Aura Minerals Q1 FY2026 earnings call

Key managerial messages include: Building value through increasing production (aiming for over 600,000 ounces after projects), increasing resources and reserves, and improving price per NAV multiple and daily trading volume. Operational highlights: Reached record production, updated resources and reserves in the 20-F report, started construction of Era Dorada project, had a lost time incident in Borborema, details on each mine's production and cost situation (Aranzazu, Apoena, Minosa, Almas, Borborema, MSG), and progress on Era Dorada project with ESG potential.

This was a solid quarter. Production reached a new record high of 82,100 ounces of gold equivalent ounces, including MSG acquisition, with revenues totaling $380 million. EBITDA was $244 million, 3x higher than the first quarter last year. All-in sustaining cash costs were $1,829. Net debt was stable. Net income was $95 million. Revenue contribution: Borborema, MSG, and other mines contributed to the overall revenue. Production from Borborema ramped up, MSG was in turnaround, Almas had production and capacity increase plans, etc.

Production guidance for the year is between 340 - 390 thousand ounces. MSG is expected to improve production and reduce costs during the second semester. Aranzazu, Apoena, etc., are expected to see improvement in production and costs during the second semester. Borborema's production is expected to continue improving with expansion plans. Era Dorada is expected to start production in 2028.

Risks include: MSG underground development progress not as expected, which may impact production and costs in the short term. Cost pressures due to factors like diesel prices, FX fluctuations. Uncertainty in M&A negotiations and integration of potential acquisitions.

Q: Regarding the cost in Aranzazu and maintenance stoppage in Borborema.

A: Rodrigo Barbosa responded that Almas had higher cash cost but All-in Sustaining Costs were below guidance, improvement in second semester. Borborema's CIL plant maintenance situation was resolved, new filters ordered for improvement.

Q: Concerns on operations vs guidance and cost pressure from Middle East conflict.

A: Rodrigo Barbosa said MSG had challenges in underground development, but structurally the mine is better than expected. Other operations like Almas and Borborema have expansion plans. Cost pressure from conflict has a limited impact.

Q: Follow-up on MSG turnaround timeline and Borborema expansion.

A: Rodrigo Barbosa said MSG aims to finish year with clear view of future production and costs, Borborema expansion timeline and details on CapEx and production improvement were discussed.

Q: On M&A pipeline and opportunities.

A: Rodrigo Barbosa said M&A opportunities exist but with some gap in valuation expectations, and they are prospecting and engaging in conversations.

Q: On gold price view and FX impact.

A: Rodrigo Barbosa and Kleber Cardoso discussed gold price drivers and FX impact on costs and guidance, and hedging policy considerations.