Aura Minerals Q2 2023 Earnings Call Transcript

Quartr
Provided by Quartr
August 8, 2023

There are 5 speakers on the call.

Operator

Okay. Good morning, all. And again, thank you for being here with us to so that we can explain and go through the quarter's results. As we already predicted, and we'll go through this was very important quarter for us Despite a weaker production that was already projected, we generated cash flows. We are moving significantly forward on the projects that I'm going to share with you.

Operator

But first, going to the results and the production by itself, as we already released in early July, The production of this quarter was close to 48,500 gold equivalent ounces and that is Lower than the Q1 mainly because of EPP when during the last quarter we assessed at lower grades. This was already projected since the beginning of the year, so we knew that this quarter would be weaker in EPP and that we will be reaching higher grades in Q3 and then Q4, significant higher grades. I'm going to show you that exactly what happened in 20 2021 2022. Now in 2023, we should also have a strong Q3 and even stronger Q4, not only by higher grades in EPP, but also with the we should expect the start of commercial production for Almas very soon plus a gradual increase in Honduras and stable production in Aranes Azul. Going so we maintain the guidance for EPP despite this weak quarter as it was already planned.

Operator

Again, For those that are investing in ore recently mining gold different from other for iron ore for example, Sometimes you reach higher grades and lower grades. The grades are not very spread out equally on the site. So sometimes you will have higher and lower grades. So this is very common in gold companies. And of course, the more assets you have, this will be smoothed out We are growing number of assets and producers, so we should be this movement smoothing out along the next years.

Operator

In San Andres, we had we continue to increase production, we continue to improve the productivity in the site. If I remind everybody, the last quarter of last year, we produced close to 12,000 ounces. Q1 of this year, we produced 14,000 ounces and this quarter slightly over 16,000 ounces. So we are gradually improving and we should continue to do so move to 18,000 to 20,000 ounces of production now in Q3 and also Q4. However, as we had a more challenging start of the year in San Andres, This ramp up is according to our expectation, but we started at the lower range.

Operator

So in the end, this will affect our production guidance for the year. So we are changing the guidance of the year for San Andreas around 10,000 ounces. So now the guidance is to be close to 60 between 62,000 and 69,000 ounces for the year, understanding that we will continue to improve in the Q3, Q4 will be higher production should be higher production than Q1 and also Q2. In terms of EBITDA, then Calabrio will go more in details. We reached $26,600,000 which is Lower than last quarter mostly because of EPP that we reduced production by grades.

Operator

And at San Andres, we increased production and as Azum, we are very stable as well. In terms of all in sustaining cash cost, we had a few different variables that affected all in sustaining cash cost. Number 1, The lower production affected all in sustaining cash costs. So it increased by 3% our guidance on the middle of the range because of the lower production expected for the year in San Andres. In other hand, the devaluation of dollar against mainly Peso Mexicano and Brazilian real.

Operator

Honduras is more linked to the dollars. There was no significant devaluation. But in Mexico and also in Brazil, there was a devaluation of the dollar that also affects our costs and it increased impacted by projected for the year by 6%. So we are reviewing the guidance of our in sustaining cash costs on the middle of the range by 9%, being 3% due to lower production in San Andreas and then 6% because of exchange rate. But as the metal should react once you have on the top line, If we increased the cost in U.

Operator

S. Dollars because of the valuation of dollars, on the other hand, the gold and copper prices has also appreciated compared to what we had forecast at the beginning of the year. So in the end of the day, either gold and copper is working against protecting the valuation of dollar and also inflation. Despite this weak production that we projected for this quarter, When you see the results, we continue to have a robust cash flows from operations and that gave us an opportunity to Fulfill our commitment to our shareholders to pay the dividends, which we paid $10,000,000 in June as a dividend to our shareholders. And now According to the Q3 and Q4 results, we should also be paying by the end of the year new dividends as we are now committed to pay twice per year or dividends to our shareholders.

Operator

So if we move a little bit from the results on the quarter and now we see what is happening on the projects, on development, on the value creations that we're doing to our shareholders during the quarter. This was very important. Number 1, We finished in Q1, we finished the construction of Alma's on budget and on time In a moment that the whole world was a scarce of products and labor and many projects was delayed, we could fulfill our commitment to be on time and on budget. Not only that, The ramp up has been very satisfactory and we're already operating above nominal capacity in only less than 4 to 5 months when we should be declaring commercial production for Almas very soon. We are already operating at nominal capacity And also the recoveries on gold has been also above 90%, 92%, sometimes 93%.

