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, with LTM production at 267,000 GEO, in line with guidance.

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

• Net income showed a $26M loss, entirely due to non-cash and non-recurring items related to gold derivatives and FX impacts, resulting in an Adjusted Net Loss of $3M.

• Strong cash flow enabled $25M in dividends and $4M in share buybacks, yielding 8.8% to shareholders over the last 12 months.

• Borborema project is 40% complete, on schedule and budget, with ramp-up set for Q1 2025; acquisitions near Matupá aim to expand resources.

Financial highlights

• Q2 2024 revenue reached $134.4M, a record, up 2% sequentially and 58% year-over-year; LTM revenues exceeded $500M.

• Adjusted EBITDA for Q2 2024 was $56.2M, more than doubling year-over-year; LTM Adjusted EBITDA at $180M.

• Net debt rose to $142.4M at quarter-end, with net debt/EBITDA at 0.8x; cash and equivalents at $192M.

• Free cash flow to firm was $37M in Q2, or $45M excluding working capital changes.

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

Outlook and guidance

• H2 2024 is projected to be stronger than H1, with production expected above 70,000 ounces per quarter.

• All-in sustaining cash costs are expected to decrease in H2, reaching the low end of guidance.

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

• Guidance for production, costs, and capex is reaffirmed, with confidence in meeting or exceeding targets.

• H1 2024 production achieved 45–54% of annual guidance; AISC and cash cost at 90–106% of guidance range.