Aura Minerals Announces Q3 2017 Financial and Operating Results
November 09 2017 - 7:00AM
Aura Minerals Inc. (“Aura Minerals” or the
“Company”) (TSX:ORA)
announces financial and
operating results for the third quarter of 2017.
This release does not constitute the
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 condensed interim consolidated
financial statements for the three and nine months ended September
30, 2017 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
thousands of Canadian dollars. Tables are expressed in thousands of
United States dollars, except where otherwise noted.
Highlights:
|
|
For the three months ended September 30,
2017 |
For the three months ended September 30, 2016 |
For the nine months ended September 30,
2017 |
For the nine months ended September 30, 2016 |
FINANCIAL
DATA |
|
|
|
|
|
IFRS
Measures |
|
|
|
|
|
Revenue |
|
$
39,828 |
$ 40,016 |
$
118,977 |
$ 111,881 |
|
Cost of
goods sold |
|
|
31,882 |
|
28,725 |
|
96,671 |
|
84,985 |
|
Depreciation (included in cost of goods sold) |
|
2,529 |
|
2,198 |
|
8,101 |
|
5,845 |
|
Gross Margin |
|
|
7,946 |
|
11,291 |
|
22,306 |
|
26,896 |
|
Gross
Margin (excluding depreciation) |
|
|
10,475 |
|
13,489 |
|
30,407 |
|
32,741 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$
4,594 |
$ 734 |
$
3,813 |
$ (1,333 |
) |
Income
(loss) per share - Basic and diluted |
$
0.14 |
$ 0.03 |
$
0.11 |
$ (0.05 |
) |
EBITDA |
|
|
5,499 |
|
6,511 |
|
16,802 |
|
17,977 |
|
Non-IFRS Measures |
|
|
|
|
|
Realized average gold
price per ounze1 |
|
$
1,241 |
$ 1,285 |
$
1,174 |
$ 1,206 |
|
Net
realized average gold price per ounze1 |
$
1,290 |
$ 1,312 |
$
1,221 |
$ 1,206 |
|
Cash
operating costs per ounce produced1 |
$
902 |
$ 881 |
$
863 |
$ 869 |
|
Cash operating costs
per ounce sold1 |
|
$
914 |
$ 852 |
$
874 |
$ 853 |
|
All-in costs per ounce
sold1 |
|
$
1,206 |
$ 1,122 |
$
1,090 |
$ 1,045 |
|
Total
capital expenditures |
|
$
3,912 |
$
1,184 |
$
7,415 |
$
2,387 |
|
OPERATING
DATA |
|
|
|
|
|
Ore processed
(tonnes) |
|
|
1,923,696 |
|
2,511,323 |
|
6,078,387 |
|
7,283,800 |
|
Gold produced
(ounces) |
|
|
34,189 |
|
33,457 |
|
103,375 |
|
93,615 |
|
Gold sold
(ounces) |
|
|
32,106 |
|
31,142 |
|
101,381 |
|
92,774 |
|
|
1 Please see “Non-GAAP measures” at the end of this press
release. |
|
- Income of $4,594 or $0.14 per share for the three months
ended (“three months ended” or “the third quarter of”) September
30, 2017 compared to income of $734 or $0.03 per share for the
third quarter of 2016;
- Net sales revenue in the third quarter of 2017 decreased by
0.47% over the third quarter of 2016. Details are as follows:
|
|
|
|
|
|
|
|
For the three months ended September 30,
2017 |
For the three months ended September 30, 2016 |
For the nine months ended September 30,
2017 |
For the nine months ended September 30, 2016 |
Ounces sold |
|
|
|
|
|
San
Andre |
|
|
15,311 |
|
18,946 |
|
62,415 |
|
55,105 |
Brazilian Mines |
|
|
16,795 |
|
12,195 |
|
38,966 |
|
37,669 |
Total ounces sold |
|
|
32,106 |
|
31,142 |
|
101,381 |
|
92,774 |
|
|
|
|
|
|
Gold sales revenues, net of local sales taxes |
$
39,828 |
$ 40,016 |
$
118,977 |
$ 111,881 |
Average
gold market price per oz (London PM Fix) |
|
$
1,278 |
$ 1,335 |
$
1,251 |
$ 1,259 |
Realized average gold
price per ounze1 |
|
$
1,241 |
$ 1,285 |
$
1,174 |
$ 1,206 |
Net realized average gold price per ounze1 |
$
1,290 |
$ 1,312 |
$
1,221 |
$ 1,206 |
|
1 Please see “Non-GAAP measures” at the end of this press
release. |
|
- Gold production for the third quarter of 2017 was 2% higher
than the comparable period of 2016. Gold production and cash
operating costs per ounce produced1 for the nine months ended
September 30, 2017 and 2016 were as follows:
|
|
|
|
|
|
|
|
|
For the three months ended September 30,
2017 |
|
For the three months ended September 30, 2016 |
|
|
|
Oz Produced |
Cash Operating
Costs1 |
|
Oz Produced |
Cash Operating Costs1 |
San Andres |
|
18,479 |
$
1,003 |
|
21,350 |
$ 815 |
Brazilian Mines |
|
15,711 |
|
783 |
|
12,106 |
|
997 |
Total / Average |
|
34,189 |
$
902 |
|
33,457 |
$ 881 |
|
|
|
For the nine months ended September 30,
2017 |
|
For the nine months ended September 30, 2016 |
|
|
|
Oz Produced |
Cash Operating
Costs1 |
|
Oz Produced |
Cash Operating Costs1 |
San Andres |
|
62,816 |
$
841 |
|
56,406 |
$ 833 |
Brazilian Mines |
|
40,559 |
|
897 |
|
37,209 |
|
925 |
Total / Average |
|
103,375 |
$
863 |
|
93,615 |
$ 869 |
|
|
|
|
|
|
|
- Effective January 1, 2017, Lavrinha achieved commercial
production. As a result, both revenue and operating costs for
Lavrinha are recognized in the condensed interim consolidated
statements of loss and comprehensive loss. In addition, the mine
development related to Lavrinha is reclassified to property, plant
and equipment and depletion commences;
- The Pau-a-Pique mine declared commercial production on August
1, 2017 after achieving certain milestones set by management.
Pre-commercial production achieved 2,209 ounces during the third
quarter of 2017 and 3,212 ounces during the first nine months of
the year; during the third quarter of 2017 Pau-a-Pique reached a
total ore mined of 32,846 tonnes and a production of 3,032
ounces. As a result of commercial production, both revenue
and operating cost for PPQ are recognized in the condensed interim
consolidated statements of loss and comprehensive loss. In
addition, the mine development related to PPQ is reclassified to
property, plant and equipment and depletion commences.
- During the third quarter of 2017, cash operating costs per
ounce produced1 were 2.4% higher, comparable with the same period
in 2016 due to higher cost of production at San Andres due to
weather conditions (primarily heavy rainfall), offset by lower cost
of production from the Brazilian mines.
1 Please see “Non-GAAP measures” at the end
of this press release.
For further information, please visit
Aura Minerals’ web site at www.auraminerals.com or
contact:
Aura Minerals Inc. Email: info@auraminerals.com
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.
Non-GAPP Measures
The Company has included earnings before
interest and tax (“EBIT”), earnings before interest, tax,
depreciation and amortization (“EBITDA”), realized average gold
price per ounce sold, net realized average gold price per
ounce sold, cash operating cost per ounce produced, cash operating
costs per ounce sold and all-in costs per ounce sold 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.
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