Operator

So we are feeling very comfortable to declare commercial production very soon. So Almas is going moving forward as expected and we should be delivering the results and commercial production. So we will be added to the results and EBITDA for the 2nd semester. Number 2, Borrema is also moving forward according to our expectations. We are about wrapping up the numbers for feasibility study of this project and that we should be announcing.

Operator

So not only that, we already started some land works to prepare the site for to receive the investments. 2, we are closing the funding very soon to start to the construction. To the market as we move forward in the exploration process for all our projects. Before I Get to the numbers in terms of safety, very important. We continue in Q2 to have 0 lost time injury as we had in Q1, either in Alma's in EPP, it's been 1 year with no also lost time injury.

Operator

In terms of stability of the structures, we every month we have external review on our Geotechnical structures and all the geotechnical structures audited by a third party has been at a satisfactory level for our structures. So when we compare on the left side of this slide, the production, we had the Q2 49,000 gold equivalent ounces. But as you can see in Q4 2021 and Q3 2022, Q4 2022, we Once we reach higher grades, we will be increasing production by Q3 and then Q4. So we should expect now The lowest, the last 12 months and then we start going up in the upcoming quarters. On the right side, as I mentioned earlier, we see that the decrease compared to Q1 production gold equivalent ounces from 53,000 ounces to 49,000 ounces came mostly and exclusively by EPP when we reached the lower grade.

Operator

So EPP Came from 13 to 7 and then we should be reaching higher grades above, should they expect to be 20,000, 25,000 gold production on the upcoming quarters, if not more. In Arenas Azul, We have very stable production despite changes in the prices of gold and copper that affected negatively. The production was somehow increased so that some offset this lower production. So we are very even in terms of production of barrels as well. It's continued and should continue to be very stable.

Operator

In San Andres, again, we're coming from 12,000 ounces of production per quarter, 14 last quarter Q1 this year and then now 16, and this should be reaching 18,000 to 20,000 ounce gold equivalent ounces in the upcoming quarters. In terms of all in sustaining cash costs, as you see in Q2, We had an increase compared to Q1. This increase comes from 2 variables. Number 1, there's lower production in EPP, as we could see, 7,000 ounces. And this will be reduced as we will increase the grades during Q3 and Q4.

Operator

And The second variable is the devaluation of the dollar, so that also impacted or all in sustaining cash costs, mostly APP and then the valuation of the dollar. So in terms of the guidance, and here we gave a lot of information. I'm not going to go through all the numbers here, but everybody Feel free to access this presentation that will be on our website. I will give the main message that we are reviewing the guidance for the year for consolidated production exclusively by the challenges we had in San Andres in the beginning of the year and the ramp up now It's at the lower started with the lower production, but now it's moving according to our plans and we should continue to increase. So we'll be we are revising the guidance by 5% only for the year despite the challenges that we had in Honduras.

Operator

That lower production in Honduras has impacted our Cash cost, we implemented significant measures to reduce cash cost and somehow offset the higher cost coming from lower production. So if we use only the same exchange rate and compare our all in sustaining cash cost is increasing by 3% only while the production was 5% lower. And then we have The impact of exchange rate either in Brazil and also in Mexico That impacted again additional 6%, as I mentioned earlier, in terms of our in sustaining cash costs. So now we are projecting The guidance for cash costs from $897 to $9.73 and all we $11.62 and $12.61 Understanding then now with either Almas, Borborema and Matupa, all of them has All in sustaining cash cost below the average that we have today, so we should see the new projects coming in and moving these all in sustaining cash costs at lower production. But these numbers already we put us on the 2nd quartile.

Operator

We want to be even lower, but the whole industry is moving up and we've been able to somehow control our cash costs to keep or company keep all up at the 2nd quartile. In terms of CapEx, We had a previous guidance $80,000,000 $93,000,000 Now we have $85,000,000 to $95,000,000 We are already planning Some expansion in Almas and some other mine development for Almas, so that increased a little bit. But we are aiming to achieve a higher production in almost very soon. As I mentioned, we are very proud what is what we've been delivering in almost. We already have over 1,000 employees, 55% comes from the very close area, 80% from the state and the regional states From we've been investing significantly in training local team.

