Q3 2025 Aura Minerals Inc Earnings Call
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Woman. Welcome to third quarter 2025 earnings call.
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Present. At this conference. We have Rodrigo Barbosa, president and CEO and clever cardoso CFO.
Now, I will turn the conference over to Rodrigo Barbosa. You may begin the conference.
Good morning all, it's a pleasure to be here. Again, uh, with you sharing more about our results on the quarter and uh, give a little bit of background and look in the future. This quarter was another solid step, uh, towards our programs to grow. And we are also walking the talk while growing while paying dividends just before. I just, I jump into the party results. I think it could be available at to make a quick uh, uh, overview, what happened in this company in the last 2 years and then can position myself that continued towards the future to continue tragedy growth. In 2 years. We built almost on time on budget setting new benchmarks, how to put our money into production with less than 24 months between static Khan.
Interruption to commercial production with no last time incident. Then we also built borborema on time on budget again.
And with no lost time uh incidents in the meanwhile we acquired Bluestone with the project we are, the best in Mata. We are the best also in Exploration uh in in essay and recently, we signed a contract to buy to acquire uh, MSG from Anglo world in the meanwhile, we've been also reaching record high Productions in the last quarter with 74,000. Oh, when now with stable Productions plus the production that's coming for bulb is Halloween us to grow production. As we had promised to the market. In the meanwhile, we are also controlling our costs
so that with this higher gold prices and also higher production, we've been able to achieve a record of the right hi results and then also be able to pay the dividends but now let's move to the presentation and I will share a little bit in more details about the quarter and then clap is going to present about the the financial results. And then I come back with a questions and answers
So in the quarter, as I mentioned, 74,000 answers of production reminded that we started with 60,000 miles 64,000 hours. And I now 74000, why your bulb on the third quarter was still ramping up. We now have 4 Emma continue to ramp up close to full production do.
24.
And while the gold price for this quarter was 3473, just like the below 3500 and now gold price are hovering around. When you look back and see on the last 12 months of Aida, we reached now at a close to 419 million with the gold price at 3,068. So the last 12 months, Abida should continue to grow. As we are adding new quarters with higher production and also higher gold price.
As I, as I mentioned, the cost has been under control and actually with the Almas plus Bulma has a lower of in sustaining cash costs compared to our average, we've been able to gradual now decrease, our all in sustaining cash costs that now we presented at the 1396 dollars per ounce equivalent house as an understanding that with the and I will explain later with the highest gold price with the white, uh, the corporate production for a bigger denominator. So it's a less gold equivalent ounces, which means also our higher all in sustaining cash costs, not because the mind is not performed, it's just because gold, price is increasing. And even with that, we've been able to reduce our all-in sustaining cash cost.
In 1 side, the very good news is gold price continued to appreciate. Uh, we come from, uh, 3,287 to 3,825 closing. Uh, on Q3 the data also has an impact over our zero cost callers over our calls. And when we Market to Market this higher gold price has impacted negatively by 75 million on, on our net income. Uh, again, this is come from a very good news which gold prices increasing, but for part of a production, a minor part to less than 20% this impact. Uh, uh, this, we have callers calls that set the price, uh, between, uh, 24/26 100 that clever is going to explain in more details as
A as our other important event that happened during this quarter, um, MSG, we continue to advance on the conditions for closing, we expect to close uh, during this quarter as we initially, uh, uh, planned. Uh, we also we are now declaring dividends, uh, important dividends for shareholders at 0.48 cents, uh, per US Dollars on shares in NASDAQ, which is the equivalent of about 16 cents for each bdr's. Because each shares in NASDAQ means 3, uh, bdrs which compounded with the share buyback on the left 12 months. It's a yield of 747.4%, uh, to our share
Shareholders so we see our share is appreciated but is appreciating more or results or cash flows. So we still see a significant role for order to continue uh to grow in cash flows but also in our own market value.
I'm based on already about BMA now, commercial production on time on budget with no last time incident, another important Milestone that we have reached now as we were projecting in our 1 of the objectives of listing. In NASDAQ was to increase daily trading for automated by offering new shares over million dollars and and now to increase our daily trading volume, we come from 1.5 million per day of daily trading volume and now we are reaching close to 30 million dollars per day on average which should
U allow more sophisticated and bigger investors to invest in our shares. And then with that, still room for us to close the gap on our price brand. A that we are discounted still discounted compared to our peers. So on next slide,
as we always present, uh, we another quarter with no lost time incident. Actually, now we are 2 years with only 1, single lost time incident, and why we also built a bourbon and bourbon Emma. Also, reaching over a thousand days without a lost time incident. In terms of the stability of the structures, we are do regular uh uh auditing by Third.
