Aura Minerals Inc (TSE: ORA) (OTCMKTS: ORAAF) (FRA: A531) says it has started a ramp-up phase at Brazil’s Borborema gold mine in preparation for commercial production during this year’s third quarter. It will become the Miami-based mining company’s second-most productive resource and is expected to churn out 748,000 ounces over 11 years.
The Latin American-focused gold producer’s top asset is the Minosa operation (San Andres Mine) in Honduras. It yielded over 78,000 ounces of the yellow metal during the 2024 calendar year.
“With a forecast of production of 33,000 to 40,000 gold equivalent ounces [GEO] in 2025 and an average of 83,000 GEO in the first three years, our operations in the region strengthen the local economy, generating around 2,000 jobs, with 68 per cent of the [Borborema] team coming from the community,” Aura highlighted in a social media post.
Chief executive Rodrigo Barbosa said the mine has strong economic fundamentals in a press release on Friday. He claims it will deliver an after-tax internal rate of return of 41.8 per cent on an unleveraged basis and 81.4 per cent considering 50 per cent leverage. This is based on a spot price of US$2,600 per ounce.
Aura currently has five production and development-stage projects in Brazil, Mexico, Guatemala and Honduras along with an exploration site in Colombia.
#AURA33 – Aura Minerals iniciou o ramp-up da Mina Borborema. Mina e planta já estão operacionais, com produção comercial prevista para o 3T25. Após o processo, Borborema deve se tornar a 2ª maior operação anual dentre as 5 em produção.
— Filipe Villegas (@FilipeVillegas) March 28, 2025
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Aura adheres to WGC framework
Aura Minerals is a member of the World Gold Council — a global trade association for the industry. Alongside other influential gold producers operating in Latin America like Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA), the company adheres to the organization’s Responsible Gold Mining Principles.
Gold is currently worth about US$3,055 per ounce, but that may only last for so long. The British firm Metals Focus recently predicted that it would sink to an average of US$2,600 per ounce later this year.
But, more influential financial companies like Goldman Sachs Group Inc (NYSE: GS) still say that the metal will hit US$3,300 per ounce by the end of 2025.
Copper is the other element that Aura is focused on mining. The Aranzazu mine in Mexico primarily produces this commodity with gold and silver as byproducts.
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