ROAD TOWN, British Virgin Islands, Feb. 20, 2024 (GLOBE NEWSWIRE) — Aura Minerals Inc. (TSX:ORA) (B3: AURA33) (OTCQX:ORAAF) (“Aura” or the “Company“) is pleased to announce that it has filed its audited consolidated financial statements and management discussion and analysis (together, “Financial and Operational Results“) for the year ended December 31, 2023, which also contains the Annual Guidance (“2024 Guidance“). 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.sedarplus.ca. All amounts are in thousands of U.S. dollars unless stated otherwise.
Rodrigo Barbosa, CEO of Aura, commented, “The year 2023 showcased our unwavering commitment to growth under the highest Environmental, Social, and Governance (ESG) standards. We achieved remarkable milestones, including zero lost time incidents across all operations. Our greenfield implementation set new benchmarks, as we completed the construction of Almas in just 16 months and rapidly ramped up operations in less than 5 months. We published a new feasibility study, raised the capital, and commenced construction of Borborema, which is on schedule to begin operations in early 2025. Our exploration program continued to expand our Resources & Reserves, with an update to be released soon. In all, despite temporary challenges in operations, we generated US$88 MM in recurring free cash flow, enabling us to fund our growth while paying one of the highest dividend yield in the sector (6%p.a.) for the third consecutive year. We are confident that 2024 will bring further achievements, with an increase in GEO production, development of greenfield projects like Borborema, and growth in Resources and Reserves.”
Q4 2023 and 2023 Financial and Operational Highlights:
(US$ thousand):
For the three
months ended
December 31, 2023
For the three
months ended
December 31, 2022
For the twelve
months ended
December 31, 2023
For the twelve
months ended
December 31, 2022
Total Production1 (GEO)
69,194
67,663
235,856
241,421
Sales2 (GEO)
68,571
68,077
233,923
247,215
Net Revenue
124,322
105,850
416,894
392,699
Adjusted EBITDA
40,893
36,584
134,107
133,779
AISC per GEO sold
1,311
1,005
1,324
1,118
Ending Cash balance
237,295
127,901
237,295
127,901
Net Debt
85,165
77,422
85,165
77,422
(1) Considers capitalized production
(2) Does not consider capitalized production
Aura reached ZERO lost time incidents (“LTIs”) across all its operating business units and projects by the end of 2023 and credits its strong safety culture and robust management systems under its Aura 360 values.
The Company was recognized with the socially responsible company seal by the Honduran Foundation for Social Responsibility (Funhdarse), reflecting its commitment to good operational management and communication practices.
In Q4 2023, production reached 69,194 GEO, a notable increase of 7% compared to Q3 2023 and the best quarterly production for the year. The increase was a result of improved operating performance at Apoena (EPP), Minosa (San Andrés) and Almas. When compared to the same period last year, production increased by 2% mainly due to Almas achieving commercial production in August 2023. Total production for 2023 reached 235,856 GEO at current prices, within the range of the Q3 2023 MD&A Consolidated Production Guidance of between 231,000 – 253,000 GEO for 2023.
Aranzazu: Production of 26,532 GEO, was 2% lower compared to Q3 2023 and 1% above Q4 2022 at constant prices, due to mine sequencing. In 2023, Aranzazu produced 106,119 GEO, 2% below 2022 at constant prices and in line with the Company`s Guidance.
Apoena (EPP): Production of 15,217 GEO, was 36% higher in Q4 2023 compared to the previous quarter as the high-grade Ernesto pit was accessed and a lower volume of existing low-grade stockpiles were processed. Despite this increase, production was still influenced by the adverse impact of rains during Q3 2023. Aura anticipates mining to continue in Ernesto during Q1 2024 with improving production rates. Compared to Q4 2022, production decreased 43% when record production was achieved as a result of initial access to phase II in the Ernesto pit. Considering this result, Apoena produced 46,006 GEO in 2023.
Minosa (San Andres): Production of 17,854 GEO for the quarter, representing aNOTHER 2% increase compared to the previous quarter and an increase of 47% over Q4 2022. This represents the fourth quarterly increase in production in a row, due to the higher stacked tonnage resulting from the upgrade in the stacking system in Q3 2023. In 2023, Minosa produced 65,927 GEO, 7.3% above 2022.
Almas: Production of 9,591 GEO, representing the first full quarter of production. Despite lower volume than expected in the quarter, mine performance improved by 93% between October and December, with 584 thousand tons moved in October, 731 thousand tons in November and 1,128 thousand tons in December, achieving stable performance levels as expected in 2024. In 2023, Almas produced 17,805 GEO.
Sales volumes were 8% higher than Q3 2023, mainly due to higher production in Apoena, Minosa, and Almas. Compared to same period last year, sales volumes were 1% higher, mainly due to higher production in Minosa and the commencement of commercial production in Almas, despite Apoena’s decrease. In 2023, Sales volumes decreased 5% when compared to the previous year. During the year, sales volumes fluctuated, and consistently increased as a result of higher production.
