Q1 2024 Aura Minerals Inc Earnings Call

Good morning, ladies and gentlemen, welcome to the first quarter 'twenty 'twenty four earnings call.

Operator: Good morning, ladies and gentlemen. Welcome to our first quarter 2024 earnings call. This conference is being recorded, and the replay will be available on the company's website at auraminerals.com slash investors. The presentation will also be available for download. This call is also available in Portuguese. To access it, you can press the globe icon on the lower right side of your zoom screen and then choose to enter the Portuguese room. After that, select Mute Original Audio. To access our conference in Portuguese, click on the globe icon at the bottom right of your Zoom screen and select the Portuguese Room option. When accessing the new room, make sure to mute the original audio.

Conference is being recorded and a replay will be available at the company's website at all our mineral dotcom Slash English annuities.

Presentation will also be available for download.

This call is also available in Portuguese to access you can press the globe icon on the lower right side of resumed screen and then choose to enter the Portuguese room.

After that select huge original audio.

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Operator: We would like to inform you that all attendees will only be listening to the conference during the presentation, and then we will start the question and answer section when further instructions will be provided. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational, and financial projections and goals are the beliefs and assumptions of Aura's Executive Board and the current information available to the company.

Speaker Change: We would like to inform that all attendees will only be listening to conference. During the presentation and then we will start the question and answer section when further instructions will be provided.

Speaker Change: Before proceeding we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects operational and financial projections and goals are the beliefs and assumptions of RF Executive Board and the current information available to the company.

Operator: These statements may involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry, and other factors that could cause results to differ materially from those expressed in their respective forward-looking statements.

Speaker Change: These statements may involve risks and uncertainties as they relate to future events and therefore depend on circumstances that may or may not occur investors should be aware of events related to the macroeconomic scenario the industry and other factors that could cause results to differ materially from those expressed in their respective forward looking.

Speaker Change: <unk> present at this conference we have how do you go by the buzzer President and CEO and collaborator Colorado's CFO.

Operator: And at this conference, we have Rodrigo Barbosa, President and CEO, and Kleber Cardoso, CFO. Now I will turn the conference over to Rodrigo Barbosa. You may begin your presentation.

Howie Goldberg: Now I will turn the conference over to how did you go back to Boston you May begin your conference.

Howie Goldberg: Well good morning all.

Rodrigo Barbosa: Well, good morning, all. Bom dia a todos, buenos dias.

Speaker Change: All geos.

Speaker Change: Yes.

Rodrigo Barbosa: We are very proud to be here. Thank you for being here with us to watch the first quarter results of 2024. We are very proud to release the results that we did yesterday for a few main reasons, and then we'll go to the presentation. Number one, this is the fifth quarter in a row without any lost time and injuries in our operations, demonstrating that we are amongst the best companies to work related to accidents and that it's interesting to see that, normally, investors will see accidents and safety come together with good production, good cost efficiency, and good results.

Speaker Change: We're very proud to be here. Thanks, Joe our omni here first of all watch the first partner resorts are planning platform.

Speaker Change: I am very proud to release the results of that Bill.

Speaker Change: Yes.

Speaker Change: Main.

Speaker Change: Main reasons and then we'll go to the presentation number one.

Speaker Change: The fifth block leader role with Alpha No lost time injuries in our operations.

Speaker Change: Yes.

Speaker Change: Most of the best companies to work related to.

Speaker Change: Activates.

Speaker Change: It's interesting to see that normally.

Speaker Change: The message will see.

Speaker Change: Excellent Thanks, and safety comes together.

Speaker Change: Good production good cost efficiency and good results.

Rodrigo Barbosa: Number two, this quarter, we also increased, compared to the first quarter last year, 28% in production. We increased 45% in terms of EBITDA, and yet we have not fully included the recent run for the gold price and copper price. Compared to the first quarter last year, gold is close to 9.8%, and copper actually has decreased by 6%.

Speaker Change: This quarter, we also increased compared to the first part of last year, 28% and production will increase.

Speaker Change: 45% in terms of EBITDA and yes.

Speaker Change: The recent run what the gold price and copper price.

Speaker Change: Comparing tool.

Speaker Change: As part of last year, and while price is closer to nine 8% and all of our clients actually has decreased by 6%. So if you will.

Rodrigo Barbosa: So if you fully include the price of gold and copper, you would imagine that our results would have been even higher compared to the first quarter of last year. So Natasha, if we now go to the first slide and always do the summary of the results, some main milestones achieved during the quarter, and then Cleber is going to step in and go more specific on the results. So, again, very proud to have another quarter without any lost time in years. And that's, I think, all the team and all the leadership within our operations, that comes from hard work for a long time.

Speaker Change: It's only prices of gold and copper.

Speaker Change: I would imagine that's all a result of would it be even higher compared to the first quarter of last year.

Speaker Change: Go to the to.

Speaker Change: The first slide as always.

Speaker Change: Though the summary of the results some main milestones achieved during the quarter and then collaborate with all of that.

Speaker Change: For more specifics on the results. So again very proud to have another partner without any lost time injuries.

Speaker Change: I, thank all the team and all of the leadership within our operations.

Rodrigo Barbosa: It's been years that we've been working on enhancing our safety standards and the results that we have now that 15 months without lost time. In terms of production, we increased production by 28%, which is 68,000 gold equivalent ounces. Very similar to the last part of last year.

Speaker Change: That comes from our hard work for a long time in years that we've been working enhancing safety standards and their results.

Rodrigo Barbosa: I'll now ask Steve.

Rodrigo Barbosa: Without the one time events.

Rodrigo Barbosa: Our production so we increased production by 28% of which is 68000.

But if we went out with very similar to last part of last year significantly higher op. Actual first part of last year that mainly stems from higher and recovery production Global production scheme and also that now becomes stable and also how much that was 90 production first semester last year now.

Rodrigo Barbosa: Significantly higher compared to the first part of last year. That mainly comes from higher and recovered production in Minerva, which is now becoming stable. And also Almas, that was not in production during the first semester last year, now has full production, producing 12,000 ounces of gold during the quarter. So we also continue to pursue cost efficiency in all operations. The gain of productivity in Minerva, together with also gaining recovery, that comes from hard work from the team as well, has helped reduce our cash cost on average.

Rodrigo Barbosa: Production on producing 12000 ounces of gold.

Rodrigo Barbosa: During the quarter. So we also have continued to pursue our cost efficiency in all operations the gang of ABA.

Rodrigo Barbosa: Productivity immunology together with that also gaining the full risk that comes from hard work from the team as well.

Rodrigo Barbosa: We reduced our cash cost on average although almost for example, you'll have some room to continue to decrease.

Rodrigo Barbosa: Although for Almas, for example, we still have some room to continue to increase. In terms of all-in sustaining cash costs, the results of this cost efficiency and gain of productivity, we should bring the all-in sustaining cash costs to $1,287, which is below the guidance, although we believe that it will be within the guidance for the year. So strong production, slightly increasing gold prices, which will be more efficient during the second quarter, and low cash costs for a significant increase in EBITDA, and we should expect this EBITDA to continue to increase as gold and copper prices have significantly increased since we finished the last quarter. Another very important milestone is the Borborema project.

Rodrigo Barbosa: Okay.

Rodrigo Barbosa: I'm thinking about all in sustaining cash costs. The result of this cost efficiency and getting our productivity.

Speaker Change: Good grief.

Rodrigo Barbosa: Sustaining cash cost.

Rodrigo Barbosa: 1287, which is below the guidance, although we believe that we will be within the guidance.

Rodrigo Barbosa: For the year.

Rodrigo Barbosa: Strong production.

Rodrigo Barbosa: Slightly increasing gold prices, which will come more.

Rodrigo Barbosa: That one will be more efficient, including the second quarter and low cash costs will include a significant increase on the EBITDA and what we should expect.

Rodrigo Barbosa: Maybe that will continue to increase as Gordon upper bias that significantly increased.

Rodrigo Barbosa: We finished the lab.

Rodrigo Barbosa: Yes.

Rodrigo Barbosa: Another very important milestone.

Rodrigo Barbosa: Which is what brought them abroad as the deals are almost all time low budget is heading towards the safety milestone by achieving production at all of this candidate we believe which is first quarter next year and we're seeing all but we are now 25% advanced in the products. All the land work has already been done.

Rodrigo Barbosa: As we built almost all time on budget, Borborema is heading towards the same milestones, achieving production on the schedule that we believe, which is first quarter next year, and up with our budget. We are now 25% advanced in the project, all the land work has already been done, we are now starting the civil works, and also getting some of the parts to start building the parts within the plan. We also entered the process to move the road in Borborema, understanding that the current feasibility study and the results, NPV and internal rate of return that we published are limited only to 814,000 ounces of gold as reserves, but we can more than double that once we move the road and the process of moving the road has already been started and we expect this to be granted the license within one year and then it will take another two years to do all the construction on the process.

Rodrigo Barbosa: We are now really starting to see rewards and also a model.

Rodrigo Barbosa: I'm getting some.

Rodrigo Barbosa: The Fox to stop building that part of the plan.

Rodrigo Barbosa: Brian.

Rodrigo Barbosa: We also entered the process to move their role.

Rodrigo Barbosa: But what I'm understanding that.

Rodrigo Barbosa: Currently the feasibility study and the results NPV internal rate of return that we publish a limited all its all 814000 ounces.

Rodrigo Barbosa: Gold reserves, but we can more than double that once we move their role in the process of moving the road has already been filed and we expect these to be granted a license that would be one year.

Rodrigo Barbosa: And then you will take out another full year to do all the construction.

Rodrigo Barbosa: So I believe that this is Dan.

Rodrigo Barbosa: So we believe that we can start increasing our resources, our reserves within this year, but then only add production in three and four years. We also, during the quarter, updated our mineral resources and our mineral reserves, adding 2.4 million ounces of both equivalent ounces and measure indicated, and 0.9 in proven and probable, which is a major milestone and a result of the exploration investment that we are doing within our operations that we're now starting to harvest the first results.

Rodrigo Barbosa: Breathing or resource that works with me.

Rodrigo Barbosa: This year, well then adding production on at week four yes, we.

Rodrigo Barbosa: Also during the quarter updated our mineral resources and mineral reserves at a $2 4 million analysis.

Rodrigo Barbosa: Cleveland analysis, unless indicated and 0.98 proven and probable.

Rodrigo Barbosa: Major milestone and a result of the exploration in the bathroom and that we are doing we can all of our operations.

Rodrigo Barbosa: But we're now starting to harvest the pessimism that would remind you that for example, very important milestones that we'll be sharing with the market.

Rodrigo Barbosa: I would remind you of, for example, very important milestones that we'll be sharing with the market upwind, where we had, and we still have, a shorter life of mine compared to other operations. We started, and we wrapped up this mine in 2016 in three years only. We have already operated for six years, and now we have increased the life of the mine to five years. So we are building the life of mining operations as we move forward in the future. And as a subsequent event, two things.

Rodrigo Barbosa: We're not where we had and still have a sort of lack of multiple batches all operations.

Rodrigo Barbosa: We've wrapped up his mind.

Rodrigo Barbosa: 63 years, all of the life of mine, we already operated six years and that will increase with five years of life of mine. So we are building the lack of mining operations as we move forward.

Speaker Change: Sure Jonathan.

Rodrigo Barbosa: And.

Rodrigo Barbosa: Uh huh.

Rodrigo Barbosa: Two things one we have the buyback.

Rodrigo Barbosa: One, we have the buyback program in place, approved by the board and also by the regulators, which we could not start within the blackout period. So we should start this process after the blackout period is finished, which is right after the results were released, two days later. And we also will give a little bit more information. We as GoldPrize have brushed well above our expectations. So we have heavy progress put in place that will now clear all the need for margin calls in this program, releasing all the cash within our operations to benefit from the upside in the GoldPrize, which we believe can continue to appreciate in the near future. Next slide.

Rodrigo Barbosa: <unk> approved by the board and also by the regulator, which we could not.