Operator

We also took some of the managers to EPP to learn and they came back and they are running this plant very, very satisfactorily and they are contributing significantly for us to have this successful ramp up. I would highlight again that we Reutilize 100% of the water that is on the tail end come back to the production and occasionally due to evaporation, we will access water from the river, but that will not be more than 10% of the total water that we use. The startup ramp up was in April, 16 months, actually it was 14 because the 1st 2 months that we waited because of the heavy rains. And now we are out, which is among the fastest plants to be and the mine to be built in the world. And 2, now we are above the theoretical curve in terms of ramp up, also setting new benchmarks to the market once we should be declaring commercial production in the upcoming weeks.

Operator

So as we can see in the numbers on the left side, The production per week at the plant, so we are ramping up very fast since June. Late June, we already reached over 20,000 tons and then gradually improving and then now in July above 25,000 tons, 26,000 tons and less more 24,700,000 tons. The nominal capacity depends a little bit on the most, but it will be around 25,000 tons per week. In terms of tons per hour, the nominal capacity is close to 100 60 tons per hour. As you can see on the right side, in the last 1, 2, 3, 4, 5, 6 weeks, we are already operating above our nominal capacity in terms of tons per hour, which is now then we started increasing the grades and to see the reaction in the recoveries.

Operator

And we've been seeing the recoveries at 90%, 92%, 93%, very much in line with what we expected. So that will give us comfortable to maintain and look carefully the next 2 weeks and then declare commercial production if that continues to be very stable. So, Kleber, I'll turn the floor to you.

Speaker 1

Excuse me, Mr. Klabe, could you please open your microphone?

Speaker 2

Hello? Can you hear me?

Speaker 1

Yes. Yes. Please proceed.

Speaker 2

Okay. Thank you. So good morning, everyone. So now we're going to share a summary of the main financial results. On this page, we have we bring the main financial KPIs, the company tracks.

Speaker 2

We have the results for the current quarter, the last few quarters and Accumulated last 12 months at the end of each reporting period and in line with what Rodrigo was When it was a more soft quarter in terms of production mainly due to mining sequencing at EPP And we see that reflecting in the results of the quarter with revenues achieving $85,000,000 And adjusted EBITDA, dollars 27,000,000 at the 2nd quarter. Despite the challenge, we We reported a positive net income of $11,000,000 on this Q2. And regarding the Cash and net debt position of the company, we still ended the quarter with a strong cash position of $110,000,000 After paying $10,000,000 in dividends in June and investing $21,000,000 in expansion during the second quarter. The net debt achieved $114,000,000 at the end of this quarter. And we'd like to highlight again, this is Probably, we're seeing the peak in terms of the relationship of net debt and adjusted EBITDA.

Speaker 2

Now with almost very close to declaring commercial production, which is going to add additional cash and EBITDA for the company And also with improvements of grades at EPP in the next few quarters, we should see the trend Changing with a reduction in net debt and improvements in the EBITDA. Here we present an analysis showing the main items between the In adjusted EBITDA and net income of the 2nd quarter, as we saw previously, adjusted EBITDA was $27,000,000 for the 2nd quarter, we highlighted again the performance of Aranzazu has been consistently strong Performance both in terms of production, cash cost and also EBITDA was our highest EBITDA in the quarter, dollars 18,000,000 Another positive note on San Andres, in the last two quarters, because of the ramping up of production, The EBITDA was very low. Now it's back to $11,000,000 although Has not reached its full potential, but already positive note. NAPP, dollars 3,000,000 in EBITDA despite the lower production due to minor sequencing. Moving to the other items, amortization, depletion expenses at $11,000,000 and financial results of $3,000,000 came according to our expectations and pretty consistent with what we have seen in the last few quarters.

Speaker 2

In terms of other results, The company is recording a positive $3,400,000 gain in the second quarter, Which is associated with a promissory note or has in its favor. The outstanding value of the promissory note is $12,000,000 between principal and accrued interest, which we expect to collect this month of August Before, Aura had recorded the needs balance sheet $8,600,000 associated with the expected receivable of this sorry note. And now considering we are very close to collecting it, we are Regarding the additional $3,400,000 But again, more than the accounting impact, The positive note is there will be a non recurring flow of $12,000,000 to the cash of the company during this Q3. Net income tax expenses of $2,000,000 consistent with the results, bringing the net income of $11,000,000 at the end of the quarter. And finally, we bring again as never quarter a detailed analysis with the change in the cash and equivalents of the company Throughout the quarter, on the far left side of the page, the cash position at the beginning of the quarter at $103,000,000 In this left side of the page is what we call adjusted free cash flow to 4, which is the free cash flow to generated by the 3 mines in commercial production, not including investments in expansions of the business.

