Aura Minerals Announces Year End 2013 Financial and Operating
Results
TORONTO, ONTARIO--(Marketwired - Mar 26, 2014) - Aura Minerals
Inc. ("Aura Minerals" or the "Company") (TSX:ORA) announces
financial and operating results for 2013.
This release does not constitute management's discussion and
analysis ("MD&A") as contemplated by applicable securities laws
and should be read in conjunction with the MD&A and the
Company's audited consolidated financial statements for the three
months and year ended December 31, 2013, which are available on
SEDAR at www.sedar.com and on the Company's website. Unless
otherwise noted, references herein to "$" are to thousands of
United States dollar. References to "C$" are to the Canadian
dollar. Tables are expressed in thousands of United States dollar,
except where otherwise noted.
Highlights:
- Operating cash flow1 of $66,847 for the year ended December 31,
2013 compared to $38,317 for the year ended December 31, 2012;
- Net sales revenue for 2013 increased by 8% over 2012. Gold
sales and copper concentrate sales revenues increased by 7% and 11%
over 2012, respectively;
- Gold ounce ("oz") production for 2013 was 19% higher than in
the prior year and Aranzazu's copper production for the years ended
December 31, 2013 and 2012 was 13,615,949 pounds and 10,980,100
pounds, respectively, an increase of 24%;
- Gross margin of $(5,693) for 2013 as compared to a gross margin
of $(15,314) for 2012;
- Loss for the year ended December 31, 2013 (after a
non-recurring loss on the disposal of non-core exploration
properties of $8,760 and impairment charges of $56,191) of $74,193
or $0.32 per share compared to a loss of $54,942 or $0.24 per share
for the year ended December 31, 2012;
- Subsequent to year end, the Company obtained a $22,500 gold
loan from Auramet International LLC, the proceeds of which have
been utilized to settle the Company's entire outstanding
obligations pursuant to the Company's Amended Credit Facility.
1 Please see the cautionary note at the end of this press
release.
Jim Bannantine, the Company's President and Chief Executive
Officer stated: "Aura continued to achieve strong operating cash
flows in 2013 through improved production efficiencies at our
existing operations. As a result of the improved production
efficiencies and cost reductions at our gold mines the Company
achieved record gold production and outperformed initial Company
guidance despite a year where there was a substantial drop in the
gold price. Our copper production from our Aranzazu project has
also increased substantially year on year.
Mine development at Aranzazu has increased plant feed to realize
economies of scale with higher plant throughput and we have been
optimizing our revenues through the strict and controlled blending
of ore feed arsenic. Initial engineering studies for the expansion
have continued, and financing pending, we anticipate increasing our
production to 4,500 tonnes per day, which is expected by 2016.
At the San Andres Mine, 2013's production has been improved by
the addition of a new secondary crusher with increased availability
and utilization, increasing throughput and a focus on
de-bottlenecking the plant. In addition, the grades have been
better than originally forecasted and we expect to see continued
growth in production this year.
Sao Francisco had an excellent 2013, surpassing all of our
expectations, and we expect to see another full year of strong
production with continued decreases in cash costs, based upon a
revised geological block model which has identified additional
mineralization to our block model. Although Sao Vicente ceased its
mining operations in November, we achieved better than expected
feed material which enabled us to maximize the plant capacity
throughout the year.
The Serrote development Project remains a valuable option for
Aura to significantly increase the size of the Company, and we're
investigating a number of options to realize that value, including
potentially re-sequencing the project schedule, reducing capital
expenditure, finding an equity partner and securing project-based
financing.
In March 2014, we were able to agree on a $22.5 million gold
loan facility which we used to refinance our current balance sheet.
This has enabled us to continue to focus our efforts on a larger
corporate financing package to enable us to proceed with the full
Aranzazu expansion, for which we remain optimistic, based on
discussions with potential lenders.
A focus on all costs at site and at corporate and strict cash
conservation methods has resulted in our being able to operate
profitably and grow, realizing the full potential of our assets
which have capacity for significant organic growth."
