PRECIOUS METALS

Aura trims San Andres guidance after hurricanes in Honduras

Aura Minerals has further reduced production guidance for its San Andres gold mine in Honduras after the region was hit by two hurricanes this month.

Staff reporter
 Earlier sunshine over Aura Minerals’ San Andres operations in Honduras

Earlier sunshine over Aura Minerals’ San Andres operations in Honduras

"Hurricane Eta reached Central America on November 3rd and Hurricane Iota on November 16th, carrying severe storms near San Andres mine causing constant power and communication disruptions," the company said.

The Honduran Permanent Commission for Contingencies had issued a red alert at national level on November 15 for an undefined time due to the constant rains which remained to date, Aura said yesterday.

It was not aware of injuries or casualties in the region and said no material damage was caused to its properties but it estimated an impact on production of 2,000-3,000 ounces.

San Andres had been expected to produce 61,000-64,000oz gold-equivalent this year, according to updated guidance this month, of the company's 200,000-210,000oz Au-eq forecast for 2020.

San Andres' guidance had been reduced from the previous 63,000-69,000oz due to heavy rains in the third quarter and the impact of Hurricane Eta.

Aura said it had prioritised the safety of its employees and service providers and reduced or interrupted operations during a few occasions this month when appropriate.

It was also working with local communities to provide food, water, beds and other essentials to those affected by the hurricanes.

"The safety of our employees and contractors is always our top priority, as well as supporting the communities around our operations," president and CEO Rodrigo Barbosa said.

The company had produced 57,725oz Au-eq in the September quarter.

It also has the Ernesto/Pau-a-Pique gold mine in Brazil, the Aranzazu copper-gold-silver mine in Mexico and is expecting to achieve commercial production at its Gold Road mine in the US this quarter. 

Aura's shares (TSX: ORA) have risen from circa C$1.80 at the start of this year to a peak of $18.30 in September.

They closed down 3.6% yesterday to $13.50 to value it at $949 million (US$698 million).

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