Q2 2026 Aura Minerals Inc Earnings Call

August 6, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Operator: Good morning, ladies and gentlemen. Welcome to Q2 2026 earnings call. This conference is being recorded, and the replay will be available at the company's website at Aura Minerals.com/investidores. The 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 your Zoom screen and then choose to enter the Portuguese room. After that, select mute original audio. We would like to inform that all attendees will only be listening the conference during the presentation, and then we will start the questions and answers section when further instructions will be provided.

Operator: Good morning, ladies and gentlemen. Welcome to Q2 2026 Earnings Call. This conference is being recorded, and the replay will be available at the company's website at Aura Minerals.com/investidores. The 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 your Zoom screen and then choose to enter the Portuguese room. After that, select mute original audio. We would like to inform that all attendees will only be listening the conference during the presentation, and then we will start the questions and answers section when further instructions will be provided.

Speaker #3: Good morning, ladies and gentlemen. Welcome to second quarter 2026 earnings call. This conference is being recorded and the replay will be available at the company's website at auraminerals.com/investidores.

Speaker #3: The 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 your Zoom screen and then choose to enter the Portuguese room.

Speaker #3: After that, select "Mute Original Audio." Para acessar nossa conferência em português, clique no ícone do globo ao lado inferior direito da sua tela Zoom e selecione a opção "Portuguese Room".

Speaker #3: Ao acessar a nova sala, certifique-se de mutar o áudio original. We would like to inform that all attendees will only be listening to the conference during the presentation, and then we will start the questions and answers section when further instructions will be provided.

Speaker #3: 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 Executive Board and the current information available to the company.

Operator: 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 executive board and the current information available to the company. 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 the respective forward-looking statements. Present at this conference, we have Rodrigo Barbosa, President and CEO, Kleber Cardoso, CFO, and Glauber Luvizotto, COO. Now I will turn the conference over to Rodrigo Barbosa to begin conference.

Speaker #3: 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 the respective forward-looking statements.

Speaker #3: Present at this conference, we have Rodrigo Barbosa, President and CEO, Kleber Cardoso, CFO, and Glauber Louvisotto, COO. Now, I will turn the conference over to Rodrigo Barbosa to begin the conference.

Rodrigo Cardoso Barbosa: Thank you very much, and welcome everybody. Thank you for attending this call again. I'll be happy to go through the major milestones of the company during the quarter. As usual, Kleber is going to go from the details of the results. Then we finally open to Q&A where we also have here our COO, Glauber. If you have any more technical questions, he would also be happy to answer. Overall, the quarter we had weaker production than Q1. Nevertheless, all the necessary works, all the necessary milestones on the background of the results that means we will achieve, is being achieved in order for us to have a much stronger production on Q3 and then Q4, as we have done in the past with a weaker production the H1 and a stronger production on the H2.

Rodrigo Barbosa: Thank you very much, and welcome everybody. Thank you for attending this call again. I'll be happy to go through the major milestones of the company during the quarter. As usual, Kleber is going to go from the details of the results. Then we finally open to Q&A where we also have here our COO, Glauber. If you have any more technical questions, he would also be happy to answer. Overall, the quarter we had weaker production than Q1. Nevertheless, all the necessary works, all the necessary milestones on the background of the results that means we will achieve, is being achieved in order for us to have a much stronger production on Q3 and then Q4, as we have done in the past with a weaker production the H1 and a stronger production on the H2.

Speaker #4: Thank you very much, and welcome everybody. Thank you for attending this call again. I'll be happy to go through the major milestones of the company during the quarter and, as usual, Kleber is going to go through the details of the results.

Speaker #4: And then we finally open to Q&A. And where we also have here our COO, Glauber, if you have any more technical questions, he would also be happy to answer.

Speaker #4: So overall, the quarter we had a weaker production than the first quarter. Nevertheless, all the necessary works, all the necessary milestones on the background of the results that means we will achieve is being achieved in order for us to have a much stronger production on Q3 and then Q4 as we happened in the past with a weaker production the first semester.

Speaker #4: And a stronger production on the second semester. And actually, this year, as we're going to go through on my mind by mind, we'll see that this balance between first and second semester can be even bigger than what happened in the past.

Rodrigo Cardoso Barbosa: Actually this year, as we are going to go through on mine by mine, we will see that this balance between H1 and H2 can be even bigger than what happened in the past. Overall, we produce on the H1 158,000 ounces. As I mentioned to you, we are strong enough to keep the guidance for the H2, which means that we will produce a total of 182 or 232,000 ounces, between 182 and 232 ounces during the H2, which means on average, potentially at 100 below one quarter, 100,000 ounces in the other quarter above 100,000 ounces. That means that we are very much on track to produce a very significant improvement during the Q3 and Q4, and that is a combination of mine sequencing and also the ramp-up of MSG. Our revenues on the quarter reached $236 million.