Rodrigo Barbosa: It's been a blackout period, so we should start out with this process after the black our blackout period right. After that the results will be filled as often and we also imply that Ben will give a little bit more information, we as <unk> rushed.

Rodrigo Barbosa: Bob our expectations that we have heavy progress will tell Paul that we know that will that will now.

Rodrigo Barbosa: All the need for margin all this progress really on the casting operations to benefit from the upside in the gold price at which we will believe that can continue to appreciate the near future.

Rodrigo Barbosa: Next slide.

Rodrigo Barbosa: Well again I already mentioned very proud of our safety standards.

Rodrigo Barbosa: So again, as I mentioned before, very proud of the safety standards that we are achieving a very important milestone and preceding milestone for Aura, which is 45 quarters without any loss of time or incident. And two, as we do monthly monitoring by independent consultants, we're using the highest procedures and technologies. All our structures, your technical structures, are within the standards and a very satisfactory level. So we continue to monitor these and continue to enhance all these processes as needed. Next slide.

Rodrigo Barbosa: That we are achieving a very important milestone of receiving milestone for all of us.

Rodrigo Barbosa: We achieved.

Rodrigo Barbosa: Five quarters without any lost time accident.

Rodrigo Barbosa: Sure.

Rodrigo Barbosa: As we do on a monthly monitoring by independent consultants with usually the highest the procedures and technologies.

Rodrigo Barbosa: Our structures your technical structures.

Rodrigo Barbosa: With me they standards and various such as by funding level. So we continue to monitor our needs and continue to innovate I'll just focus next slide.

Rodrigo Barbosa: So.

Rodrigo Barbosa: So I would call attention to investors and the analysts on the slide on the left side, on the bars where you have the quarterly production, on the line above the bars, you have the last 12 months of production. So, as we mentioned after Q2 and during Q3, we inflected the curve last year. After ALMA started production and also addressed the loss of productivity in Minosa, we could start increasing the production of the last 12 months, and we will continue to do that for the next quarter as well. You can see we already have three quarters of 60,000 to 70,000 ounces of production, and the last one comes from 49.

Rodrigo Barbosa: All four are essential for the vessels or the analyst on the on the slide on the left side.

Rodrigo Barbosa: On the bonds, we could go past the corporate production on the line above the bar you'll have the last 12 months of production. So as we mentioned Opex your choice.

Rodrigo Barbosa: Last that last year, we flagged that occurred after almost a spot production and also addressing the loss of productivity that we could start.

Rodrigo Barbosa: Increasing the production of last 12 months and we will continue to do that for the next quarter as well as to see and we already have three partners.

Rodrigo Barbosa: So 70000 ounces of production and the last one is down from 49 over the next quarter you can easily think that if we.

Rodrigo Barbosa: So the next quarter, you can easily think that if we manage to do the same production of Q1 2004, we will add an additional 20,000 ounces in the last 12 months, which will put us on the running rate at 270,000 ounces of gold equivalent production. So that's very important because that will come together with a combination of higher gold prices, higher copper prices and stability in our cash flow. So when you move them to the right side of the slide on the two bars indicating the part of the production per unit, we see a slight decrease in Aranda Azul. This comes very much in line with our mine sequencing. As I mentioned in this talk to investors and analysts, the nature is not homogeneous. It's very great and very characteristic of the ore body.

Rodrigo Barbosa: <unk> managed to do the same production off Q1 2000.

Rodrigo Barbosa: We will add additional 20000 houses of the lateral in the last 12 months of production, which will put us on there in the running rate that 270000 ounces of gold equivalent.

Rodrigo Barbosa: Almost all production. So that's very important because everybody comes together with a combination of a higher gold price is higher copper prices and its stability on our cash cost.

Rodrigo Barbosa: So when you move them to the right a little bit.

Rodrigo Barbosa: On the toolbar on deposit production per unit, we see a slight decrease in the reservoir digit comes very much in line with our on mine sequencing.

Rodrigo Barbosa: Mentioned that already just talk to us putting vessels at.

Rodrigo Barbosa: But the nature is not homogeneous with various grades and very hard to reach because of that they are body. So we knew that this quarter, we would have a slower.

Rodrigo Barbosa: So we knew that this quarter we would have a slight lower production in Aranda Azul, which continues to be a significantly stable operation for us, and in Apuena, also as projected, not a significant part of Ernesto's high-grade piece anymore, so now we see the production decrease to 15,000 to 12,000. And Minosa, that's also how we continue. This is the fifth consecutive quarter that we're increasing production in Minosa starting last year with 12,000, 14,000, 16,000, 18,000, now 19,000 now achieving a very stable production in Minosa perhaps we have continued to, but we continue to explore opportunities to also gain efficiency and reduce the cost.

Rodrigo Barbosa: Licensed lower production.

Rodrigo Barbosa: <unk> continues to be significantly stable.

Rodrigo Barbosa: Operation for Us.

Rodrigo Barbosa: Sure.

Rodrigo Barbosa: Also as projected not that a significant part of international high grade piece anymore. So that we'd see the production decrease of 15000 <unk> and Nossa. That's also how we continue the fifth consecutive quarter that we are increasing production you mean ARPA starting last year with.

Rodrigo Barbosa: 12000, 14000, 16000, 18000, 19000, now achieving a very stable production and also perhaps a weird continuously but we continue to explore opportunities to also gaining efficiency and reducing costs.

Rodrigo Barbosa: In Alamut, we had below-expected production in the last part of last year due to low productivity from the contractor. We sold that productivity, but we sold it at a higher cost, but now we have achieved the 12,000 hours of growth. We are now focused on decreasing the cash cost of that information, so we have already put in place many initiatives including changing the contractor to a more efficient level so that we can now reduce the cost while maintaining the production in Ala So, in terms of our interest in cash costs, this is the second part of that.

Rodrigo Barbosa: We produce that we had that.

Rodrigo Barbosa: Below expectations expectation production the last part of last year due to them.

Rodrigo Barbosa: Raw productivity from the contract that we sold that's up on the JV, but we sold them at a higher cost, but now achieved the 12000 miles as a whole.

Rodrigo Barbosa: When the clock and we are now all decrease the cash cost of that information. So we already in place many initiatives, including making the contractual changes faster with a more efficient will add as well that we can reduce the cost while maintaining the production.

Rodrigo Barbosa: Next slide.

Rodrigo Barbosa: So in terms of all in sustaining cash cost.

Rodrigo Barbosa: The second.

Rodrigo Barbosa: Second quarters that we are reducing all in sustaining.

Rodrigo Barbosa: We are reducing our interest in cash costs, which comes from a combination of internal initiatives to reduce costs but also gain efficiency and, mostly in our. This is that we understand now that we'll continue to work on reducing our wind sustaining cash costs, but I believe that we are now at a more reasonable level and that shows Aura can control its costs and can gain efficiency in operations, and we are very much focused on that and the problems we had in the past because we are very focused on reducing our cash costs.

Rodrigo Barbosa: Cash cost that comes from a combination of offerings downhill.

Rodrigo Barbosa: We have to reduce cost but also.

Rodrigo Barbosa: Gaining efficiency mostly in.

Rodrigo Barbosa: Awesome.

Rodrigo Barbosa: This is.

Rodrigo Barbosa: That's where.

Rodrigo Barbosa: We understand all of them continue to work on reducing all in sustaining cash costs, but I believe that we have now no more reasonable levels and that shows up all.

Rodrigo Barbosa: Alright can portal is awesome.

Rodrigo Barbosa: Gain efficiencies in operations and we are very much possible that the problems. We had in the past is because I'm very thoughtfully, reducing our cash bottom we changed the contractors' boost and we lose efficiency and rewarding to begin infusions and then we can all recall that audio and game cash costs, while inflation is coming up with being able to remove a basketball.

Rodrigo Barbosa: We change the contractors, we lose efficiency, then we work, and we gain efficiency, and then we can recover or even gain on the cash costs. While inflation is going up, we've been able to reduce our cash costs. Next slide.

Rodrigo Barbosa: Awesome.

Rodrigo Barbosa: Yes.

Rodrigo Barbosa: In terms of comparing to the guidance, we raised the rate of guidance for the year because we had a good result in the first part of $68,000. We maintained our guidance at $244,000 and $292,000, of course, with a strong result. If we continue to have a strong result throughout the year, we should be closer to the top level of the guidance in terms of production. In terms of cash costs, we are well within the guidance, slightly above the lower part of the guidance.

Rodrigo Barbosa: In terms of comparing it to the guidance, we reiterate our guidance for the year.

Rodrigo Barbosa: Uh huh.

Rodrigo Barbosa: Good results in the first part of $68.

Rodrigo Barbosa: Awesome, we maintain our guidance of 244 to 192 of course with the strong results. We continue to have a strong original double the year, we should be more to the top level of the guidance and talking about she said about cash cost we have much baked into guidance is slightly above the lower part of the guidance and always sustained cashcall even below.

Rodrigo Barbosa: All-in sustaining cash costs are even below the lowest part of the all-in sustaining cash costs, although for the year, we expect to be within the guidance for all-in sustaining cash costs. Of course, if we move our production to the top level of the guidance, then all-in sustaining cash costs could be at the bottom level of the guidance. In terms of CAPEX, although the charts might indicate that we will not achieve the guidance of CAPEX for the year, that's not considering that most of the expenses of Borborema come during the second semester, where we'll be mounting the parts and finishing the construction of the project.

Rodrigo Barbosa: The lowest part of the all in sustaining cash cost gold, though what do you wish we expect to be within the guidance and all the sustaining cash costs would be more.

Rodrigo Barbosa: Production from the top level of the guidance then all in sustaining cash costs could be.

Rodrigo Barbosa: The bottom level of the guidance.

Rodrigo Barbosa: Any sense of cutbacks, although the charts might indicate that we will not.

Rodrigo Barbosa: Achieved the guidance on Capex for the year, but that's not considering that most of the bankers onboarding them.

Rodrigo Barbosa: During the second semester, where we will be amounting to Boston, finishing the construction on the problem.

Rodrigo Barbosa: Yeah.

Rodrigo Barbosa: Again, that's I think was a highlight the importance of this project off of one more in on the left side. You'll see features that we are ready to eat all the land work expanded preparing all the ground or the civil war sexual melanoma data.

Rodrigo Barbosa: Again, that's what I think with highlights the importance of this project in Borbodeno. On the left side, you'll see pictures of us already doing all the land work, starting to prepare all the ground for the civil works, actually, all the bases are already in Rio and very much in line with our expectations, 25% achieved, 80% of the capex has already either been disbursed or negotiated, and we don't expect any surprise in terms of the capex for the project, nor do we expect to achieve the schedule that we promised to the market And second, the next slide.

Rodrigo Barbosa: And very much in language expectation to 25% achieved.

Rodrigo Barbosa: 80% of the Capex has already either been divorced or negotiated and then we don't expect any surprises in terms of FX.

Rodrigo Barbosa: The project neither achieving this casual that we promised to the market we choose to start running running ramping up the production by the first path of off of next year.

Rodrigo Barbosa: And second the next slide.

Rodrigo Barbosa: It's very very well.

Rodrigo Barbosa: Very, very, I would highlight to investors that this is a major project for Aura. It's important, it's big, and it has a very interesting margin, very interesting returns, even without considering more than doubling the reserves, which is absolutely feasible after we achieve the licensing and the rest of the law. So we started the feasibility study last year before initiating the construction of this project. 812,000 ounces of reserves only, 182 million dollars of NPV, 22% internal rate of return, and 40% of the leveraged internal rate of return.

Rodrigo Barbosa: Highlights for investors.

Rodrigo Barbosa: This is a major.

Rodrigo Barbosa: Just ferrara, what's important b.

Rodrigo Barbosa: And I think that's a very interesting margin very interesting returns, even without considering more than doubling the reserves, which is absolutely feasible. After we have achieved in the licensing and more minerals. So we started the season with public safety the be study last year before initiating the construction of this part of the 800.

Rodrigo Barbosa: 12000 miles of pipe.

Rodrigo Barbosa: Our reserves only 100.

