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Aura Minerals posts adjusted EBITDA of $16.7 million in Q3, decreases 2022 production guidance

Kitco Media
By Vladimir Basov
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(Kitco News) - On Tuesday, Aura Minerals (TSX: ORA) reported consolidated quarterly production of 58,175 gold equivalent ounces (GEO) in Q3 2022, an increase of 8% vs. Q2 2022 at constant metal prices.

However, the company said that its full year 2022 production guidance has been revised to between 245,000 and 250,000 GEO, compared to 260,000 and 275,000 oz as expected previously.

Aura noted that primary reasons for the decrease in the production guidance are lower production than expected from San Andres and lower copper prices, which had a negative impact of about 8k GEO relative to the first projection issued by the company to 2022.

Aura's revenues in Q3 2022 were US$81.1 million, a decrease of 16% compared to the same period of 2021 due to lower metal prices and non-recurring Q3 price adjustments on Aranzazu's offtake agreement.

Adjusted EBITDA in Q3 2022 was US$16.7 million (Q3 2021: $39.1 million), negatively impacted by lower metal prices and Aranzazu Q3 offtake price adjustments. Profit from continued operations was US$0.07 million (Q3 2021: US$ 11.2 million).

President and CEO Rodrigo Barbosa commented, "We continued to increase production at our mines in Q3 and expect to continue on this path in Q4. Lower copper prices and weaker-than-expected production at San Andres pushed our 2022 production guidance to a lower range. Despite the short-term challenges in San Andres, we are moving forward with our growth pipeline: construction of Almas is on time and on budget, we recently released the Feasibility Study of the Matupá project and closed the acquisition of 80% of Big River Gold Limited. Now, we not only aim to produce over 400,000 GEO annualized by 2024 but to reach over 450,000 GEO annualized by 2025, all of it while paying dividends and under the highest ESG standards which we call Aura 360."

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.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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