Aura OKs Guatemala gold build with higher capex

Aura Minerals (Nasdaq: AUGO) is proceeding to build its Era Dorada project in Guatemala,  marking an expansion into Central America, after increasing a capital cost forecast by as much as 19% to accommodate more construction. 

The Americas-focused gold miner’s board approved the investment this week and updated the project’s initial expense to between $386-$453 million, up from $382 million in a December feasibility study. It outlined a 17-year underground mine producing a total of 1.75 million gold-equivalent ounces. Production during its first four years is expected to average 111,000 ounces.

The project, known as Cerro Blanco before Aura bought it last year from Bluestone Resources, had faced issues with the Guatemalan government for a proposed transition to open pit mining. Now Era Dorada is to remain an underground operation, and the company said it has budgeted for infrastructure to address local concerns over water quality.

“As we proceed, our commitment remains: to develop Era Dorada responsibly, listen actively, and demonstrate that modern mining can drive shared progress, environmental care, and mutual trust,” Rodrigo Barbosa, Aura’s president and CEO, stated in a press release.

Third producer

Once in operation, Era Dorada would become the Aura’s third producing asset in Central America, after Aranzazu in Mexico and San Andrés in Honduras. The company also has several gold mines in Brazil.

Shares in Aura Minerals gained 3.6% on Tuesday to $107.55 in New York, valuing the company at $9 billion. They’ve traded in a 52-week range of $22.24 to $109.27. 

The increase in capex reflects the higher expansion costs ($262 million to $314 million) covering the full scope of the project. The exploration and sustaining components of the capex remained the same, Aura said.