Rodrigo Barbosa: It is true.

Rodrigo Barbosa: The financial.

Rodrigo Barbosa: Our rate of returning 40% of leverage internal rate of return and that was with the gold price 17 swell.

Rodrigo Barbosa: And that was with the gold price at 1712. If you use the same study that we published last year and apply the current gold price, which can go even higher, at 2300, we are talking about increasing NPV by 143%, going closer to NPV of 440 million dollars at this project. Leveraged return for the whole life of the mine of 74% per year in US dollars and then a leveraged payback of 2.40. And again, considering only 812,000 ounces of reserves in all that study, if we move the road, we can more than double the results because the gold is already there, has already been measured, has already been studied, and it's very similar to the continuation of the Arboretum. There's no secret. The mine plan has already been designed. It's just a matter of licensing and then accessing it.

Rodrigo Barbosa: If you use the same study that we published last year and apply the current gold price that can go even higher.

Rodrigo Barbosa: 300, <unk>, we're talking about.

Rodrigo Barbosa: Crazy and it can be by 143%.

Rodrigo Barbosa: Fourth quarter, and we've got $440 million in this project.

Rodrigo Barbosa: Leverage do we said for the whole life of mine.

Rodrigo Barbosa: 74% per year in U S dollars and then.

Rodrigo Barbosa: Leverage our payback up to four years and again in.

Rodrigo Barbosa: When considering only 805000 ounces of reserves and all of that study if we move the rules that we can more than double the results of the globe is already there has already been measured in dollars.

Rodrigo Barbosa: I'm being studied in a very seamless continuation of Oh boy, there's no sleep at the mine plan.

Rodrigo Barbosa: <unk> already been designed it's just matter of licensing and then accessing new zones with a bias to everybody.

Rodrigo Barbosa: So I would invite everybody to think what could happen with the NPV of this project if you add more than double the reserves into the cash flow. Next slide. So very proud of the results. Now I'll turn the floor to Cleber, who will talk more about the results, specifically in detail, and then we come back for the Q&A.

Cleber: What can happen to be the NPV of these projects.

Cleber: More than double of the reserves into the cash flows.

Cleber: Next slide.

Cleber: So very proud of the results now I'll turn the floor to payback that we'll talk more about the brand as a result of specifically in sales and then we come back for the Q&A.

Rodrigo Barbosa: Okay.

Cleber: Thank you Rodrigo.

Cleber: Good morning umbrella.

Cleber Cardoso: Thank you, Rodrigo. Good morning, everyone.

Cleber Cardoso: So I'm going to go over the financials for the quieter.

Cleber Cardoso: So I'm going to go over the main financials for the quarter. As we can see on the page, the main financial KPIs for this quarter reflect, especially net revenues, and only with what Rodrigo was presenting on the operational side of the business. If you look at our net revenues, we also increased for the third quarter in a row. Now we are reporting under $32 million in net revenues for this quarter.

Cleber Cardoso: As we can see on the page in the main financial Kpis for these acquired a red flag.

Cleber Cardoso: Especially on the net revenues than the old EBITDA.

Cleber Cardoso: What we're doing but wasn't perfect and presenting all the operational side of the business.

Cleber Cardoso: You can see our net revenues. We also raised by the third acquired three in a row now.

Cleber Cardoso: Marking another $32 million in that revenue as long as Parker and now we are already exceeding $450 million.

Cleber Cardoso: And now we are already exceeding $450 million in the last 12 months in our net revenue. When it comes to adjusted EBITDA, also the third increase in a row for this quarter, we were requesting 53 million dollars in EBITDA, which comes from a combination of keeping production levels at the same as we reported last quarter, more favorable gold prices, and lower cash costs, as was regularly presented. And it's important to highlight again that gold prices in the first quarter, the average gold metal prices in general, are significantly lower compared to where they are today. Gold prices were average during the first quarter at $2,070, and copper prices at $3.86. Now copper prices are up over $4.40 per barrel.

Cleber Cardoso: The last 12 months, our net revenues.

Cleber Cardoso: When it comes to adjusted EBITDA.

Cleber Cardoso: The third increase in a row all of these acquired curve, we request and $53 million at Mcdonalds.

Cleber Cardoso: We've got a strong combination of keeping production levels at the same that we reported less Barker mark favorable lower prices and lower cash cost that's worked very well presented.

Cleber Cardoso: And it's important to highlight again.

Cleber Cardoso: That said gold prices on the Forest Park with average gold metal prices in general there.

Cleber Cardoso: Second the lower Alco brakes wherever they work they are today.

Cleber Cardoso: Grow the prices, where they are rigs during the first quarter at.

Cleber Cardoso: <unk> thousand $700 and.

Cleber Cardoso: Copper prices at three or $3 86, So now from a branch for example, or cardholder.

Cleber Cardoso: Paul.

Cleber Cardoso: When we look at the net income, the story is different, which is mostly explained by non-cash losses related to the need to follow the accounting rules to do a market-to-market of the outstanding gold derivatives in our gold. This is the same we saw in the previous quarter, so in the fourth quarter, you might remember we incurred a $20 billion non-cash loss because gold prices came in front, below $1,900 by the end of Q3 to above $2,000 by the end of Q4. Now, during the first quarter, gold prices moved as well.

Cleber Cardoso: When we look to the net income.

Cleber Cardoso: The story is different which is mostly explained by non cash losses related Shaw.

Cleber Cardoso: EBIT following the accounting rules.

Cleber Cardoso: Our market to market. So the outstanding golf balls as area that gave us an hour ago.

Cleber Cardoso: This is the same with some of the previous quarter.

Cleber Cardoso: So you can get for acquired or you might remember, we coordinate and waiting.

Cleber Cardoso: Waiting for young daughter, noncash losses, because of global prices came from.

Cleber Cardoso: Below 1900 by the end of Q3 to a go to power bi.

Cleber Cardoso: By banner.

Cleber Cardoso: Now we're doing that of course requires tariff alcoa prices moved as well.

Cleber Cardoso: We ended the quarter at $2,200, so we recognized another $20 million in no cash losses, which combined in the last two quarters, accumulated $40 million, which is, again, important to understand that this is not expected to become a cash loss in the future. Out of these $40 million, considering current metal prices, we would expect those to translate only about two to three million cash losses in the next few years. And then when we come to cash and net debt, we see that we ended the quarter again with a strong cash position, $214 million at the end of the quarter.

Cleber Cardoso: We acquired.

Cleber Cardoso: 200, <unk>, so we work with them on their planning and going forward and no cash losses.

Cleber Cardoso: Which combined in the last two acquirers socs in the wake of $40 million.

Cleber Cardoso: Again, it's important to understand that is not expected to become a cash are awesome in the future out of this $40 million wont stay there.

Cleber Cardoso: Metal prices, we would expect.

Cleber Cardoso: Replacing long about two three.

Cleber Cardoso: <unk> begun the back cash losses in the next few years.

Cleber Cardoso: And then when it comes to the cash in that that we see that we ended the quarter again with a strong cash position.

Cleber Cardoso: One other thing you know at the end of the Parker.

Cleber Cardoso: There was a slight increase in our net debt in the quarter to $105 million, which was as expected, mainly because of the investment in the Borborema project and also non-recurring working capital consumption during the quarter, which I'm going to explain in the next slide. Now on this page, we show the naming items that explain what's between the adjusted EBITDA and the high income for the quarter. Starting with the EBITDA, what I highlight is out of those $53 million that we reported, we see a good balance among the four business units.

Cleber Cardoso: Those lives increase in our net debt in the Parker.

Cleber Cardoso: Sure.

Cleber Cardoso: $5 million.

Cleber Cardoso: Okay.

Cleber Cardoso: $305 million, we ensure.

Cleber Cardoso: As well as expected.

Cleber Cardoso: Because all the things that matter.

Cleber Cardoso: They work or whatever.

Cleber Cardoso: Correct.

Cleber Cardoso: So no recurring working capital consumption during the quarter, if we'd sure I'm going to explain in the next four days.

Cleber Cardoso: Yeah.

Cleber Cardoso: Now in this space.

Cleber Cardoso: We show the main items.

Cleber Cardoso: Explain.

Cleber Cardoso: Between dividends and maybe dive in net income for the quarter, starting with the EBITDA, what I would highlight.

Cleber Cardoso: Out of those $53 million that's been reported.

Cleber Cardoso: We've got a good bottle of malls in the Barclays will generate a lot of those are once again was the main contributor to the quarter.

Cleber Cardoso: Aura Minerals, once again, was the main contributor to the quarter. We reported an EBITDA of $18.5 million. For Minosa, Apoena, and Alma, all of them reported EBITDA of about $10 million each in the quarter. So we see it was a balanced quarter, and it was a strong quarter not only for Aura as a whole but also for each of the individual grades.

Cleber Cardoso: I think it would be therefore facing quite a $5 million.

Cleber Cardoso: But I mean, all of the Ah boy and are in almost all of them require EBITDA above $10 billion. Each in the acquirer. So if he was on balance quiet periods and wasn't strong quark and not all of it.

Cleber Cardoso: As a whole, but also for the children because if you go for it.

Cleber Cardoso: Yes.

Cleber Cardoso: Well, Canada depreciation on them.

Cleber Cardoso: Looking at depreciation and amortization, we are reporting an expense of 16 million dollars this quarter. Until last year, we used to have between 12 and 13 million dollars in amortization expenses every quarter. From this year on, we should see that number increase.

Cleber Cardoso: In a organization that we are recording expenses by $16 million. When these barker until S. T. A we used to have it as well with $30 million.

Cleber Cardoso: Amortization expenses that required gird easier all we should see that number increasing shouldn't be more wrong than where we were.

Cleber Cardoso: It should be more around the number we're reporting this quarter, basically because now we have almost no production and we are starting to depreciate. The financial expenses, mainly $3.4 million, are mostly explained by what I said on the previous pages, it's related to the no cash loss, and it's related to the COVID derivative. We also had $3 million in effective expenses in the quarter due to the depreciation of the Brazilian Real.

Cleber Cardoso: Importantly, Parker basically because now we have all of those in production and we are starting to depreciate six platforms.

Cleber Cardoso: The credit short capacity is a major third party kind of dollars is.

Cleber Cardoso: Mostly explained.

Cleber Cardoso: By what I said.

Cleber Cardoso: Previous Asia related should in no cash losses, but at least it should be there.

Cleber Cardoso: But we also had a record of 3 million.

Cleber Cardoso: <unk> expenses in the quarter due to the depreciation of the Brazilian real.

Cleber Cardoso: Income tax expenses at $11 million came pretty much as expected considering the strong results by all these units. And then some small other expenses bringing our results to a net loss of $90 million, which again would have been positive, would have been $12 million positive if we'd excluded the non-cash losses related to the gold derivative, the next page. Then here we bring you, as always, a detailed analysis explaining the change in cash and pressure equivalents during the quarter.

Cleber Cardoso: Income tax expenses at a level of $11 million came in pretty much as expected.

Cleber Cardoso: These are.

Cleber Cardoso: Strong results, Michael do you want it.

Cleber Cardoso: Given that our service model all their expenses, bringing our revolt with Shaw metal out of $90 million, which again would have been positive with have been well I mean, there's always quality paper explode.

Cleber Cardoso: Non cash losses related to the go over there.

Cleber Cardoso: The next page.

Cleber Cardoso: And then here, we are bringing us as long as we're bringing a detail that neither of these explaining that changed into cash in a pressured drilling is required.

Cleber Cardoso: On the far left side of the page, we see our starting cash position at $237 million at the beginning of the year. On the left side of the page is what we call adjusted pre-cash flow performance, which is the pre-cash flow generated by the four miners in production, not including how much the amount we're investing to grow the company.

Cleber Cardoso: For the left side of the page, we see our starting cash position to $37 million at the beginning of the year.

Cleber Cardoso: And this left side of the page is what we have.

Cleber Cardoso: Adjusted free cash flow before we achieve that free cash flow generated by now by the former mine production not included.