Rodrigo Barbosa: Actually this year, as we are going to go through on mine by mine, we will see that this balance between H1 and H2 can be even bigger than what happened in the past. Overall, we produce on the H1 158,000 ounces. As I mentioned to you, we are strong enough to keep the guidance for the H2, which means that we will produce a total of 182 or 232,000 ounces, between 182 and 232 ounces during the H2, which means on average, potentially at 100 below one quarter, 100,000 ounces in the other quarter above 100,000 ounces. That means that we are very much on track to produce a very significant improvement during the Q3 and Q4, and that is a combination of mine sequencing and also the ramp-up of MSG. Our revenues on the quarter reached $236 million.

Speaker #4: So overall, we produced on the first half of the year 158,000 ounces and a week, as I mentioned to you, we have strong enough to keep the guidance for the second semester, which means that we will produce a total of 182 or 232,000 ounces between 182 and 232 ounces during the second half, which means on average potentially at 100 below one quarter, 100,000 ounces in the other quarter above 100,000 ounces.

Speaker #4: So that means that we are very much on track to produce a very significant improvement during the Q3 and Q4. And that is a combination of mind sequencing and also the ramp-up of MSG.

Speaker #4: As a revenues, on the quarter reached 236 million dollars, of course, lower gold price, and also lower production means a lower revenues. When we look on the EBITDA, on the other hand, we reached close to 200 million dollars.

Rodrigo Cardoso Barbosa: Of course, lower gold price and also lower production means lower revenues. When we look on the EBITDA, on the other hand, we reached close to $200 million, and I would also highlight that for 12 consecutive quarters, Aura has been increasing the EBITDA. On the last 12 months, we produced $800 million of EBITDA with the current gold price, or the average gold price on the last 12 months is exactly what it is right now. With the total ounces of 313,000 ounces. Imagine if we achieve the production that we are promising for this Q3 and Q4, that the EBITDA can be significantly also pushed up once we continue to have appreciation of at least stable to higher gold prices while significant higher production in our mine. In terms of All-In Sustaining Cash Costs, very much in line with what we planned.

Rodrigo Barbosa: Of course, lower gold price and also lower production means lower revenues. When we look on the EBITDA, on the other hand, we reached close to $200 million, and I would also highlight that for 12 consecutive quarters, Aura has been increasing the EBITDA. On the last 12 months, we produced $800 million of EBITDA with the current gold price, or the average gold price on the last 12 months is exactly what it is right now. With the total ounces of 313,000 ounces. Imagine if we achieve the production that we are promising for this Q3 and Q4, that the EBITDA can be significantly also pushed up once we continue to have appreciation of at least stable to higher gold prices while significant higher production in our mine. In terms of All-In Sustaining Cash Costs, very much in line with what we planned.

Speaker #4: And I would also highlight that for 12 consecutive quarters Aura has been increasing the EBITDA. On the last 12 months, we produced 800 million dollars of EBITDA with the current gold price of the average gold price on the last 12 months is exactly what it is right now.

Speaker #4: And with the total ounces of 313,000 ounces. Imagine if then we achieve the production that we are promising for this third and fourth quarter, that EBITDA can be significantly also pushed up once we continue to have appreciation of at least stable to higher gold prices while significant higher production in our mind.

Speaker #4: In terms of our insustaining cash cost, very much in line with what we planned the first number that we see close to 2,000 ounces per ounces seems high, but I would invite you the investors and the analysts to understand that this number has been pushed up because of the turnaround of MSG.

Rodrigo Cardoso Barbosa: The first number that we see, close to 2,000 ounces per ounces seems high, but I would invite you, the investors and the analysts, to understand that this number has been pushed up because of the turnaround of MSG. If you take out the turnaround of MSG, we would have been at $1,600 for gold equivalent ounces. Understanding that we have a significant higher production coming in from MSG. We have a significant high production for Apoena, Borborema, We still have improvements on All-In Sustaining Cash Costs coming during the H2 due to mine sequencing and also expansion that is happening either in Almas and also in Borborema. In terms of recurring cash flows, we reached $80 million.

Rodrigo Barbosa: The first number that we see, close to 2,000 ounces per ounces seems high, but I would invite you, the investors and the analysts, to understand that this number has been pushed up because of the turnaround of MSG. If you take out the turnaround of MSG, we would have been at $1,600 for gold equivalent ounces. Understanding that we have a significant higher production coming in from MSG. We have a significant high production for Apoena, Borborema, We still have improvements on All-In Sustaining Cash Costs coming during the H2 due to mine sequencing and also expansion that is happening either in Almas and also in Borborema. In terms of recurring cash flows, we reached $80 million.

Speaker #4: If you take out the turnaround of MSG, we would have been at 1,600 dollars of gold for gold equivalent ounces. Understanding that we have a significant higher production coming in for MSG, we have a significant higher production for Apoena, Borborema.

Speaker #4: So we still have a improvement on our insustaining cash cost coming during the second semester due to mind sequencing and also expansion that is happening either in almost and also in Borborema.

Speaker #4: In terms of recurring cash flows, we reached 80 million dollars. When you exclude the losses of the gold hedges, which is going to happen this year and also next year, we would have made close to 120 million dollars of recurring cash flows before the gold losses.