Revenues were $124,322 in Q4 2023, representing an increase of 12% compared to Q3 2023 and 17% compared to the same period in 2022. Compared to same period last year sales volumes were 1% higher, mainly due to higher production in Minosa and the commencement of commercial production in Almas, despite Apoena’s decrease. In 2023, revenues reached $416,894, a 6% increase compared to 2022. Revenues improved significantly in the second semester, reflecting a recovery in production and the commencement of operations in Almas.
Adjusted EBITDA was $40,893 in Q4 2023, an improvement of 37% compared to $30,020 in Q3 2023, as a result of higher production and sales volume from Apoena, Minosa and Almas. Compared to Q4 2022, adjusted EBITDA showed an improvement of 13%, also mainly due to higher production, and sales volumes. In 2023, Adjusted EBITDA reached $134,107, stable when compared to 2022. This was mainly due to the decrease in Apoena´s production in 2023, and partially offset by an increase in Minosa and the ramp-up of Almas.
AISC during Q4 2023 of $1,311/GEO, represented a decrease of $126/GEO when compared to Q3 2023 ($1,437/GEO) mainly due to higher volumes in Minosa and Almas and higher-grade production from the Ernesto pit and lower processing stockpile inventory at Apoena. In 2023, AISC of $1,324, was in line with guidance and 18% above 2022 AISC, partially due to metal prices and the appreciation of the US Dollar against the Brazilian Real and the Mexican Peso, and lower grades at Apoena mines. At constant metal prices and FX rates, AISC would have increased 11% in 2023 vs. 2022.
By the end of Q4 2023, the Company’s Net Debt position was $85,165, a reduction compared to $112,110 reported in the previous quarter. Recurring Free Cash Flow to Firm was strong and about $38,000, of which $9,000 was invested in growth activities and $18,000 was returned to shareholders through a dividend payment.
Strategic Investment in Altamira Gold: In November, Aura made a strategic investment in Altamira Gold through a non-brokered private placement. This investment resulted in Aura owning approximately 11.35% of Altamira’s issued and outstanding shares (non-diluted) and around 17.00% on a fully diluted basis. The decision to invest was motivated by Altamira’s exploration potential and the recent success at the Maria Bonita gold discovery within the Cajueiro gold project in Mato Grosso and Para, Brazil.
Achievement of Commercial Production at Almas: In April 2023, Aura successfully completed construction and began the ramp-up phase of the Almas project, achieving this milestone on time and mostly within budget over a remarkably quick 16-month period. By August 2023, Almas had reached commercial production, processing about 8,214 ounces by the end of Q3 2023 and producing 17,805 gold equivalent ounces (GEO) in its first five months, from August to December, marking significant month-to-month performance improvements. By the end of 2023, Almas was not only operating above its nominal capacity but also embarked on an expansion to increase its capacity from 1.3 to 1.5 million tons, aiming for a 15% increase in annual gold production by the end of 2024, setting a new industry standard for rapid development and production scaling.
Construction Underway at the Borborema Project: The Borborema project experienced significant progress in 2023, marking a pivotal year with key milestones. In August, Dundee exchanged its 20% interest in Borborema for a net smelter royalty, allowing Aura to acquire full ownership. Concurrently, Aura announced the completion of the Borborema Feasibility Study under NI 43-101, projecting 748,000 ounces of gold production over an initial life of mine of 11.3 years, with robust economics indicating a net present value (NPV) of US$182 million and an internal rate of return (IRR) of 21.9% at a gold price of US$1,712/oz. The study outlined competitive life of mine average AISC of $949/oz, a CAPEX of US$188 million, and an expected payback within 3.2 years. Following this, the Board of Directors green-lit the project’s construction, with Aura securing over US$145 million in funding through a combination of financing strategies. Construction is well underway with 17% completed to date, aiming for a start in early 2025. The project’s advancement includes completed earthworks and ongoing civil mobilizations, alongside efforts to relocate a road to access additional resources, with engineering, procurement, and construction management (EPCM) services provided by POYRY, ensuring the project remains on schedule.
2024 Guidance:
The Company’s updated gold equivalent production, AISC and cash operating cost per gold equivalent ounce sold, and CAPEX guidance for 2024 is detailed below.
Gold equivalent thousand ounces
(‘000 GEO) production – 2024
Cash Cost per equivalent ounce of gold produced – 2024
AISC per equivalent ounce of gold produced – 2024
Low
High
Low
High
Low
High
Aranzazu
94
108
826
1,009
1,089
1,331
Apoena (EPP)
46
56
1,182
1,300
1,588
1,747
Minosa (San Andres)
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