Cleber Cardoso: How much we're investing to grow the company.

Cleber Cardoso: That side of the business generates strong cash $19 billion when we acquired for despite sport.

Cleber Cardoso: That side of the business generates strong cash, $19 million in the quarter, despite the first non-recurring increase in working capital. We consumed $13 million in the quarter. Part of that is explained, for example, due to the Easter holiday and Good Friday in Mexico; we couldn't ship over our home and trade. So all of that $13 million is a good portion we expect to recover in the next quarter of this year. And also, the first part is the part where we pay most of the taxes. We pay $89 million in cash in taxes, of which 10, was related to special mining duties in Mexico, where we pay just once a year.

Cleber Cardoso: No Rick Barry increasing working capital would consume this $13 million.

Cleber Cardoso: Barker part of that is explained in for example.

Cleber Cardoso: The Easter holiday and prescribing, Mexico, where we Couldnt ship for a call center right. So all of those 13, you've got dollars a good portion we expect to recover in the next four hours this year.

Cleber Cardoso: And also the first Parker Department, we paid most of the taxes.

Cleber Cardoso: Maybe $90 million in cash taxes.

Cleber Cardoso: For each test.

Cleber Cardoso: It was related to a special mining duty domestic wherewith pages in the year, so going forwards.

Cleber Cardoso: So going forward, on the one hand, we would expect to see the cash flows increasing with more favorable metal prices, but we had some one-off cash consumption in the first quarter that we shouldn't repeat in the next two quarters. Investments for growth, this is the cash we're putting in to increase reserves and resources and expand our business. We invested $23 million in the quarter, most of it, the investments for the Bergognemo project, $17 million.

Cleber Cardoso: On the one side.

Cleber Cardoso: We would expect to see the cash flow breathing.

Cleber Cardoso: More favorable with metal prices like we have some one off cash consumption in the first part with it.

Cleber Cardoso: And the next supermarkets.

Cleber Cardoso: Investment for growth.

Cleber Cardoso: The cash burn for the aim to increase the reserves and resources and expand our business we are expanding.

Cleber Cardoso: Explanatory because all of us when we acquired birds.

Cleber Cardoso: Most of it.

Cleber Cardoso: Furthermore, approximately $17 million, that's trend show called seamless for the rest of the year in innovation, even in grades are down onto liquidity work with them on projects for the next few requirements.

Cleber Cardoso: That trend should continue for the rest of the year, innovating and even increasing the amount we're putting into Bergognemo projects for the next few quarters. And then on the right side of the page, we see the financial items. The main item here is interest paid on debt, which consumed $11 million of our cash in this quarter, which was above our recurring interest payments, basically because every month of January, we pay interest on the ALMAS debentures in Brazil.

Cleber Cardoso: And they are on the right side of the page, we can see the financial items.

Cleber Cardoso: They may I have the ERP is the interest.

Cleber Cardoso: Pay down debt, which consumed.

Cleber Cardoso: And so the $11 million of our cash and its partner, which shows our both our recurring interest payments basically because every smartphone generate.

Cleber Cardoso: As for the farmer.

Cleber Cardoso: The bad news in Brazil, So in Q2 that number.

Cleber Cardoso: So in Q2, the number should also go lower than according to what we've seen in the last few quarters. And with that, we ended the quarter with $214 million in cash unequivocally. And finally, we also referred to the sequence of events that were anticipated. We negotiated during the month of April with the banks that hold our gold hedging program. The elimination of what's called the credit support agreement, which is mainly the ability for the banks to call on margins.

Cleber Cardoso: Just a little more work than according to more.

Cleber Cardoso: What we've seen in the last few of Barclays.

Cleber Cardoso: We ended acquired 200, breaking we've got dollars in cash and equivalents.

Cleber Cardoso: And finally, we broke bucket all sorts of infrequent and Pittsburgh anticipated, we negotiated with them all.

Cleber Cardoso: April.

Cleber Cardoso: The bank debt.

Cleber Cardoso: Our hedging program.

Cleber Cardoso: Elimination.

Cleber Cardoso: Our call today.

Cleber Cardoso: Great and support agreements, which is mainly.

Cleber Cardoso: They have been at for the banks to call margin so for US the banks agreed that Shaw.

Cleber Cardoso: Two to explore that that that that portion of that remains regardless wherever the price excluding the future there will be no margin calls against for.

Cleber Cardoso: We highlight that sparkling accomplishments span.

Cleber Cardoso: And it shows.

Cleber Cardoso: Oh, well, we're getting strong in terms of spa credits.

Cleber Cardoso: Sure solutions.

Cleber Cardoso: So for us, the banks agreed to exclude that portion of the agreement, regardless of where the prices go in the future. There will be no margin calls against Aura. That's what we highlighted as an important accomplishment and shows how we're getting strong in terms of credit with the main country. With this, I will end the presentation and be open to questions. Thank you.

Speaker Change: Exactly and there a presentational thing to your question. Thank you.

Cleber Cardoso: Okay.

Operator: We are going to start the Q&A session for investors and analysts. If you wish to ask a question, please press the button Raise Hand. If your question has already been answered, you can leave the queue by clicking on Put Hand Down. The first question comes from Edgar Pinto de Souza with Ita BBA.

Speaker Change: We are going to start the Q&A session for investors and analysts if you wish to ask a question. Please press the button race hand, it's great question has already been strike you can leave the Q basically can put hands out.

Speaker Change: Our first question comes from it's got to just shows that with it that would be big.

Operator: Alright.

Edgar Pinto de Souza: Hi Rodrigo, hi Kleber, congratulations on the consistent results. So my first question would be regarding Borbolema. It seems that the conversations for the road reallocation are progressing, so I would like to understand.

Speaker Change: Oh, hi clever.

Edgar Pinto de Souza: Congrats for the consistent result.

Edgar Pinto de Souza: So my first question would be regarding bourbeau, there it seems that conversations for the road relocation or defense.

Edgar Pinto de Souza: So I would like to understand how long.

Rodrigo Barbosa: How long... How should we think about CAPEX for this expansion after you move the road? How long will it take to move the road, and after you move, how can we think about the CAPEX of this expansion compared with the greenfields that you are doing now? And how long do you think it will take until you start producing? In the expansion, this would be great. And then my second question may be regarding your growth projects; if you could bring any news regarding the investment in Matupa, if you are progressing with the financing of the project, and when you expect to start up the construction, if it is on track and on budget, and also regarding your other growth projects, if you have discoveries in Serra da Estrela, for example, it would be great. Thank you very much.

Rodrigo Barbosa: How should we think about capex for this expansion.

Rodrigo Barbosa: After you move the role with how long it would take to move the road map to your move.

Rodrigo Barbosa: How can we think about the capex of this expansion compared with the Greenfield that you are doing now and how long do you think it takes until you start producing.

Speaker Change: Yeah and.

Rodrigo Barbosa: The expansion.

Rodrigo Barbosa: It would be great and then my second question, maybe regarding your growth projects, if you could bring.

Rodrigo Barbosa: Any news regarding the various pending matters.

Rodrigo Barbosa: If you are advancing with the financing of the project and when do you expect to start.

Rodrigo Barbosa: The construction is on track handle budgets and also on your order growth projects. If you have any news.

Rodrigo Barbosa: Discoveries in so how do they still have for example, which would be great. Thank you very much.

Rodrigo Barbosa: Thank you, Edgar. So first, Board of Governors, we have already entered the first conversations to get the license to move the road. We expect to have the license within, I would say, one year. After you have the license, you still have to do the final drawings, engineering, by the landlord, if appropriate, and then build the road.

Rodrigo Barbosa: Thank God.

Rodrigo Barbosa: Both of them are real.

Rodrigo Barbosa: In fact, <unk> already answered the first conversations to get the license to a moment ago.

Rodrigo Barbosa: Expect that you'll have the license, we're seeing I would say one year.

Rodrigo Barbosa: After you have the license that we still have to absorb the final volumes engineering.

Rodrigo Barbosa: By the landlord is appropriate and then do the role that theme then we will take an additional two years.

Speaker Change: <unk> finished.

Rodrigo Barbosa: Once we get the licensing of the more we are around Mechanicals season.

Rodrigo Barbosa: I think that it will take an additional two years until you get it finished. Once we get the licensing for the removal, we can already consider measures indicated as a reserve. So, of course, then you need to draw up and understand what, how many houses are going to be out of the piece, and so on.

Rodrigo Barbosa: Measured and indicated.

Rodrigo Barbosa: As a reserves soft call then you need to draw and understand what how many ounces, we're going to be out of the business alone. But then we will publish a wheel.

Rodrigo Barbosa: But then we will publish another date on this feasibility study, including that house. The CapEx to move the road, we don't have the final number yet, but it will not be relevant compared to the capacity that we have today, and it will not be meaningful compared to the cash that we generate after that. What we will have to invest in then is building the plant for two million tons per year, flexible as we did with ALMA, to increase capacity by 50 percent or more as we move the road.

Rodrigo Barbosa: Published an update.

Rodrigo Barbosa: On the feasibility study and including that.

Rodrigo Barbosa: That analysis.

Rodrigo Barbosa: On the Capex to move the roles that we don't have the final numbers yet.

Rodrigo Barbosa: We will not be relevant.

Rodrigo Barbosa: Back to the Capex that we have today will not be meaningful compared to the cabinet and engineering offset that I want to we will have to invest then heats up.

Rodrigo Barbosa: During the plant four 2 million phones per year are flexible and we use a dollar to increase capacity by 50% or more.

Rodrigo Barbosa: The roles of the plant as our enemies flexible and designed to support the higher production, but once you. Once you get the license then you'll need to invest more to increase production because we don't want only to increase the life of mine.

Rodrigo Barbosa: So the plant is already flexible in design to support high production, but once you get the license, then you need to invest more to increase production because we don't just want to increase the life of the mine of Borborema. Once you have the increase in reserves, we want to increase production, and to increase production, we'll have to invest, and that's, But we can start doing that after the licensing, so everything that we believe that we can increase Then your question about Matupa. Matupa, we are now in the final process of licensing. All the conditions have already been met.

Rodrigo Barbosa: What about it once you have the.

Rodrigo Barbosa: Increase in reserves and we want to increase production, which we increase production, we will have to invest and that's when we can start doing that outside the licensing or other things that we believe that we can increase production on the <unk> or three or four.

Speaker Change: I had an offline.

Rodrigo Barbosa: We are today.

Rodrigo Barbosa: And then.

Rodrigo Barbosa: Your question about the microbiome uncle, Bob We are now in the final process of licensing all the conditions has allowed the demand environment.

Rodrigo Barbosa: Environment or agency, we expect that the living their lives and stuff.

Rodrigo Barbosa: We have already delivered to the Environmental Agency. We expect that the preliminary license should be issued by June or July. This is when we would, right after the start, make the decision to start the construction of the porology. So we are still going very much in line.

Rodrigo Barbosa: We issued by June July this is why does it work.

Rodrigo Barbosa: Right off the start and make a decision to stop the construction of the project, while still going very much in line with expected to continue in the Meanwhile, do exploration into he has to do exploration with next one invoice duration actually very near mine ex one that which we believe can potentially add to the resource and reserves one yet.

Rodrigo Barbosa: We expect to continue in the meanwhile, doing exploration in Sahinia, doing exploration with X1 and actually very near mine X1, which we should believe can potentially add a new resource and reserves. But yet, we have not disclosed that. We are consolidating some information so that we can disclose it, and then we are also looking at alternatives. The best reminder is that our Matupa has smaller plants but deposits that many deposits that can feed the plant.

Rodrigo Barbosa: We have not disclosed when you consolidate this information so that we can disclose and that might be also looking at alternatives.

Rodrigo Barbosa: The best I remind you.

Rodrigo Barbosa: You've got the amas in muscle Bob.

Rodrigo Barbosa: Smaller plants, but the pauses that many of the forces that can feed to the plant. So we are actually looking at they're not cheap to increase new deposits Truex once a desk came out like a guarantee on a lag.

