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(Kitco News) - Aura Minerals (TSX: ORA) (OTCQX: ORAAF) announced on Thursday that in Q1 2023, the company produced 53,265 gold equivalent ounces (GEO), a decrease of 9% compared to Q1 2022 when calculated based on constant prices.
The company said the decline in production was mainly due to mining in slight lower grade areas in accordance with the mine sequencing at Aranzazu and progressive production recoveries at the San Andres mine.
During Q1 2023, the company’s all-in sustaining cost (AISC) was $1,156/GEO, representing an increase of $151/GEO when compared to Q4 2022 ($1,005/GEO) mainly due to lower production related to mine sequencing in Aranzazu and EPP.
Aura added that adjusted EBITDA was $36,605 thousand in Q1 2023, compared to $36,584 thousand in Q4 2022, as result of higher sales prices despite lower sales volume and positive price adjustments at Aranzazu. The company also reported profit from continued and discontinued operations of $18,660 thousand (Q1 2022: profit of $39,166 thousand).
At the end of Q1 2023, the company said that its net debt position achieved $88,854 thousand, an increase vs. $77,422 thousand recorded at the end of Q4 2022, primarily due to expansion capex (approximately $22,000 thousand) and annual tax payment in Aranzazu (approximately $10,000 thousand).
Importantly, the company said it remains on track to achieve its 2023 production guidance of between 254,000 and 292,000 GEO at AISC guidance of between $1,037 and $1,193/GEO.
President and CEO Rodrigo Barbosa commented, “Despite lower production in Q1 2023 compared to Q4 2022, due to mine sequencing at EPP and Aranzazu, higher metal prices and control of our costs resulted in an EBITDA in line with Q4 2022. Looking ahead, second quarter should also reflect lower grades while we expect improved operating results across all our producing mines during the second half of the year.
“Importantly, following the end of the quarter, we brought our first greenfield project online in 16 months with almost no deviation from the budget, demonstrating our ability to execute. Almas is on track to achieve commercial production in Q3. We remain focused on adding ounces to our production while we prepare for construction plans at Borborema.”
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. Aura also owns the Serra da Estrela copper project in Brazil, Carajás region, under exploration stage.
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