Rodrigo Cardoso Barbosa: When you exclude the losses of the gold hedges, which is going to happen this year and also next year, we would have made close to $120 million of recurring cash flows up before the gold losses. Out of this $120 million, we used $54 million for expansion CapEx, additional $68 million between share buybacks and also dividends, which means that Aura continues to grow to fund its own growth and the dividends and the buybacks with our own cash flows from operations, despite of course, that we leverage when we have expansions that Kleber can also go through a little bit more detail by the end of the presentation. In terms of net income, of record high net income, $218 million. That's the quarter that gold price has depreciated, unfortunately.

Rodrigo Barbosa: When you exclude the losses of the gold hedges, which is going to happen this year and also next year, we would have made close to $120 million of recurring cash flows up before the gold losses. Out of this $120 million, we used $54 million for expansion CapEx, additional $68 million between share buybacks and also dividends, which means that Aura continues to grow to fund its own growth and the dividends and the buybacks with our own cash flows from operations, despite of course, that we leverage when we have expansions that Kleber can also go through a little bit more detail by the end of the presentation. In terms of net income, of record high net income, $218 million. That's the quarter that gold price has depreciated, unfortunately.

Speaker #4: And out of this 120 million dollars, we used 54 million dollars for expansion capex and then additional 68 million dollars between share buybacks and also dividends.

Speaker #4: Which means that Aura continues to grow to fund its own growth and the dividends and the buybacks with our own cash flows from operations despite, of course, that we leverage when we have expansion that Kleber can also go through a little bit more detail by the end of the presentation.

Speaker #4: In terms of net income of record high net income 218 million dollars, that's the quarter that gold price has depreciated. Unfortunately, but the positive impact that we have a market to market up on the net income that was positively by 126 million dollars.

Rodrigo Cardoso Barbosa: The positive impact that we have a market-to-market up on the net income that was positively by $126 million. We just announced, as we are producing significant cash flow from the operations, being able to fund our growth with the cash flows. We also just announced a new $60 million of dividend, which means $0.72 per share that will be paid during Q3 related to Q2. Together with this dividend, as we also approved a share buyback program of $200 million. From now on, investors should see a split between dividend and share buyback coming in the next quarters, where we will continue to remunerate our shareholders significantly now through also a share buyback program. In terms of our project at Era Dorada, mostly on time, on budget. I have on the slides to give more details.

Rodrigo Barbosa: The positive impact that we have a market-to-market up on the net income that was positively by $126 million. We just announced, as we are producing significant cash flow from the operations, being able to fund our growth with the cash flows. We also just announced a new $60 million of dividend, which means $0.72 per share that will be paid during Q3 related to Q2. Together with this dividend, as we also approved a share buyback program of $200 million. From now on, investors should see a split between dividend and share buyback coming in the next quarters, where we will continue to remunerate our shareholders significantly now through also a share buyback program. In terms of our project at Era Dorada, mostly on time, on budget. I have on the slides to give more details.

Speaker #4: We just announced as we are producing significant cash flows from the operations being able to fund our growth with the cash flows. We also just announced a new 60 million dollars of dividend, which means 0.72 dollars per share that will be paid during the third quarter related to the second quarter.

Speaker #4: Together with this dividend, as we also approved a share buyback program of 200 million dollars. So from now on, investors should see a split between dividend and share buyback coming in in the next quarters where we will continue to remunerate our shareholders significantly, now through also a share buyback program.

Speaker #4: In terms of project Era Dorada, mostly on time, on budget, I have on the slide to give a more details. And also the average daily traded volume significant higher meaning that we have been achieving the objective when we listed in Nasdaq to say push our daily trading volume significantly higher reminding that a year ago we were trading 2 million dollars 1 million dollars per day on the first semester and now we are close to 100 million dollars per day on average during the last quarter.

Rodrigo Cardoso Barbosa: Also the average daily traded volume significant higher, meaning that we have been achieving the objective when we listed in Nasdaq to push our daily trading volume significantly higher. Reminding that a year ago, we were trading $2 million, $1 million per day on H1, and now we are close to $100 million per day on average during the last quarter. In terms of safety, as we mentioned last quarter, unfortunately we had 1 lost time incident in Borborema in March this year. A lost time incident that the person is already fastly recovery and is already fully recovered at working at site. Although there was a procedure not followed, we revised all the procedures. We revised and made adjustments in all the operations in order to make sure that we avoid any single lost time incident.

Rodrigo Barbosa: Also the average daily traded volume significant higher, meaning that we have been achieving the objective when we listed in Nasdaq to push our daily trading volume significantly higher. Reminding that a year ago, we were trading $2 million, $1 million per day on H1, and now we are close to $100 million per day on average during the last quarter. In terms of safety, as we mentioned last quarter, unfortunately we had 1 lost time incident in Borborema in March this year. A lost time incident that the person is already fastly recovery and is already fully recovered at working at site. Although there was a procedure not followed, we revised all the procedures. We revised and made adjustments in all the operations in order to make sure that we avoid any single lost time incident.

Speaker #4: In terms of safety, as we mentioned last quarter, unfortunately we had one lost time incident in Borborema in March this year. The person involved in the lost time incident is already recovering quickly and is now fully recovered and working at the site.