Parties and research that has been audited. Also and we are fulfilling all the legal obligation and also all the the structures are stable.
To build and down the road, road, also develop a standardized traila.
When you see on the right side, uh, the mind has been stable quarter over quarter upon a slightly better, and then last quarter, but yet 1,000 Oz, more minnows, super stable, how much uh, we are increasing production. Almost, as we are, increasing our capacity and more volume at the plant. And now we see on the top of the those lights on the on the charts. Uh, assuming more uh, relevant position. That should continue to increase along the nest. Next quarters.
In terms of how we sustaining cash cost, as I mentioned to to, to you, uh we've been able to manage and control our our sustaining cash costs. Actually, as you can see, we are reducing on Q3 on 2024, despite 2 things that's happening. Uh, that's impacting negatively all in sustaining cash costs. Number 1. Ah we are an investment phase of BU and I'm pushing back, the peak to connect the Peaks and create a super pit that it will last until next year. So that push back has a a higher all in sustaining cash costs compared to our average. So that is pushing more towards a higher number. However, we should go back to normal levels in apple, and after 2027 at the on the other hand. Now we also see as I mentioned earlier, is now we are converting to Les Gold. Equip
People announcers. We get the production of Cooper we get. So we apply the price of property. So the revenues of copper we divide by the gold price. So the higher the gold price, the lower the gold equivalent production and also the higher all in sustaining cash cost on the calculation. But that doesn't mean that we are increasing on efficiency level. Uh, the the only sustaining cash cost for others as we just a mathematical a result of this conversion of gold equivalent ounces. If we're not buy that we would be even lower on in sustaining cash cost uh on this quarter.
Next slide.
As we are progressing, very well. Uh, during the year, we have maintained our guidance for the year. If you look on the left side, in terms of production of with the constant price that we we use, when we, uh, projected the, the guidance to the market early this year, we are now a production of 204,000 Oz last quarter, 74 understanding that, uh, BM still have room to improve. So you see that we will be very much in line with the guys in the mid part of the guys is lightly above or below. Uh, the mid part of the guides in terms of production, on the other hand in terms of cash cost you know insist any cash costs that we can see here that are as being performing at the very low end of the guidance, if not uh, uh uh, below the lower uh, and of the guidance
In terms of capex, we also continue to to, to maintain our guidance for the year.
As I, as I mentioned earlier, that this presentation is remarkable. The achievements. We are having with our shares in the NASDAQ and also Brazil, uh, we come from, as I mentioned, 1, 1. 5 2 9.
Start closing the the gap of a price per n, a compared to appears.
Next.
Not a remarkable, uh, event for the quarter is that we declare commercial production of Bora on time on budget with no laws timing. So that actually again setting benchmarks 6 from scratch, 2 commercial production and close to 2 years. If you see on the picture on the top, on the right up, uh we see the the
The Wastewater or the sewage treatment station. So we're now I would remind that investors that we are innovating in this project where
100% of the water that we get externally. Come from sewage water from the city that we are treating. And using in operation, then we recycle all these uh, all this water within our own operation and we add what we lose in terms of evaporation.
Next slide.
So clever, I'll turn to you.
Number 1.
Uh, we're going to start with a summary of The Main Financial kpis. Uh, on this page, we show the results of our reporting quarter, the last few, uh, partners and dotted line is accumulated. Last 12 months uh for the end of each reporting period.
Overall as retrieval mentioned it as part of uh a couple of record highs uh in terms of net revenues uh we reached 248 million.
On this third quarter, bringing you the last 12 months you have 772 million in terms of just a little bit, uh, we have a record high for the fifth part or in a row. Uh, our AI improved over 40% compared to the previous quarter and that, uh, we found 152 million dollars. Uh, on this Q3 as a combination of the higher production, lower cash cost, and it could go to prices uh, as of the prices average market prices about 3450 dollars doing 2 3. So we still have some uh, uh, upside opportunity on the fourth quarter with current spot prices and the the last 12 months, I just set it down. Now close to 420 million dollars, increasingly partner after partner
When we look at the net income, we're reporting. Uh uh profits of 6 million dollars. Uh, this quarter uh once again uh we saw
Our pnl busy to buy no cash losses related to the all our outstanding, go to derivatives.
