Aura Minerals Announces 2021 Operational and Financial Guidance with 22% to 42% of production growth compared to 2020
ROADWAY TOWN, British Virgin Islands, Jan. 15, 2021 (WORLD NEWSWIRE) — Aura Minerals, Inc. (TSX: ORA) (B3: AURA33) (“Aura Minerals” or the “Company”) is happy to reveal functional and monetary assistance for the fiscal year ending December 31, 2021 in regard of: (i) production of gold comparable ounces (“GEO”), (ii) money expense from operations per comparable ounce of gold produced, and (iii) capital investment.
Along with 2021 assistance, the Business is likewise revealing management’s production targets for 2022-2024.
Rodrigo Barbosa, CEO of Aura, remarks: “During the past several years, we focused on (i) developing new strategy and asset portfolio, (ii) strengthening our balance sheet, and (iii) building a culture of responsible and high-performance management. As evidenced by our record preliminary 2020 annual production, this focus is paying off. On January 7, 2021, Aura announced record high production of 204,000 GEO for 2020, and we expect to continue to grow again in 2021 with targeted annual production between 250,000 and 290,000 GEO. Moreover, for the medium term, we set a target to more than double annual production, achieving between 400,000 and 480,000 GEO in 2024, based on the combination of our potential brownfield expansion and existing greenfield projects, not including any potential acquisitions.”
2021 Production Assistance
Aura approximates overall production volume for the 2021 to be in between 250,000 and 290,000 GEO, as predicted in the table listed below, by company system:
Gold comparable ounces, or GEO, is computed by transforming the production of silver and copper into gold utilizing a ratio of the costs of these metals to that of gold. The costs utilized to identify the gold comparable ounces are based upon the weighted typical cost of silver and copper recognized from sales at the Aranzazu Complex throughout the pertinent duration, which are presumed to be as follows: Gold = US$ 1,850/oz; Silver = US$ 24.28/oz; Copper = US$ 3.02/pound
A few of the primary elements that might affect production outcomes of company systems are detailed listed below:
- San Andres: Esperanza is anticipated to stay as the primary source of ore for 2021. Improvements in the plant are anticipated to decrease the seeping cycle and decrease DMT in the mine to increase effectiveness. The Business likewise plans to carry out expedition activities to establish brand-new targets surrounding the existing pit.
- EPP: Ernesto pit is anticipated to be the primary source of ore feed for the year, together with the pit advancement for complete production, targeted in 2022. The Business anticipates the 4th quarter of 2021 to have the most substantial production. Japones, Nosde and PPQ are anticipated to keep producing in 2021, which, together with the advancement of the extension of Lavrinha pit, is anticipated to supply more versatility to EPP with 4 functional pits and one underground mine.
- Aranzazu: Over the very first half of the year, the execution of more enhancements in the milling and flotation circuit might increase throughput, reaching 100,000 heaps each month throughout the 2nd half of 2021. More than 48,900m of drilling is prepared as part of a strong expedition strategy to support the next growth, in line with management’s objective of doubling production capability in the future.
- Gold Roadway: While we relocate to last stage of the increase, expedition efforts are anticipated to continue in 2021, both at present functional locations in addition to targets in the Business’s mineral concession. The Business anticipates to release an upgraded technical report throughout the very first half of 2021.
Please see listed below under the heading “Technical Disclosure” for recommendation to the technical reports with regard to the above kept in mind homes and the Business’s latest Yearly Details Type which consist of more information and presumptions underlying this assistance.
Management Targets – 2022-2024
In addition to its production assistance for 2021, the Business is happy to reveal management targets for production for 2022-2024 throughout its company systems.
Management has actually set a production target of 400,000 to 480,000 GEO for the year ending December 31, 2024, as explained in the chart listed below:
Notes: 2021 and 2022 figures are based upon present technical reports for the Business’s tasks, other than as otherwise kept in mind. Please describe the heading “Technical Information”. Figures for 2023-2024 are based upon management’s expectations based upon initial, high level research studies for each of the properties. 1) Based upon Ausenco’s Desktop Research study released in Might 2020, as revealed in journalism release of the Business dated July 21, 2020. These targets are management’s goals just and go through specific threats and presumptions. See “Forward-Looking Information”, listed below.
2021 Money Expense per Ounce
Aura approximates that money expense from operation per comparable ounce of gold produced (“cash cost per ounce”) for the year ending December 31, 2021 will be within the series of US$728 and US$867.
The table listed below programs the breakdown of predicted money expense per ounce by company system:
For expense computation the Business is thinking about the following presumptions on currency exchange rate: for Brazilian Genuine: BRL 5.20/USD; Honduran Lempira: HNL 24.00/USD; Mexican Peso: MXN 21.00/USD.
2021 Capital Investment
In 2021, the Business anticipates to begin the building and construction of the Almas greenfield job, to establish a pre-feasibility research study for the Matupa job and to even more broaden production capability at Aranzazu, which, along with sustaining and expedition capital investment, will reach an overall in between US$93 million and US$104 million.
The table listed below programs the breakdown of capital investment by kind of financial investment:
Aura thinks its homes have strong geological capacity and management’s goal is to broaden life of mine throughout its company systems. For that reason, in 2021, Aura prepares to invest an overall of US$24 million to US$28 million that includes:
- US$6 million to US$8 million in capital investment (consisted of in the table above) in locations where the Business has actually shown and possible mineral reserves; and,
- US$18 million to US$20 million in expedition costs, not capitalized, in locations where the Business does not yet have actually shown and possible mineral reserves (not consisted of in the table above).
Farshid Ghazanfari, P.Geo., Geology and Mineral Resources Manager 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.
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, and 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, and 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, and 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).
This press release contains “forward-looking information” and “forward-looking statements”, as defined in applicable Canadian securities laws (collectively, “forward-looking statements”) which include, but are not limited to, future production across the business units of the Company, the continued development of the Company’s mineral properties, the timing for publishing an updated technical report in respect of the Company’s Gold Road project, future exploration activities, cash cost of operation per ounce of gold equivalent produced and capital expenses.
Known and unknown risks, uncertainties and other factors, many of which are beyond the Business’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, the development of the Company’s properties and the anticipated timing thereof, expected production from, and the further potential of the Company’s properties, the ability of the Company to achieve its longer-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.
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 Outlooks 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. 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.
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 Gold Road mine in the United States. In addition, the Company has actually two additional gold projects in Brazil, Almas and Matupá, and one gold project in Colombia, Tolda Fria.
For further info, please visit Aura’s site at www.auraminerals.com or contact:
President & CEO
Jobber Wiki author Frank Long contributed to this report.