Production and Cash Costs
Gold oz production in the fourth quarter of 2013 was 3% lower as
compared to the fourth quarter of 2012. For the year ended December
31, 2013, gold oz production was 19% higher than in the prior year.
Gold production and cash costs1 for the three and twelve months
ended December 31, 2013 and 2012 were as follows:
|
For the three months ended |
For the year ended |
|
December 31, 2013 |
December 31, 2013 |
|
|
|
|
Oz Produced |
|
Cash Costs1 |
Oz Produced |
|
Cash Costs1 |
San
Andres |
15,017 |
$ |
1,244 |
63,811 |
$ |
1,131 |
Sao
Francisco |
25,259 |
|
1,048 |
105,541 |
|
1,144 |
Sao Vicente |
8,230 |
|
906 |
37,604 |
|
1,288 |
Total / Average |
48,506 |
$ |
1,085 |
206,956 |
$ |
1,166 |
|
|
For the three months ended |
For the year ended |
|
December 31, 2012 |
December 31, 2012 |
|
|
|
|
Oz Produced |
|
Cash Costs1 |
Oz Produced |
|
Cash Costs1 |
San
Andres |
11,936 |
$ |
1,242 |
59,751 |
$ |
1,015 |
Sao
Francisco |
29,368 |
|
1,218 |
80,357 |
|
1,528 |
Sao Vicente |
8,952 |
|
1,092 |
33,155 |
|
1,537 |
Total / Average |
50,256 |
$ |
1,201 |
173,263 |
$ |
1,353 |
Copper production at Aranzazu for the fourth quarter of 2013 and
2012 was 3,642,482 pounds and 2,223,100 pounds, respectively, an
increase of 64%. On-site average cash cost1 per pound of payable
copper produced, net of gold and silver credits was $3.63 for the
fourth quarter of 2013 compared to $5.42 for the fourth quarter of
2012, inclusive of net realizable value write downs of $0.76 and
$1.25 for the fourth quarters of 2013 and 2012, respectively.
Copper production at Aranzazu for the years ended December 31, 2013
and 2012 was13,615,949 pounds and 10,980,100 pounds, respectively,
an increase of 24%. On-site average cash cost1 per pound of payable
copper produced net of gold and silver credits was $4.15 for the
full year of 2013 compared to $3.63 for the full year of 2012
inclusive of net realizable value write-downs of $0.74 and $0.56
for the years 2013 and 2012, respectively.
Gold production at San Andres in the fourth quarter of 2013
increased by 26% over the comparable period primarily due to higher
grades and recoveries. Average cash cost per oz of gold produced1
at San Andres in the fourth quarter of 2013 was relatively flat
when compared with the fourth quarter of 2012. The 15,000 metre
drilling program for 2013 continued with priority on near term
production targets with higher grades and a similar program is
expected to continue into 2014.
Gold production at Sao Francisco in the fourth quarter of 2013
was 14% lower than the fourth quarter of 2012 due primarily to
lower plant feed. Average cash cost per oz of gold produced1 at Sao
Francisco in the fourth quarter of 2013 was 14% lower than the
fourth quarter of 2012. The lower average cash cost per oz of gold
produced1 in the fourth quarter of 2013 was primarily due to the
higher grades encountered and increased recoveries from the leach
while mining costs were lower due to less material moved and also
benefitted from the weakening of the Brazilian real.
Mining at Sao Francisco is expected to continue to the end of
2014 as exploration drilling in 2013 and a revised geological block
model has identified additional mineralized material in several
areas of the pit. An updated reconciliation indicates that certain
waste and low grade zones could convert to additional plant feed.
Processing may be extended into 2015 as a result of the positive
reconciliation and the additional mineralization identified.
During the fourth quarter of 2013, 8% less gold ounces were
produced as Sao Vicente as compared to the fourth quarter of 2012.
