Prelim 3rd Quarter still on pace for +260,000 OZ this year. Still no news on Almas construction start. Production numbers were solid San Andres was down due to blockade for almost 1 mos, cost 5-6K oz back at full production. Gold Road still not doing well only 2.1K oz for 3mos vs 3.2K last quarter. Epp was +1K over last 3 mos and Aranzazu was up +4,155K oz over lst three mos.
I expect Q4 Aura total will be over 70K oz's.
Aranzazu is delivering above target as of Sept now running at a production of 10K oz month.
Crazy low valuation forward PE will drop well under 5X earnings if share price stays under $13. My guess stock being punished for not getting Almas construction up and running. Last year 204K oz production this year +260K oz +27% and share price is down. Makes no sense even withought Almas we should be well over +$17.00.
Aura Announces Preliminary Third Quarter 2021 Production Results
ROAD TOWN, British Virgin Islands, October 11, 2021 - Aura Minerals Inc. (TSX: ORA) (B3: AURA33) (“Aura”
or the “Company”) is pleased to announce preliminary production results for the third quarter of 2021.
Total production across Aura’s operations for the third quarter of 2021 was 61,588 gold equivalent ounces
(“GEO”)1, compared to total production of 57,725 GEO for the third quarter of 2020. In the first nine months of
2021, total production across Aura’s operations was 191,389 GEO. Aura expects to achieve higher production
volumes during the fourth quarter of 2021.
In the twelve months ended September 30, 2021, Company's production reached 260,353 GEO, a record for the
Company.
Rodrigo Barbosa, the Company’s President and CEO, noted, “The third quarter of 2021 showed a strong
production at Aranzazu after the expansion of its production capacity, while EPP had excess rain, operational
challenges and lower than expected grades. San Andres suspended its activities for most of the month of July.
Nevertheless, we reached another 12-month period record with over 260,000 GEO and we expect to further
increase our total production in the near future.”
Production Volume
Preliminary GEO production volume for the three months ended September 30, 2021, when compared to the
previous quarter and the same period of 2020 were recorded by each operating mine as follows:
For the three
months ended
September 30,
2021
For the three
months ended
June 30,
2021
For the three
months ended
September 30,
2020
% change
vs. Q2 2021
% change
vs. Q3 2020
Ounces produced (GEO)
San Andres 17,552 23,124 18,802 -24% -7%
EPP Mines2 15,191 14,119 19,484 8% -22%
Aranzazu 26,745 22,590 17,909 18% 49%
Gold Road2 2,100 3,186 1,530 -34% 37%
Total GEO produced -
current prices3 61,588 63,020 57,725 -2% 7%
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 Includes ounces produced and which were capitalized for projects at pre-commercial production stages.
3 GEO calculated for Aranzazu using the realized weighted average prices of copper, silver and gold from each of Q3
2021, Q2 2021 and Q3 2020.
The lower production in Q3 2021 compared to Q2 2021 is mainly related to illegal interruptions at the San Andres
mine during July 2021.
Despite a reduction in quarterly production in each of the last two quarters, the Company maintains the trend
towards increasing its annual production for 2021. The chart below shows the quarterly consolidated GEO
production measured in current prices since first quarter of 2019, as well as the last twelve months production
(LTM) at the end of each reporting period:
Consolidated GEO Production per Quarter and LTM
(000 GEO, current prices as reported)
A summary of the performance by each operating mine during the third quarter of 2021 is explained below:
San Andres had its production in the quarter impacted by the interruption of operations during the month of
July as a consequence of illegal blockades. The stoppage negatively affected production in the quarter at
approximately 5,000 to 6,000 Oz. The impact on San Andres’ production of these interruptions is restricted
to third quarter of 2021 and is not expected to affect production for subsequent quarters. Mine activities
focusing on high-grade areas coupled with good performance from plant and high recovery rates, are the
main drivers for expecting a strong fourth quarter production.
EPP Mines’ performance was impacted by unseasonal rainfall, which made it difficult to access Ernesto’s
high-grade ore at the bottom of the pit and caused water accumulation and difficulty in sampling, combined
with lower than expected grades at Ernesto and lower performance at Japones pit, which is operating at its
final phase (deep in the pit). Ore processed at the plant was lower grade than expected due to anticipation
on coating change for processing ore with higher hardness from Nosde, which required interruption of the
plant for a few days and therefore negatively impacted the plant's productivity. In the fourth quarter, higher
production with better grades is expected from Ernesto pit reflecting better production for the period.
Gold Road continues to face challenges related to operational ramp-up. High staff turnover coupled with
maintenance issues on mine equipment affected production in the quarter. Good progress on geological
understanding was achieved, along with definition & preparation of areas with better grades to be mined next
quarter, when higher production is expected. Exploration works in the period identified good intersections in
adjacent mine and near mine targets.
Aranzazu completed a whole quarter with its plant at full capacity after investments to increase it by 30%.
As result, operation reached a production record in GEO for a single quarter. The mine achieved a monthly
average of 100,000 tons over the quarter. Copper grade was lower than third quarter of 2020 but 12% higher
than the previous quarter, due to mine sequence. Gold grade was also lower than third quarter of 2020 but
15% higher than the previous quarter. Out of the 26,745 GEO produced in the quarter, over 10,000 GEO
were produced in September only. We expect grades to continue improving during Q4 2021 when compared
to the previous quarter.
The table below shows production by each type of metal at Aranzazu. Production increased for all types of metals
in Q3 2021:
For the three
months ended
September 30,
2021
For the three
months ended
June 30,
2021
For the three
months ended
September 30,
2020
% change
vs. Q2 2021
% change
vs. Q3 2020
Gold Production (oz) 6,404 5,120 5,881 25% 9%
Silver Production (oz) 106,097 84,263 101,379 26% 5%
Copper Production (klbs) 8,151 6,786 6,458 20% 26%
Total GEO produced -
current prices1 26,745 22,590 17,909 18% 49%
Total GEO produced -
constant prices2 26,745 22,217 22,438 20% 19%
Qualified Person
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.
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, increased production across operations. 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.
1 GEO calculated for Aranzazu using the realized weighted average prices of copper, silver and gold from each of Q3
2021, Q2 2021 and Q3 2020.
2 Constant prices calculation considers realized average metal prices for gold, silver and copper at Aranzazu
complex on Q3’2021 and applies those for all periods compared on the table.
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.
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