Rodrigo Barbosa: So we are actually looking at alternatives to increase new deposits to X1 so that we can also guarantee a life, longer life of the mine from aquifers or also increase production. We are looking at alternatives also to bring more gold from other deposits very close to the mine. And then you asked about the new project to continue to grow. We continue to actively look at M&A. We have a list. We know we have targets that we are looking for.

Rodrigo Barbosa: Longer life of mine from a spot work. It's also trying to increase but that's what we're looking at alternatives also to bring even more.

Rodrigo Barbosa: Our goal for more than deposits.

Rodrigo Barbosa: Pulls per day from the mine.

Rodrigo Barbosa: And then you asked also about the new project you continue to grow we continue to proactively look M&A here, we have a lease that we know we have targets that we're working on we know what we want of course, we also have to combine why do you want to watch is available, but that's a lot of airports are a good thing.

Rodrigo Barbosa: We know what we want. Of course, we also have to combine what you want with what is available. But that's a lot of effort within our company to look for new alternatives to continue to grow and pass away for it to be above the 500,000 ounces of gold that we have in production within the next two or three years.

Rodrigo Barbosa: If we need to look for new opportunities to continue to grow and Thats a way for that to be above the 500000 ounces of gold equivalent production within the next two or three years.

Speaker Change: Okay. Thank you.

Edgar Pinto de Souza: Okay, thank you Rodrigo. Just a follow-up on my first question.

Speaker Change: Follow up on.

Edgar Pinto de Souza: My first question do you have any idea of how much of Capex decisions, where we will have given that it is a brownfield project.

Rodrigo Barbosa: Do you have any idea of how much capex efficiency you will have given that it is a brownfield project compared to if you would build a new plant with 1.5 million tons of capacity, for example, in Borgorema? I mean, how much cost efficiency, or capex efficiency, could we think that you will have given that it's just a plant expansion and not a new project? It's not a new project for Blue Ribbon; it's just a brownfield.

Rodrigo Barbosa: Compared if you would build a new plant with one 5 million tonne capacity for example.

Rodrigo Barbosa: And we'll go there I mean, how much of a cost efficient capex efficiency. What do we think that you will have given that it's just a plant expansion and not a new project.

Rodrigo Barbosa: It's not a new project. It's just a brownfield expansion. Yes. The base is there. All the infrastructure will be there, power lines, water.

Rodrigo Barbosa: It's not a new abroad in Buffalo and then it's just a brownfield expansion yes.

Rodrigo Barbosa: They're all day for telco will be there.

Rodrigo Barbosa: Dollar lines water also some of the buildings is gonna be oriented deals so it will be.

Rodrigo Barbosa: Also, some of the buildings are going to be already built. So it will be, it's not an insignificant effect. It will be meaningful, but not compared to what we are doing now. We should expect it to be significantly lower, 788 million dollars. There's a lot of efficiency in doing just this increase in power plant capacity instead of just building a new plant. It's not going to be the cost of building a new plant for sure. It's going to be just a brownfield expansion of the current plant. Okay, thank you.

Rodrigo Barbosa: It's not an insignificant that backs that will be a meaningful but not go back to work together on doing alcohol company and you should expect to be significantly lower $788 million and there's a lot of efficiency doing just that this increase in the bottling plant capacity instead of just giving them. Your plant is not going to need the capex up in a new plant.

Rodrigo Barbosa: It's going to be just a profit expansion of the current plan.

Speaker Change: Okay. Thank you.

Gilead: Next question from Gilead.

Operator: Next question from Guilherme Nipes with Shispe.

Operator: Sure.

Guilherme Nipes: Hi, guys can you hear me.

Guilherme Nipes: Hi guys, can you hear me? Well done, Cleber. OK. Thanks, Rodrigo, Cleber, and Natasha for the opportunity. Congratulations on the results.

Guilherme Nipes: Loud and clear.

Guilherme Nipes: Okay. Thanks. So do you require then attach for the opportunity congratulations on the results.

Rodrigo Barbosa: So I have two questions here. For the EPP, costs were the main highlight, in our view. And you've already started production at the Labrinhas and S2C pits. So could you give us any update on the production and cost that you're already seeing in these two new pits? And my second question is about Alma's operations. So when do you expect the cost reductions to normalize so the company would be on track to deliver the guidance for costs in 2024? So when can we expect the issues faced by the contractor during Q3 and Q4 to impact costs? These are my two questions. Thank you.

Guilherme Nipes: So I have two questions here for ETP.

Rodrigo Barbosa: Costs were the main highlight in all of U M. You already started production at the luxury antigen N S C.

Rodrigo Barbosa: So could you give us any update on the production and cost city already seen these two new pits.

Rodrigo Barbosa: And my second question is on almost operations. So when do you expect the cost reductions too to normalize so the company would be on track to deliver the guidance for costs in 2024. So when we could expect the issues faced by the contract during Q3 and Q.

Rodrigo Barbosa: For huge impact costs. These are my two questions. Thank you.

Rodrigo Barbosa: I will start with the second question, then I'll pass to Cleber to answer the first one. Right now, as we speak, we are transitioning a contractor. This month, we do not expect any significant cost reduction during this quarter, but then for Q3 and Q4, yes, we expect this gain in productivity. We may also perhaps have some gains in grades and also gain in cost efficiencies for Q3. Q2, probably the same cash cost on ALMA for this year. We might even have some slightly lower production because of the transitioning. You'll lose a little bit of productivity, but then you set the stage for a very good result during Q3 and Q4.

Speaker Change: I'll start with the second question and then I'll pass to <unk> to answer the first one.

Cleber Cardoso: So we are right now I have to sneak those additionally factor this.

Cleber Cardoso: So there will be some transition, although we do not expect any significant cost reductions during these boxes, but then Q3 and Q4, yes. We expect that these gaming front of GTT you absolutely have to perhaps have some gaining weight and also gaining cost efficiencies for Q3 Q2.

Cleber Cardoso: I'll, probably save cash costs for.

Rodrigo Barbosa: This year, we might even have some slightly lower production because of the transitioning you'll lose a little bit soft type activity, but then outstanding all the stage from a very good result of doing that you'll see in Q4 well.

Cleber Cardoso: If you want to talk a little bit about Poena, as you know, it climbs much taller than I am, so we'll have to play a little bit with the camera.

Cleber Cardoso: I just wanted to talk a little bit about the brand that has a longer can see quite as much taller than I am so all of that to play a little bit to that.

Cleber Cardoso: So, basically, our expectation is to deliver our values, whether it be in terms of cash flow. We know that by the end of last year, in this first quarter, we had some remaining ounces from Vernaço Beach, which is a high-grain material that usually drives to a lower cash cost, so it was expected to see some positive impacts this quarter. The new bids, they don't have the same kind of material for the rest of the year, so what we should expect to see until we are in this is for us to be within the guidance for the cash flow. Thank you.

Cleber Cardoso: So.

Cleber Cardoso: Basically our expectation.

Cleber Cardoso: And the other with other businesses as they grow.

Cleber Cardoso: Our guidance for the cash.

Cleber Cardoso: Cash flow.

Cleber Cardoso: We know that by the end of last year.

Cleber Cardoso: As far as required or we have some remaining all to a very massive pitch we sure are.

Cleber Cardoso: High grade material that you're going to be driving some level, where cash costs are expected to see some positive impact from this partner.

Speaker Change: They don't have today.

Cleber Cardoso: I don't know if you're a part of the rest of the year. So what you should expect to see a few.

Cleber Cardoso: We are in it is for us to be working.

Cleber Cardoso: The guidance for the cash flow.

Speaker Change: Thank you.

Cleber Cardoso: Okay.

Cleber Cardoso: Yeah.

Operator: Please hold while we pull for questions. Our next question comes from Flavio Bica with Cia Valor Futuro.

Speaker Change: Please hold while we poll for questions.

Flavio Bica: Our next question comes from Flavio, because with the Sia if I listen to.

Flavio Bica: Hi people are doing thank you for taking.

Flavio Bica: Taking my question.

Flavio Bica: I have two questions on my side.

Flavio Bica: The first one is the inquiries as expected in NPV for verbal Raimo related price increase a resident net from color hedge hedge loss.

Flavio Bica: The second one.

Flavio Bica: As opposed to taxation reform.

Flavio Bica: I too have.

Flavio Bica: How do you expect that.

Flavio Bica: Some great scope changes or have you done some calculation both debt.

Flavio Bica: That's my belief my both questions. Thank you.

Operator: Yes.

Flavio Bica: Yes, so to go over it, let's remind ourselves that the loss that we had was an accounting loss, not a cash loss. That is because you have to market the options, the calls that we sold to buy the pool because the calls, the strike price of 2400 and above. As we did the simulation at 2300, there's no loss at all, and the gold price up to 2400 is fully right and can be fully absorbed by the NPV in Borborema.

Flavio Bica: That's the mindset that the loss that we handle the accounting loss mop cash costs a loss.

Flavio Bica: Because they'll have to market to market their auctions that all of that been sold through by the books.

Flavio Bica: Because the call the strike price of 2400 sustainable as we did the simulation that 'twenty 300, what Brian Theres No news at all.

Flavio Bica: The goldstrike up through 'twenty 400, it's fully by can be fully absorbed by the NPV and worry about an offset that for the course of the year. Then we aren't locked up on most of the production. So there's plenty of about 400, so there's still that even room to increase both prices and benefits in terms of all it does is it broad.

Flavio Bica: After that, for the first years, then we were locked in, and most of the production to 2400. So we still have room to increase gold prices and benefit in terms of returns on the project up to 2400. So there's no loss at all up to 2400 gold prices in Borborema. Actually, if it goes beyond that, it's not that we are losing, it's just that we are not getting the benefit, and most of the production of Borborema, we will get the benefit in the other production.

Flavio Bica: That's what accounted for almost all that stuff, there's no loads laws rules or laws at all after plenty quoting on with goldfine, zanesville and whatever accident and if it goes beyond that is not that we're losing it shows that we have not yet had the benefit adding more of their production on board with him we will get there.

Flavio Bica: And speaking to all the productions.

Flavio Bica: And then the other question was about taxes. We don't have any information yet to believe that there will be a significant impact on our production and our taxes. There might be some, but we don't see any meaningful changes for taxes within operations in Brazil.

Flavio Bica: And then the other classroom was about.

Speaker Change: Thanks for that right now we don't have any information you have to believe that will be a significantly impacting our off camera off production in north, Texas that might be some but yet not that we don't see any meaningful change for taxes I would think the operations in Brazil.

Speaker Change: Thank you.

Speaker Change: Next question from he Gotta do Monday, Goglet with SASSA.

Rodrigo Barbosa: Next question from Ricardo Monegaglia with Safra.

Ricardo Monegaglia: Two questions can you hear me.

Ricardo Monegaglia: Questions. Can you hear me?

Ricardo Monegaglia: Okay.

Rodrigo Barbosa: Hi guys, I have two questions. The first one is on production. What do you think are the main risks to reach the high end of your production guidance for 2024? And maybe you could share with us, after the first Q-Figures and part of the second Q-Pastas, are you more confident now on reaching the high end of the guidance than you were at the beginning of the year or at the time that you released the guidance? And my second question is on shared liquidity. It would be interesting if you could give us some color on the latest initiatives to increase the liquidity of our shares. Thank you, guys.

Ricardo Monegaglia: I have two questions the first one.

Rodrigo Barbosa: Production, what do you think are the main risks to reach the high end offshore production guidance for 2024.

Rodrigo Barbosa: And maybe if you could share with us after first your fingers and part of the second fastest are you more confident now or reaching the high end of the guidance than you were at the beginning of the year or at the time that your released the guidance and my second question I'm sure.

Rodrigo Barbosa: Liquidity she could.

Rodrigo Barbosa: Give us some color on the latest initiatives to increase.

Rodrigo Barbosa: The liquidity all farmers shares would be interesting. Thank you guys.

Speaker Change: Thanks, Riccardo so.

