Considers metal sale prices in Aranzazu realized on Q1 2023 to the
previous quarters in all operations, being: Copper price =
$4.11/lb; Gold Price = $1,907.73/oz; Silver Price = $22.39/oz.
Growth Projects
- The Company
announced in April the start-up of the Almas project, on time and
with no significant deviations from its budget. The Almas project
is currently in its ramp-up phase and is expected to reach
commercial production by Q3 2023.
- The Company is
completing a NI 43-101 Feasibility Study (the “Borborema Techincal
Report”), which is expected to be released by Q3 2023.
Mineral Reserves and Mineral
Resources:
- In 2022, Aura
invested approximately $22 million in exploration with the initial
goal of increasing mineral resources, which was expected to be
followed by an increase in mineral reserves in the following
stage.
- A total of 865
kGEO of Measured and Indicated (“M&I”) Mineral Resources were
added (before depletion/conversion) and 592 kGEO of Inferred
Mineral Resources. This addition does not consider ounces for the
Borborema Project.
- Proven and
Probable (“P&P”) Mineral Reserves additions totaled 742 kGEO
(before depletion). At the three operating mines, an increase of
433 kGEO (before depletion). Additionally, 309 kGEO were added at
Matupá following the previously reported feasibility study in
November 2022
- In 2023, Aura
plans to invest another $22 million to $26 million, of which the
main investments in Exploration in 2023 are expected to happen at
the Matupá project, Aranzazu mine, EPP mines and in the newly
acquired mineral rights at Carajás (Serra da Estrela project).
Operational and Financial Overview ($
thousand):
|
For the three monthsended March 31, 2023 |
For the three monthsended March 31, 2022 |
Total Production1 (GEO) |
53,265 |
62,144 |
|
Sales2 (GEO) |
53,886 |
66,623 |
|
Net Revenue |
96,987 |
112,276 |
|
Adjusted EBITDA |
36,605 |
49,189 |
|
AISC per GEO sold |
1,156 |
976 |
|
Ending Cash balance |
103,400 |
193,829 |
|
Net Debt |
88,854 |
(29,296 |
) |
Realized average gold price per ounce sold, gross (US$/oz) |
1,888 |
1,810 |
|
Realized average copper price per pound sold, gross³ (US$/lb) |
4.11 |
4.56 |
|
1 Considers capitalized production |
|
|
2 Does not consider capitalized production |
|
|
3 Considering the average price in Aranzazu |
|
|
Key Factors
The Company’s future profitability, operating
cash flows, and financial position will be 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, the
supply of and demand for gold and copper, the relative strength of
currencies (particularly the United States 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 supportive for commodity prices but with continued
volatility.
To decrease risks associated with commodity
prices and currency volatility, the Company will continue to
evaluate and potentially implement available protection programs.
For further information, please see Company’s Annual Information
Form for year the ended December 31, 2022 (“AIF”), available on
www.sedar.com and the Company’s website.
Other key factors influencing profitability and
operating cash flows are production levels (impacted by grades, ore
quantities, process recoveries, labor, country stability, plant,
and equipment availabilities), production and processing costs
(impacted by production levels, prices, and usage of key
consumables, labor, inflation, and exchange rates), among other
factors.