Speaker #4: Although there was a procedure not followed, we revised all the procedures. We revised and made the due diligence in all the operations in order to make sure that we avoid any single lost time incident.

Rodrigo Cardoso Barbosa: If you look the last 2 years, we had only 1 lost time incident, but our objective is to have zero lost time incidents. That's why we are constantly monitoring our internal program to make sure that we have the highest safety standards in the industry, and that we make sure that everybody that works with us return home safely. Also on the stability of the structures, again, we do have constantly monitoring external consultants that monitor our geotechnical structures, not only the tailings dams, underground pits, pads, and all of that is according to satisfactory level. In terms of quarterly production, on the left side of this slide, you see a quarterly production, and on the line is the last 12 months production. As we can see since Q2 2025, we've been gradually improving quarterly production the last 12 months.

Speaker #4: And if you look the last two years, we have only one lost time incident, but we are objective is to have zero lost time incidents.

Rodrigo Barbosa: If you look the last 2 years, we had only 1 lost time incident, but our objective is to have zero lost time incidents. That's why we are constantly monitoring our internal program to make sure that we have the highest safety standards in the industry, and that we make sure that everybody that works with us return home safely. Also on the stability of the structures, again, we do have constantly monitoring external consultants that monitor our geotechnical structures, not only the tailings dams, underground pits, pads, and all of that is according to satisfactory level. In terms of quarterly production, on the left side of this slide, you see a quarterly production, and on the line is the last 12 months production. As we can see since Q2 2025, we've been gradually improving quarterly production the last 12 months.

Speaker #4: That's why we are constantly monitoring our internal program to make sure that we have the highest safety standards in the industry and that we make sure that everybody that works with us return home safely.

Speaker #4: Also on the stability of the structures, again, we do have a constantly monitoring external consultants that monitor our geotechnical structures, not only the tail is then underground pits, pads, and all of that is according statistically level.

Speaker #4: So in terms of quarterly production on the left side, this slide that you see a quarterly production and on the line is the last 12 months production.

Speaker #4: As we can see since Q2 2025, we've been gradually improving quarterly production the last 12 months. That's because the ramp up of Borborema that continue to we actually continue to increase our production.

Rodrigo Cardoso Barbosa: That's because the ramp-up of Borborema that we actually continue to increase our production. Now from now on, after Q1 and Q2 of weaker production in MSG, although we are planning a much higher production for next year, we'll see gradual improvement on MSG on Q3 and in Q4 on the top of other mines also that we improved. We will continue to see these last 12 months improving from the 313, of course, then within our guidance from 340 and 390 by the end of this year. When we look on the right side, the production per quarter per mine, we see Q1 of MSG, 9,000 ounces. Q2, as I already mentioned to the market, Q2 will be weaker than the first one due to infrastructure investments and infrastructure activities that we had to implement in MSG.

Rodrigo Barbosa: That's because the ramp-up of Borborema that we actually continue to increase our production. Now from now on, after Q1 and Q2 of weaker production in MSG, although we are planning a much higher production for next year, we'll see gradual improvement on MSG on Q3 and in Q4 on the top of other mines also that we improved. We will continue to see these last 12 months improving from the 313, of course, then within our guidance from 340 and 390 by the end of this year. When we look on the right side, the production per quarter per mine, we see Q1 of MSG, 9,000 ounces. Q2, as I already mentioned to the market, Q2 will be weaker than the first one due to infrastructure investments and infrastructure activities that we had to implement in MSG.

Speaker #4: And now from now on, after the first quarter and the second quarter of weaker production in MSG, although we are planning very a much higher production for next year, we'll see a gradual improvement on MSG on Q3 and in Q4.

Speaker #4: And on the top of other minds also that we improve. So we'll continue to see this last 12 month improving from the 313, of course, then reaching our guide within our guidance from 340 and 390 by the end of this year.

Speaker #4: When we look on the right side, the production per quarter per mine we see the first quarter MSG 9,000 ounces, second quarter as I already mentioned to the market, the second quarter will be weaker than the first one.

Speaker #4: Due to infrastructure investments and infrastructure activities that we had to implement in MSG, part of that was planned, part was more part was challenging when we faced the first and started producing in MSG.

Rodrigo Cardoso Barbosa: Part of that was planned, part was most challenging when we faced the first and started producing in MSG. We faced a more challenging situation in terms of infrastructure, and when we deviated all the equipment, when we had to make a choice between put our attention equipment to production or to the turnaround or to the underground development. We always choose underground development because that's what will structurally change the mine in order for us to be able to produce close to 80,000 ounces per year production and All-In Sustaining Cash Costs nearing down close to $2,000 per ounce.

Rodrigo Barbosa: Part of that was planned, part was most challenging when we faced the first and started producing in MSG. We faced a more challenging situation in terms of infrastructure, and when we deviated all the equipment, when we had to make a choice between put our attention equipment to production or to the turnaround or to the underground development. We always choose underground development because that's what will structurally change the mine in order for us to be able to produce close to 80,000 ounces per year production and All-In Sustaining Cash Costs nearing down close to $2,000 per ounce.

