Aura reduces guidance for 2022 but ups long-term outlook

Canadian gold miner Aura Minerals reduced its production guidance for 2022 but increased the long-term outlook thanks to projects in Brazil. 

Aura cut its full year 2022 production guidance to between 245,000oz and 250,000oz of gold equivalent, or GEOs, compared to between 260,000oz and 275,000oz previously. 

The company attributed the downward review to the reduction in copper prices and lower production at the San Andrés mine in Honduras due to above average rainfall and a change in operator. 

However, Aura announced a new 2025 production target of more than 450,000 GEOs. 

"This new production guidance represents an increase of approximately 67% compared to production of 269,000 GEO reported in 2021, and will come from optimizing production from assets currently in operations and bringing three new mines online in the coming years (Almas, Matupá and Borborema)," the company said in its latest MD&A. All three are in Brazil, where the company has the EPP/Apoena mine complex.

Previously, Aura was expected to reach the mark of 400,000oz gold equivalent in 2024 and then remain stable in the following years, but the inclusion of the Borborema project allowed the firm to up the expectation.

In September, Aura concluded the purchase of Australia's Big River Gold, a deal which sees it assume control of Borborema.

Aura’s production in the first nine months totaled 174,861 GEOs, down from 191,389 in the same period 2021. 

The company posted a net profit of US$70,000 in the third quarter, compared to a net loss of US$14.6mn a year earlier. Revenue totaled US$81.2mn, down from US$97.1mn.

Aura’s other producing mine is Aranzazu in Mexico.