The average cost per oz of gold produced1 in the fourth quarter of
2013 was 17% lower than the fourth quarter of 2012 due to the
majority of ore being sourced from the stockpile, as well as
improved grades and recoveries from the heaps. There was also
sufficient feed material in the stockpiles to keep the plant
operating at over 100,000 tonnes per month during Q4 2013.
Cyanide will continue to be added to the Sao Vicente heap leach
pads in early 2014 and we will then irrigate the heap throughout
2014, initially to recover any residual gold ounces, but thereafter
to neutralize the cyanide and pH of the heap.
At Aranzazu, copper concentrate production increased by 59% in
the fourth quarter of 2013 as compared to the fourth quarter of
2012, due to the effect of a 37% increase in copper grade as a
result of a planned shift to higher grade underground mining,
offset by a 4% decrease in the copper recoveries. Aranzazu's mine
development focused on near-term development in Q4 2013. This is
expected to continue throughout 2014.
Average cash cost per payable pound of copper produced1 at
Aranzazu for the three months ended December 31, 2013 decreased by
28% as compared to the three months ended December 31, 2012. These
average cash costs are inclusive of net realizable value
write-downs of $0.76 and $1.25 for the fourth quarters of 2013 and
2012 respectively
The average arsenic level in the copper concentrate was 0.99%
during the three months ended December 31, 2013. Aranzazu
implemented a successful program of blending during 2013 to ensure
that value could be maximized from the sales of concentrates. This
resulted in significant improvements in the levels of arsenic
encountered in the concentrate production.
1 Please see the cautionary note at the end of this press
release.
Serrote
The Serrote project early development phase is continuing and
the Company is continuing to pursue options to maximize the value
of Serrote including, but not limited to, a disposal of a majority
interest in the project equity and the Company is also considering
a revised development and operating plan that would require lower
capital expenditures and an earlier execution schedule.
Brazilian Mines - Value Maximization
The Company continues to investigate multiple options to
maximize the disposal and closure value of the assets of the
Brazilian Mines, including selling the plant and equipment and
utilizing key members of their operating teams at our other
locations.
Revenues and Cost of Goods Sold
Revenues for the year ended December 31, 2013 increased 8%
compared to the year ended December 31, 2012. The increase in
revenues resulted from a 7% increase in gold sales and a 11%
increase in copper concentrate sales.
The increase in gold sales is attributable to a 27% increase in
gold sales volumes partially offset by a 15% decrease in the
realized average gold price per ounce.
The increase in copper concentrate net sales is primarily
attributable to a 24% increase in DMT sold offset by a 10% decrease
in average price realized. Total revenues for the year ended
December 31, 2013 at Aranzazu related to the shipment of 24,995 DMT
of copper concentrate compared to 20,321 DMT of copper concentrate
for the year ended December 31, 2012. Total concentrate shipment
revenues for the year ended December 31, 2013 and 2012 were $1,642
per DMT and $1,819 per DMT, respectively. The lower concentrate
shipment revenue per DMT is due to both lower commodity prices and
the comparative effect of the arsenic-related treatment and
refining charges and penalties (such charges were implemented
mid-way through Q2 2012). The negotiated improvements to off-take
contracts only took effect in the later part of 2013.
For the year ended December 31, 2013 and 2012, total cost of
goods sold from San Andres was $82,084 or $1,255 per oz compared to
$64,188 or $1,218 per oz, respectively. For the years ended
December 31, 2013 and 2012, cash operating costs were $1,124 per oz
and $1,019 per oz, respectively, while non-cash depletion and
amortization charges were $131 per oz and $199 per oz,
respectively. The cash operating costs for the year ended December
31, 2013 included a write-down of $880 or $13 per oz to bring
production inventory to its net realizable value (2012: $nil or
$nil per oz).
Total cost of goods sold from the Brazilian Mines for the year
ended December 31, 2013 and 2012 was $192,592 or $1,342 per oz and
$209,425 or $1,866 per oz, respectively. For the years ended
December 31, 2013 and 2012, cash operating costs were $1,090 per oz
and $1,512 per oz, respectively, while non-cash depletion and
amortization charges were $252 per oz and $354 per oz,
respectively. The cash operating costs for the year ended December
31, 2013 included a write-down of $23,401 or $163 per oz to bring
production inventory to its net realizable value (2012: $33,883 or
$302 per oz).