Speaker #4: We faced a more challenging situation in terms of infrastructure and that we are when we deviated all the equipments, when we had to make a change.

Speaker #4: Choice between put our attention equipment to production or to the turnaround to the underground development, we always choose underground development because that's what we'll structurally change the mine in order for us to be able to produce close to 80,000 ounces per year production.

Speaker #4: And all means sustaining cash costs nearing down close to $2,000 per ounce. All the background work in MSG has been done and I will have here a slide also to mention that give us a strong confidence that we are not only improved on Q3 and Q4, but by the end of the year, be prepared to in 2027, be able to produce close to 80,000 ounces of a gold with the LOE sustaining cash costs nearing down close to 2,000, 2,200 dollars per ounce.

Rodrigo Cardoso Barbosa: All the background work in MSG has been done, and I will have here a slide also to mention that give us a strong confidence that we will not only improve on Q3 and Q4, but by the end of the year, be prepared to, in 2027, be able to produce close to 80,000 ounces of gold with the All-In Sustaining Cash Costs nearing down close to $2,000, $2,200 per ounce. In terms of Borborema, Q1, 17,000 ounces, Q2, 14,000 ounces. This is super planned. It's a mine sequencing grades. As we come to Q3 and Q4, we will see a combination of both. Number 1, in Q3, we see higher grades coming into the plant, and in Q4, on the top of the higher grades, we have deep bottleneck.

Rodrigo Barbosa: All the background work in MSG has been done, and I will have here a slide also to mention that give us a strong confidence that we will not only improve on Q3 and Q4, but by the end of the year, be prepared to, in 2027, be able to produce close to 80,000 ounces of gold with the All-In Sustaining Cash Costs nearing down close to $2,000, $2,200 per ounce. In terms of Borborema, Q1, 17,000 ounces, Q2, 14,000 ounces. This is super planned. It's a mine sequencing grades. As we come to Q3 and Q4, we will see a combination of both. Number 1, in Q3, we see higher grades coming into the plant, and in Q4, on the top of the higher grades, we have deep bottleneck.

Speaker #4: In terms of Borborema, first quarter 17,000 ounces, second quarter 14,000 ounces. This is super planned. It's a mind sequencing grades as we come to Q3 and Q4, we will see a combination of both.

Speaker #4: Number one, in Q3, we see higher grades coming into the plant. And in Q4, on the top of the higher grades, we also have we are deep bottom deep bottoming neck the plant wants to date the bottom neck is the filters and we are implementing new filters that should be online by Q4.

Rodrigo Cardoso Barbosa: The plant, to date, the bottleneck is the filters, and we are implementing new filters that should be online by Q4, between Q3 and mostly Q4, so that we will also be able to increase production on the top of higher production. So we should see a higher production of Borborema coming in on the H2. Almas is a slightly improvement in production. This mine, as I mentioned to you, we built this mine at 1.3 million tons. We already finished the last year running at 2 million tons, and now we are upgrading to 3 million tons, so that will gradually improve capacity as we should finish the year close to 3 million tons per year, and that will also have an impact on the quarter production. Minosa, we had a decrease from 17 to 14,000 ounces.

Rodrigo Barbosa: The plant, to date, the bottleneck is the filters, and we are implementing new filters that should be online by Q4, between Q3 and mostly Q4, so that we will also be able to increase production on the top of higher production. So we should see a higher production of Borborema coming in on the H2. Almas is a slightly improvement in production. This mine, as I mentioned to you, we built this mine at 1.3 million tons. We already finished the last year running at 2 million tons, and now we are upgrading to 3 million tons, so that will gradually improve capacity as we should finish the year close to 3 million tons per year, and that will also have an impact on the quarter production. Minosa, we had a decrease from 17 to 14,000 ounces.

Speaker #4: Between Q3 and mostly Q4 so that we will also be able to increase production on the top of higher production so we should see a higher production of Borborema coming in on the second semester.

Speaker #4: Almost is a slightly improvement in production. This mine, as I mentioned to you, we built this mine at 1.3 million tons. We already running finished the last year running at 2 million tons.

Speaker #4: And now we are upgrading to 3 million tons. So that will gradually improve capacity as we should finish the year close to 3 million tons per year.

Speaker #4: And that will also have an impact on the quarter production. Minossa, we had a decrease from 17 to 14,000 ounces. We are in an area of the better of stacking pad that is more struggle.

Rodrigo Cardoso Barbosa: We are in an area of stacking pads that is more struggle. We had to pile higher than we did in the last few years. That means that the process of recovery takes more time. We have more money going to our working capital, and perhaps we lose some recovery. And as we piled all of this already, also during the Q2, we should see Minosa with a weaker production on next two quarters and then recovering more production on Q4 for the year, where we should be more towards the low end of the guidance for the year in Minosa. Apoena, despite this lower production from 7 to 6,000 ounces, all the background activities, all the opening the pits, all the investments on the push-back, and also the mine development is being very much in line with what's forecasted.

