We follow Aura Minerals 'for education purposes ' because Aura is a Canadian mining company operating internationally, tied to the fortunes of gold base metals, currencies, labor conditions and macroeconomics .
This is a good "real world" case study for any business student or an autodidact
hoping to learn something about the mining business.
About Aura Minerals Inc.
The Company's producing assets include:
1. the San Andres gold mine in Honduras,
2. the Sao Francisco mine in Brazil and
3.Sao Vicente gold mine in Brazil and
4.the copper-gold-silver Aranzazu Mine in Mexico.
The Company's core exploration asset is:
i.) the feasibility-stage copper-gold-iron ore Serrote Project in Brazil.
........................................................................................
Aura Minerals Announces Fourth Quarter and Full Year 2011 Financial and Operating Results - Yahoo! Finance
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) - Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX:ORA.TO - News) today announced financial and operating results for the fourth quarter and full year 2011. All dollar amounts are expressed in US dollars unless otherwise specified.
Fourth Quarter and Full Year 2011 Financial and Operating Highlights:
-- Gold production of 43,863 ounces and 160,159 ounces in the fourthquarter and full year 2011, respectively, with full year 2011 production being 16% higher than 2010;
-- Average on-site cash cost(1) per ounce of gold produced of $1,274 and
"Despite experiencing several operational challenges during 2011, we continue to make significant progress towards improving our operations and advancing our projects," stated Jim Bannantine, President and CEO of Aura Minerals. "
In connection with the mine plans at the Brazilian mines, we implemented a gold hedging program in late February to take advantage of high gold prices at the time and secure cash flows at these operations. We have hedged 80,000 ounces of gold production through June 2014, using a series of zero-cost collars having a floor price of $1,700 per ounce and an average ceiling price of $1,812 per ounce.
With - an improved outlook for cash generation this year from our asset portfolio,
- combined with lower capital expenditures than in past years,
- and the credit facility upsizing which we expect to close in April,
(Credit Facility UpsizingFrom Feb.28/12 company update)
[Although the Company expects to generate positive free cash flow in 2012 based on current metal prices, management has negotiated an increase in the revolving credit facility to $45 million, from $25 million, to fund working capital for growth. Closing of the upsizing is expected to be in late March or early April, 2012.]
- increasing the Aranzazu Mine throughput level to up to 5,000 tpd, subject to a positive Aranzazu PEA, with internal capital provided by the Brazilian mines over the next three years, and
- developing the Serrote Project to significantly increase the size of the Company, subject to a positive Serrote Feasibility Study."
Outlook and Strategy
Aura Minerals' future profitability, operating cash flows and financial position will be closely related to the prevailing prices of gold and copper.
Key factors influencing the price of gold and copper include the supply of and demand for these commodities, the relative strength of currencies (particularly the U.S. dollar) and macroeconomic factors such as current and future expectations for inflation and interest rates.
Management believes that the short-to-medium term economic environment is likely to remain supportive for gold and copper prices with continued volatility in both.
He began work as an economist for the International Coffee Organization, often traveling to Africa on missions for the World Bank, when he first started seriously taking photographs.
He chose to abandon a career as an economist and switched to photography in 1973, working initially on news assignments before veering more towards documentary-type work.
Source: http://en.wikipedia.org/wiki/Sebasti%C3%A3o_Salgado
"Migrations", also called "Exodus", focused on immigrants, refugees and other displaced populations. For seven years, he took photographs of migrants from Africa, Asia and South America, many of whom had fled ethnic and religious conflict and genocidal regimes.
In the Times, he said that "there is little different between photographing a pelican or an albatross and photographing a human being. You must pay attention to them, spend time with them, respect their territory."
He has also founded the Terra Institute on 600 hectares of land where he is rebuilding a rain forest which belonged to his father. "All the birds are coming back, the river is flowing again, the environment is working, and all this has made such a difference to my relationship with nature. My life has completely changed," he wrote
More on Environmental Photographers Environmental Photographer of the Year Award Grantham Prize Winners Announced: Environmental Reporting at its Best New Prize for Photos Showing
This is a good "real world" case study for any business student or an autodidact
hoping to learn something about the mining business.
Aura has growth prospects planned like, increasing throughput at existing mines and developing the Serrote Property in Brazil from the feasibility stage to a producing property, thereby, significantly increasing the size of the company.
Aura is gaining 'critical mass' whereby internal cash flow can fund growth. Commodity prices are one 'wild card' to consider when assessing risk
but it is not the only consideration in growing the company. They need a stable labor environment and operational and drilling success for their plans to be realized.
Management is aiming to increase operational efficiency, develop the feasibility stage Serrote Project. The company is reducing commodity price risks by instituting a hedging program having sold forward 80,000 ounces of gold at 'good' prices.
This is what makes Aura an interesting company to study.
but it is not the only consideration in growing the company. They need a stable labor environment and operational and drilling success for their plans to be realized.
Management is aiming to increase operational efficiency, develop the feasibility stage Serrote Project. The company is reducing commodity price risks by instituting a hedging program having sold forward 80,000 ounces of gold at 'good' prices.
This is what makes Aura an interesting company to study.
More details from this company press release are available:
http://www.auraminerals.com/
http://finance.yahoo.com/news/aura-minerals-announces-fourth-quarter-223500863.html- 2010 Annual Consolidated Financial Statements (PDF 481 KB)
- Investor Presentation (PDF 1.78 MB)
- News Releases
- Link to SEDAR
About Aura Minerals Inc.
Aura Minerals is a Canadian mid-tier mining company focused on the exploration, development and operation of gold and base metal projects in the Americas.
The Company's producing assets include:
1. the San Andres gold mine in Honduras,
2. the Sao Francisco mine in Brazil and
3.Sao Vicente gold mine in Brazil and
4.the copper-gold-silver Aranzazu Mine in Mexico.