Total cost of goods sold from Aranzazu for the years ended
December 31, 2013 and 2012 was $61,893 or $2,476 per DMT and
$49,113 or $2,417 per DMT, respectively. For the years ended
December 31, 2013 and 2012, cash operating costs were $2,082 per
DMT and $2,069 per DMT, respectively, while non-cash depletion and
amortization charges were $394 per DMT and $348 per DMT,
respectively. The cash operating costs for the year ended December
31, 2013 included a write-down of $10,074 or $403 per DMT to bring
production inventory to its net realizable value (2012: $6,173 or
$304 per DMT).
Additional Highlights
For the year ended December 31, 2013 and 2012, general and
administrative costs were $16,078 and $18,593, respectively.
Salaries, wages and benefits and travel expenses decreased due to
reorganizations at the Company's corporate offices. Share-based
payment expense decreased 61% as a result of a lower value assigned
to stock options granted during the period and prior period
forfeitures. Professional and consulting fees decreased due to the
Company limiting spending on special projects during the period.
Other expenses for 2013 include $2,100 relating to a non-recurring
provision for employee travel liabilities and also separate
taxation penalties assessed on the late payment of instalments
relating to prior periods at the Company's operations.
Exploration costs for the year ended December 31, 2013 and 2012
were $1,987 and $7,696 respectively. This decrease in exploration
costs reflect the completion of Serrote's feasibility study and
Aranzazu's PEA in 2012. The 2013 exploration program at San Andres
is expected to result in the publication of a resource update
during 2014.
For the year ended December 31, 2013, the Company recorded an
impairment charge of $16,021 related to the long-lived assets of
the Sao Francisco Mine and $40,172 related to the long-lived assets
of the San Andres Mine and a loss on disposal relating to the
non-core Brazilian exploration properties of $8,760.
Finance costs for the year ended December 31, 2013 and 2012 were
$5,817 and $4,917, respectively. The decrease in the overall
accretion charge relates to changes to the estimate of the net
smelter return royalty payable and changes in provisions for the
mine closure cost and restoration. The service cost on the
post-employment benefit was re-calculated at December 31, 2013 for
the entire 2013 year, resulting in an adjustment to the expense for
the 2013 year. An increase in the interest expense on debt and
other interest and finance costs reflects the additional
forbearance period transaction costs, interest rates and
payment-in-kind interest charges.
Other gains for the year ended December 31, 2013 were $13,402,
as compared to other losses for the year ended December 31, 2012 of
$5,099. Income tax recovery for the year ended December 31, 2013
was $7,677 compared to an income tax expense of $3,385 for the year
ended December 31, 2012 was $3,385.
For the year ended December 31, 2013, the Company recorded a
loss of $74,193 which compares to a loss of $54,942 for the year
ended December 31, 2012.
Outlook and Strategy
Aura Minerals' future profitability, operating cash flows and
financial position will be closely related to the prevailing prices
of gold and copper. Key factors influencing the price of gold and
copper include the supply of and demand for these commodities, the
relative strength of currencies (particularly the U.S. dollar) and
macroeconomic factors such as current and future expectations for
inflation and interest rates. Management believes that the
short-to-medium term economic environment is likely to remain
relatively supportive for both commodity prices but with continued
volatility for both commodities. In order to decrease risks
associated with commodity price volatility the Company will
continue to evaluate entering into additional hedging programs.
Other key factors influencing profitability and operating cash
flows are production levels (impacted by grades, ore quantities,
labour, plant and equipment availabilities, and process recoveries)
and production and processing costs (impacted by production levels,
prices and usage of key consumables, labour, inflation, and
exchange rates).
