Q2 2025 Aura Minerals Inc Earnings Call
Website at Aura minerals, Dotcom Slash English annuities.
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But it is certainly a comforting symbol to gaze kicking a week when you do global all other he said originated a flotel awesome instead of showing up so Portuguese room.
Our CIS had another solid set your feet. You said you moved Tidewater Judah as you know.
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Present at this conference we have missed that hold the Regal Barboza, President and CEO and Mr. Claribel Cardoso CFO.
Now I will turn the conference over to her the legal Barboza you may begin the conference.
Good morning, all good morning, all the vessels and good morning, Russell for Brazil, Canada, Europe, and also I welcome.
The new international that recently joined Us.
The IPR, we had Alaska NASDAQ a couple of weeks ago.
As we all do in the earnings fall now with divided as two separate.
That's a separate presentation first and myself I will present and give an overview about the company about our the progress we made during the quarter and some of the highlights of the results and then on the second phase <unk>. Our CFO is going to go more in detail about our results and cash flows.
And also the net debt levels and <unk>.
So.
This was again.
Extra with generic quarter as our fourth secretary of barter that aura has reaching a record high results in terms of EBITDA, we started with a production of <unk>.
64000 ounces of gold equivalent ounces, which was its more than we produced the first quarter. The same as we produce a year ago, but with the coastal price it's higher than we produce also.
A year ago.
When another important factor is that not only we are growing production our class cash cost are being stable along the last quarters and higher production stable costs and also higher gold prices, we've been able to reach a record high EBITDA of $106 million on Q2 understanding that.
This quarter, we had the gold price of 31 hundreds in the 85 that also drove US a last 12 month EBITDA.
Two $344 million with the gold price of 28 times. It so that means that there is still and if gold continues at this price now hoovering around 34, hundreds that we continue to have room to improve our EBITDA by only gold price on the top of that as we will see we should have increased production along with <unk>.
Third quarter than in the fourth quarter, which could push even further our last 12 EBITDA to finish the year with a very strong results.
As that we will see our all in sustaining cash cost.
On the on the on the quarter was 1400 and 49.
Very much in line with our guidance very much in line with the performance on Q1 and very much in line with the 12 months ago. If you use a coastal price is one thing that I would highlight is that we have a copper production around 20% of the production that comes from the revenues come from copper and then we convert them.
Copper production each gold equivalent so basically we divided the sales the revenues of our off copper shoulder golds price. So that would the means of gold equivalent. So we've published all the world equivalent ounces the higher gold prices.
The lower is the conversion. So that's what we will see some of our numbers have been stable on the on the screen, but as your used constant price you'll see that we are increasing production and also being able to maintain the same all in sustaining cash costs and despite them are high.
Gold process that we have tried justice to market to market all of our callers the clad but he's going to explain details. We are finished the quarter with $8 million of net profit.
While the the adjustment the net income adjusted is $37 million in fab is going to go more in details about this.
Very importantly, along the strategic agenda. We are also moving very strong on the on the growth of the company. Just a quick reminder, we started the year.
With the construction on the final phase of what about Irma and also painting to close the acquisition of our Bluestone. We closed on the first part of the critical the acquisition of Bluestone. We finished the construction of whatever we are now in the first on the on the ramp up phase and in this second quarter, we already produce.
The 2500 ounces of gold of course now we are gradually increasing production, graduating music capacity gradually increasing grades. So we should see on the third part of the higher production to declare commercial production expected natural September this year and then after that also.
Higher production on Q4.
Also on the strategic RJ of them.
We made up the other tool significant progress.
One we signed.
They're they're they're signed a contract to acquire MSG media, that's supposed to have been here for Michael that the spanning two closed during Q3. This year. We also published the P. E of Ara that the former say whole block with a high grade underground mine in Guatemala that can provide us.
Additional 95000 ounces of production per year on the first four years with a capex of $265 million returns at 24% per year with the gold price 2400 to why are you.
From the P. A true the feasibility study, which we expect to finish by the end of this year or early next year.
We see also a room from improvement in terms of our cost production and then return. So we are working on that and we should be releasing to the feasibility study by the end of the year.
Early next year very importantly, also we acquired we have signed the agreement to acquire MSG published their P. A.
We also very important did the art IPO in NASDAQ This was.
Strategic for us once we always share with the market that the or the third Avenue for us to deliver.
Hello to our shareholders, we had to tackle the multiple and the multiple that we are discounted compared to our peers come from basically two main reasons number one we need to continue to increase and that being in the higher production and second we had to address also our daily trading volume.
So moving to the United States and NASDAQ, we could increase the float of the company and tackle a market that for Ken.
Ill provide a better liquidity to our shares and as we should continue to see these improvements along the year recently, we also announced the <unk>.
The decision to start.
The process to die leased from Tia effects, so that we can focus and concentrate our daily trading volume.
NASDAQ from from now on.
We also so we made progress on the three avenues, Oh, well most of our investors and analysts to know that we have three avenues to deliver value to our shareholders number one should deliver the greenfield projects, you'll build them all the time on budgets Bullboat MH, they're almost built on time on budget, that's why with full production for about AMT is now in ramp.
Final ramp up phase, we made acquisition of Blue Stone, we made acquisition of Lemon S. G. We also have increased.
Our investment in exploration, we released.