The Company's core exploration asset is:
i.) the feasibility-stage copper-gold-iron ore Serrote Project in Brazil.
........................................................................................
Aura Minerals Announces Fourth Quarter and Full Year 2011 Financial and Operating Results - Yahoo! Finance
VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2012) - Aura Minerals Inc. ("Aura Minerals" or the "Company") (TSX:ORA.TO - News) today announced financial and operating results for the fourth quarter and full year 2011. All dollar amounts are expressed in US dollars unless otherwise specified.
Fourth Quarter and Full Year 2011 Financial and Operating Highlights:
-- Gold production of 43,863 ounces and 160,159 ounces in the fourthquarter and full year 2011, respectively, with full year 2011 production being 16% higher than 2010;
-- Average on-site cash cost(1) per ounce of gold produced of $1,274 and
"Despite experiencing several operational challenges during 2011, we continue to make significant progress towards improving our operations and advancing our projects," stated Jim Bannantine, President and CEO of Aura Minerals. "
In connection with the mine plans at the Brazilian mines, we implemented a gold hedging program in late February to take advantage of high gold prices at the time and secure cash flows at these operations. We have hedged 80,000 ounces of gold production through June 2014, using a series of zero-cost collars having a floor price of $1,700 per ounce and an average ceiling price of $1,812 per ounce.
With - an improved outlook for cash generation this year from our asset portfolio,
- combined with lower capital expenditures than in past years,
- and the credit facility upsizing which we expect to close in April,
(Credit Facility UpsizingFrom Feb.28/12 company update)
[Although the Company expects to generate positive free cash flow in 2012 based on current metal prices, management has negotiated an increase in the revolving credit facility to $45 million, from $25 million, to fund working capital for growth. Closing of the upsizing is expected to be in late March or early April, 2012.]
we are better positioned for the next stages of the Company's growth.
This includes:
- increasing the Aranzazu Mine throughput level to up to 5,000 tpd, subject to a positive Aranzazu PEA, with internal capital provided by the Brazilian mines over the next three years, and
- developing the Serrote Project to significantly increase the size of the Company, subject to a positive Serrote Feasibility Study."
Outlook and Strategy
Aura Minerals' future profitability, operating cash flows and financial position will be closely related to the prevailing prices of gold and copper.
The Company's future operating and financing cash flows are expected to fund internal growth and overall expansion of our projects.
Key factors influencing the price of gold and copper include the supply of and demand for these commodities, the relative strength of currencies (particularly the U.S. dollar) and macroeconomic factors such as current and future expectations for inflation and interest rates.
Management believes that the short-to-medium term economic environment is likely to remain supportive for gold and copper prices with continued volatility in both.
The Company believes that other key factors influencing profitability and operating cash flows are production levels - impacted by grades, ore quantities, labour, plant and equipment availabilities, and process recoveries - and production and processing costs - which are impacted by production levels, prices and usage of key consumables, labour, inflation, and exchange rates.
The Company's primary strategic focus for 2012 is to unlock the value of its portfolio of producing mines by:
-- focusing on improving operational efficiencies at the
San Andres Mine to reduce cash costs and conducting an
in-fill drilling program to potentially expand resources and reserves; -- maintaining steady state operations at the Aranzazu Mine
with mill throughput of 2,600 tpd and completing the Aranzazu PEA to
potentially increase mill throughput up to 5,000 tpd; and -- achieving, sustaining and maximizing cash flows
from the Brazilian Mines by executing the new life of mine
plans with reduced strip ratios and improved ore grades.
Longer term, the Company's organic
growth plans include:
-- ensuring the San Andres Mine provides continuous cash flows for the
foreseeable future;
-- increasing the Aranzazu Mine throughput levels up to 5,000 tpd
with internal capital provided by the Brazilian Mines over the next
three years, to be confirmed by the Aranzazu PEA; and -- developing the Serrote Project to significantly increase the size of the Company, subject to completion
of the Serrote Feasibility Study. Jim Bannantine
Aura Minerals Inc.
President & Chief Executive Officer info@auraminerals.com www.auraminerals.com
Sebastiao Salgado took this photograph of a dispute between miners
and police in giant open pit gold mine+
Salgado was born on February 8, 1944 in Aimorés, in the state of Minas Gerais, Brazil. After a somewhat itinerant childhood, Salgado initially trained as an economist, earning a master’s degree in economics from the University of São Paulo in Brazil.
He began work as an economist for the International Coffee Organization, often traveling to Africa on missions for the World Bank, when he first started seriously taking photographs.
He chose to abandon a career as an economist and switched to photography in 1973, working initially on news assignments before veering more towards documentary-type work.
Source: http://en.wikipedia.org/wiki/Sebasti%C3%A3o_Salgado
His last work was "Workers", a 7 year project spent photographing labourers in 26 countries.
One stunning photo from that series show 12,000 marchers breaking open the gates to a huge estate and reclaiming the land from an absentee landlord."Migrations", also called "Exodus", focused on immigrants, refugees and other displaced populations. For seven years, he took photographs of migrants from Africa, Asia and South America, many of whom had fled ethnic and religious conflict and genocidal regimes.
In the Times, he said that "there is little different between photographing a pelican or an albatross and photographing a human being. You must pay attention to them, spend time with them, respect their territory."
He has also founded the Terra Institute on 600 hectares of land where he is rebuilding a rain forest which belonged to his father. "All the birds are coming back, the river is flowing again, the environment is working, and all this has made such a difference to my relationship with nature. My life has completely changed," he wrote
More on Environmental Photographers Environmental Photographer of the Year Award Grantham Prize Winners Announced: Environmental Reporting at its Best New Prize for Photos Showing
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