Make Kitco Your Homepage

Aura Minerals boosts EBITDA 801% on strong production in first quarter

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Aura Minerals, a mid-tier gold and copper production company focused on projects in the Americas, today announced record results for the quarter ended March 31, 2021, including net revenues of US$116 million and EBITDA of US$52 million, representing continuing growth over the last 3 quarters.

The company’s production in the first quarter of 2021 was 66,7811 GEO (gold equivalent ounces), the second highest consolidated production in the company's history and 66% higher when compared with same period of 2020.

Aura said that strong operational performance for the quarter was due to access to high-grade areas in San Andres, the start of production in NOSDE and remaining contribution from Ernesto ore in EPP and the increased throughput in Aranzazu, combined with higher copper prices.

Revenues reached $116 million in the quarter, a 139% increase when compared to the same period of 2020 and a 15% increase when compared to the fourth quarter of 2020. Adjusted EBITDA was $52 million in the quarter, an 801% increase when compared to same period of 2020 and 4% increase compared to fourth quarter of 2020, despite lower gold prices.

The company added that the strong operational performance had a positive impact on net income, achieving $14 million in the first quarter of 2021 compared to a loss of $18 million in the same quarter of 2020.

CEO Rodrigo Barbosa said that because of this strong performance and current copper prices, the company expects to achieve or exceed its GEO guidance for the year.

Aura’s producing assets include the San Andres gold mine in Honduras, the Ernesto/Pau-a -Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in Mexico and the Gold Road mine in the United States. In addition, the company has two additional gold projects in Brazil, Almas and Matupá, and one gold project in Colombia, Tolda Fria.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.