Aura Minerals (AUGO) Mining Forum Europe 2026 summary

Growth strategy and operational performance

• Doubled gold-equivalent production over the past five to six years through acquisitions and new projects, with six mines in production and two under development, aiming to double output again in the next few years.

• Maintains strong cash flows, high internal rates of return, and a disciplined approach to growth, with a net debt/EBITDA ratio of 0.3x, supporting both expansion and consistent dividend payments.

• Focuses on high-return, smaller-scale projects, prioritizing financial returns over size, with hurdle rates of at least 20% IRR for new investments.

• Recent projects, such as Almas and Borborema, delivered on time and on budget, achieving IRRs of 64% and over 80%, respectively.

• Production guidance for 2026 targets a 20–40% increase over 2025, with new projects like Era Dorada and Matupá expected to more than double 2025 output in the coming years.

Financial discipline and shareholder returns

• Dividend policy pays at least 20% of EBITDA minus recurring CapEx, with yields ranging from 6% to 13.5% since 2021.

• Growth and dividends achieved without significant leverage; net debt/EBITDA remains low, never exceeding 1x.

• EBITDA increased 25x since 2018, with strong margins and 67% EBITDA-to-cash flow conversion.

• Investments focus on rapid payback and reinvestment, with expansion opportunities pursued after initial project stabilization.

Project pipeline and expansion plans

• Six mines in production, including four gold mines in Brazil, and recent acquisitions such as Mineração Serra Grande (MSG), targeted for cost reduction and turnaround.

• Era Dorada in Guatemala received board approval and permits, with production expected in early 2028; Matupá in Brazil is ready to build next.

• Expansion studies underway at Almas and Borborema, with Almas capacity set to reach 3 million tons by 2026.

• Pipeline supported by nearly 600,000 hectares of mineral rights, with reserves doubled in six years and a consolidated 12-year life of mine.