Aura Minerals (AUGO) Q1 2025 earnings summary

Executive summary

• Achieved record adjusted EBITDA of $81.5M in Q1 2025 and LTM adjusted EBITDA of $295M, driven by high gold prices despite a 9% sequential and 7% year-over-year production decline to 60,000 GEO, as Borborema ramped up on schedule and within budget.

• Net loss of $73.2M in Q1 2025, mainly due to $100.2M in non-cash mark-to-market losses on gold derivatives from rising gold prices; adjusted net income was $27M.

• Borborema construction completed in 19 months with zero lost time incidents, ramp-up underway, and commercial production expected in Q3 2025.

• Renewed share buyback program and declared $30M in dividends for the quarter, resulting in an 11% dividend yield over the last 12 months.

• Updated technical reports and mineral reserves/resources, replenished resources, and extended mine life.

Financial highlights

• Q1 2025 net revenue was $161.8M, up 23% YoY but down 6% sequentially; trailing 12-month revenue reached $624M.

• Adjusted EBITDA for Q1 was $81.5M, with trailing 12-month adjusted EBITDA at $295M and margin at 50%.

• Net loss of $73.2M in Q1, primarily due to $100.2M non-cash MTM losses on gold hedges; adjusted net income was $26.9M.

• Cash position at quarter-end was $198.1M; net debt increased to $272M due to Borborema construction, Bluestone acquisition, and higher income tax payments.

• Operating cash flow was $41.2M, and recurring free cash flow was $27.5M in Q1 2025.

Outlook and guidance

• 2025 production guidance reaffirmed: 266,000–300,000 GEO, cash cost $1,078–$1,191/GEO, AISC $1,374–$1,492/GEO.

• Borborema expected to achieve commercial production in Q3 2025, contributing 33,000–40,000 GEO in 2025.

• Most future production remains exposed to spot gold prices, as hedged volumes are a small portion of total output.

• Decision on prioritizing Bluestone or Matupá projects expected by Q3, with Bluestone potentially offering greater EBITDA impact.

• Management expects continued favorable commodity prices but with ongoing volatility; hedging programs to continue.