Gold price is up from last November 2020 $1780 US Today $1810. Total Aura production 260K GEO is up +25% and forcast for 2024 is over 400K oz +92% from 2021 yet we trade almost 20% down YTD.
I think it is due to the ongoing delay in the construction of Almas that is now expected to start in Jan 2022 and to be in production 1st quater 2023. Aura also had a small share dilution last year with new listing and shares sold in Brazil, Aura used these funds to pay out a nice div last year so orginal share holders have been rewarded.
Once we have confirmation of construction I think Aura will get a jump in share price. Almas will add around 60K ozs a year once in production and back in the old Rio Novo days, they were talking about the deposit having many more ozs yet to be proven out. So its still very early days for Almas.
All other Aura mines are producing and the end of Gold Road is a positive, the write off of just over $40ML US non cash for Gold Road cut the taxable revenue and we should see a very nice 4th quarter 2021. Wouldn't be surprised if we see a little bit more of tax loss selling in Aura shares but should be over this month.
See 3rd Quarter message from CEO, Rodrigo Barbosa, President & CEO, comments: “We have shown consistent growth over the last 12 months, reaching another production record for the last twelve months, with a total of 260,000 GEO, despite a slightly lower production compared to second quarter, due to interruption in Honduras and lower grades at Gold Road, nevertheless reducing our cash cost. For the fourth quarter this year, we had our capacity increased in Mexico and a mine plan with better grades, Honduras with stable operation, managerial continuous improvement, and better recovery rates, EPP with gradual improvement on grades and, at last, limited losses at Gold Road. Despite some challenges, we broke another record and we are on track to reach our guidance”.
Aura's updated projected cash costs per gold equivalent produced in 2021 by Business Unit
Updated gold equivalent production, cash cost per ounce of gold equivalent produced, Capex guidance for 2021 and a comparison to previous guidance
The Company expects improvement on its operations for the fourth quarter of 2021, as detailed below:
| • | Aranzazu: Improvements at the milling and flotation circuit during the first half of the year led to increased margins and brought production to an average of almost 100,000 tonnes per month (30% higher than the capacity at the beginning of the year). Higher production capacity, combined with better grades according to the mine plan and favorable copper price should positively affect cash costs, production and margins throughout the last quarter of 2021. |
| • | San Andres: Interruptions in the operations in July 2021 negatively impacted the projected production for the year by about 5,000 to 6,000 Oz. In the last quarter of 2021, we expect operational stability coupled with continued improvements in mine and plant management. We also expect an increase of average grade, improved productivity, and increased recovery. |
| • | EPP: Performance in the third quarter of 2021 was impacted by lower performance of the Japones pit, which is operating in its final phase (at the bottom of the pit) and unseasonall rainfall, which made it difficult to access the high-grade ore at the bottom of the Ernesto pit. These factors negatively impacted production and cash costs for the year. For the fourth quarter of 2021, we expect a gradual improvement in ore grades from the Ernesto pit. |