07:35 AM EDT, 08/26/2024 (MT Newswires) -- Aura Minerals ( ORAAF ) on Monday withdrew its projection to produce 450,000 ounces of gold equivalent by the end of 2025, citing its decision to postpone the construction of the Matupa project in Brazil.

The company said it is deferring work at Matupa as it expects a significant increase in the geological potential of the region where the project is located due to the acquisition of the Pezao and Pe Quente mining rights as well as ongoing exploration at the Serrinhas and X2 targets.

"The decision to postpone the Matupa construction reflects our strategy of maximizing the returns on the invested capital," CEO Rodrigo Barbosa said. "We recognize the significant geological potential of the region, which could substantially increase returns of the project to our shareholders."

Aura said it remains focused on increasing productivity and efficiency across its assets, including the capacity expansion at the Almas mine.

"We reaffirm our commitment to the plan of exceeding 450,000 [gold equivalent] production in the medium term, continuing to advance both in the implementation of Matupa and in the optimization of our existing assets, as well as in the evaluation of potential acquisitions," Barbosa said.