Rodrigo Barbosa: We are in an area of stacking pads that is more struggle. We had to pile higher than we did in the last few years. That means that the process of recovery takes more time. We have more money going to our working capital, and perhaps we lose some recovery. And as we piled all of this already, also during the Q2, we should see Minosa with a weaker production on next two quarters and then recovering more production on Q4 for the year, where we should be more towards the low end of the guidance for the year in Minosa. Apoena, despite this lower production from 7 to 6,000 ounces, all the background activities, all the opening the pits, all the investments on the push-back, and also the mine development is being very much in line with what's forecasted.

Speaker #4: We had to pile higher that we did in the last few years. That means that the process of recovery takes more time. We have more money going to a working capital.

Speaker #4: And perhaps we lose some recovery. So and as we piled all of this already also during the third the second quarter, we should see Minossa with a weaker production on next quarter and then recovering more production on Q4 for the year where we should be more towards the low end of the guidance for the year in Minossa.

Speaker #4: Apoena, despite this lower production from 7 to 6,000 ounces, all the background activities, all the opening the pit, all the investment on the pushback and also the mine development is being very much in line with what forecasted.

Rodrigo Cardoso Barbosa: That will allow us to have confidence that we will reach higher grades during Q3 and Q4 that will support a significant higher production during the next H2. In Aranzazú, we also doing the mine sequencing now in H1, lower grade, and in H2, we should reach a higher grade, which will also provide us an ability to produce a stronger H2. Overall, as you can see, as happened in last year and this year, a combination of MSG turnaround plus Borborema, the bottleneck and in higher grades, and also Apoena with the higher grades. A combination of these three mines gives us confidence that we will not only be within the guidance of the year, but not close to the lower end of the guidance. Next slide.

Speaker #4: So that we allow us to have confidence that we will reach higher grades during Q3 and Q4 that will support a significant higher production during the next semester.

Rodrigo Barbosa: That will allow us to have confidence that we will reach higher grades during Q3 and Q4 that will support a significant higher production during the next H2. In Aranzazú, we also doing the mine sequencing now in H1, lower grade, and in H2, we should reach a higher grade, which will also provide us an ability to produce a stronger H2. Overall, as you can see, as happened in last year and this year, a combination of MSG turnaround plus Borborema, the bottleneck and in higher grades, and also Apoena with the higher grades. A combination of these three mines gives us confidence that we will not only be within the guidance of the year, but not close to the lower end of the guidance. Next slide.

Speaker #4: In Aranza Azul, we also during the mind sequencing now on the first semester, lower grade and now on the second semester, we should reach a higher grade which we also provide as an ability to produce a stronger second half of the year.

Speaker #4: So overall, as you can see as we happen to happen in last year and this year, a combination of MSG, turnaround plus Borborema, the bottleneck and in higher grades and also then Apoena with a higher grades combination of these three mines give us confidence that we will not only be within the guidance of the of the year, but not close to the lower end of the guidance.

Speaker #4: Next slide. In terms of all in sustaining cash cost, as I mentioned to you, close to $2,000 per ounce when you exclude MSG where then we'll be close to 1,500.

Rodrigo Cardoso Barbosa: In terms of our All-In Sustaining cash costs, as I mentioned to you, close to $2,000 per ounce when you exclude MSG, then we'll be close to $1,500. Understanding that also during H2 where we're going to have higher grades in Borborema, we're going to have a higher grade in Apoena, we're going to have a higher production in MSG. Also higher productions, not that high, but continue to slightly improve Almas as we are now upgrading the plant. Give us a very good confidence that we also will meet the guidance for the year on the All-In Sustaining cash costs. And that understanding that when we issue the guidance, the exchange rate in Brazil and also in Mexico was significantly more favorable. For example, in Brazil, close to 5.50 reals per dollar.

Rodrigo Barbosa: In terms of our All-In Sustaining cash costs, as I mentioned to you, close to $2,000 per ounce when you exclude MSG, then we'll be close to $1,500. Understanding that also during H2 where we're going to have higher grades in Borborema, we're going to have a higher grade in Apoena, we're going to have a higher production in MSG. Also higher productions, not that high, but continue to slightly improve Almas as we are now upgrading the plant. Give us a very good confidence that we also will meet the guidance for the year on the All-In Sustaining cash costs. And that understanding that when we issue the guidance, the exchange rate in Brazil and also in Mexico was significantly more favorable. For example, in Brazil, close to 5.50 reals per dollar.

Speaker #4: Understanding that also during the second semester, we're going to have higher grades in Borborema, we're going to have higher grades in Apoena, and we're going to have higher production in MSG.

Speaker #4: And also the also higher production not that high but continue to slightly improve Almas as we are now upgrading the plant. So give us a very good confidence that we also will meet the guidance.

Speaker #4: For the year on the all in sustaining cash cost and that understanding that when we issue the guidance, the exchange rate in Brazil and also in Mexico was significantly more favorable.

Speaker #4: For example, in Brazil, close to five reals point 50 per dollar. Now we are running at close to five reals per dollar. So that's 10% of losses in exchange rent that on the top of a higher oil prices and oil chemical prices, we believe that the team is working in order to be able to deliver results within the guidance that we gave to the market.