Uh good prices came from the beginning of the barter uh below uh 3300 and in the departure over 30,800. So we had to Market to do the Market to Market on about staying in position with impacting 75 million dollars. Uh,
No cash Financial losing departure uh, on the bottom. We see, uh, what is our adjusted net income? Uh, excluding certain no cash items. Uh, we uh, are reporting in 69 million dollars on these 2 3. Also, uh, significant improvements compared to the previous Partners, uh, coming from 37, you know, on June 2.
and then, uh, in terms of cash and that uh,
Cash. And then that uh our cash uh which was with our cash over 350 million dollars, uh, in the third quarter, uh already benefiting from the 2000 million dollar net for 6 from the NASDAQ IPO, our net that uh dropped to uh, only 64 million dollars at the end of the quarter. So combination of the proceeds from the IPO and also a strong African
Cash flow uh uh from the operations and as a combination of material and net debts and increasing uh uh under sevida our uh net, net net over last 12 months just having that dropped to 0.15 times.
Now, understanding the main items uh, between our um, just to be done and then income for the quarter. Uh as you saw we reported 150 trillion dollars matches with our overall. Uh what we highlighted as well with this strong performance that we uh had in the o5 operating business units. Uh with forens zoom and Reporting the highest angles to 40 million dollars.
You know, as many as around 35 million dollars each of them. Uh also very strong performances for everybody on the first quarter in which it was, we were still ramping up but we had a production in 3 months in the quarter. So reporting a a very good debt, that 25 million dollars and AUA despite being investment phases. With the automation, also goes to 20 million dollars, uh, in maybe dying the factor.
Uh, in terms of financial expense the the biggest level, what we had at 103 million dollars in uh, expenses in the quarter, most of it related to the outstanding of the hedges. We had a most of that is the no cash loss. Uh, that I mentioned before 75 billion dollars, uh uh, the market to markets and in the quarter, we had about 17 uh thousand uh all 6 gold colors, which were settled and things with um, led to, uh, uh, cash payments, on those positions of 17 million,
Uh, to calculate um, uh our uh, adjusted net income and all of them, no cash. Then realized that the biggest 1, there was no realized a loss, uh, with the gold Hedges. Uh, FS was immature for this quarter and uh, on this quarter, we uh, had a benefit to our net income uh due to the appreciation of the original. Mexican peso, we saw benefits only the first tax uh assets on no manufacturing items. So, we excluded this this benefit as well.
Really the net income to 64, 69 million at the end of the quarter.
uh in uh in here we show at the details analysis of the change in our cash position throughout the 30th quarter uh on the
left left side of uh Parliament side of the page you read. We we see with certainly the part with 1660 million dollars.
Then on this last portion of the page, is what we call the recurring finish flow to form, which is the cash flow generated by. Now, the 5 mines in production not including how much we're investing, to grow the business.
Uh, we generated 75 million uh already uh deducting, the realized losses with the good hedges.
In the middle of the charge, we report to the what we investing to grow the business, uh, either extension topics or expiration topics, uh in in projects or to increase the life of mine uh that we invest in 19 million coming down from the previous quarters. As, uh, everybody. I'm announcing commercial production and uh, to the right side more than financial items, uh, highlighting the, uh, the the repayments of principal debt. So we paid in 34 million dollars of gross debts, pay dividends of 20, it's even dollars into 3 related to the 2 2 results.
And then, of course, the net proceeds from the IPO, uh, bringing the cash position over 350 million dollars by the end of the quarter.
With this, we end the presentation, you know, bunch of questions.
And analysts if you wish to ask a question, please, click on raise raise hand. If your question has already been answered. You can leave the queue by clicking on put hand down.
Please hold while we pull for questions.
Our first question comes from Lucas lagi with XP. You can open your microphone.
Good morning. Um, Rodrigo clabber Natasha, congratulations on on the results. Really really strong results, and congratulations on the ramp up of BMA. I have 2 questions. Um, the first 1 consider considering your like, very Comfort balance sheet, I mean, especially after the, the follow on, um, the most recently uh and with gold prices, provide a very strong free cash flow level.
