Aura Minerals (AUGO) Mining Forum Americas 2026 summary

Strategic growth and operational performance

• Expanded from three to six mines in production over three years, focusing on Latin America and consistent value creation through growth and dividends.

• Current portfolio includes four gold mines in Brazil, one in Honduras, and one copper mine in Mexico, with two additional projects set to increase production beyond 600,000 oz in the medium term.

• Production has grown over 170% since 2018, with 2026 marking another increase; all-in sustaining costs (AISC) remain competitive, closing 2025 at $1,458 and generally in the sector's first quartile.

• Recent acquisition of Mineração Serra Grande (MSG) temporarily raised AISC above $3,000, but costs are expected to normalize near $2,000 by 2027; EBITDA rose from $134 million in 2023 to over $800 million in the last 12 months.

• Nearly $700 million invested in expansion and exploration since 2022, accelerating reserve and resource growth faster than depletion.

Financial discipline and shareholder returns

• Maintained high dividend yields (4–9%) and distributed over $440 million in dividends and buybacks over the past four and a half years.

• Net debt/EBITDA ratio consistently under 0.7x, currently at 0.2x, supporting growth and returns without balance sheet stress.

• Focused on smaller, high-return projects with short paybacks, such as Almas and Borborema, both built on time and budget with strong NPVs and IRRs.

• Almas project delivered a $1.2 billion NPV from a $76 million CapEx, while Borborema's NPV is now close to $1.7 billion, with reserves growing from under 800,000 oz to nearly 2 million oz.

• Era Dorada in Guatemala, under construction with a $380 million CapEx and $1.3 billion NPV, is expected to add over 110,000 oz annually by early 2028.

Forward-looking plans and ESG initiatives

• Targeting 600,000 oz production in the next few years, with a medium-term goal of reaching one million ounces through organic growth and acquisitions.

• Era Dorada project to be a benchmark for ESG, using 100% clean geothermal energy and delivering potable water to the local community, addressing key local concerns.

• Extensive community engagement in Guatemala led to a switch from open-pit to underground mining, reducing opposition and increasing local support.

• Ongoing expansion at Borborema, with a 34-year life of mine and further expansion scenarios under review, to be announced by year-end.

• Fully funded for expansion, with a recent cash raise to $200 million and a market cap near $7 billion; major global investors hold significant stakes.