Rodrigo Cardoso Barbosa: Now we are running at close to 5 reals per dollar. That's 10% of losses in exchange rate. That's on the top of higher oil prices and oil chemical prices. We believe that the team is working in order to be able to deliver results within the guidance that we gave to the market. As I was mentioning, Era Dorada moving very much in line with the plan. We have recently approved in Q3, the full investments. We already spent $15 million. Close to 60% already of the groundwork has already been done. Focusing a lot hiring from local communities that they don't have expertise in mining. We are still training, but yet with 53% of the employees coming from Asunción Mita and region, which is where we are located. And 93% from Guatemala.

Rodrigo Barbosa: Now we are running at close to 5 reals per dollar. That's 10% of losses in exchange rate. That's on the top of higher oil prices and oil chemical prices. We believe that the team is working in order to be able to deliver results within the guidance that we gave to the market. As I was mentioning, Era Dorada moving very much in line with the plan. We have recently approved in Q3, the full investments. We already spent $15 million. Close to 60% already of the groundwork has already been done. Focusing a lot hiring from local communities that they don't have expertise in mining. We are still training, but yet with 53% of the employees coming from Asunción Mita and region, which is where we are located. And 93% from Guatemala.

Speaker #4: As I was mentioning at Adorada, moving very much in line with the plan, we have recently approved on the third quarter the full investment.

Speaker #4: We are ready to spend 15 million dollars, 60% of the close to 60% already of the groundwork has already been done. Focusing a lot hiring from local communities that they don't have expertise in mining.

Speaker #4: We are still training, but yet with 53% of the employees coming from assumption the meter and region, which is where we are located. And 93% from Guatemala.

Rodrigo Cardoso Barbosa: That shows our commitment with the project to provide opportunities for the local labor. We also approved on the project a significant improvement on the water treatment. Actually, now taking a lot of the water at the potable level, and now we are in agreement with the local authority in order that this water can be, once in production, can be distributed to the local communities. Once in that area has happened also in many Central American countries, there's no treatment of water, no sewage treatment. And the water they have access from the rivers are somehow contaminated, which means health problems, which is the major problem that they have when we heard from them what are their concerns during 2000 and 2025.

Speaker #4: So that shows a commitment with the project to provide opportunities for the local labor. We also approved on the project a significant improvement on the water treatment.

Rodrigo Barbosa: That shows our commitment with the project to provide opportunities for the local labor. We also approved on the project a significant improvement on the water treatment. Actually, now taking a lot of the water at the potable level, and now we are in agreement with the local authority in order that this water can be, once in production, can be distributed to the local communities. Once in that area has happened also in many Central American countries, there's no treatment of water, no sewage treatment. And the water they have access from the rivers are somehow contaminated, which means health problems, which is the major problem that they have when we heard from them what are their concerns during 2000 and 2025.

Speaker #4: Actually now taking a lot of the water at the potable level and now we are we are in agreement with the local authority in order that this water can be once in production can be distributed to the to the local communities once in that area as happens also in many Central America countries there's no treatment of water no sewage treatment and the water they have access from the rivers are somehow contaminated which means a health problems which is the major problems that they have when we heard from them what are their concerns during 2025.

Speaker #4: Just open as transparency at Adorada House this means that we have a place in the city where we give full transparency in the person that can answer any question that any people might arise we are there to answer to show the project the impacts and everything that is going to happen in the region so that people can have the confidence that this project will not have negative impact but actually it will go beyond and have positive impact.

Rodrigo Cardoso Barbosa: Just open as transparency, El Dorado House, this means that we have a place in the city where we give full transparency and a person that can answer any question that any people might arise. We are there to answer, to show the project impact and everything that is going to happen in the region so that the people can have the confidence that this project will not have negative impact. Actually it will go beyond and have positive impact once we are treating this water at potable level. Also has a geothermal project that we are now in final studies in order to have a renewable energy supplying the energy of this project. As we progress in the construction, we should expect a negative news here and there. We've done a significant amount of work communicating with the local communities. We have majority of approval from COCODEs.

Rodrigo Barbosa: Just open as transparency, El Dorado House, this means that we have a place in the city where we give full transparency and a person that can answer any question that any people might arise. We are there to answer, to show the project impact and everything that is going to happen in the region so that the people can have the confidence that this project will not have negative impact. Actually it will go beyond and have positive impact once we are treating this water at potable level. Also has a geothermal project that we are now in final studies in order to have a renewable energy supplying the energy of this project. As we progress in the construction, we should expect a negative news here and there. We've done a significant amount of work communicating with the local communities. We have majority of approval from COCODEs.

Speaker #4: Once we are treating this water at potable level and also has a geothermal project that we are now in final studies in order to have a renewable energy supplying the energy of this project.

Speaker #4: As we progress in the construction, we should expect a negative news here and there. We've done a significant amount of work. Communicating with the local communities.

Speaker #4: We have majority of approval from co-coordinators. s. Co-coordinators are the person elected by the local communities recognized by law to represent them and they are mostly in favor of this project.

