Aura Minerals (AUGO) Q4 2023 earnings summary

Executive summary

• 2023 production reached 235,856 GEO, within guidance; annual revenue rose 6% to $416.9M and Adjusted EBITDA was stable at $134.1M.

• Q4 production reached 69.2k GEO, up 7% QoQ; AISC fell to $1,311/GEO and Adjusted EBITDA rose 37% QoQ to $40.9M.

Financial highlights

• Q4 revenue was $124.3M, up 12% QoQ and 17% YoY; Q4 sales were 68,571 GEO, up 8% QoQ and 1% YoY.

• Q4 net loss was $6M, including a $27.8M non-cash collar mark-to-market loss; pro forma net income excluding the collar impact was $22M.

• FY sales were 233,923 GEO, down 5% YoY; recurring free cash flow was $88M for 2023.

• Cash was $237M and net debt was $85.2M at year-end.

Outlook and guidance

• 2024 production guidance is 244,000–292,000 GEO, up 3%–24% from 2023, primarily reflecting full-scale Almas production.

• 2024 cash cost guidance is $984–$1,140/GEO sold and $984–$1,140/GEO produced; AISC guidance is $1,290–$1,459/GEO sold and per GEO produced.

• 2024 capex guidance is $188M–$219M, including $144M–$169M for new projects and expansion, $37M–$43M sustaining and $7M–$8M exploration.

• Higher production is expected to lower consolidated AISC; expansion capex will rise as Borborema construction advances. Guidance excludes Matupa and other expansion projects pending Board approval.