Aura Minerals Inc. · NASDAQ:AUGO
Aura Minerals — Investor Presentation (September 2012)
27 slides from Aura Minerals's investor presentation, September 2012
Slide 1: September 2012 Corporate Presentation
September 2012 Corporate Presentation
Slide 2: Forward-Looking Statements and Cautionary Notes
Forward-Looking Statements and Cautionary Notes This document contains "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and t
Slide 3: Aura Minerals – Highlights & Strategy
Aura Minerals – Highlights & Strategy • High organic expansion potential Aranzazu Copper - Gold - Silver Mine, Mexico • Aranzazu Expansion Plan San Andres Gold Mine, Honduras • Serrote Feasibility Study & Development Plan • Producing mid-tier asset base • Aranzazu (Mexico) – Copper Sao Vicente Gold
Slide 4: Project Operating Sequence
Project Operating Sequence 2013 2014 2015 2016 2017 2018 Aranzazu – 20M lbs Aranzazu Expansion* – 30M lbs Serrote** – 65M lbs San Andres – 65,000 oz Brazilian Mines*** – see below (all amounts shown above are expected average annual production, where applicable) * As per PEA ** As per Feasibility St
Slide 5: Business Plan – in Summary
Business Plan – in Summary • Aranzazu production will be doubled with internal capital in accordance with recently completed Preliminary Economic Assessment (PEA) • Development of Serrote da Laje Project expected to significantly expand the size of the Company, confirmed by Feasibility Study • San A
Slide 6: 2012 Achievements - Organic Expansion Potential
2012 Achievements - Organic Expansion Potential Aranzazu Expansion Plan • Preliminary Economic Assessment filed August 2012 • Recommended expansion, including roaster, to 4,000 tpd by January 2015 • Net Present Value of $200M • Capital investment of $107M in 2013 & 2014 funded from internally genera
Slide 7: 2012 Achievements - Organic Expansion Potential
2012 Achievements - Organic Expansion Potential Aranzazu Expansion Plan • Partial roasting of concentrate selected as the long-term solution to decrease arsenic levels, roaster commissioning to coincide with expansion • Long lead time engineering and procurement to commence immediately TSX: ORA 7
Slide 8: 2012 Achievements - Organic Expansion Potential
2012 Achievements - Organic Expansion Potential Serrote Feasibility Study & Development • Feasibility Study 43-101 in late September 2012 • Net present value at 8% is $191M; internal rate of return 19.4% • Capital requirement of $420M; currently working on project financing • 831M lbs of Copper and
Slide 9: 2012 Achievements- Producing Mid-Tier Asset Base
2012 Achievements- Producing Mid-Tier Asset Base Aranzazu – 2,600 tpd capacity realized • Achieved full production from mine and mill throughput • Moving into higher production of primary sulphide ore from underground production • Site services, building and infrastructure established and operationa
Slide 10: 2012 Achievements- Producing Mid-Tier Asset Base
2012 Achievements- Producing Mid-Tier Asset Base Aranzazu - Mitigation of arsenic levels, charges and penalties: • Optimization of the mix of ore feed to the plant • Metallurgical test work on different flotations • Placement of all concentrate production from Aranzazu to mid- 2014 • Maximize net sm
Slide 11: 2012 Achievements - Organic Expansion Potential
2012 Achievements - Organic Expansion Potential San Andres • Generating significant free cash flow • Commencement of Q3 2012 drill program to prove out additional resources • Advanced successful negotiations with local communities to enable enhanced mine development • Operational flexibility with tw
Slide 12: 2012 Achievements - Producing Mid-Tier Asset Base
2012 Achievements - Producing Mid-Tier Asset Base Brazilian Mines • Operations back on target after crusher failure at Sao Francisco in Q1 2012 • Continuing to refine geological model to better reconcile grade to decrease production costs • Overall cost reduction program implemented • Expected avera
Slide 13: 2012 Achievements - Corporate
2012 Achievements - Corporate • Upsized the revolving credit facility to $45M • Implemented a gold hedging program for 80,000 ounces until June 2014 at $1,700 / oz floor - $1,812 / oz ceiling • Reduction of group-wide general and administrative expenses by one third • Achieved corporate rationalizat
Slide 14: Copper Asset Details
Copper Asset Details Aranzazu Copper-Gold-Silver Mine • Announced commercial production as of Feb 1, 2011, with 2011 production of 7,744,200 lbs Cu; 5,680 oz Au and 130,900 oz Ag • Expected 2012 production of 11 – 12.5 mm lbs Cu, 7500 – 8,500 oz Au and 145,000 – 155,000 oz Ag • Announced increased r
