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Aura Minerals says net income up 53% in 2022, expects gold equivalent production to surge from 2023

Kitco News

(Kitco News) - Aura Minerals (TSX: ORA) yesterday announced that its production reached 242,524 gold equivalent ounces (GEO) in 2022, a 6% decrease compared to 2021 (excluding Gold Road).

The company said that 2022 net revenues of $392,699 thousand represented a decrease of 7% compared to 2021, mainly due to lower metal prices.

Importantly, Aura reported that its net income achieved $66,496 thousand in 2022, which it says is a “robust” 53% increase when compared to 2021, when the company achieved a net income of $43,503 thousand, negatively impacted by losses from discontinued operation (Gold Road).

The company’s gross margins of $125,693 thousand in 2022 represented decrease of 33% compared to 2021, mainly due to lower metal prices and lower production at the San Andres mine.

Aura added that all-in sustaining costs (AISC) for the year reached $1,118/GEO (2021 – $1,005/GEO) despite operational challenges at San Andres.

“The company estimates it was able to finish the year within the second quartile in the industry’s AISC curves published in an external study by Metals Focus,” it said.

In 2023, Aura expects production of 254 to 292 thousand GEO, representing an increase when compared to 2022. Importantly, the company maintains the previous annualized production target of more than 400,000 GEO annualized in the year ending December 31, 2024, and a target of more than 450,000 GEO annualized in the year ending December 31, 2025.

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 EPP gold mine in Brazil and the Aranzazu copper-gold-silver mine in Mexico.

In addition, the company has the Tolda Fria gold project in Colombia and five projects in Brazil, of which four gold projects: Almas, which is under final phase of construction; Borborema and Matupá, which are in development; and São Francisco, which is on care and maintenance. Finally, the company owns the Serra da Estrela copper project in Brazil, Carajás region, under exploration stage.

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