Aura Minerals (AUGO) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 production of 68,246–68,200 gold equivalent ounces, up 10% year-over-year, contributing to a 12-month record of 270,000 ounces, with strong performance at Almas, Minosa, and Aranzazu.

• Record Adjusted EBITDA of $78.1 million in Q3 2024, up 39% sequentially and 160% year-over-year, driven by higher gold prices, increased production, and lower costs.

• Borborema project construction is 54% complete, on schedule for Q1 2025 ramp-up and commercial production in H2 2025.

• Safety performance remains robust, with zero Lost Time Incidents in Q3 across most sites.

• Almas mine stabilized at 5,000 ounces per month after contractor transition, with normalized costs and gradual improvements expected.

Financial highlights

• Q3 2024 revenues reached $156–$156.2 million; trailing 12-month net revenues at $547 million.

• Adjusted EBITDA hit a record $78–$78.1 million in Q3 2024, with trailing 12-month EBITDA at $228 million.

• Reported net loss of $11.9–$12 million in Q3 2024 due to $56.7–$57 million non-cash mark-to-market losses on gold hedges; adjusted net income was $43–$43.4 million.

• Free cash flow to firm was $65 million in Q3 2024, with $54 million invested, mainly in Borborema.

• Ended Q3 with $196 million in cash and net debt stable at $144–$144.4 million; net debt/EBITDA ratio improved to 0.6.

Outlook and guidance

• On track to meet 2024 guidance for production (244,000–292,000 ounces), cash cost, AISC, and capital expenditures, with expectations to finish near or above the midpoint.

• Q3 YTD cash cost at $1,022/oz and all-in sustaining cost (AISC) at $1,292–$1,300/oz.

• CapEx guidance for 2024 reaffirmed at $188–$219 million, with Borborema entering high-expense construction phase.

• Borborema project ramp-up expected in Q1 2025.