Aura Announces Q3 2024 Quarterly Financial and Operational Results
ROAD TOWN, British Virgin Islands, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (TSX:ORA) (B3: AURA33) (OTCQX:ORAAF) ("Aura" or the "Company") announces that it has filed its unaudited consolidated financial statements and management discussion and analysis (together, "Financial and Operational Results") for the period ended September 30, 2024 ("Q3 2024"). The full version of the Financial and Operational Results can be viewed on the Company's website at www.auraminerals.com or on SEDAR+ at www.sedarplus.ca. All amounts are in thousands of U.S. dollars unless stated otherwise.
Rodrigo Barbosa, President, and CEO of Aura, commented, "We are pleased to report that we entered the first nine months of 2024 on a robust growth trajectory, achieving our fifth consecutive increase in LTM production and reaching a record-high EBITDA of US$187 million. In Q3 2024, with an average gold price of US$2,507 / Oz, we achieved record-high Adjusted EBITDA for a single quarter, at $78.1 million, over 39% higher than Q2 2024. In addition to higher production and higher gold prices, we also managed to have a 3% reduction in our AISC per GEO, keeping us on track to achieve our production and cash cost Guidance for the year. Moreover, the construction of Borborema is now 54% complete and remains on schedule, with ramp-up start anticipated for Q1 2025, setting the stage for a strong year ahead."
Q3 2024 Financial and Operational Highlights:
(US$ thousand):
For the three months ended September 30, 2024
For the three months ended September 30, 2023
For the nine months ended September 30, 2024
For the nine months ended September 30, 2023
Total Production¹ (GEO)
68,246
64,875
200,758
166,662
Sales² (GEO)
68,172
63,516
200,517
165,352
Net Revenue
156,157
110,635
422,646
292,572
Adjusted EBITDA
78,073
30,020
187,449
93,214
AISC per GEO sold
1,292
1,436
1,302
1,329
Ending Cash balance
195,979
178,989
195,979
178,989
Net Debt
144,366
112,110
144,366
112,110
Income/(Loss) for the period
(11,923
)
7,759
(46,915
)
37,788
Adjusted Net Income
43,386
7,621
54,894
37,835
(1) Considers capitalized production
(2) Does not consider capitalized production
In Q3 2024, production reached 68,246 gold equivalent ounces ("GEO"), 10% above Q2 2024 and 10% above the same period last year, at constant metal prices. The highlights of the quarter were the performance of Almas, where production stabilized at 15k GEO after the contractor replacement in Q2 2024, reaching what the Company considers a consistent level for the operation, and Minosa, which recorded another quarterly production growth. For the nine months of 2024, Aura's total production was 200,758 GEO at current prices, 20% above the same period last year.
Aranzazu: Stable quarter with 24,486 GEO produced, up 8% from Q2 2024 and down 3% from Q3 2023. Improved recovery rates due to higher ore grades and mine sequencing. Cumulative production for 9M 2024 reached 70,492 GEO, steady compared to 9M 2023.
Minosa: Produced 20,750 GEO, an 8% increase from the previous quarter and 18% from Q3 2023, driven by higher ore stacking and grades. Rainy season impact was limited, boosting productivity. 9M 2024 cumulative production reached 59,078 GEO, a 23% rise over 9M 2023.
Almas: Production reached 14,975 GEO, up 42% from the previous quarter due to increased productivity and efficiency after transitioning to a new contractor. Monthly production stabilized at 5,000 GEO since June 2024. 9M 2024 production totaled 37,450 GEO, supporting confidence in meeting 2024 guidance.
Apoena: Produced 8,035 GEO, down 19% from Q2 2024 and 28% from Q3 2023, due to lower grades from delayed environmental permits. Lower mill throughput due to harder rock ore affected Q3 output. 9M 2024 production totaled 30,052 GEO, a 2% decrease from 9M 2023.
Sales volumes increased by 8% from Q2 2024 and 7% when compared to the same period of 2023, mainly driven by performance in Almas and Minosa during the quarter, although partially offset by Apoena´s lower production. In the 9M 2024, sales volume increased by 21%, also driven by the improvements in Minosa and achieving full operation in Almas, which commenced in August 2023.