Could you please uh, provide us an update on your like, uh, Capital allocation strategy going forward? I mean, we know about all the projects that you have, uh, to implement um, um, um mention. But, um, considering this free free cash flow level and your balance sheet would be worth accelerating on m&as. I mean, do you see opportunities here as well? Um, considering your your leverage levels as we speak or or the focus should be on the above mentioned, uh, projects that you guys are indicating to the market. Uh, and another, um, the the my second question, if you could provide an update on the company's priorities, uh, regarding resources to reserves conversion. I mean, where should you should
We expect our um to expand uh its life of mine considering operating Performance Products going forward and uh, it's still on this topic. Specifically on Barbara, if you have any updates on the road will relocation,
And then we know that I could trigger an increased resource figure as well.
Uh so that would be my my questions. Thanks a lot.
Lucas and uh, so in terms of capital location, uh, as as you mentioned, we have a plan to continue to grow.
When you are close to a million ounces of production. Uh, before acquiring
Era before aquariums, gr plan was to go beyond 450,000 Oz. Now, you can add MSG on the top of this last year and go produced 80,000 ounces in that mine. Uh, that mine is will produce less this year. And probably next year, not 80 thousand because we have investment plan to put that mind into the full production and then you can add also add aura that we recently uh, early this year. We we, we showed a new PA that has a production of 90 to 95,000 and we are advancing on the feasibility study to publish by the end of this year. So we we add both, uh, then you see that we can go beyond 600,000 hours but to get to a meet announcements, uh, we will, uh, we will continue to Monitor and to look at new m&a, so we have not stopped it that we see still room for us to grow through m&a. And we are actively looking at other alternatives.
In terms of uh, uh, and about the dividends. Uh, as you can see, we've been able to pay strong dividends. Actually the highest dividend yield in the industry in the last 4 to 5 years, uh, on on average. Uh, in the meanwhile, we've been able to acquire companies developed new projects, expand exploration program, and maintain uh, uh, low. Uh, net debt levels and we should continue to see
This kind of movement uh along the next years while now, all are still including now benefiting from higher, uh, gold price and stable to lower all in sustaining cash card. So it's a very good combination for the company. Moving ahead, which will position that you continue to deliver growth and continued to deliver value, through dividends and share, buy back to our shareholders, in terms of exploration.
Uh, we are we are we have exploration program in all our our uh uh minds and business units. Uh, we see very interesting potential to expand resources and reserves in how much uh either by the underground that we are already, developing the ramp. Uh we see a lot of regional exploration targets that may take few years to mature, but on the Underground, this will be released uh probably in the next AF and new resource and Reserves.
We see a lot of room to increase, also resource and Reserve in motupa. Adding uh the the new acquisitions that we made last year. And also uh, sirenas we see very important uh uh upside also in a POA AUA only. Now we are understanding uh the the the geology and the few layers of gold that we have. We're now connecting the pit to. There's a lot of opportunities also to expand the current pit and also on Regional side to expand resources and reserves uh where we see a more limited uh is uh
In, in, in Honduras, in terms of exploration. Uh, this is where we don't see that much of, uh, uh, upside. But we, we do have a also, as you mentioned, a very interesting and very fast upside to be converted, uh, in Bourbon, uh, once the road, uh, relocation, uh, is approved. And you asked about when this this is progressing, uh, it's uh, as a little bit slower than we expected, but it's moving to the right direction. So, we are now, uh, doing a lot of Designing engineering and all those in order to provide, uh, the national authorities, uh, the good information information and enough so that they can approve.
Perfect with very clear. Thank you very much and have a nice day guys.
Our next question comes from Heard with Saffra. You can open your microphone.
Good morning everyone. Uh, thank you for taking my questions. Congrats on the results and the dividend.
So my first question maybe to to collaborate is how do you assess the ideal level of dividends to be paid in a quarter, just to get a sense of how how you you got to this 40 million? Um, any color on, that would be helpful. And maybe what we, what could we expect for the upcoming quarters? Should we, uh,
As your results will grow, as you generate more cash, we'll have less capex from robot, Emma. Do you think maybe it's a feasible to have dividends quarterly dividends above the levels of this quarter?
And my second question on nice work, on the on the liquidity, right? The average daily traded volume. So
Are the current average uh is your end goal.
And if not, if you could share any number in regards to what is your goal in terms of liquidity, and what else is in your hands? Uh to increase that? Thank you guys.
Yeah, but if you want to answer the first 1 and then I I go back to the second 1.