Aura Minerals' production and cash cost per oz1 guidance for the
2014 year is as follows:
Gold Mines |
Cash Cost per oz1 |
2014 Production |
San
Andres |
$
800 - $ 950 |
75,000 - 85,000 oz |
Sao
Francisco |
$
900 - $ 1,050 |
75,000 - 85,000 oz |
Sao Vicente |
$ 525 - $ 675 |
5,500 - 7,500 oz |
Total |
$ 850 - $ 1,000 |
155,500 - 177,500 oz |
Aranzazu's production for 2014 is expected to be between
18,000,000 and 19,500,000 pounds of copper at a range of $2.60 to
$3.15 average cash cost per payable pound1 of copper.
In the first quarter of 2014 and to the date of this press
release, the indicators have been that the pro-rata guidance will
be achieved at each operating mine.
For 2014, total capital spending is expected to be $36,000. Of
this amount, $20,000 relates to the development and expansion of
Aranzazu, while $12,000 relates to San Andres plant upgrades, Phase
V of the heap leach expansion and community expenditures. The
remaining portion will be spent on various miscellaneous projects
in the group, including the Serrote development project. The
capital expenditure programs for the expansion of Aranzazu and the
development of Serrote are dependent upon successful completion of
financing.
1 Please see the cautionary note at the end of this press
release.
Conference Call
Aura Minerals' management will host a conference call and audio
webcast for analysts and investors on Thursday, March 27, 2014 at
9:00 a.m. (Eastern Time) to review the 2013 results. Participants
may access the call by dialing 416-340-8530 or the toll-free access
at 1-888-340-9642. Participants are encouraged to call in 10
minutes prior to the scheduled start time to avoid delays.
The call is being webcast and can be accessed at Aura Minerals'
website at www.auraminerals.com. Those who wish to listen to a
recording of the conference call at a later time may do so by
dialing 905-694-9451 or 1-800-408-3053 (Passcode 5178729#). The
conference call replay will be available from 2:00 p.m. on March
27, 2014, until 11:59 p.m. (EST) on April 10, 2014.
Non-GAAP Measures
This news release includes certain non-GAAP performance
measures, in particular, the average cash cost of gold per oz,
average cash cost per payable pound of copper and operating cash
flow which are non-GAAP performance measures. These non-GAAP
measures do not have any standardized meaning within IFRS and
therefore may not be comparable to similar measures presented by
other companies. The Company believes that these measures provide
investors with additional information which is useful in evaluating
the Company's performance and should not be considered in isolation
or as a substitute for measures of performance prepared in
accordance with IFRS.
Average cash costs per oz of gold or per payable pound of copper
are presented as they represent an industry standard method of
comparing certain costs on a per unit basis. Total cash costs of
gold produced include on-site mining, processing and administration
costs, off-site refining and royalty charges, reduced by silver
by-product credits, but exclude amortization, reclamation, and
exploration costs, as well as capital expenditures. Total cash
costs of gold produced are divided by oz produced to arrive at per
oz cash costs. Similarly, total cash costs of copper produced
include the above costs, and are net of gold and silver
by-products, but include offsite treatment and refining charges.
Total cash costs of copper produced are divided by payable pounds
of copper produced to arrive at per payable pound cash costs.
Operating cash flow is the term the Company uses to describe the
cash that is generated from operations excluding depletion and
amortization, stock based compensation, impairment charges and the
effect of changes in working capital.
About Aura Minerals Inc.
Aura Minerals is a Canadian 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 copper-gold-silver Aranzazu mine in Mexico, the San
Andres gold mine in Honduras and the Sao Francisco and Sao Vicente
gold mines in Brazil. The Company's core development asset is the
copper-gold-iron Serrote project in Brazil. Recent achievements on
the Serrote project include: completion of basic engineering;
significant progress on land acquisitions and community
resettlement, with approximately 70% of the project area now
acquired; and engineering-only award of long lead equipment.
Detailed negotiations for debt and equity financing of the project
are continuing.
