Aranzazu's production for 2013 is expected to be between 13,000,000 and 15,000,000 pounds of copper at a range of $3.10 to $3.60 average cash cost per payable pound of copper.
In the first quarter of 2013 and to the date of this press release, the indicators have been that the pro-rata guidance will be achieved at each operating mine.
For 2013, capital spending is expected to be $101 million. Of this amount, $53 million relates to growth and sustaining capital for existing mines - including $36 million on the Aranzazu expansion and roaster installation and $7 million on Phase V of the heap leach expansion and community expenditures at San Andres. The remaining $48 million relates to the development and initial construction of Serrote.
Aura Minerals' management will host a conference call and audio webcast for analysts and investors on Thursday, March 21, 2013 at 9:00 a.m. (Eastern Time) to review the fourth quarter and full year 2012 results. Participants may access the call by dialing 416-340-8530 or the toll-free access at 1-888-340-9642. Participants are encouraged to call in 10 minutes prior to the scheduled start time to avoid delays.
The call is being webcast and can be accessed at Aura Minerals' website at www.auraminerals.com. Those who wish to listen to a recording of the conference call at a later time may do so by dialing 905-694-9451 or 1-800-408-3053 (Passcode 6892960#). The conference call replay will be available from 2:00 p.m. on March 21, 2013, until 11:59 p.m. (EST) on April 4, 2013.
This news release includes certain non-GAAP performance measures, in particular, the average cash cost of gold per oz, average cash cost per payable pound of copper and operating cash flow 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.
Average cash costs per oz of gold or per payable pound of copper are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Total cash costs of gold produced include on-site mining, processing and administration costs, off-site refining and royalty charges, reduced by silver by-product credits, but exclude amortization, reclamation, and exploration costs, as well as capital expenditures. Total cash costs of gold produced are divided by oz produced to arrive at per oz cash costs. Similarly, total cash costs of copper produced include the above costs, and are net of gold and silver by-products, but include offsite treatment and refining charges. Total cash costs of copper produced are divided by payable pounds of copper produced to arrive at per payable pound cash costs.
Operating cash flow is the term the Company uses to describe the cash that is generated from operations excluding depletion and amortization, stock based compensation, impairment charges and the effect of changes in working capital.
About Aura Minerals Inc.
Aura Minerals is a Canadian 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 Sao Francisco and Sao Vicente gold mines in Brazil and the copper-gold-silver Aranzazu mine in Mexico. The Company's core development asset is the copper-gold-iron Serrote project in Brazil. Activities to date on the Serrote project include detailed negotiations for debt and equity financing, a geotechnical drill program, the engineering has been awarded and the Company has commenced advancing with early procurement.
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