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Aura Minerals reports decline in second quarter profit, updates its 2022 guidance

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(Kitco News) - Aura Minerals (TSX: ORA) reported today consolidated production of 55,645 gold equivalent ounces in Q2 2022, down 7% compared to Q2 2021 (59,834 ounces without Gold Road) due to temporary lower recoveries at San Andres and working capital strategy to optimize cash flow at EPP.

Importantly, Aura said it is maintaining its second half and full year 2022 production guidance; however, the company has narrowed the range to 260,000 to 275,000 oz for 2022 full year, compared to 260,000 and 290,000 oz as expected previously.

Annual cash costs are now expected to be in the range of $803 to $853 per oz of for 2022 full year, compared to the previous guidance of $771 to $845 per oz. The increase is mainly attributable to the production reduction at San Andres, while inflationary pressures have been reasonably offset, the company explained.

The company also announced revenues of $93.4 million, an 11% reduction as result of lower production and lower copper prices, while gross margins were $29.0 million, a 32% decrease, as result of lower production which also negatively impacted cash costs at EPP and San Andres.

Aura noted that adjusted EBITDA was $30.3 million in Q2 2022, a 29% decrease over Q2 2021, driven by lower production. Profit from continued operations was $3.7 million, compared to a profit of $26.0 million in Q2 2021.

CEO Rodrigo Barbosa commented, "Aranzazu and EPP performed above expectations during the first six months of the year and, despite the challenges with metal recoveries at the San Andres mine and when added to an expected higher production during the second half of 2022, Aura expects to meet its initial production guidance.

"Moreover, we recently announced a semi-annual dividend payment and have returned more than $15 million to our shareholders in the form of dividends and share and BDR buybacks during the first half of 2022. Finally, we have been able to maintain our net cash position, which reinforces our strategy to invest in the growth of the company while maintaining our low leverage and paying dividends."  

Aura is a mid-tier gold and copper production company focused on the development and operation of gold and base metal projects in the Americas. The company's producing assets include the San Andres gold mine in Honduras, the Ernesto/Pau-a -Pique gold mine in Brazil and the Aranzazu copper-gold-silver mine in Mexico. In addition, the company has two additional gold projects in Brazil, Almas and Matup√°, and one gold project in Colombia, Tolda Fria.


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