Aura Minerals to Continue Growing, Delivering Dividends
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Aura Minerals to Continue Growing, Delivering Dividends

Photo by:   Omid Roshan
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Fernando Mares By Fernando Mares | Journalist and Industry Analyst - Wed, 03/01/2023 - 11:35

The gold-producing company Aura Minerals released its 4Q22 and end-of-year report. The company highlighted increasing gold equivalent (AuEq) production in the quarter and significant decreases in revenues and a strong recovery in net income for the full year. The company is optimistic, as it believes it is building strong foundations for future production increases. 

Aura Minerals achieved its second-highest production in a quarter. The company produced 67,663oz AuEq during 4Q22, while in 4Q21 it produced 77,594oz AuEq, the largest output in Aura Mineral’s history. At the Aranzazu project in Zacatecas, the company reported an increase in production of 9% when compared to 3Q22, driven by high tonnage processing. “In 4Q22, we achieved our second-highest production in a single quarter, demonstrating our ability to perform and deliver. Despite inflationary pressures impacting our sector, we also made significant progress with the construction of Almas, which is now nearing completion on time and on budget. Both achievements are a testament to our team’s ability to execute,” said Rodrigo Barbosa, President and CEO, Aura Minerals. 

Aura Minerals’ Brazilian operations were the assets that performed better. The company reported that its EPP project showed a production increase of 50% in 4Q22 when compared to 3Q22. Growth was mainly due to mining moving into phase II at the Ernesto pit, which resulted in higher grades. The San Andres project, located in Honduras, registered a 13% decrease in production in 4Q22 when compared to 3Q22. Nonetheless, the project registered a 44% increase in mined material. 

Aura Minerals improved its Net Debt position during 4Q22 to US$77,422 driven by strong cash flows from operating activities, while paying US$10 million in dividends and investing US$30 million in the company’s growth, which is in line with its goal to pay dividends while growing and generating positive cash flows. 

In 2022, Aura Minerals produced 242,524oz AuEq, 6% less than what was produced in 2021. Similarly, net revenues decreased by 7% to US$392,699. This decrease was mainly due to lower metal prices. However, the company achieved a net income of US$66,496 in 2022, which is 53% more than in 2021, when the company registered US$43,503 due to losses caused by discontinued operations at Gold Road. 

Aura Minerals will continue to allocate capital to new projects and expansions in 2023. The company’s Almas project will enter its final construction and ramp-up phase. Additionally, Aura Minerals is anticipating the development of greenfield projects like Broborema and Matupa in 1H23. 

The company forecasted a production between 254,000oz and 292,000oz AuEq for 2023. It also maintained its annualized production target of more than 400,000oz AuEq for 2024 and 450,000oz AuEq for 2025. “Our focus remains on sustainable growth through the development of easy-to-build and operate mines that generate strong returns and ramping up exploration across our portfolio to ensure longer-term growth,” Barbosa added.

Photo by:   Omid Roshan

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