Aura Minerals Provides Operational and Financial Update Amid Covid-19
May 29 2020 - 9:03AM
Aura Minerals Inc. (TSX: ORA)
(“
Aura” or the “
Company”) today
provided an update regarding its operations and financial
performance in light of the ongoing global COVID-19 pandemic
(the “
Pandemic”).
Operations at San Andres and
Aranzazu
At the Company’s San Andres mine, and as
previously announced, mining operations were interrupted pursuant
to orders of the Honduran government in response to the Pandemic
and Aura has reduced its workforce to the minimum in order to
maintain tailings and continue to satisfy environmental
requirements in connection with operations and other critical
activities at the mine. On May 26, 2020, as part of the Honduran
government’s efforts to reopen the economy , Minerales de
Occidente, S.A. de C.V., the Company’s subsidiary which owns the
surface and mineral rights of the San Andres mine, as well as its
main contractor, were granted permission from local authorities to
resume operations. The Company expects it will be able to gradually
and safely resume activities at San Andres over the next few
weeks.
At Aranzazu, and also as previously announced, the Mexican
government issued a decree requiring the suspension of all
non-essential activities in the private and public sectors on March
31, 2020. Accordingly, the Company suspended all non-essential
operations at Aranzazu while maintaining only critical activities,
as allowed by the decree. On May 12, 2020, mining was deemed an
essential activity by the Mexican authorities, and the Company has
obtained formal authorization to fully restart operations at
Aranzazu on May 27, 2020. The Company expects it will be able to
gradually and safely resume activities at Aranzazu over the next
few weeks.
The gradual ramp-up of activities at San Andres
and at Aranzazu will involve the implementation of a series of best
practice biosafety protocols and ongoing monitoring of the
situation at both sites. A more complete, non-exhaustive
description of all actions being taken by the Company at all of its
operations as a result of the Pandemic can be found in the
Company’s management’s discussion and analysis for the quarter
ending on March 31, 2020.
Rodrigo Barbosa, CEO of Aura, comments: “We
remain committed to prioritizing the health and safety of all
through this challenging time, and to supporting our employees and
communities where we operate.”
Financial Performance
Between March and April of 2020, the Company
recorded a consolidated net revenue of US$38.5 million, which
represents an increase of 37% compared to US$28 million recorded in
the same period of 2019. In particular, the Company attributes this
increase to improved operational performances at Aranzazu and San
Andres (both of which having now resumed operations following
interruptions resulting from the Pandemic as described above) over
this two-month period (especially March) as compared to the same
period of 2019, as well as higher gold prices.
In April of 2020, the Company recorded net
revenues of US$26.1 million, which represents an increase of 51%
compared to US$17.3 million recorded in the same month of 2019. The
Company attributes this increase in part due to the deferral of
revenue recognition from March to April as a result of shipping
delays in Honduras and Brazil resulting from the Pandemic.
For May and June of 2020, we expect that the
Company’s revenue may be negatively impacted due to the operational
interruptions stemming from the Pandemic previously described and
the time necessary to gradually restart and ramp-up activities at
our sites. Nevertheless, we expect the impact to be limited given
the recent authorizations the Company has obtained to fully restart
operations at San Andres and Aranzazu as described herein.
Forward-Looking Information
This press release contains “forward-looking
information” and “forward-looking statements”, as defined in
applicable securities laws (collectively, “forward-looking
statements”) which include, but are not limited to, the
duration or extent of the restrictions and suspensions resulting
from the orders of the Honduran and Mexican governments as a result
of the Pandemic, and the effect that any such restrictions or
suspensions may have on our operations and our financial and
operational results; and the ability of the Company to
successfully restart operations at San Andres and Aranzazu
efficiently or economically, or at all.
Known and unknown risks, uncertainties and other
factors, many of which are beyond the Company’s ability to predict
or control, including any changes to the conditions and limitations
imposed by the Honduran or Mexican governments as a result of the
Pandemic, and the duration of such conditions or limitations, 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.
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.
About Aura 360° Mining
Aura is focused on mining in complete terms –
thinking holistically about how its business impacts and benefits
every one of our stakeholders: our company, our shareholders, our
employees, and the countries and communities we serve. We name it
360° Mining.
Aura is a 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 San Andres gold mine in Honduras, the Ernesto/Pau-a
-Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in
Mexico and one pre-operational gold mine in the United States, Gold
Road. In addition, the Company has two additional gold projects in
Brazil, Almas and Matupá, and one gold project in Colombia, Tolda
Fria.
For further information, please visit Aura’s website at
www.auraminerals.com or contact:
Rodrigo Barbosa
President & CEO 305-239-9332
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