Speaker 2

That portion of the business, despite a weaker quarter in terms of production, we did generate $15,000,000 Then in the middle of the chart, the investments for growth, we invested $7,000,000 in exploration. As a reminder, This year of 2023 is the year we're investing the most in exploration to increase our reserves and resources in the life of Of the company, so we're seeing substantial investments quarter after quarter, expansion CapEx of $21,000,000 Which is mainly related to the final phase of construction of Alma's and capitalization of ramping up costs. This number should reduce significantly for almost from Q3. And more to the right side of the page, the financial items Proceeds from that of $30,000,000 related to the ongoing liability management of the company and the dividends that we paid at the end of June $10,000,000 bringing the cash position to $110,000,000 at the end of the quarter. And with this, we end our presentation open to questions.

Speaker 2

Thank you.

Speaker 1

Thank you. We will now begin the question and answer session. If you have a question, please raise your hand on the platform. We also received questions from the webcast. Our first question comes from Mr.

Speaker 1

Edigar Souza, Itau BBA. Please proceed.

Speaker 3

Hello everyone. Thank you for the question. So my first question is about Porvorema. I know that you are still working on the feasibility study, but if you could give us some qualitative information about the project, It could help. So are you already proceeding with pre construction works at the site?

Speaker 3

When do you expect to start With the construction and how long do you expect the construction to take? And still on Gorborema, if you could please provide some color On the expected timeline for the CapEx of the project, how should we model the CapEx for the project? I mean, Which percentage of the total CapEx is expected to be disbursed in 2023 and in 2024? And then my second question on Honduras, congrats for the stabilization of the production In Honduras, I think this is an important milestone for this operation. My question goes more in the medium term.

Speaker 3

At which levels do you expect Production in San Andres to stabilize ahead. That's it from my side. Thank you.

Operator

Okay. No, thank you. Thank you, Edouard. So first, Borborema, we cannot yet disclose the precise numbers. We are wrapping up the feasibility study.

Operator

It's coming in the next couple of weeks. So then we will be releasing all the financials of this project. And then later on, we will file the full report on 40 three-1 101. What I've been sharing and it's very important to mention is number 1, We are ready and as you asked, we already started the land works, preparing the site and we continue to do land works preparing the site for the investments. We also Order the meal because the meal was the bottleneck in terms of delivery that is would be what would be struggling if we were not ordering.

Operator

So the meal will be delivered by the end of 2024. So then production coming in and the end of 'twenty four, but mostly now in 'twenty five. In terms of and I will also add because there is I saw there is a question that from Ronan about the CapEx. We are And inflationary pressures, right? We could see some of these movement, inflationary pressures and also impact on exchange rates on the CapEx.

Operator

But as we did for Almas, we are working very hard in order to optimize the CapEx so that we can maintain or if not reduce what had Big River project earlier. So we are now in this direction. We already revised the mine plan, so everything is coming together as we expected. And we'll be releasing the feasibility study together with the pre economic assessment of extension on production. So all the feasibility study is being done for 2,000,000 tons per year.

Operator

However, as I mentioned to the market, this project has already close to 900,000 ounces of reserves, but could be Double of this if we remove 1 road few kilometers and also get more water access. So we are doing feasibility study with the 2,000,000 tons with 900,000 ounces of reserves despite over 2,000,000 ounces of our resources and reserves. And then on the year 3 or 4, after we projected and we're already taking all the initiatives in order to ask and get more access to water and also to move the road. So we believe that in 3 years there will be a compass. So then the PEA will access Our 3,500,000 tons more or less of production on year 3 and 4 and that will significantly also increase our gold of production that year.

Operator

So it's just coming in line and coming very satisfactory. And then the precise numbers Edgard will be disclosing to the market in the next couple of weeks. And I ask you to stay tuned. And then We also do a call with the analysts to explain in more detail about this project, which is very important for our growth path. Then you asked about San Andres.

Operator

Santander, as we should continue to increase production to 18,000, 20,000 gold ounces per quarter. As you compare to 2021, we are now somehow lower average grades compared to 2021. So we should not see on running rates. If we don't expand capacity with this capacity, we have already reached 80,000 to 90,000 ounces of production. We should not be at that level on the running rate as we are today.

Operator

So we should be around 70 to 75, 65, 75 gold ounces of gold. However, we are doing now start some exploration in other areas to understand the potential to access higher grades And 2, understanding the potential also for us to expand the capacity of the plant so that we could then increase also production. But at this running rates at the capacity that we have now that would be at the range.