Revenues reached US$156,157 in Q3 2024, representing an increase of 16% compared to Q2 2024 and 41% compared to the same period in 2023. In 9M 2024, revenues reached US$422,646, a 44% increase in comparison to 9M 2023.
Average gold sale prices increased 9% in Q3 2024 compared to Q2 2024, with an average of US$2,507/oz in the quarter. Compared to the same period in 2023, average gold sale prices increased 29% in Q3 2024. In 9M 2024, average gold sale prices reached US$2,289, a 19% increase when compared to 9M 2023.
Average copper sale prices decreased 7% when compared to Q2 2024, with an average of US$4.18/lb in the quarter. Compared to the same period in 2023, average copper prices increased by 7% in Q3 2024. In 9M 2024, average copper prices reached US$4.17/lb, a 5% increase when compared to 9M 2023.
Record-high Adjusted EBITDA of US$78,073 during Q3 2024, surpassing the second-best quarter ever by over 30%. This performance was driven by favorable metal prices, strong production, and reduced cash costs. Adjusted EBITDA increased by 39% compared to US$56,172 in Q2 2024. Compared to Q3 2023, cash costs per GEO decreased by 11%, and, combined with higher sales and rising gold prices, which led to a 160% improvement in Adjusted EBITDA. This growth was primarily attributed to higher gold and copper prices, increased sales volumes and costs reduction. For the first nine months of 2024, Adjusted EBITDA reached US$187,449, marking a 101% increase compared to the same period in 2023.
AISC¹ for Q3 2024 was US$1,292/GEO, reflecting a decrease of US$36/GEO from Q2 2024 (US$1,328/GEO), due to lower AISCs at Almas, Minosa, and Apoena. However, this improvement was partially offset by a rise in AISC at Aranzazu, mainly influenced by metal prices and the impact in GEO Conversion. For the first nine months of 2024, AISC averaged US$1,302/GEO, representing a reduction of US$28/GEO compared to 9M 2023 (US$1,330/GEO).
Despite all investments in expansion, including Borborema, by the end of Q3 2024, the Company's Net Debt position was US$144,366, stable when compared to US$142,409 reported in the previous quarter with an LTM net debt-to-EBITDA ratio of 0.63x, a reduction from 0.79x recorded at the end of Q2 2024.
Recurring Free Cash Flow to Firm reached US$65 million in the quarter and US$115 million in 9M 2024, largely driven by the increase in EBITDA in the periods.
Net loss of US$11,923 in 3Q 2024, a decrease compared to a net income of US$7,759 in Q3 2023, mainly due to non-cash losses related to mark-to-market (MTM) gold hedges amounting to US$56,684. For 9M 2024, net loss reached US$46,915, also largely due to non-cash losses on gold hedges of US$89,532 during the period.
Adjusted income in Q3 2024 was positive at US$43,386, which excluded non-cash losses related to gold hedges in the period, due to the appreciation of gold prices, increase in production and reduction in cash costs. For the 9M 2024, the Adjusted Net income reached positive US$54,894, providing a measurement of profitability adjusted for the same factors in the year.
Guidance:
________________________________________¹ AISC is a non-GAAP financial measure with no standardized meaning under IFRS, and therefore may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations to the most directly comparable IFRS measures, see Section 18 in the MD&A: Non-GAAP Performance Measures in this MD&A.
The Company is on track to meet its guidance for the current fiscal year, including production, cash cost, All-In Sustaining Cost (AISC), and capital expenditures, as demonstrated by the results of the first nine months.
Gold equivalent thousand ounces
('000 GEO) production, 2024
Low, 2024
High, 2024
9M 2024 A
%
Minosa (San Andrés)
60
75
59
79% – 98%
Apoena (EPP)
46
56
30
53% – 66%
Aranzazu
94
108
74
68% – 79%
Almas
45
53
37
71% – 84%
Total
244
292
201
69% – 82%
Cash Cost per equivalent ounce of
gold produced, 2024
Low, 2024
High, 2024
9M 2024 A
Δ Low
Δ High
Minosa (San Andrés)
1,120
1,288
1,090
-3%
-15%