Rodrigo Barbosa: Thank you, Ricardo. So the main risk is not to achieve the guidance; it's always related to the instability of production that comes from a few different reasons. It can come from contractual problems that mean we have a loss of performance at the mine or severe weather beyond what we project. We already project heavy rain season and non-rainy season, rain above the average and rain below the average. We all know that, but if there is a 5% scenario, the effects of rain in some of the operations might also have an impact on slow production, and also issues with the contractors, although we already have all the contractors in line.

Rodrigo Barbosa: <unk> did not achieve the guidance, it's always related to the stability of production that comes from our appeal to a different reasons. It can come from factors problems that we had that little soft performance at the mine.

Rodrigo Barbosa: Severe weather.

Rodrigo Barbosa: Beyond the Waterloo project without rescue project, I think rainy seasons and lot of agencies and are running above that average in Rand law that virtually all of that but today.

Rodrigo Barbosa: 5% scenario.

Rodrigo Barbosa: All the factors of reining in some of the operations that might also.

Rodrigo Barbosa: Adding back and slow our production.

Rodrigo Barbosa: And also unusual political factors I'll go.

Rodrigo Barbosa: Randy all the folks that are in line and the one that we are changing.

Rodrigo Barbosa: And the one that we are changing now in Aura is the one that we operate in Apoena. So we know very much, we know how to work, and actually, the mines in Apoena are more complicated to operate than ours.

Rodrigo Barbosa: One is the ones that we operate in.

Rodrigo Barbosa: In Atlanta.

Rodrigo Barbosa: No very much even when we know how to work and actually the mine as an operator is more complicated to what were anchored in Ireland. So we don't expect that a significant boost in productivity, perhaps doing one one is like the most with amortization and then a good good.

Rodrigo Barbosa: So we don't expect a significant loss of productivity, perhaps during one month; it's likely to lose during the transition, and then a good part of 203 and 204. And you mentioned where the start of this quarter, do we expect to be within the guidance, and where is the guidance? The first quarter came off of what we expected, so we should put that in perspective. Yes, we believe that it will be within the guidance, but now we are moving towards the high end of the guidance in terms of production and the low end of the guidance in terms of sustaining volume cash flow.

Rodrigo Barbosa: Bosses that you'll see in Q4, and you mentioned about the why was the start of this quarter or no.

Rodrigo Barbosa: We expect to be we think the guidance and where the guidance.

Rodrigo Barbosa: We did this first class of King cake.

Rodrigo Barbosa: All of what we expected so we have to put that in perspective, yes, we believe that we'll be able to see the data, but now we are moving toward the high end of the Guy who lives in the production and the low end.

Rodrigo Barbosa: The guidance has been soft.

Rodrigo Barbosa: As I mentioned, if you replace the second quarter production with the production that we expect, if we maintain the production of Q1 to Q2, you're adding 20,000 ounces in the last 12 months. So we are adding, if you replace Q2 with the Q1 production of this year, we are already at 207 and above in production, which puts us more on the higher level of the guidance and the lower, consequently, lower level on the volume sustaining cash flow and also cash flow.

Rodrigo Barbosa: All in sustaining quality cash as I mentioned, if we if you replace the second quarter production. So the production of that.

Rodrigo Barbosa: I would expect it's been maintained their production up towards Q2, Youre, adding 70000 ounces for the last 12 months. So we are and we can replace it killed show with the Q1 production of this year. We are already at 200 and sat in in a ball of production, which puts us more to the higher level of the guidance.

Rodrigo Barbosa: Lola.

Rodrigo Barbosa: Consequently, lower level on their all in sustaining cash cost and also on cash cost.

Speaker Change: Thank you just one follow up.

Speaker Change: The first question.

Rodrigo Barbosa: Just a quick sure which operations.

Rodrigo Barbosa: Which mines do think Theyre very high higher risks of rich you know maybe the high end of the guidance by mine.

Rodrigo Barbosa: Understand.

Rodrigo Barbosa: The risks of not reaching we're very clear but a.

Rodrigo Barbosa: Which operations do you think there's the risk of having operational issues or maybe.

Rodrigo Barbosa: But you still depend on some factors.

Mike: This is Mike.

Rodrigo Barbosa: That's just an efficiency to improve sort of can reach the high end.

Rodrigo Barbosa: Let's go mine by mine. I've been stable for many quarters in a row.

Rodrigo Barbosa: That's called mine by mine.

Rodrigo Barbosa: It would be stable for many quarters. It will actually yes, I thought it was minus 2019, we wish capacity any operated very stable very much in line since then.

Rodrigo Barbosa: We're now at the mine that we have up and down depending on where you are anything but there's no variation. So when that is already putting in perspective, you know from that almost probably where we are transitioning a protractor. That's I would say the platinum rates because of Newport that is coming in and they need to mature.

Rodrigo Barbosa: We will perform according to the expectation.

Speaker Change: And although this is Steve.

Rodrigo Barbosa: This improvement neither roll into this quarter, so very stable, reaching now very good levels of production are we.

Speaker Change: That was the last mindset.

Rodrigo Barbosa: Implemented all our basic pure tariff.

Rodrigo Barbosa: Sure.

Rodrigo Barbosa: The way, we make decisions as different lives very a lot of them actually would mean.

Rodrigo Barbosa: For ease of communication and this team has been revealed.

Rodrigo Barbosa: Our since we changed the general manager on the direct collaboration builds on that now.

Rodrigo Barbosa: Consolidated a very strong team that we believe we can keep this.

Rodrigo Barbosa: Some bdcs is up on that ship on that one so one one operations that our workforce one that would be more of a pay more attention to disposition contact enormous enough. We're not there's always some favorability chance it won't lead to them. Other once it was going to mature that will kick in with somebody that operation as well.

Rodrigo Barbosa: Next question from happy with.

Rodrigo Barbosa: Next question is from Happy Nizami with National Bank Financial.

Happy Nizami: With National Bank financial.

Happy Nizami: Got it.

Happy Nizami: It's nice to see a strong Q1. I noticed that it's a significant proportion of guidance compared to the last couple of years. So my first question is basically about that. Can you give us some more thoughts on your goals to achieve a more steady, more predictable production and cost? and specifically thinking about everyone, as you can give us some guidance as to how you think about quarterly performance through the year.

Happy Nizami: Nice to see a strong Q1.

Happy Nizami: Proportion of God as compared to the last couple of years.

Happy Nizami: So my first question is basically on back and give us some more thoughts on your goals.

Happy Nizami: We'll see more steady predictable production costs.

Speaker Change: But everyone.

Happy Nizami: One that you can give us some guidance.

Happy Nizami: Yeah.

Happy Nizami: How are you how are you thinking about quarterly performance through the year.

Happy Nizami: With that model.

Happy Nizami: Not sure if I understood. The practice all of which we expect to continue to have stability in terms of production and cost and what is your expectation for.

Rodrigo Barbosa: I am not sure if I understood the question. So, if we expect to continue to have stability in terms of production and cost, and what is the expectation for this demand on the right?

Rodrigo Barbosa: The message right.

Happy Nizami: Yes, basically, for our point, it has a variable production history, and you're looking at your annual guidelines, and Q1 looks great. Can you tell us a bit about what factors will affect Q1 versus Q2, Q3, Q4, just the ups and downs that will balance out to a year?

Speaker Change: Yes, basically for a point of.

Happy Nizami: It has a variable production history and they're looking at your annual guidance in Q1 looks great.

Happy Nizami: Can you tell us a bit about what factors will affect our Q.

Happy Nizami: Q1 versus Q2.

Happy Nizami: Or just the ups and downs that will balance out to reach the full year.

Speaker Change: No we're not.

Rodrigo Barbosa: For ENA, it's very much in line of the guidance we gave initially, first quarter, we still had some high grades from Ernesto, we don't expect this to happen in the second quarter, then Q3, Q4, you will have some balance between one and other quarters, but yet very much in line to what we disclosed in the beginning of the year. Overall, on a consolidated basis, we expect Q2 to be very similar, slightly below, slightly above Q1, not significant changes, and hopefully, as we've seen in Aura during the last three years, but not with that latent change, but we should expect some improvement in Q3, in Q4 in terms of production, so that's why we are already running rates at 270,000 ounces, if we replace Q2 of last year to the Q1 of this year, and then we can go to 270,000 and above in terms of production, but yes, we are in the beginning of the year, as you mentioned, things change, weather change, so we are very conservative in maintaining the same guidance that we gave early this year.

Rodrigo Barbosa: It's very much in line with the guidance we gave initially.

Rodrigo Barbosa: First quarter.

Rodrigo Barbosa: Still have some high grades are full and therefore, we don't expect things to happen in the second quarter.

Rodrigo Barbosa: Q3, Q4, your wife is not so good.

Rodrigo Barbosa: We'll have some balancing between one and the other factor.

Rodrigo Barbosa: But yes, it's a very much in line to what we disclosed.

Speaker Change: I need to be.

Rodrigo Barbosa: Beginning on the year.

Rodrigo Barbosa: Overall consolidated basis, we expect to true Tibet should be very seamless, it's likely to be most likely a ball.

Rodrigo Barbosa: Not significant changes and hopefully as we were seeing in all of them I believe the last three years, but not with that.

Rodrigo Barbosa: A lot of things have changed but the way you should expect some improvement in Q3 in Q4 in terms of production. So.

Rodrigo Barbosa: That's why when you're already running rate that that's 170000 also saw you can really place Q2 of last year to Q1 of this year and then we can go to understanding in a mall that is of a production, but yes. We are at the beginning of the year as you mentioned things changed whether changes. So we are very close.

Rodrigo Barbosa: How much is it maintaining the same guidance that Oh, we gain not only on the part of this year.

Rodrigo Barbosa: That's where we go, and is it given that Ernesto's exhausted and looks like some of the stockpile effects have also been There's nothing. Can we expect longer-term grades to be... Also, to address, or rather ask a separate question. Will the stockpile continue to be a significant portion of the feed?

Rodrigo Barbosa: Absolutely.

Rodrigo Barbosa: Is it given that Ernesto is exhausted and.

Rodrigo Barbosa: It looks like some of the stockpile effect has also been with none.

Rodrigo Barbosa: Hum.

Rodrigo Barbosa: The longer term Greg to be it.

Rodrigo Barbosa: Closer to each other or rather it's just a separate question.

Rodrigo Barbosa: The stockpile will continue to be a significant portion of the seed this year.

Rodrigo Barbosa: It could be, yes, it can be, but the greater we should expect is returning to what the company was producing before that. At the same time, the strip ratio, their net was high, and now the strip ratio is returning to the levels we had two or three years ago before we started going to the net. So yeah, reduction in grade, reduction in strip ratio, one thing partially offsets the other, but we should see as we get to the guy that's already producing, you know, 60,000, 65,000 ounces of gold. We should not see that in the near term. Again, it goes back to that.

Rodrigo Barbosa: Could you guys it can be a spot buy.

Rodrigo Barbosa: So you should expect us returning to what the company was producing before than that.

Rodrigo Barbosa: At the same time also strip ratio that NASA was high and not also take ratio returning to the levels we had.

Rodrigo Barbosa: Two or three years ago, when the Florida stop influence on that.

Rodrigo Barbosa: Yeah Directionally rate reduction in strip ratio was.

Rodrigo Barbosa: Partially offsetting the other but we should see as we get to the Guy that's already a good.

Rodrigo Barbosa: Real estate you know, we're not 60 65000 ounces of gold, we should not see that in the near term again it goes back to that level. That's been projected earlier this year.

Rodrigo Barbosa: Thanks Rodrigo. And if I may ask another question, on the gold, the hedges, and the credit support agreement that you've resolved recently, can you give us some background on whether this agreement was tied solely to Bobera McAuliffe, or was it based on overall credit thresholds for Aura overall. Overall, 100% of our HEDGE program calls do not have any more need for margin calls, so this change has no implication toward future debt capacity or any other covenants. Is that fair?

Speaker Change: So if you go and if I if I may ask another one on the gold the hedges and the credit support agreement that you've resolved recently.

Rodrigo Barbosa: Can you give us some background on what is it.