Speaker 3

Okay. Thank you. Thank you very much, Rodrigo and Clavier.

Speaker 1

Thank you. Our next question comes from Victor Shen, Safra? Mr. Victor Chen, your microphone was activated. Please proceed.

Speaker 4

Hi, Rodrigo. Hi, Kleber. I don't know if you can hear me.

Operator

Yes.

Speaker 3

Okay, great.

Speaker 4

I'm not sure if the camera is working, but I'll go ahead. Thank you for taking my question. And I hope that you go in Clever. I have a question on Almas. Hi, Rodrigo, Clever.

Speaker 4

Yes.

Operator

I have

Speaker 4

a question on Almas. I had a few technical issues, so sorry if the Question is a repeat. But so Almas is close to reaching commercial production. And I'd like to know How is the operation ramping up? Is everything according to expected?

Speaker 4

And we have the production contribution for But I wanted to know what we can expect for the annualized production for Amaz, if possible, to disclose? And my second question is on Borborema. You guys mentioned in the release the longer than expected Delivery times for a ball mill, which is pushing the startup of Borobodaema to the beginning of 2025. I'd like to know some more detail on that because it seems like this was not your fault. This was due to external factors.

Speaker 4

So I just wanted to For you guys to touch on that. And on the subject of the withdrawal of the 2024 production guidance, Was this delay in Borborema the only factor? Or were there any other factors in that decision of the withdrawal of the 2024 production guidance? Thank you.

Operator

Okay. So first, Almas, yes, it's actually the ramp up, It's above our expectations in terms of the last 3, 4 weeks, in terms of production and also recoveries. So that makes us very comfortable to think about the commercial production very soon. Actually, we were expecting to do that by the Q3 as we projected the end of Q3. Now we can push more to do this now in August.

Operator

And so the production on Alma's, the project and the feasibility, take us on the annualized production of 50,000 ounces of gold to be yearly per annual production. But as we could I mentioned earlier, we could see we already saw some opportunities to increase production. So we are now investing so that we can see what could be a higher production for next year. But yet The 50,000 is the annualized production for Almas in the 1st 3, 4 years. But after expansion, that can increase.

Operator

Then you mentioned about Borborema. Yes, the sole reason that the production is pushed to very early 'twenty five is the delivery time for the meal. That should be delivered by the end of 'twenty four. Then you need to install, start as a preliminary test so that we can start the operation and the ramp up in 2025. The single reason that we would drill the projections for 2024 is exactly this, is only because of Porvorema being delayed by 2 or 3 months and we were projecting to start production by late 2024.

Operator

Now it's early 2025. That's the only thing that affected. But also We are reaching close to the 2024 guidance. We are now by the end of 2023. And But when we finish the result of Q4, then we will give the guidance for 2024 as we do annual based.

Operator

But The reason that we withdrew is exclusively because of the Porvorema lead time for the mill. Great.

Speaker 4

Thank you, Rodrigo. Thank you, Clever.

Speaker 1

Thank you. Our next question comes from the webcast from Roman Rosy. Good morning and thanks for taking my questions. I have a couple if I may. Regarding Burberema, you mentioned that you are expecting to make the investment decision shortly.

Speaker 1

Are you expecting to have the financial in place during 2023? Also, can you give us some more guidance On CapEx or how it compares to the existing technical report, particularly considering the FX and inflationary pressures?

Operator

Thank you, Roman. We cannot yet disclose the numbers we are wrapping up. But as I mentioned, There was some inflationary pressure. There's some impact on exchange rate. On the CapEx, on the other hand, we saw opportunities to optimize as we did in ALMS.

Operator

So we don't see major changes compared in terms of CapEx compared to the latest number that Eagle River disclosed. But we also revealed the mine plans. We also looked in other alternatives in order to optimize. And most importantly, we also could see and we will prepare this plant and as we did almost very flexible with the 2,000,000 tons and then to increase to 3.5 and more in the year 3 and 4. Then There was a second question that he made that I forgot here.

Operator

Can you did I cover everything?

Speaker 2

No hedges. No hedges, no?

Operator

All hedges, yes. What we do, Roman, is as we did with Almas, we like to guarantee the payback of the projects. So in almost we could see the payback on equity in 1 year and the payback on full project including the debt in 2 years. So then we hedged the 1st 2 years of production in order to guarantee that either our equity investments are going to have the return and also the debt is going to be paid. And then we should apply the same logic to Borborema to guarantee the payback of this project at reasonable levels of price of gold.

