ROAD TOWN, BRITISH VIRGIN ISLANDS--(Marketwired - March 24, 2017) - Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX: ORA) is pleased to announce its financial and operating results for the fourth quarter and year-end 2016. The Company also announces its 2017 guidance.
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 audited consolidated financial statements for the year ended December 31, 2016, 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:
- Gold production for the fourth quarter and year ended December 31, 2016 was 29,145 ounces ("oz") and 122,760 oz, respectively, as compared to 35,216 oz and 142,982 oz for the same period in 2015, respectively;
- Cash cost per oz of gold produced1 for the fourth quarter and year ended December 31, 2016 was $847 per oz and $846 per oz, respectively, as compared to $727 per oz and $862 per oz for the same period in 2015, respectively;
- Net sales revenue in the fourth quarter of 2016 decreased by 9% over the fourth quarter of 2015. Net sales for the year ended December 31, 2016 decreased by 12% in comparison to the year ended December 31, 2015;
- Income of $20,353 or $0.62 per share for the fourth quarter of 2016 compared to a loss of $11,886 or $0.42 per share for the same period in 2015. Income for the year ended December 31, 2016 of $19,020 or $0.64 per share compared to a loss of $14,479 or $0.56 per share for the same period in 2015;
- A non-recurring gain on acquisition from Ernesto /Pau-a-Pique ("EPP Project") of $19,886 (before tax) is included in the income for the fourth quarter and year ended December 31, 2016;
- On June 23, 2016, the Company completed the acquisition of asset and liabilities of the EPP Project from Serra da Borda Mineração e Metalurgia S.A., a company affiliated with Yamana Gold Inc. for a total consideration of $9,597. During 2016, the Company announced the results from the NI 43-101 Feasibility Study for the EPP Project. Highlights include an average gold production of 41,000 oz per year over approximately 5.8 years, an initial CAPEX requirement of approximately $17,300 (partially funded by the Yamana Debt Facility), including working capital and contingency, a net present value at 5% after tax of $39,500, and an internal rate of return of 77%. Subsequent to the year ended December 31, 2016, the Company filed the NI 43-101 Feasibility Study for the EPP Project;
- On March 2, 2016, the Company obtained a $12,325 gold loan (the "Gold Loan") from Auramet International LLC ("Auramet"). The proceeds of the Gold Loan were used for debt consolidation and working capital requirements. The Gold Loan was to be repaid in 68 weekly instalments of 176.5 ounces of gold. Subsequent to the year ended December 31, 2016, the Company fully repaid the Gold Loan by delivering 529.50 ounces of gold and entering into a $9,000 loan with Auramet;
- On September 30, 2016, the Company closed a rights offering of 3,634,628 common shares at C$1.50 per common share for gross proceeds of $4,162 (C$5,451). For the year ended December 31, 2016, the Company recorded total proceeds of $4,093 (net of share issue cost of $69);
- On December 30, 2016, the Company consolidated the issued and outstanding common shares in the capital of the Company on the basis of one (1) post-consolidation share for each ten (10) pre-consolidation shares;
- On December 30, 2016, the Company transitioned out of the jurisdiction of the Canada Business Corporations Act into the jurisdiction of the BVI Business Companies Act (British Virgin Islands);
- 2016 operating results in comparison to the 2016 revised guidance:
| Ounces produced | Cash operating costs per ounce produced1 | Capital expenditures | ||||||||||
| Gold Mines | Actual | Revised Guidance | Actual | Revised Guidance | Actual | Revised Guidance | ||||||
| San Andres | 78,327 | 75,000-85,000 | $821 | $825-$875 | $4,574 | $6,700 | ||||||
| Sao Francisco | 44,433 | 35,000-40,000 | $892 | $800-$850 | $249 | $300 | ||||||
| Total | 122,760 | 110,000-125,000 | $846 | $825-$875 | $4,823 | $7,000 | ||||||
The 2016 revised guidance for capital expenditures included $4,000 related to the restart of the EPP Project, specifically the Ernesto underground deposit. The Company spent $Nil on this specific capital expenditures.
