EXCLUSIVE: Aura Minerals' Clocks 16% Preliminary Gold Production Growth In Q4

Aura Minerals Inc ORAAF shared its preliminary production results from its three operating mines for the fourth quarter of 2022.

What Happened? Total production increased 16% quarter-on-quarter to 67,663 gold equivalent ounces ("GEO") during Q4 2022. 

Based on constant prices, production in Q4 2022 was 5% lower than in Q4 2021, when Aura recorded the highest quarterly production in its history. 

Excluding Gold Road, it was the second-highest production achieved in a single quarter, behind its Q4 2021 production. 

At EPP, production in GEO increased by 50% Q/Q and 56% Y/Y as operations accessed phase II of the Ernesto pit, resulting in higher grades, marking the highest quarterly production at EPP. 

At Aranzazu, production in GEO increased by 9% Q/Q due to the high tonnage processed (> 99k tons per month) and gold and copper grades due to mine sequencing. 

At San Andres, production in GEO was 13% lower Q/Q. Lower production in Q4 2022 was due to a longer-than-expected leaching cycle during the quarter; however, ore mined increased by 44% compared to the previous quarter.

Total production for 2022 reached 242,524 GEO at current prices, the company's second-highest output in a single year.

Why Does It Matter? "The last quarter of 2022 was the second-highest production in the company's history and set up Aura Minerals for continued growth and progress in 2023 and beyond. With production at Almas nearly complete, and expected to be operational later this spring, and advancement at Borborema and Matupa, we are on track to meet our guidance of 450,000 GEO by 2025," said CEO Rodrigo Barbosa. 

"This momentum is a reflection of our decentralized model that expedites understanding and decision-making at the mine level, driving efficiencies and production. It's this momentum that also enabled us to return $20M to shareholders in the form of dividends plus US$ 10 MM in share buyback that provided a 6.% yield over the course of the year."

"At Aura, we're going to continue to focus on building shareholder value under our Aura 360 concept (high ESG standards) and build our way to meet our 450,000 GEO or go beyond through new M&As."

Price Action: ORAAF shares traded at $6.78 in the premarket on the last check Tuesday.