Uh, recovery. It's uh, uh,
It's a combination of factors know. It's a it's a it's a book. The minimum it's a we we have been consistently paying uh the events above the minimum. Uh so we're thinking consideration or whatever the cache, the evolution of the cash flows on the increase of good prices.
Uh, and also preliminary with you or expected cash and Investments Capital location in the new projects that we have.
Ahead of us. Um, so we have taking that in consideration and then uh, have been able to pay again above the minimum. Uh, he can keep in our business and use above analyzable 7%.
Going forwards. Uh, if uh, so if you look at the, the fourth quarter, good price is, uh, already knew levels when compared to the third departure. Uh, but Emma is now in commercial production. So, um, we cannot promise but we still room to keep increasing, uh, the level of distance.
Going forwards and uh and of course then depends uh for a 2026. Uh most of the projects that we're going to invest in that kind of conversation decisions. But uh, but yeah, in general, we see that potential.
On the on the liquidity targets. Uh I think uh or on the NASDAQ listing or recommendation from the banks was that for us to be included in the radar of a major investment funds in the US or Europe. We would have to reach above 10 million per day, Desiring above 15 million dollars per day. And now we are reaching close to 30 million dollars which is above what we expected. Um, we don't see this number, uh, except from our valuation of ourselves to continue to increase because the calculations based on, uh, the available shares to trade, uh, compared to the daily trading volume. Uh, we of course you can have days more and days less, but 30 minutes are very comfortable for us, of course, the higher, the number the better and we will also always uh try to push these daily trading volume higher because the higher more investment uh those investors
Can do on all.
30 million dollars already. A very good number.
Yeah. No, I agree. Just a quick follow-up. Uh, is there any indexes that you guys foresee to enter in the coming months or any like long-term desire?
of an index that you guys could potentially enter in the future,
Do you want to take this clever?
There are, there are several indices Ricardo, uh, uh, some some, some some relationships. So, where many, uh, some of the, uh, we understand, we, we, we already met the threshold, so,
I broke as well. We should not locked up for now. It's we, we need to to work with those things to be added. Uh, but uh, yeah much information on 1 but we have a temple that we're following and we have a a plan to to, to work. It should be added more and more just
Which is 1 of the reasons that we also listed in USDA and they to increase our daily trading volume is also to attract the indexes, but the indexes need to see several months of high daily trading volume in order to include as if not 2, or 2 quarters.
But we do expect to be included in several indexes along the next couple of months.
Great news. Thank you guys. Hope you have a nice day.
Our next question comes from Edgar de sa with ITA Oba.
You can open your microphone.
Hi. Hi everyone. Thank you. Thank you for the questions and congratulations for the results. Very strong results record high with us. So my my first question, uh, Rodrigo.
Proceeding with 1 1, Green Field projects but there are also a lot of opportunities that are operating assets, right? I was in Alma's last week, I was impressed with the the the Brownfield expansion there. Uh, there is also the potential of the the Brownfield of expansion and also MSG that is still pending the closing. So with all that I wanted to understand, how do you rank all those opportunities and which are your priorities for next year if you could share a little bit. Your thoughts on, on, on those 3 assets, uh, maybe 30 a little bit on the, the, the brown fields at alas. How is the, the, the closing of MSG? What are you already doing there? How do you expect the turnaround to be next year and even in in, if you are even considering starting the brown Fields, uh, before receiving all the approval for moving?
The roads, uh, maybe it could make sense given the current code price levels.
And then my, my second question, we discussed you already discussed a lot. You're very strong balance sheet position with the the strong free, cash flow generation. That will you will generate over the next few quarters. This will allow for higher dividend payments your uh Brownfield and Greenfield expansions but you have all all all
Always being mentioned about potentially Minds, uh, and I know that you Rodrigo have been very active in this front. What I wanted to understand is that considering all that you have to deliver next year.
The green fields, the expansions that your current projects—do you think that?
There is room for, uh, adding another project already in 2026 and would that be, uh, operating assets, uh, a pre-operating assets, H, how are you thinking about, uh, this, uh, okay, that those are my questions. Thank you.
Thank you Edgard. Uh, so, uh, the way we see all the, the brown field expansions, how much. Now the push back in in also, uh, in Napa, uh, those are leaded by the minds itself. So we have the, the 2 kinds of wire to, to create this culture of the centralized decision making process, and also, uh, strengthen the local teams, but the local teams with some support from corporate. They they've been able to plan and invest and implement the expansion. So that doesn't compete with bandwidth with corporates. So all of them are analyzing and actually, as you mentioned, how has already implemented an expansion. And we also have a plan to to expand significantly more about Emma Once the road.