Rodrigo Barbosa: <unk> tied solely to the Bulgarian a Colorado was it based on overall credit thresholds for four.

Rodrigo Barbosa: Ora overall.

Rodrigo Barbosa: Overall.

Speaker Change: Got it.

Speaker Change: Yeah, Thanks off a day or a hedge program to call does not have any more need for margin calls.

Rodrigo Barbosa: So this change has no implication towards the future.

Rodrigo Barbosa: Future debt capacity or any other covenants that's it.

Rodrigo Barbosa: No change.

Speaker Change: No change.

Rodrigo Barbosa: Okay, thank you very much. And on the hedges, could you give us a little bit of a color on the next 12 months, some sense of the distribution of the heads down in terms of the ceiling and the amounts that are applicable in the next 12 months?

Speaker Change: Perfect. Okay. Thank you very much and Oh on the hedges could you give us a little bit of a color on in the next 12 months.

Rodrigo Barbosa: [inaudible]

Rodrigo Barbosa: Something.

Rodrigo Barbosa: Some sense of what the distribution of that has done for US is in terms of the ceiling and the amounts that are.

Rodrigo Barbosa: Applicable in the next 12 months.

Rodrigo Barbosa: Hmm.

Rodrigo Barbosa: Yeah.

Rodrigo Barbosa: That's almost a most of our hedges are related to either the Alba program or whatever.

Rodrigo Barbosa: Most of our hedges are related to either the ALBA program or the Borborema program. Our financials are weekly for the two programs, so for ALMA, we should see all the callers; they are already expiring on a monthly basis. All callers should expire by the middle of 2025, by June 2025, and in July 2025, we start having the maturity of the Borborema Gold hedges, which are going to mature between the middle of 2025 and June 2028, so it's going to be three years.

Rodrigo Barbosa: Foreign Nationals with fleet.

Rodrigo Barbosa: And so.

Rodrigo Barbosa: We showed the Oh.

Rodrigo Barbosa: They call or if they are already expiring often debated go forward.

Rodrigo Barbosa: The expire if I could meet or waiting 25 by 'twenty five and in July 25.

Rodrigo Barbosa: Sorry.

Rodrigo Barbosa: Having been there about two weeks before putting them up all the patches, which is but I'm not sure if it's being the means off Bob Gwin and 25.

Speaker Change: The thing that you over to John.

Rodrigo Barbosa: So it was about three years.

Rodrigo Barbosa: For Borborema and Alamance, we had just 80% of the projected production. Borborema had just one strike price for this season, $2,400. For Peralma, which is expiring, it's going to expire for the next 12 months. The average ceiling prices are about $2450, ranging from $2300 to $2800.

Rodrigo Barbosa: Hello, everybody and then all of US we had 80% booked to protect with production.

Speaker Change: We're quite ample.

Speaker Change: I just.

Rodrigo Barbosa: When the strike price for this evening split apart.

Rodrigo Barbosa: And for all of US, which is expiring is going to expire for the next 12 months.

Rodrigo Barbosa: The average selling prices are about it quite a car T. A range installed when the 306800.

Rodrigo Barbosa: But I would say most, by now... By far, most of the programs are for the Proponema Regis, which starts maturing by the year 2025-2028, and all of them have an extra crisis in front of them.

Speaker Change: But I would say most bye bye now.

Rodrigo Barbosa: Our by far most of the program or are part of the ore body in my head the switches are maturing by doing those things.

Rodrigo Barbosa: Violence to 28.

Rodrigo Barbosa: We'll then have a strike price that that part of it.

Speaker Change: Perfect. Thank you very much for the time.

Rodrigo Barbosa: Perfect. Thank you very much for your time. I really appreciate it. Next question from Stephen Sanga with Arlo Investments.

Stephen Sanga: Got it.

Rodrigo Barbosa: Okay.

Stephen Sanga: Next question from Steven Sangha with Arlo investments.

Stephen Sanga: Can you hear me.

Stephen Sanga: I'm a long-time shareholder. I have a couple of questions. You've been doing a great job.

Stephen Sanga: Yeah, Yeah yeah.

Stephen Sanga: Yeah, Yeah, yeah. Thank you yeah, I'm a longtime shareholder so a couple of questions you've been a great job at Christina in the it's a T S sex youre not getting much value for what the company has done and have you thought of moving more into an international exchange exit Chicago border exchange, where it's more on seven exchanges and you've got more reflection of value.

Rodrigo Barbosa: First thing, it's a TSX. You're not getting much value for what the company has done. Have you thought of moving more to an international exchange like the Chicago Board Exchange, where there are more on seven exchanges and you get more reflection of value? The TSX, I find, there's some shorting. It's very liquid, and the share price doesn't reflect what value you have. That's my first question. My second question is, I'm a long-time shareholder in Rio Novo.

Rodrigo Barbosa: T. S X I find is you know there's some shorting this it's very liquid and and the share price doesn't reflect what <unk> Valley. You have just my this is my first question. My second question is I'm a.

Rodrigo Barbosa: I'm, a you know a longtime shareholder so with Rio Novo the amas pit mine is quite quite large and the payroll pet that we never could drill originally weigh down the bottom the payoff pick could expand my life mine.

Rodrigo Barbosa: The Almas mine is quite large, and the Payot pit that we never could drill originally, way down the bottom, the Payot pit could expand my life mine, the extension of that, and significant resources for Almas. My third question is, you're becoming a mid-tier producer here. Do you think chances are a major might buy you out? Thank you for your time.

Rodrigo Barbosa: At the mine to that.

Rodrigo Barbosa: You know the extension of that.

Speaker Change: <unk> seen a significant resources for almost end up my third question and last question is you becoming a mid tier producer here do you think you know you chances that would make you buy you out. Thank you for your time.

Rodrigo Barbosa: Thank you, Stephen. Thank you for being shadowed for such a long time.

Speaker Change: Thank you, Steve and thank you for being traveling for a long time.

Speaker Change: It's only a question first about this liquidity in TSS.

Rodrigo Barbosa: So your question first about liquidity and TSX. Yes, I think we feel the pain of not having stronger liquidity in TSX. That comes off a combination that we are a new story.

Speaker Change: Yes, I think that we feel the pain of not having a stronger liquidity and get back.

Rodrigo Barbosa: Aura was not a very successful story in the past on TSX, so there's still some legacy of that image. And also, we've been able to raise capital in Brazil and outside Brazil. Mexico was significantly cheaper to any country that's raising capital in Canada. So we are not using Canada's debt and equity capital markets because we've been able to find cheaper. Now we are raising capital at $1 plus $8 plus $7.5 for three, four, five years in the long term, while many companies outside Canada are above the two-digit level. And also, in equity capital markets, we don't have to use it. We did an IPO in Brazil of $200 million Canadian dollars, while in Canada, the TSX people were celebrating $30 to $50 million of issuance.

Rodrigo Barbosa: That comes off a combination that we are a new story all it was another very successful starting the back against that so theres still some legacy of that image. It and also we've been able to raise capital.

Rodrigo Barbosa: And in Brazil, and all type of zero, Mexico grew at a significantly cheaper to anytime that's raising capital in Canada. So we are not using a canada debt and equity capital markets, because we've been able to find cheaper now we are raising capital at a dollar plus 87 five.

Rodrigo Barbosa: Three four or five years long term all while many companies outside the mall.

Speaker Change: So Jason on the children ages levels and also the equity capital markets that where we don't have to use when we did our IPO in Brazil are much.

Rodrigo Barbosa: 100 million Canadian dollars, while in Canada, not just next people were celebrated $30 million to $50 million of our foundation. So we've been able to find cheaper cats and other sources, but that's part of why we don't get a lot of traction also intending on that market hasn't that said are we.

Rodrigo Barbosa: So we've been able to find cheaper capital in other sources, and that's part of why we don't get a lot of traction also in Canadian markets. Having that said, we've implemented several initiatives to increase liquidity in Canada, including increasing investment in investment relations. Yet, I would say that the result is below what we expected. So we are advised yet to consider other alternatives for lithium.

Rodrigo Barbosa: Cause I mentioned several initiatives to increase liquidity and kind of aligned with Cody more.

Rodrigo Barbosa: Do you think investments in vessels relations yet I would say that the result is below what we expected. So we are glad to yes, you can see that all the alternatives on lifting all around it's a company that doesn't have a very strong cash flows and growth and dividends boring right not many.

Rodrigo Barbosa: Aura is a company that will have very strong cash flows and growth and dividends for it. Not many companies, if any, in the sector can show the growth that we are having, while we can continue to pay dividends and be underleveraged. And Canadian investors, in general, are more inclined to exploration and a new acquisition or a new hole that you're going to drill and increase resource reserves. So perhaps our story fits the United States or Europe, as you already could make.

Rodrigo Barbosa: Kind of as if any in this sector can show the growth that we are having a why do we can continue to pay dividend and be a Sunday language and Canadian vessels in general they are more towards exploration.

Rodrigo Barbosa: Exploration and Neil on new acquisition of another new holes that you're going to drill and increase resources reserves all are.

Rodrigo Barbosa: Perhaps or sorry, Pittsburgh, United States or even perhaps you already are.

Rodrigo Barbosa: Because I imagine.

Rodrigo Barbosa: Then you asked about Alma, right? why we are not doing a significant investment in exploration to increase the lack of mines at the current week. And you are completely right, the peak is completely open. We know that if we drill more down deep on the side, we can increase reserves very easily. Although we already have 15 years' lack of mining armaments, we don't need to expand the lack of mining armaments.

Speaker Change: Daniel you are asking about almost right.

Rodrigo Barbosa: Why we are not doing as it has been our investment in exploration to increase the life of mine.

Rodrigo Barbosa: It would be the net youre completely right. The peak is completely open.

Rodrigo Barbosa: We know that as we drill more.

Rodrigo Barbosa: Now deep armed aside we can increase our reserves very easily although we already had in 15 years life of 16 years life of mine at all but we don't need to expand the life of mine. So our asphalt play sports betting doing exploration in areas that we can then feed.

Rodrigo Barbosa: Steve I increased the pizza the plant you don't increase the fees the Atlantis increase the reserves on the thumb loop, but that we can increase the feed to the plant that if you do exploration satellites.

Rodrigo Barbosa: So our effort is concentrated on exploration in areas that we can then feed, increase the feed to the plant. You don't increase the feed to the plant; you can increase the reserve on the down deep. But we can increase the feed to the plant if you do the exploration satellite deposits, which we have been doing, and we've been having very interesting results.

Rodrigo Barbosa: Our satellite deposits, which is where we have been doing and never being having a very interesting results.

Speaker Change: Well, thank you and.

Rodrigo Barbosa: Well, thank you, and no, thank you for that question. That makes sense. I know Verasai around. There's a lot of deposits to bring in there. And anything for that Tolfrida-Colombia project, is that just on hold, or is that just an asset we will hold long term? And thank you. Right now, we are doing very basic exploration.

Rodrigo Barbosa: Thank you for that question that makes sense I know Vera sigh around as far as deposits, bringing there and if anything could that toll free dot Coke, Colombia project is that just on hold or is that just now I say, we will hold long term and thank you for your time.

Rodrigo Barbosa: Now, we are doing very basic exploration in Philadelphia to see if we can expand the resources and reserves. And also, we still have some permitting licenses that need to be renewed, that is being discussed with the local and federal government. So that's more something that we don't talk about much; I think it's a more long shot.

Rodrigo Barbosa: Well, we are doing very basic exploration and Philadelphia, that's a safer expand our resources and reserves and also we still have some for my team a license that needs to be renewed but that has been in discussion with the local and federal law.

Rodrigo Barbosa: That's more of that's the ballpark wise I think it's more of a long shot now we continue to monitor continue to watch that but it's a longer trough I think oh.

Rodrigo Barbosa: Now, we continue to monitor, we continue to work there, but it's a longer shot. I think we can easily put Borborema in production next year. We can easily put them up by production also. I start construction very soon. Our exploration in Serra da Esmeralda, that was questioned before, is being very interesting, and we are building and putting the numbers together so that we can share with the market. So we have other focus areas in the company right now, and we are pending to do this licensing process to finish in Colombo, so that we can then gradually start increasing.