Slide 15: Aranzazu Mine Location
Aranzazu Mine Location • 25 kilometres east of Penasquito and 35 kilometres northeast of Camino Rojo • Excellent Infrastructure: roads, airports, communications and power • Nearby cities of Saltillo and Zacatecas – reliable supply of contractors, goods and services • Located in same intrusive packag
Slide 16: Aranzazu Mine – District Potential for Expansion
Aranzazu Mine – District Potential for Expansion • Completed PEA study of mine expansion & plant production to a recommended 4,000 tpd by early 2015 • Mine life of 18 years at 4,000 tpd and with cash costs of $1.15 per pound of copper • Resources have supported expansion (23 million tonnes at >1% Cu
Slide 17: Serrote da Laje Project
Serrote da Laje Project Feasibility Stage Copper-Gold-Iron Ore Deposit Project Type • Open Pit – Copper Flotation • Completed Feasibility Study in Q3 2012 • Development underway: land purchase and community relations Current • Fully permitted for construction as of August 2009 Status • Excellent inf
Slide 18: Annual Gold Production (ounces)
Gold Production 2012 San Andres Gold Mine 300,000 Targeting 60,000 - 65,000 oz 250,000 Annual Gold Production (ounces) Sao Francisco Gold Mine Targeting 70,000 - 80,000 oz Sao Vicente Gold Mine 200,000 Targeting 35,000 - 40,000 oz Total 2012 150,000 165,000 - 185,000 oz 100,000 50,000 0 2009 2010 20
Slide 19: San Andres Gold Mine
San Andres Gold Mine Project Type • Open-pit, heap leach Production • 2011 full year production of 60,871 ounces • 2012 production forecast of 60,000 – 65,000 ounces Operational • Capex of $5M for 2012 Improvements • In-fill drilling during 2012 planned to increase overall reserve base Category Tonn
Slide 20: San Andres Gold Mine
San Andres Gold Mine Key • Significant operational flexibility with Operational Initiatives two primary crushers • Installation and operation of new stacker – reduces pad pressure – improves percolation • Completion of two stage leach process solution pond configuration • New water treatment plant n
Slide 21: Brazilian Gold Mines – Summary
Brazilian Gold Mines – Summary • Sao Vicente production through 2013 (to end of mine life) • Sao Francisco production into 2015 (to end of mine life) • Total ounces remaining 225,000 – 245,000 • Average remaining life-of-mine cash cost expected to be $1,100 due to significantly reduced strip ratios
Slide 22: Sao Francisco Gold Mine – Key Statistics
Sao Francisco Gold Mine – Key Statistics • Open Pit - Heap Leach - Gravity Circuit • New geological model led to new, shortened, optimized mine plan to end of mine life • 2012 forecast production of 70,000 - 80,000 ounces • Planned production of approximately 212,000 ounces Au to end of mine life in
Slide 23: Sao Vicente Gold Mine – Key Statistics
Sao Vicente Gold Mine – Key Statistics • Open-pit, heap leach, gravity circuit • New geological model led to new mine plan • 2012 forecast production of 35,000 – 40,000 ounces • Total gold recovery in remaining mine life over 2012 - 2013 expected to be approximately 30,000 ounces • Investigating fur
Slide 24: Ownership & Financial Highlights
Ownership & Financial Highlights Exchange/Symbol TSX/ORA Share Structure Issued and outstanding shares* 228 Million Fully diluted* 245 Million Ownership Management 1% Cyprus River Holdings 23% Yamana Gold 19% Financial* Cash and equivalents US$21.2 Million Facility credit available US$20 Million Cre
Slide 25: Key Executive Team Members
Key Executive Team Members Jim Bannantine, President and Chief Executive Officer Mr. Bannantine joined Aura Minerals in October 2011. Prior to joining Aura Minerals, Mr. Bannantine served as CEO of Intercap Energy Systems, a provider of systems and software to electric utilities and large commercial
Slide 26: Key Executive Team Members
Key Executive Team Members Neil Hepworth, Senior Vice President of Operations, Brazil Mr. Hepworth has responsibility for the Sao Vicente and Sao Francisco mines. During the last year he led the development of the new mine plans for these two mines, and he also provides technical and operations guid
Slide 27: Thank You
Thank You Aura Minerals Inc. (TSX: ORA) P.O. Box 10434 - Pacific Centre 777 Dunsmuir Street, Suite 1950 Vancouver, BC V7Y 1K4 Tel: 604-669-4777 Fax: 604-696-0212 Email: info@auraminerals.com Web: www.auraminerals.com
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