Aura Minerals Q1 FY2025 earnings call

• Production: Q1 2025 production of 60,000 ounces of gold equivalent was slightly lower than prior quarters due to mining variations. Apoena is in an investment phase with lower production now but expected to increase production after two years. • Borborema: Completed construction on time and on budget in Q1, with successful ramp-up underway and commercial production expected in Q3 2025, bringing a significant production increase. • Dividends and Buyback: Announced a $30 million dividend for the quarter, representing an 11% dividend yield over the last 12 months, and renewed the buyback program. • Safety: Aura set new benchmarks in the mining industry with just one lost time incident over two years of major construction and operations. • Asset Performance: Minosa, Aranzazu, and Almas delivered strong EBITDA, while Apoena's higher all-in sustaining cash costs were accounted for during its investment phase.

During Q1 2025, Aura achieved 60,000 ounces of gold equivalent production, which was slightly lower than the previous quarter. Net revenues for the quarter were $162 million, a 6% reduction compared to the previous quarter, partially offset by higher gold prices. Adjusted EBITDA for the quarter was a record high of $81 million. The net income for the quarter was a net loss of $72 million, but the accumulated net income over the last 12 months was $27 million. Accumulated net revenues over the last 12 months reached $624 million, and accumulated adjusted EBITDA over the last 12 months was close to $295 million. Minosa, Aranzazu, and Almas each reported over $22 million in EBITDA for the quarter, while Apoena, in an investment phase, reported $13.5 million in EBITDA.

• Borborema: Anticipated to achieve commercial production in Q3 2025. • All-in sustaining cash costs: Maintained the guidance for the year, with Apoena's higher costs during its investment phase factored in, and overall all-in sustaining cash costs expected to be stable when excluding Apoena's higher costs. • Production: Projected to increase through Borborema and other assets, with the goal of progressing towards over 450,000 ounces of gold equivalent production.

• Macroeconomic Factors: Uncertainties related to the macroeconomic scenario impacting gold prices and company performance. • Project Licensing: Risks associated with the licensing processes for projects such as Bluestone in Guatemala. • Operational Challenges: Potential issues during the ramp-up of projects like Borborema, including adjustments needed during the ramp-up phase.

Q: Regarding stock liquidity and the U.S. public offering, what are the next steps and timeline?

A: Aura has filed with the SEC, but limited information can be shared beyond what's already published.

Q: About Almas costs, how to understand the difference in costs between Q1 and Q4?

A: Gold mines have variations in grade, width, strip ratio, and recoveries, and all-in sustaining cash costs for Almas are in line with the provided guidance.

Q: On Bluestone licensing in Guatemala, growth projects like Matupa, and potential M&As?

A: Monitoring Bluestone licensing with the government, updating the feasibility study for Bluestone, evaluating the timing of Matupa in relation to Bluestone, and continuing to monitor M&A opportunities, particularly in gold and considering potential copper opportunities.

Q: On gold prices and liquidity metrics, what's the view?

A: Structural factors are pushing gold prices up, and daily trading volume is a key liquidity metric for investors.

Q: On Aranzazu throughput, molybdenum impact, Borborema ramp-up, and mine portfolio?

A: Aranzazu had lower recoveries due to adjustments for molybdenum flotation cells, Borborema is ramping up for Q3 commercial production, and Aura considers a mine portfolio of 8-10 assets as manageable.

Q: On dividends and leverage, what's the outlook?

A: Dividends are expected to remain elevated using 20% of EBITDA minus recurring CapEx, and Aura is comfortable with net debt to EBITDA ratios, with leverage acceptable during construction phases.

Q: On Guatemala project timing, any updates?

A: Expect a PEA by June and a feasibility study by early next year for the Guatemala project.