Rodrigo Barbosa: Can easily put in there, but what about I mean production next year, they can easily put them up by production awesome.

Rodrigo Barbosa: Certainly so I exploration instead had that question before I being very interesting and we are building and putting the numbers together. So that's again.

Rodrigo Barbosa: I shared with the market. So we have all the other forces in the company right now and finding to the licensing process will finish in Columbus, one that they can then gradually start increasing investment.

Speaker Change: Alright. Thanks, Thank you for your response.

Speaker Change: Our next question comes from really right.

Operator: Our next question comes from Roman. Yeah, we have time, so we might have room for one or two more questions. Perfect.

Roman: But this time until we might have room for one or two questions more.

Roman: We have a couple of questions from Roman. The first one is, you mentioned lower costs at ALMAs thanks to some initiatives. Could you give us some color on what initiatives and how they contributed to this cost reduction?

Operator: Perfect. We have a couple of question from Roman <unk>. The first one is you've mentioned lower costs at all Ms. Thanks to some initiatives could you give us some color on what initiatives and in these cost reductions will be sustained over time.

Roman: On our main initiatives is to change the contractual because we could at the municipal sector.

Rodrigo Barbosa: On Aura, the main initiative is to change the contractor because we could. This contractor did not perform according to expectations during the last quarter, last year, when we reached the hard rock. So they lost productivity. We could fix the production by putting more equipment and investing more to offset their inefficiencies. So now we are changing the contractor so that we don't need to put all the new equipment and invest for them to be efficient. If you apply the efficiency they have in Apurena, two hours in that, even easier to operate, now we can easily understand that we can bring that cash cost down significantly towards Q3 and Q4.

Rodrigo Barbosa: Not perform according to expectations during last quarter of last year, when we reach at the hard rock well they didn't lose productivity, we could speak the production by putting more equipments and are investing more so than they are to offset their inefficiencies. So now we have changing Nick one factor. So that we don't need to put all of those things.

Rodrigo Barbosa: With me from it then.

Rodrigo Barbosa: I think in the potential to be efficient.

Rodrigo Barbosa: We feel quite efficiency they have enough for Hana.

Rodrigo Barbosa: Chihuahua.

Rodrigo Barbosa: It's even easier to operate how we can easily understand that they can bring that car cash bonds.

Rodrigo Barbosa: You need.

Rodrigo Barbosa: More toward that you'll see in Q4.

Rodrigo Barbosa: It was affected by some of them.

Rodrigo Barbosa: Yes, we have three other questions. The second is an increase in OPEX in Aranzazu beyond the appreciation in the Mexican Peso and lower copper prices. Is there any other factor that pushes costs higher?

Speaker Change: Yes, there is a we have three other questions. The second increase in Opex in Adams Zaslow beyond the appreciation in the Mexican peso and lower copper prices is there any other factor that place Cos hired the third question is for mill and gold recovery are slightly behind it.

Roman: The third question is the ore mill and gold recovery are slightly behind the technical report in ALMAS. What are you expecting going forward? And the fourth question, looking at your chart.

Roman: Clinical report and Thomas what are you expecting going forward and the fourth question.

Speaker Change: You just might cause I won't remember that's cool.

Roman: I won't remember. That's cool. Okay. First time. Okay.

Roman: Yeah.

Speaker Change: Okay sure.

Rodrigo Barbosa: The first one was Aranjo Azul. So I'll pass it on to the platter.

Speaker Change: Well the first of all of our other does rule.

Rodrigo Barbosa: Yeah.

Rodrigo Barbosa: That's.

Speaker Change: Our path towards a plateau.

Speaker Change: That's all sort of absorbed.

Cleber Cardoso: Also, we did expect some increase in cash costs compared to last year. It has been reflected in our guidance, and our expectation is to meet the guidance.

Aranjo Azul: Oh, So we did expect some amazing cash costs and all of them easier compared to last year that has been reflected in our guidance and our expectations.

Cleber Cardoso: I used to deliver the guidance.

Cleber Cardoso: There are two macroeconomic factors. The first one is that Romain indicated the effect. But also, when you look at gold equivalents, there is a conversion. The gold price is moving faster than copper. Then, when you do the conversion, it seems that the cash cost was higher, but it's just a matter of conversion. Then, ideally, it's better to do the conversion on a constant metal price. And it's important to remember that in Arunachal, for this year as a whole, we expect O-Ing to increase compared to last year basically because there are some important agreements that we are renegotiating this year that didn't have the same inflation impact in the last two to three years because those are long-term agreements with fixed prices. It's natural when we renew, we produce some impact, so that's going to mostly explain, together with stronger Mexican caseloads and incremental prices, this increase in cash costs in Arunachal this year compared to the previous one.

Cleber Cardoso: There is a.

Cleber Cardoso: Two macroeconomic factor its all of the core it's funny.

Cleber Cardoso: Romano indicated Ah.

Cleber Cardoso: The effect.

Cleber Cardoso: But also when they were moving toward a crippling the conversion gold prices.

Cleber Cardoso: For copper.

Cleber Cardoso: Robert.

Cleber Cardoso: And whether they're going to call a very strong cash flow.

Cleber Cardoso: But it's just a matter of Oh, we're behind all of them.

Cleber Cardoso: Alright.

Cleber Cardoso: It's better to own shows for the conversion of all phone stuff.

Cleber Cardoso: Nickel prices.

Cleber Cardoso: And it's important to remember that an era of it so far this year.

Cleber Cardoso: We expect Boeing to increase compared to last year.

Cleber Cardoso: Those that are so important to convey a message.

Cleber Cardoso: We are renegotiating easier.

Speaker Change: You bet.

Cleber Cardoso: And the old basically Asia impact.

Cleber Cardoso: Last for two three years, because there are long term agreements with our fixed prices.

Speaker Change: Naturally when we agree with you.

Cleber Cardoso: <unk>.

Speaker Change: So that's what I'm most familiar.

Cleber Cardoso: Explain together with stronger Mexican peso.

Speaker Change: All right.

Cleber Cardoso: We're using cash calls.

Cleber Cardoso: Today, that's been resolved.

Cleber Cardoso: Yeah.

Cleber Cardoso: Yeah.

Cleber Cardoso: Yeah.

Cleber Cardoso: Yeah.

Rodrigo Barbosa: Our third question is: ore mills and gold recovery are slightly behind the technical report in ALMAS. What are you expecting going forward?

Speaker Change: Our third question is Gordon Mills, and gold recovery are slightly behind the technical report an illness, what are you expecting going forward.

Rodrigo Barbosa: We expect production and recovery to be very much in line with the feasibility study. This change comes more from mine sequencing. We lost productivity from the end of last year, and so we expect the grades and also recovery to be very much in line. We don't have a major deviation from the feasibility study. It's more linked to mine sequencing.

Rodrigo Barbosa: We expect a reduction in reported to be very much in line with some of the this is a big study.

Rodrigo Barbosa: This change comes more from mine sequencing, that's me loss of productivity.

Rodrigo Barbosa: And therefore.

Rodrigo Barbosa: The end of last year, and so we expect the grades and also recall restaurant would be very much in line and don't have.

Rodrigo Barbosa: Major deviation from the piece of news that is more linked it to the mine sequencing.

Rodrigo Barbosa: First and last question looking at your Capex guidance. It seems you have accelerate in the coming quarters, what expansion Capex are you expecting in the coming quarters.

Rodrigo Barbosa: Fourth and last question, looking at your CAPEX guidance, it seems you have accelerated in the coming quarters. What expansion CAPEX are you expecting in the coming quarter?

Rodrigo Barbosa: We expect CAPEX to be very much in line with the guidance. As I mentioned, we are now ramping up the speed in Gordbo-Rema for us to do the land works, which is at a low cost. So now we should see a gradual increase and a more latent increase in Q3 and Q4 this year in terms of CAPEX. Hence most of the CAPEX for Gordbo-Rema is disbursed and invested during the second semester of this year.

Speaker Change: Oh, we expect capex to be very much in line with the guidance as I mentioned, we are now ramping up to speed with what am I supposed to do the landlords, which is in low cost. So now we should see a gradual increase in mall last days decreased in Q3 and Q4 as you see in terms of Capex on most of the Capex for both of them.

Rodrigo Barbosa: Is Disney bought any back during the second semester of this year.

Mr. Barbassa: Okay. Thank you the question and answer section is over we would like to hand, the floor back to Mr. Barbassa.

Rodrigo Barbosa: Okay, thank you. The question and answer section is over. We would like to hand the floor back to Mr. Rodrigo Barbosa for the company's final remarks.

Rodrigo Barbosa: For the company's final remarks.

Rodrigo Barbosa: So, thank you all for being here with us. Q1 was a very strong result, but I would invite the analysts and invite the investors to look ahead, to see what this company is going to be like with a combination of putting Amazon's production for the whole year, putting a lower cash cost and higher gold price, right? The first part is just to decide what we can do during the year, and the first part, again, we did achieve a gold price of $202,070.

Rodrigo Barbosa: So thank you all for being here with US that Q1 was very strong result, but I love it.

Rodrigo Barbosa: You can buy for their I don't know Nathan advice, they've asked us to look ahead to see what this is going to lead this company with a combination off accordingly.

Rodrigo Barbosa: Production for the whole year, what a lower cash cost and higher gold price like the first quarter is just a sign of what we can do during the year and the first part that again, we did perform a girl's life is 200 to 2017, we are now running at 23 hazard management continued to.

Rodrigo Barbosa: We are now running at $2,300, and imagine how it will continue to grow with this gold price. And now, next year, we will continue to grow; that doesn't stop this year. This year, we have already increased 28% of production. The year is already moving to 100,000 or 207,000 ounces of production or above, as we calculated together here. And next year, another project that's meaningful for us. It's close to 90,000 ounces of yearly gold production during the first four years that will start ramping up in Q1 next year, in a mine that is not only big but also has a lower cash cost compared to ourselves.

Rodrigo Barbosa: Grove with his gold price and not and next year, we will continue to grow that's it doesn't stop this year Zia right increased 28% in terms of production. There is already moving to 100 and 207000 ounces of production on a ball has been calculated.

Rodrigo Barbosa: Together here and next year on larger projects, that's meaningful for our eats up close to 90000 ounces I'll call yearly gold production in the first 40 years then it will start ramping up Q1 next year in a mine that is not only peak, but also has the lowest cash cost for Bachelor lifestyle. So we should.

Rodrigo Barbosa: So, we should continue to grow during this year with a high gold price and cost control, and next year, putting online a project that has 90,000 ounces of production at a lower cash cost compared to where we are right now. So, next year, you can expect at least to compare 90,000 ounces to 270,000 on average that we might be doing this year, with an additional 30% increase in terms of production combined with higher gold prices and lower cash costs.

Rodrigo Barbosa: To grow during this year, a high gold price that's possible and next year, putting online a project that has the 90000 ounces of production on the lowered cash possible Bachelor or whatnot I right. Now so let's see you can expect I believe is about a 90000 ounce of 200 and <unk>.

Rodrigo Barbosa: 70 on average that we might be doing this year is additional 30% increase in terms of production combined with the higher gold prices and lower cash costs.

Operator: And we will do all that again, while we continue and maintain our guidance in terms of dividends, our policy, 20% of mining recurring capex, and we can continue to pay dividends, maintain the low leverage, and build the project. So thank you all, and we'll see you at the next one.

Rodrigo Barbosa: And we will do all of that again why are we able to continue and we maintained our guy and I think there's a dividend policy of 20% online with recurring Capex and we can continue to pay dividends, maintaining low leverage and building the problems. So thank you all and we'll see you on the next Nevada.

Operator: Aura's conference is now closed. We thank you for your participation and wish you a nice day.

Speaker Change: This conference has now closed we thank you for your participation and wish you a nice day.

Operator: Okay.

Operator: Yes.

Operator: Goodbye.