The new OE I F by March of this year, increasing our resources and reserves and then the third Avenue to continue to address our low triple we did the deal at least it. So we are moving very juices and things of the three avenues that we have disclosed to the market since the 2020 and on the top of that to why we would be able to pay dividends. So.
If you'll see the track record in terms of <unk>, we are among the top dividend.
In the awarded the gold sector and this dividend that we announced today after 33 cents per share.
Put us on the last 12 months of a dividend yield of seven 4%. When you add also the share buybacks guaranteed to us also.
Top dividend player in the world without jeopardizing our growth story.
Next is light.
So on this slide that we always like to share our safety Records. We are very glad also that we are now over two five years with only one single lost time incidents.
That happening up we're in a slightly over a year ago and also finishing the construction of what about Irma without any.
Lost time incident, we now have over a thousand days inboard boat Irma building the project and now ramping up without adding a lost time incident, which is underscores our forecast or guarantee of safety.
Standards.
For our employees and also on the on.
They're on the shelf technical structure, we also monitor them.
With external parties in order to them on a constant basis and a reason to do the new elder teams for all their geotechnical structures.
In such as factory level. So we have no issues with any of them to guarantee the safe operation for everybody.
So in terms of production as we can see on the bars on the left side of this lidar. We are the parts of production on the top of the line that we asked in the last 12 months of production, we see that in Q2, we produced 64000 ounces compared to 6000 ounces on Q1 when.
Compared to Q2 to 24, there's always mentioned it seems the same but there is a negative effect on production.
Because of the higher gold prices, the lower conversion of copper into gold equivalent if it were not to buy these we would be over closer to 10% higher and outperforming that 260000 ounces of gold equivalent production in the last 12 months understanding that now we should see an increase in production due to both Emma and some better.
Production also in the second half and some of operations in Q1, two trillion of corporate operations with she almost very much the same and very much also in line with our projections.
Same very much in line with the projections as well when internal projections upward in a slightly below the Q1, but yet slight even above our expectations during the quarter and that is as well.
An increase compared to Q1, despite the negative effect of a higher gold price of wholesale price that increase would have been even higher so with that we also now adding a small parts here, which we are very proud to show to the market.
<unk> 3000 ounces from bourbeau them during Q2 and of course now we are progressing with the ramp up we should see.
And incremental production during Q3, and then also in Q4.
In terms of all in sustaining cash cost.
Also that was that was mentioned at the beginning very strong management concern and focus on containing any kind of inflation in any kind of price pressure as you. We can see in Q2. We reached 14 149 very much in line with Q1, and then also when you compare that to Q2 last year.
And you use cost on prices, we will see that we also have the same level of all in sustaining cash costs of last year and understanding that this year. We also we have a pressure up on Norway sustaining cash cost because of the investment phase that we are going through a pollyanna pushing back the pit, creating a super pit so that.
We can resume a higher productions offer after 'twenty 'twenty, six which I'll read that we can also see are we sustaining cash costs going down and then we now have what about Emma coming online that have are below our average all in sustaining cash cost of course, almost the same as that we've been able to show the market and then we have muscled bye.
And what are the both also has is below the average that we have all in sustaining cash cost Y O M. S. G. No MSG.
Start with a higher <unk>.
Then our average all in sustaining cash cost, but we believe that we can gradually decrease the all in sustaining cash costs from MSG. After we close this transaction.
As we are moving very much inline with expectations and we have no changes in our guidance to the market. Since we released early this year production in the first half of 124.
When you compare to 266 300, it seems that we're behind but of course on the second semester now anchors in commercial for a higher production commercial production for our board about Irma So that will put our very.
Keen to achieve and be between the guidance that we gave to the market.
In terms of a cash.
Cash costs on the other hand, it youll see that.
We are very much close to the low level, all four of our guidance and as seconds. So we expect to have a bear production some of operations and also but both of them are coming online. So we should.
Be very much in line with the guidance if not slightly below the guidance either on the on the AR cash costs, but also on their own sustaining cash costs and as also we we perform then we can finish their construction of what about Irma. We think the budget. We also maintaining the same guidance for the market.
In terms of Capex for sustaining exploration and also the new projects.
Yeah.
A highlight that we believe it's important to share with the market is the successful ramp up of about about Irma and I'm Gonna still of course, two malls are more than half of our before we can declare commercial production does vary in structural things we'd seen them.
<unk> has been proven and has been successful number one the mine east consolidate consolidated very well the grades are there the grades are consistent we also.
Utilizing very strong capacity from the crusher very strong capacity also from the meal. We used also the CIL. The recovery has been very much also in line.
We thought we would project. The CIL has been this is where we've been a slower performance that we protected it since the beginning so we are now going more and.
Lower grades.
Then I expected, but at the same time all the adjustments at the CIL has been already done for Florida CIL tanks are already adjusted in our fuel other more charges in the next couple of weeks, so and the performance are going up as we.
We continue to have I expected the commercial production to the September.
September also the filters working very well there.
You immediately of the tail is has been very much a 16, 18% very much in line with the projects all all the process of the gold all the way to the Gulf performs around the plants has been well proven checked and also now we just need some adjustments at the plants. So that we can continue to.
Increased capacity and declare commercial production by September.
Just a quick there was a slide out for Arab Dorado can go back on slides as we released the P. A.
Information on these wide available for all shareholders. This is a very important project that we are now adjusting the P. A we will leave the P. A with Dow to revise reviewing all of the mine sequencing with FY two we're doing right now.