Uh, is reallocated. We don't plan going to the second question to start investing heavily on expansion of world Bama, uh, before uh, the, the, the, the road to relocation because there's the, the the mind will not be able to supply the extra capacity for whatever which is different from Alma that uh, we've been able to see the underground and few other near mine operation. The mine can also provide a higher volume to the plant that's been, uh, expandable.
Terms of capital location. Also next year, uh, we we continue to move forward uh with the feasibility study and also with the socialization of era, we expect to release the new feasibility study by the end of this year. So that while advancing and getting close to also a construction decision for MATA. So that between the end of this year, early, and next year, we can decide, uh, which 1 to start building, uh, first and how, how far we'll take from starting 1 to take to another 1? Are we taking 6 months of delay 1 year of delay, or a year and you have all those steps that are being done for us to understand how we could fast track at the execution of both without overlapping, a lot of our activities.
Was a lot of bandwidth to do both to to expand Greenfield and also do the turnaround uh in MSG. So we continue to see other Alternatives, either Brownfield or Greenfield, not a green field that we would have to invest in next year. But perhaps a Greenfield that we could continue to plan the to engineering and be able to start building in 2 years or 3 years. After we we finishing with
Thank you, that's great.
Our next question comes from Marcelo arazzi with btg, you can open your microphone.
Good morning guys. Uh 2 questions on my side as well. So the first 1 is a follow-up on the dividend discussion given that you guys have been paying more than the, than the policy over the the past few quarters. Can we expect a change in the policy? Is that something that you guys currently discuss? And on the second 1 we saw some some significant impact this quarter from the the Hedge, uh the gold Hedges and and I wanted to hear you guys. What are your thoughts on this going forward? Should we should we expect a change in the in the approach on the go go the hedges going forward. How could can we expect this this true?
To evolve especially regarding the the Guatemala project. Thank you.
Thanks so much Sal on the, on the dividend policy, we don't we we have no discussions to change the the policy. Uh, 20% of debt, minus recurring capex, seems to be uh already uh very interesting number although we've been able to pay more, all right? And then that that's what we should see on our is the at least 20% a little bit damaged. We can capex and when we feel, they have extra cash and then we will, uh, uh, pay more as we've been doing in the last, uh, quarters.
and then you ask the second question was about, uh,
yeah, the relative gold color. Oh, the approach by the
uh, the derivatives, uh, think when you see, when we made the derivatives for bourbon gold, price around 2,000, the payback we would like, to guarantee was
With the 1700 and 1750 and uh we still had to build a project to finish our and then but boy am I? And then also the acquisitions
So, uh, we we, we prefer to do a zero-cost caller, in order not to drag cache, uh, from uh, from operations and preserve our balance sheet.
Uh, now as you see gold price, going way, beyond our break, even or going Way Beyond the the minimum requirement for to guarantee the payback. And also with uh uh very strong cash flows from operations. We do not see a room need anymore for zero cost callers and if we go on ahead, just uh, with my just buy some ports, just to guarantee that that project will pay back the equity and the debt. But yet, all right, we are in the business of gold. Volatility of gold is important for our for our shareholders. So we would that would do that no more in very specific cases. If necessary.
But no more selling calls.
That's clear. Thank you guys.
Our next question comes from haa BBI. You can open your microphone.
Hello. Good morning and thanks for taking my questions. Uh, Rodrigo. Um, you discussed a lot of your, um, you know, growth initiatives. I just wanted to, um, to, to go to through any specific 1, uh, MSG, right? So, could you please, uh, give us like an update on the expecting closing of the, the EMS, the MSG deal.
You know, understand what has changed in your framework for MLA initiatives. Thank you.
On MSG, things are progressing uh, for us to, to have the closing during this quarter. Uh, so you we should see all really jumping in and driving that turnaround, uh, from the day after the closing. Um,
Uh, we are not, uh, we are, we've been able to meet and uh uh, a lot with the Anglo, which has been very kind to open all the information, the offices and visits. We have a very focused team, uh, at the operation understanding more and we are, uh, working on the plan but yet no decision. We cannot influence this mind still belonged, uh, to Anglo gold. Uh, but what we have a very strong already and detailed plan to execute the day after uh, closing.