Operator

We normally do hedges as our 0 cost collars and that's The idea that we are already exploring to do for Borborema. In terms of funding for Borborema, yes, We should announce construction together with the funding guaranteed for us to proceed with the project. So that will be a full package that we are preparing with the feasibility studies funding and also the returns to the product.

Speaker 1

Thank you. Once again, if you have a question, you can click On the icon, Q and A on the platform and then you can raise your hand. You can also send questions Our next question comes from Terrence C. Ortland. Can we speak about inflationary picture On operation, labor and for supplies and services?

Operator

We the inflationary pressure that we felt mostly was 2021, 2022 and 2023 it seems to be more The impact we had on the cost was mostly because of the devaluation of dollars and we published the numbers in dollars while Part of our costs are in real in Brazil and part of the costs are in Mexican peso. But we don't see very high inflationary pressures now along the year of 2023. Kleber, do you have anything to add?

Speaker 2

No, agreed. I think that the main pressure [SPEAKER JEAN FRANCOIS PRUNEAU:] So in 2021, 2022

Operator

where we implemented most

Speaker 2

of the initiatives to fight back inflation. What we are seeing is Less inflation, more FX impact, the appreciation of the Brazilian real and the Mexican peso, Which is, on the other hand, being partially caused by our weaker dollar, which It's also contributing to the increasing in rental prices as well. So but other than that, I think no major Inflationary pressures.

Speaker 1

Thank you. Our next question comes from Philippe Lehan. How is the debt amortization schedule being addressed? We see a significant amount to be paid off in less than 1 year.

Operator

Forever? Yes. So

Speaker 2

it's our we work with local banks and with Different many banks in jurisdiction. Historically, we have had a Significant portion of the maturities in the short term that has been even improving in the last 3 or 4 years. Every year, we have been able to push the debts a little bit longer by doing liability management with the local banks. What we are doing right now as we speak, we did this into 2. I showed that we raised $30,000,000 For the liability management, skipping doing the same program, working with the local banks in each jurisdiction so that we can take Manage, we push the net a little bit longer.

Speaker 2

That's not a concern for us.

Speaker 1

Thank you for the questions. Now I pass the floor over to Mr. Rodrigo for his final durations.

Operator

Okay. So thank you all for the earnings call. We've reinforced Despite a weaker production as we predicted for this quarter, we produced a healthy cash flow from operations that allow us to continue to invest and also to pay dividend. As I reminded, our case since the IPO we did in Brazil is to generate value to our shareholders by number 1, growing production and implementing the greenfield projects number 2, increase resources and reserves in all the mines that we operate. And then number 3, why we can also pay dividends.

Operator

So we've been growing production. The project is being delivered. The harvest is there. We started the ramp up on time on budget and we expect very soon to declare commercial production. 2, we are moving forward with the Borborema project, numbers should be coming in and published very soon.

Operator

And why we continue to develop Matopas, so our long term project despite this 5% review on guidance, the long term view. And the company has been very consistent and we reaffirm our guidance to be at 450,000 ounces of gold equivalent production annualized by end of 2025. So I thank you all and then I would invite you to Stay aware, stay tuned. We hope to be delivering news in the upcoming weeks, important news as we were questioned here several times about Borborema and also about Almas. Thank you.

Speaker 1

Thank you. We now conclude the ARRAS conference call. Have a nice day.

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Key Takeaways

  • Q2 production was approximately 48,500 gold equivalent ounces, down from Q1 due to planned lower grades at EPP; the company maintains full-year guidance for EPP and expects a strong Q3/Q4 backed by higher grades, Almas ramp-up and improved output at Honduras and Aranzazu.
  • Financially, the company reported $85 million in revenues, $26.6 million in adjusted EBITDA and $11 million in net income, ending the quarter with a cash balance of $110 million after a $10 million dividend payout and $21 million of expansion CapEx.
  • All-in sustaining cash costs guidance was raised by 9% to the mid-range level—3% from lower San Andres production and 6% from U.S. dollar devaluation—although stronger gold and copper prices help offset cost pressures.
  • The Almas project was completed on time and on budget, is now operating above nominal capacity with gold recoveries above 90%, and is poised for a commercial production declaration in the coming weeks with an annualized output target of 50,000 ounces.
  • The Borborema feasibility study is wrapping up, land-preparation works are underway and mill delivery is expected by end-2024, setting the stage for early-2025 construction start and a detailed CapEx and funding announcement imminently.
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Earnings Conference Call
Aura Minerals Q2 2023
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