Rodrigo Barbosa, President and Chief Executive Officer of the Company, commented, "2016 was a positive year in terms of strengthening our balance sheet through cash generation. We anticipate furthering these results as we continue to reduce costs and investigate debt consolidation options. I would like to thank Jim for his efforts and smooth transition and I look forward to working with the entire team going forward as CEO. We have an excellent safety record and continue to work with local communities where we operate. Our operations are well positioned and, as a positive outlook for Gold and Copper prices, we continue to evaluate options with respect to Sao Francisco and its fines project, Aranzazu and Serrote in order to maximize shareholder returns."
| FOURTH QUARTER AND YEAR-END 2016 FINANCIAL AND OPERATING HIGHLIGHTS | |||||||||||||||
| For the three months ended December 31, 2016 |
For the three months ended December 31, 2015 |
For the year ended December 31, 2016 |
For the year ended December 31, 2015 |
||||||||||||
| FINANCIAL DATA | |||||||||||||||
| IFRS Measures | |||||||||||||||
| Revenue | $ | 34,328 | $ | 37,707 | $ | 146,209 | $ | 165,763 | |||||||
| Cost of goods sold | $ | 30,211 | $ | 30,871 | $ | 115,196 | $ | 151,583 | |||||||
| Depreciation (included in cost of goods sold) | 3,233 | 1,662 | 9,078 | 6,533 | |||||||||||
| Gross Margin | $ | 4,117 | $ | 6,836 | $ | 31,013 | $ | 14,180 | |||||||
| Gross Margin (excluding depreciation) | 7,350 | 8,498 | 40,091 | 20,713 | |||||||||||
| Net income (loss) | $ | 20,353 | $ | (11,886 | ) | $ | 19,020 | $ | (14,479 | ) | |||||
| Income (Loss) per share - Basic | $ | 0.62 | $ | (0.42 | ) | $ | 0.64 | $ | (0.56 | ) | |||||
| Income (Loss) per share - Diluted | $ | 0.60 | $ | (0.42 | ) | $ | 0.62 | $ | (0.56 | ) | |||||
| EBITDA | $ | 4,122 | $ | 6,549 | $ | 24,205 | $ | 17,006 | |||||||
| Non-IFRS Measures* | |||||||||||||||
| Realized average gold price per ounce sold, gross1 | $ | 1,253 | $ | 1,108 | $ | 1,250 | $ | 1,161 | |||||||
| Realized average gold price per ounce sold, net of local sales taxes, hedging and gold loan repayments1 | $ | 1,127 | $ | 993 | $ | 1,098 | $ | 1,044 | |||||||
| Cash operating costs per ounce produced1 | $ | 847 | $ | 727 | $ | 846 | $ | 862 | |||||||
| Cash operating costs per ounce sold1 | $ | 946 | $ | 826 | $ | 875 | $ | 946 | |||||||
| All-in costs per ounce sold1 | $ | 1,173 | $ | 933 | $ | 1,061 | $ | 1,106 | |||||||
| Total capital expenditures | $ | 2,582 | $ | 1,891 | $ | 4,823 | $ | 11,698 | |||||||
| OPERATING DATA* | |||||||||||||||
| Ore processed (tonnes) | 2,097,879 | 2,349,730 | 9,381,679 | 10,093,978 | |||||||||||
| Gold produced (ounces) | 29,145 | 35,216 | 122,760 | 142,982 | |||||||||||
| Gold sold (ounces) | 28,509 | 35,195 | 121,285 | 144,523 | |||||||||||
| *the above represents the results of the gold operation only. | |||||||||||||||
Aura Minerals' production, cash operating cost per ounce and capital expenditures guidance for 2017 are as follows:
| Ounces produced | Cash operating costs per ounce produced1 | Capital expenditures | ||||||||||
| Gold Mines | Low | High | Low | High | Low | High | ||||||
| San Andres | 75,000 | 90,000 | $750 | $850 | $8,500 | $12,000 | ||||||
| Sao Francisco | 10,000 | 15,000 | $450 | $560 | - | - | ||||||
| EPP Project | 30,000 | 45,000 | $900 | $1,100 | $900 | $1,800 | ||||||
| Total | 115,000 | 150,000 | $763 | $896 | $9,400 | $13,800 | ||||||
1 Please see "Non-GAAP measures" at the end of this press release.
About Aura Minerals Inc.
Aura Minerals is a mid-tier mining company focused on the production and development of gold mines in the Americas. The Company's gold assets include the San Andres producing mine in Honduras, the Sao Francisco producing mine in Brazil, and the EPP Project. In addition to the portfolio of gold assets, the Company wholly-owns the past producing copper-gold-silver, Aranzazu mine in Mexico and the copper-gold-iron Serrote development project in Brazil. Both are currently under care-and-maintenance.