And this plan should take all the the turnaround there to put this mind at the, the levels that we believe is a more efficient, it will take close to a year, we will start seeing some results on the first 6 months. But yet only after 1 year, we'll be able to put that mind into a very high uh uh production and we will not push too high production for next year because we want to focus on underground development availability of the equipments. And also uh, mind planning so that
Uh, that that takes time and cannot be done in a very fast.
And then you ask the borrower Acquisitions, uh, with a higher gold prices. Uh we are in the business of producing gold. Of course, with this High gold price, in 1 hand, we have a uh, cash flow have important cash flow from the operations in order perhaps when you acquire something uh the price is going to be higher compared to what uh uh we could see 2 years ago but yet to still have for example. Uh, now just entered full production with uh we bought this and invested with a lower uh gold price. We acquired with a lower gold price. We acquired multiple still to be built with the lower gold price and we want to continue to grow through, uh, new acquisitions. I don't think we will be able to buy, uh, an important assets with the PRI pricing that, uh, gold price of 15001800 that will be higher than this. But yeah, that will be very careful in order to make sure that we will not, uh, destroy
Uh, even if gold price goes down a little bit, we'll still keep, uh, being able to add significant value to our shareholders, buying new m&as. So, we'll be very careful. We will think about the upside and downside cases.
But I think it's important to continue to grow and, uh, if you see recommendations from the analysts and the banks, what they see is actually gold price continue to appreciate, and not yet to evaluate once, major and fundamentals, uh, economic and geopolitical. Uh, structural changes is happening in the world and we don't see that uh, uh, moving back to the old time, so that will continue to put pressure on gold, uh, to continue to appreciate
Okay, thank you.
Our next question comes from iniki Marcus with Goldman Sachs you can open your microphone.
Hey guys. Uh, thank you for the question. So
Going back a little bit on the, on the dividend side. Um, you already mentioned, you're not planning on, on changing the dividend policy but I I just want to know with the possible change of the dividend taxation, uh,
Does that change at all your strategy on shareholder? Remuneration maybe Explore More BuyBacks instead, or
Can we see an advanced payment of the of the events to avoid the possible taxation as well?
And then uh second question, just on on Alma's uh cash cost was a great performance. Uh
Double digit decline quarter over quarter just just trying to understand what your expectations of how sustainable. This this lower cash cost is for next quarter and eventually 2026. Thank you.
Bye. Bye for now. Take the first 1 and then I can check the second 1.
Yeah. Uh, so, um, historically we have had in place, uh, uh, by Tech program. Um,
Of course, always balancing because 1 of our main goals and moving to NASDAQ was to increase liquidity. So we will have to going forward to balance how much we return capital for dividends and BuyBacks, uh, but it's in our rather, and now we, we should see, uh, like the next couple of weeks or months.
Um,
I think that's going to buy back and do this on the dividends. We're watching on the
Discussion on taxation Etc. That makes sense. If uh, if we can do anything like to to minimize and any any other thing we're going to evaluate but uh we don't have any any decision on that yet.
But this new taxation on dividend does not affect the dividends that we are paying through or North America BVI cup. And this is only
Uh, from Brazil to outside.
Which is within our operations, to to, to pay dividends from Brazil to to corporate, which is part of our production.
Then your question about the aulos, only sustaining cash cost. I think we are reaching a very reasonable levels. Uh, if we can continue to expand the plant, as we are planning, there's still room to improve when we add also higher grid for underground and we might be also be able to to uh, to reduce a bit. So I think these levels is very reasonable to continue. We
Will have ups and downs quarter by quarter because always depend on the nature. Nature is not, uh, always uh, uh,
Or homogeneous. So it has variances of grades uh according to the moth but I think we are at a very reasonable levels. Now
got it. Thank you.
Our next question comes from Graham. Tanaka with Tanaka Capital, you can open your microphone.
Thank you. Um, congratulations on your performance outstanding as we follow for the last 2 years. Uh, great results. Um, I I just was wondering uh, an m&a. Uh, what have you seen in general pricing of the cost of Acquisitions? Um, given the the the sharp rise in gold prices. A lot of interest from everybody overseas, are you seeing a very, uh sign, you know, more difficult environment for and a pricing of m&a? And have you lost any um, potential deals because increased comp competition? Thank you.
