Aura Minerals (AUGO) Q2 2024 earnings summary

Executive summary

• Q2 2024 production reached 64,327 GEO, up 33% year-over-year but down from Q1 due to mine sequencing and a contractor change at Almas; LTM production at 267k GEO, in line with guidance.

• Adjusted EBITDA for Q2 was $56.2M, up 111% year-over-year and 6% sequentially; H1 2024 EBITDA totaled $109.4M, up 73% year-over-year, supported by higher gold and copper prices.

• Paid $25M in dividends and $4M in share buybacks in H1, delivering an 8.8% yield to shareholders over the last 12 months.

• Borborema project construction is 40% complete, on schedule and within budget, with ramp-up planned for Q1 2025.

• Acquired new exploration projects (Peão, Pequi, Pé Quente, Pezão) to expand Matupá resources.

Financial highlights

• Q2 2024 net revenues reached $134.4M, up 2% sequentially and 58% year-over-year; LTM revenues surpassed $500M for the first time.

• Adjusted EBITDA was $56.2M in Q2 2024; LTM Adjusted EBITDA at $180M.

• Net debt stood at $142.4M at quarter-end; cash and equivalents at $192M.

• Adjusted Net Loss of $3M in Q2 2024, mainly due to $23M in nonrecurring non-cash losses (FX and gold hedges MTM).

• Free cash flow from operations was $37M in Q2 2024.

Outlook and guidance

• H2 2024 expected to be stronger than H1, with production projected above 70k ounces per quarter and lower all-in sustaining costs.

• On track to meet or exceed 2024 guidance for production, cash cost, AISC, and capex, with Borborema ramp-up set for Q1 2025.

• Gold price strength and operational improvements expected to further boost EBITDA and cash flow in Q3 and Q4.