Aura Minerals Q4 FY2024 earnings call

• The company doubled EBITDA to $267 million in 2024 with an all-in sustaining cash cost of $1,373 per ounce. - Significant progress in exploration including acquisition of Bluestone in January and plans to invest in underground for Almas. - Borborema made progress in 2024, with budget and investment commitments, set to start ramp-up in March 2025 and commercial production in the second semester. - Challenges in Apoena due to environmental permit delays, but permits granted early in 2024. - Almas had full production in 2024, with Q4 reaching record production of over 17,000 ounces. - Minosa continued to improve operations, expanding pads, and had production in line with expectations though with slight quarterly variations.

The company's segments showed varying financial performances. Almas achieved the highest EBITDA at $31 million in the fourth quarter. Aranzazu had $25 million EBITDA, Minosa $24 million, and Apoena had a weaker EBITDA of $6 million in the quarter. In terms of production, Almas reached a record high of over close to 17,000 ounces in Q4. Revenue for the quarter was $72 million, and annual revenue for 2024 was $594 million. Adjusted EBITDA for the year was $267 million.

• Production guidance for 2025 is 266,000 to 300,000 ounces, mostly due to Apoena's investment phase and Borborema coming online in the second semester. - All-in sustaining cash costs guidance is above 2024 levels due to Apoena's investment phase, but Borborema's lower costs will impact. - CapEx guidance expects a decrease in 2025 as remaining investments for Borborema are settled, with new investments like Matupa, Bluestone, etc., to be included once details are approved.

No specific detailed risks discussed in depth, but general risks related to macroeconomic factors affecting gold prices, potential delays in environmental permits, and operational challenges in specific segments like Apoena.

Q: Is it too soon to anticipate what will come from the new reserves and resources report in the end of next month or the April, and any news on any area that you're expecting a license that could add to your reserves?

A: It's too soon to anticipate. Progress in all mines except Minosa, with AIF report to be released in March showing progress in Serra da Estrela, Apoena, Aranzazu, and Almas. Borborema's reserves may increase with road relocation discussions.

Q: How much of the figure is represented by the development of Nosde Phase 3 and investments coming from Nosde Phase 3, and could we expect in 2026 since the completion is expected for the end of 2026?

A: Don't give detailed breakdown on CapEx breakdown, but half of expansion CapEx should be for Borborema completion, remaining for Nosde and other projects. Nosde Phase 3 completion expected end of 2026, but specific guidance on impact to CapEx not detailed.

Q: On Minosa, you said that the cash cost guidance, which is higher than the levels of 2024, were driven mainly by lower grades, but also by reduced mine movement. So I wonder if rains come at similar levels to 2024. Where would Minosa cash cost reach?

A: If rains are similar to 2024, Minosa all-in sustaining cash cost would be slightly above 2024 levels due to slightly decreased grades.

Q: What is in your hands to increase liquidity? Anything on the listing side, and how do you balance that with the buyback program?

A: Taking initiatives to address liquidity, including monitoring M&As to put more accretive shares in market, considering share location (Toronto, Brazil, etc.), and share buybacks as a small portion of liquidity solution.

Q: How should we think about cost, production, etc., in EPP in 2025 and going forward?

A: EPP will have new mine plan and production levels disclosed in AIF report. Performance in past years can give guidance, with projections to be disclosed as studies finish.

Q: Any update on the moving of the road in Borborema, Matupa, when will you expect to release the reshaping of the Matupa projects? And any news on Cerro Blanco?

A: Matupa is being finalized, with expected maturity by mid-2025. Borborema road relocation discussions ongoing. Cerro Blanco feasibility studies and CapEx updates ongoing, with social work needed before construction start.

Q: Regarding the guidance for Almas for 2025, and if there is anything specific regarding this guidance; and if we can see any other news on Bluestone by the end of the year.

A: Almas all-in sustaining cash costs are stable year-over-year, with fourth quarter exception due to minor sequencing. For Bluestone, Cerro Blanco is a bigger project with higher grades, with feasibility studies and CapEx updates ongoing, but no specific timeline for Bluestone news by end of year.

Q: Do you believe these price levels are sustainable in the long term? And should we expect any additional dividend distribution or eventually any form of project or share buyback acceleration?

A: Gold prices may be sustainable due to global currency debasement and central bank gold buying. Dividends will continue to be paid at 20% of EBITDA recurring CapEx, with potential for extraordinary dividends if excess cash exists. Share buybacks will continue as a portion of capital allocation.

Q: Your perception of Aura's price to AV and how that compares with comparable peers.

A: Aura is currently discounted compared to peers at around 0.5x NAV (excluding Cerro Blanco). Projects like Cerro Blanco will help narrow the gap, with plans to change peers as projects are delivered, aiming for higher price per NAV in the following years.