Aura Minerals sees up to 42% production growth in 2021

Ernesto/Pau-a-Pique (EPP) project in Mato Grosso, Brazil. Image from Aura Minerals.

Aura Minerals (TSX: ORA) is expecting continued production growth in 2021, with a targeted annual production of between 250,000 and 290,000 gold equivalent ounces (GEOs), the company announced on Friday.

This represents a 22% to 42% improvement compared to the 204,000 GEOs produced in 2020, a record high for any single year.

Cash cost from operations for the year will be within the range of $728 and $867 per equivalent ounce of gold produced, the company added.

In 2021, Aura plans to start the construction of the Almas greenfield project, to develop a pre-feasibility study for the Matupa project and to further expand production capacity at Aranzazu.

These new projects, along with sustaining and exploration activities, will take total capital expenditures to between $93 million and $104 million for the year.

Management believes its properties – San Andres, EPP, Aranzazu and Gold Road – have “strong geological potential” and intends to expand the life of mine across its business units. In 2021, Aura said it plans to invest a total of $24 million to $28 million.

In the medium term, the company anticipates more than doubling its annual production, achieving between 400,000 and 480,000 GEOs in 2024. The projection is based on the combination of potential brownfield expansion and existing greenfield projects, not including any potential acquisitions, Aura said.

Shares of Aura Minerals advanced 1.0% by 12:15 p.m. EST Friday, sending the company’s market capitalization to C$1.04 billion.

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