Impact: Mildly Negative
Aura Minerals released preliminary Q1/22 production results that missed our estimates, primarily due to lower grades mined at its San Andres and EPP mines. The company produced a total of 61,041 oz AuEq across its operations in Q1/22 (-21% QoQ, -2% YoY), which was 11% below our estimate of 68.8k oz AuEq. Overall, while production missed our estimates, we are encouraged to see Aranzazu continue to perform well following its capacity increase completed in 2021. We expect production to be largely backend loaded for 2022 given the company’s strategy to sequence EPP and San Andres to mine higher-grade ore in H2/22.