Aura Minerals: Boom in the Third Quarter
Aura Minerals is an internationally active gold and copper producer with operating mines in Brazil, Mexico and Honduras. The company focuses on the extraction of precious and base metals and the development of new mining projects in Latin America. The company has recently delivered promising data.
The Canadian mining group produced 95,557 ounces of gold equivalent in the third quarter, setting a new company record. This represents a 27% increase from the previous quarter and up to 29% year on year. Sales rose to 93,742 ounces of gold equivalent. After nine months, production totals 253,131 ounces.
The Borborema mine in Brazil is developing particularly dynamically. Production there jumped 60% compared with the second quarter to 22,842 ounces of gold equivalent. The newly added Serra Grande mine also increased its output significantly to 13,321 ounces. At Aranzazu in Mexico, output rose 39% to 24,920 ounces.
The group now operates six mines across Brazil, Mexico and Honduras. Meanwhile, construction of the Era Dorada project is progressing. At the beginning of October, physical construction progress stood at 13.1%. Management sees itself on track to achieve the annual targets.
Analysts are also predominantly optimistic. Scotiabank initiated coverage in mid-September with a “Sector Outperform” rating and a price target of USD 110. In August, Bank of America reaffirmed its Buy recommendation and raised its price target to USD 99. JPMorgan also remains positive and sees fair value at USD 91.
Lahontan Gold: 2.39 Million Ounces and the Path Back to Production
Lahontan Gold is working to bring a historic gold district in Nevada back to life. The focus is on the Santa Fe mine in the mineral-rich Walker Lane belt. Between 1988 and 1995, the mine produced around 359,000 ounces of gold and 702,000 ounces of silver. The company now intends to use the existing infrastructure and substantially expanded resource base to advance the project back toward production.
Lahontan reported a decisive step forward back in August. Gold equivalent resources at Santa Fe increased by 22%. The Indicated category now contains 1.195 million ounces, with a further 1.190 million ounces in the Inferred category. Together, this amounts to around 2.39 million ounces of gold equivalent. In addition, historic stockpiles and former leach pads show promising results. In September alone, findings there included 16.5 m grading 2.72 g/t gold and 2.8 g/t silver.
West Santa Fe offers additional upside potential. The standalone satellite project lies about 13 km west of the historic Santa Fe mine and is currently being explored through a drilling programme totalling around 3,500 m. The aim is to have an initial resource estimate available by year-end, if possible.
The planned acquisition of Emergent Metals is particularly interesting from a strategic perspective. This would give Lahontan full control of West Santa Fe, eliminate existing royalty obligations and add the New York Canyon project, which borders Santa Fe immediately to the south. The contiguous regional project portfolio would grow to more than 93 km². However, completion of the acquisition is still pending.
First Majestic Silver: Production Setback and New Share Buyback Programme
First Majestic Silver is one of North America’s best-known silver producers. However, the latest quarterly figures show that even established mining groups do not automatically benefit from the precious metals boom. The Canadian company recently reported its operating data for the past quarter and announced a noticeable decline in production.
Overall, the mining company produced 3.4 million ounces of silver and just under 29,600 ounces of gold, down 11% and 17% respectively in a direct year-on-year comparison. The weaker figures were due to a twelve-day labour dispute at the San Dimas mine, which disrupted operations there. In addition, lower ore grades at the Santa Elena and Los Gatos facilities weighed on the overall result. A positive outlier, however, was the La Encantada site, where silver production rose 68% thanks to higher throughput and better ore grades. Despite operational hurdles, the group says it has achieved 72% of its targeted annual silver production and 75% of its gold production so far.
First Majestic has also launched a new share buyback programme that runs through October 13, 2027. During this period, the company is authorised to purchase up to 10 million of its own shares on the stock exchange and subsequently cancel them. The newly approved volume represents around 2% of the shares currently outstanding and replaces a previous programme. In parallel, the company is advancing the expansion of its existing infrastructure according to plan. The ongoing expansion projects at the Santa Elena and Los Gatos sites are nearing completion. In addition, management confirms its intention to resume mining at the Jerritt Canyon mine in the second half of 2027.
Conclusion
With its record production, Aura Minerals demonstrates the potential of rising production volumes in a strong gold market. First Majestic Silver is banking on the recovery of its Mexican mines and the planned restart of Jerritt Canyon. Lahontan Gold, by contrast, is approaching a decisive development milestone. With around 2.39 million ounces of gold equivalent at Santa Fe, additional exploration opportunities at West Santa Fe, and a targeted start of construction in 2027, the company could enter a new phase.
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