Uh, of course, when with this new the uh appreciation of the gold price uh, assets tend to evaluate more
Uh, yet that did not happen all over the assets producing assets and producing company has picked up higher. I pick up, pick it up more. This appreciation rather than Greenfield project copy that still have, uh, lack of source of capital. But yes, I think uh, we will see a higher prices, uh, in the market and uh, we will, we are very cautious. Uh, yeah. We gave up already. Yes, 1 deal because uh, of a higher gold price and we failed. I was not fitting very well within our portfolio and we would didn't see value how to optimize operations optimize Investments, so that we could increase, uh, in generator return, despite higher, uh, gold price. But yes, uh, that's a that's happening as we speak. And, uh, hopefully now with stabilizing, uh, gold price, uh, then you because when it goes up, very fast, the expectation of the
buyer, and the seller are very different.
So that avoids, a lot of transactions once gold can be a little bit more stable than those expectation of the buyer and the and the seller that narrow the Gap and then we will see more transactions, right? Okay, thank you and uh, longer term say maybe over 3 or 5 year 3, to 5 years,
um, what do you anticipate the
Range of potential growth rates to be in production volume. Um, and and um, will the mix be changing in terms of how much growth you can achieve from exploration productivity gains uh and m&a will there be much change in the future relative to the Past? You have you've done a great job on m&a and even adding to existing production, thank you.
For your project and new acquisitions. As I mentioned, uh, we can we know very much how to go beyond 600,000 oz of production, but that you reach a million ounces, where we believe is the right Spectrum for to be the decent valuation. We, we should continue to pursue our new m&as and the last 4 years are very good example, how we see m&as, uh we don't, what you will not see on Aura is uh super large m&a, data, if gold price perhaps goes down that can significantly job Paradise or Equity market value, or or cash flows. So we would like to be balanced among the our portfolio. Of course, as we are growing, we will see, uh, a bigger Minds as you can see. Now erador these are close to 100,000 and without expansion close to 80,000, but with the expansion above 100,000, uh, so that we, you should see also, uh, as going more towards 100,000 above 100, 100 100.
100,000 oz of Mines potential production along the next 3. Few years uh yet not provoking an unbalanced in terms of production among our our assets.
Fabulous. That's very reassuring. Thank you very much and good luck.
Capital, can you please touch on latest thinking ra sanctioning of era versus Mata? How is social license going in Guatemala?
We are progressing, uh, with the discussions with a local authorities, local community Representatives. Uh, we also, uh, brought few of them to visit our operation in Bora, a couple of months ago, they were very well impressed by how professional We Run The Mines, how attention we get to hiring local people form.
Local supplier and also how well we treat our internal uh employees that is helping them to socialize with their own communities.
So, things are progressing well, yet. We don't have the decision, uh, but I think we are moving, uh, to the right direction to be able to make any decisions between end of this year and early. Uh, next year,
Thank you. Our next question. Comes from with 10x Capital. You can open your microphone.
You can open your microphone.
We don't hear you, Federico. Maybe the microphone is not working.
I believe he's having some technical issues, so the Q&A section is over. We would like to hand the floor back to Mr. Rodrigo Barbosa. For the company's final remarks,
So, thank you all for participating in this design call. Again, we are moving very fast in our plan to deliver growth, to deliver dividends, and value to our shareholders. As I was mentioning, in 4 or 5 years, we came from 3 operations; now we are at 5. In order to be ready to be built, and another 1 that we will incorporate after the closing. So, in the meanwhile, we've been able to pay the highest dividend yield in the sector, maintaining our low leverage for the future. What we can see right now this quarter is perhaps a higher production with the BMA now reaching close to full production next year. We have MSG.
Production incorporating uh, into our production and also generating. A why will be investing either era or M Park decide to to build that? So we can, we will invest in another first, with the Leigh 6 months a year, a year and something. And then we build em. So we will continue to see aura
But again, reference to all of we we don't want to go crazy and we we don't, we are not. We we don't want to build Empires. We like a creative Acquisitions and with a very well-thought in our balance sheet, so that if something goes wrong, it doesn't significantly drop our dice, the whole story. It took us a lot to get to where we are right now. We see a lot of room to continue with the same speeds. We don't need to put everything on risk with a crazy Acquisitions. So I thank you all and I look forward to to to to meeting you on next quarters.
RS conference is now closed. We thank you for your participation and wish you a nice day.