Non-GAAP Measures
In this press release, the Company uses non-GAAP
measures such as Adjusted EBITDA, cash operating costs per gold
equivalent ounce sold, AISC and Net Debt. These non-GAAP measures
do not have any standardized meaning within International Financial
Reporting Standards (“IFRS”) and therefore may not be comparable to
similar measures presented by other companies. The Company believes
that these measures provide investors with additional information
which is useful in evaluating the Company’s performance and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. The below tables
provide a reconciliation of the non-GAAP measures presented:
Reconciliation from income for the quarter for EBITDA
and Adjusted EBITDA ($
thousand):
|
For the three monthsended March 31, 2023 |
For the three monthsended March 31, 2022 |
Profit (loss) from continued and discontinued operation |
18,660 |
|
39,166 |
|
Income tax (expense) recovery |
5,609 |
|
13,726 |
|
Deferred income tax (expense) recovery |
(4,839 |
) |
(4,056 |
) |
Finance costs |
3,904 |
|
(9,086 |
) |
Other gains (losses) |
523 |
|
377 |
|
Depreciation |
12,748 |
|
9,062 |
|
EBITDA |
36,605 |
|
49,189 |
|
Impairment |
- |
|
- |
|
ARO Change |
- |
|
- |
|
Adjusted EBITDA |
36,605 |
|
49,189 |
|
Reconciliation from the consolidated
financial statements to cash operating costs per gold equivalent
ounce sold ($
thousand):
|
For the three monthsended March 31, 2023 |
For the three monthsended March 31, 2022 |
Cost of goods sold |
(62,888 |
) |
(62,596 |
) |
Depreciation |
12,341 |
|
9,009 |
|
COGS w/o Depreciation |
(50,547 |
) |
(53,587 |
) |
Gold Equivalent Ounces sold |
53,886 |
|
66,623 |
|
Cash costs per gold equivalent ounce sold |
938 |
|
804 |
|
Reconciliation from the consolidated
financial statements to all in sustaining costs per gold equivalent
ounce sold ($
thousand):
|
For the three monthsended March 31, 2023 |
For the three monthsended March 31, 2022 |
Cost of goods sold |
(62,888 |
) |
(62,596 |
) |
Depreciation |
12,341 |
|
9,009 |
|
COGS w/o Depreciation |
(50,547 |
) |
(53,587 |
) |
Capex w/o Expansion |
8,681 |
|
9,508 |
|
G&A of the operations |
2,016 |
|
1,692 |
|
Lease Payments |
1,046 |
|
224 |
|
Gold Equivalent Ounces sold |
53,886 |
|
66,623 |
|
All In Sustaining costs per ounce sold |
1,156 |
|
976 |
|
Reconciliation Net Debt ($
thousand):
|
For the three monthsended March 31, 2023 |
For the three monthsended March 31, 2022 |
Short Term Loans |
88,358 |
|
59,608 |
|
Long-Term Loans |
111,493 |
|
119,650 |
|
Plus / (Less): Derivative Financial Instrument |
(7,597 |
) |
(12,253 |
) |
Less: Cash and Cash Equivalents |
(103,400 |
) |
(193,829 |
) |
Less: Restricted cash |
- |
|
(2,472 |
) |
Less: Short term investments |
- |
|
- |
|
Net Debt |
88,854 |
|
(29,296 |
) |
Qualified Person
Tiãozito V. Cardoso, FAusIMM, Technical Services
Director for the Company has reviewed and approved 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 four producing assets
include the San Andres gold mine in Honduras, the EPP and the Almas
gold mines 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 projects in Brazil, of which three gold projects:
Borborema and Matupá, which are in development; and São Francisco,
which is on care and maintenance. The Company also owns the Serra
da Estrela copper project in Brazil, Carajás region, under
exploration stage.
For further information, please visit Aura’s website at
www.auraminerals.com or contact:
Rodrigo BarbosaPresident &
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 the Company’s exploration activities for 2023 and
potential results thereof; expected production from, and the
further potential of the Company’s properties production levels
(including production levels expressed in GEO); cash costs and AISC
across its operations; the timing and effect of the Company’s Almas
project entering production; the impact of new IFRS accounting
standards; the ability of the Company to achieve its longer-term
outlook and results thereof; amounts of mineral reserves and
mineral resources; and expected capital expenditure and mine
production costs. 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 if such
risks, uncertainties or factors materialize. Specific reference is
made to the most recent AIF 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.
Financial Outlook and Future-Oriented Financial
Information
To the extent any forward-looking statements in
this press release constitute “financial outlooks” within the
meaning of applicable Canadian securities legislation, such
information is being provided as certain estimated financial
metrics and the reader is cautioned that this information may not
be appropriate for any other purpose and the reader should not
place undue reliance on such financial outlooks. Such information
was approved by the Company’s Board of Directors on May 4, 2023.
Financial outlooks, as with forward-looking statements generally,
are, without limitation, based on the assumptions and subject to
various risks as set out herein. The Company’s actual financial
position and results of operations may differ materially from
management’s current expectations and, as a result, may differ
materially from values provided in this press release.
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