National Instrument 43-101 Compliance
Unless otherwise indicated, Aura Minerals has prepared the
technical information in this press release ("Technical
Information") based on information contained in the technical
reports and news releases (collectively the "Disclosure Documents")
available under the Company's profile on SEDAR at www.sedar.com.
Each Disclosure Document was prepared by or under the supervision
of a qualified person (a "Qualified Person") as defined in National
Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). Readers are encouraged to review the
full text of the Disclosure Documents which qualifies the Technical
Information. Readers are advised that mineral resources that are
not mineral reserves do not have demonstrated economic viability.
The Disclosure Documents are each intended to be read as a whole,
and sections should not be read or relied upon out of context. The
Technical Information is subject to the assumptions and
qualifications contained in the Disclosure Documents. The
disclosure of Technical Information in this Press Release has been
reviewed and approved by Bruce Butcher, P. Eng., Vice President,
Technical Services, a Qualified Person pursuant to National
Instrument 43-101.
Cautionary Note
This news release contains certain "forward-looking information"
and "forward-looking statements", as defined in applicable
securities laws (collectively, "forward-looking statements"). All
statements other than statements of historical fact are
forward-looking statements. Forward-looking statements relate to
future events or future performance and reflect the Company's
current estimates, predictions, expectations or beliefs regarding
future events and include, without limitation, statements with
respect to: the amount of mineral reserves and mineral resources;
the amount of future production over any period; the amount of
waste tonnes mined; the amount of mining and haulage costs; cash
costs; operating costs; strip ratios and mining rates; expected
grades and ounces of metals and minerals; expected processing
recoveries; expected time frames; prices of metals and minerals;
mine life; and gold hedge programs. Often, but not always,
forward-looking statements may be identified by the use of words
such as "expects", "anticipates", "plans", "projects", "estimates",
"assumes", "intends", "strategy", "goals", "objectives" or
variations thereof or stating that certain actions, events or
results "may", "could", "would", "might" or "will" be taken, occur
or be achieved, or the negative of any of these terms and similar
expressions.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions that, while considered reasonable by
the Company, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
Forward-looking statements in this news release and related
MD&A are based upon, without limitation, the following
estimates and assumptions: the presence of and continuity of metals
at the Company's Mines at modeled grades; the capacities of various
machinery and equipment; the availability of personnel, machinery
and equipment at estimated prices; exchange rates; metals and
minerals sales prices; appropriate discount rates; tax rates and
royalty rates applicable to the mining operations; cash costs;
anticipated mining losses and dilution; metals recovery rates,
reasonable contingency requirements; and receipt of regulatory
approvals on acceptable terms.
Known and unknown risks, uncertainties and other factors, many
of which are beyond the Company's ability to predict or control
could cause actual results to differ materially from those
contained in the forward-looking statements. Specific reference is
made to the most recent Annual Information Form on file with
certain Canadian provincial securities regulatory authorities for a
discussion of some of the factors underlying forward-looking
statements, which include, without limitation, gold and copper or
certain other commodity price volatility, changes in debt and
equity markets, the uncertainties involved in interpreting
geological data, increases in costs, environmental compliance and
changes in environmental legislation and regulation, interest rate
and exchange rate fluctuations, general economic conditions and
other risks involved in the mineral exploration and development
industry. Readers are cautioned that the foregoing list of factors
is not exhaustive of the factors that may affect the
forward-looking statements.
All forward-looking statements herein are qualified by this
cautionary statement. Accordingly, readers should not place undue
reliance on forward-looking statements. The Company undertakes no
obligation to update publicly or otherwise revise any
forward-looking statements whether as a result of new information
or future events or otherwise, except as may be required by law. If
the Company does update one or more forward-looking statements, no
inference should be drawn that it will make additional updates with
respect to those or other forward-looking statements.
Aura Minerals Inc.Joshua Perelman(416) 649-1033(416)
649-1044info@auraminerals.comwww.auraminerals.com
Aura Minerals (TSX:ORA)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Aura Minerals (TSX:ORA)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024