Rodrigo Cardoso Barbosa: COCODEs are the person elected by the local communities, recognized by law to represent them, they are mostly in favor of this project and supporting us to move on. We don't expect any hiccups in implementing this project up to commercial production. Although, of course, some negative might happen. Next. For MSG, very happy to share that we are super in line with what we projected in terms of our productivity underground when we acquired this project. Actually, we are above what we expected in terms of resources reserves. Just a quick remind, this project we acquired with a 370,000 ounces of gold equivalent ounces of gold in proven and probable. Our reserves, we already are at 753 in 6 months. We acquired this project with 1 million ounces of measured indicated. We are already at 1.8 million ounces in measured indicated.

Rodrigo Barbosa: COCODEs are the person elected by the local communities, recognized by law to represent them, they are mostly in favor of this project and supporting us to move on. We don't expect any hiccups in implementing this project up to commercial production. Although, of course, some negative might happen. Next. For MSG, very happy to share that we are super in line with what we projected in terms of our productivity underground when we acquired this project. Actually, we are above what we expected in terms of resources reserves. Just a quick remind, this project we acquired with a 370,000 ounces of gold equivalent ounces of gold in proven and probable. Our reserves, we already are at 753 in 6 months. We acquired this project with 1 million ounces of measured indicated. We are already at 1.8 million ounces in measured indicated.

Speaker #4: And supporting us to move on. So we don't expect any hiccups in the implementing this project up to commercial production. Although of course some negative might happen.

Speaker #4: Next. For MSG, very happy to share that we are super in line with what we projected in terms of productivity underground when we acquired this project.

Speaker #4: And actually we are above what we expected in terms of resources reserves. Just a quick remind. This project we acquired with a 370,000 ounces of gold equivalent ounces in of gold in proven and proven or reserves.

Speaker #4: We are already at 753 in six months. We acquired this project with 1 million ounces of measured and indicated. We are already at 1.8 million ounces in measured and indicated.

Speaker #4: And we acquired this project 1.4 million ounces in inferred. We are ready at close to 2 million ounces above 2 million ounces. Of inferred.

Rodrigo Cardoso Barbosa: We acquired this project 1.4 million ounces inferred. We are already at close to 2 million ounces, above 2 million ounces of inferred. This project on the long term, despite doing exploration, we are going to do more exploration in order to significant also increase resource and reserves. Most important is this the mine development underground speed, because that's what's necessary in order to invert the mine sequences from top down to bottom up. We are 80% to 90% on average above what this mine was performing last year. We are definitely being able to improve underground development, yet we still have room to continue to improve.

Rodrigo Barbosa: We acquired this project 1.4 million ounces inferred. We are already at close to 2 million ounces, above 2 million ounces of inferred. This project on the long term, despite doing exploration, we are going to do more exploration in order to significant also increase resource and reserves. Most important is this the mine development underground speed, because that's what's necessary in order to invert the mine sequences from top down to bottom up. We are 80% to 90% on average above what this mine was performing last year. We are definitely being able to improve underground development, yet we still have room to continue to improve.

Speaker #4: So this project on the long term despite doing exploration so which we now we are going to do more exploration in order to significant also increase resources and reserves.

Speaker #4: Every most important is this under the mind development underground speed because that's what's necessary in order to invert the mind sequences from top down to bottom up.

Speaker #4: We are 80% to 90% on average above what this mine was performing last year. So we are definitely being able to improve underground development.

Speaker #4: And yet we still have room to continue to improve. That give us a lot of confidence that by the end of the year we'll be able to completely invert the mind methodology in order to 2027 be able to produce close to 80,000 ounces and push down the all in sustaining cash cost to close to $2,000 per ounce.

Rodrigo Cardoso Barbosa: That give us a lot of confidence that by the end of the year, we'll be able to completely invert the mine methodology in order to 2027 be able to produce close to 80,000 ounces and push down the all-in sustaining cash costs to close to $2,000 per ounce. Of course, during this turnaround We compromise short-term production in order to have a stronger long-term production. Actually now we are already at the highest speed in production. We should see improvements in Q3 then Q4, another improvement, most of the improvement in production will be on 2027. Now I'll turn the floor to Kleber so that he can present the results.

Rodrigo Barbosa: That give us a lot of confidence that by the end of the year, we'll be able to completely invert the mine methodology in order to 2027 be able to produce close to 80,000 ounces and push down the all-in sustaining cash costs to close to $2,000 per ounce. Of course, during this turnaround We compromise short-term production in order to have a stronger long-term production. Actually now we are already at the highest speed in production. We should see improvements in Q3 then Q4, another improvement, most of the improvement in production will be on 2027. Now I'll turn the floor to Kleber so that he can present the results.

Speaker #4: Of course, during this turnaround, we don't we compromise short-term production in order to have a stronger long-term production. But actually now we are ready at the higher speed in production.

Speaker #4: We should see improvements in Q3 and then Q4 another improvement. But most of the improvement in production will be on 2027. Now turn the floor to Clever so that he can present the results.

Speaker #1: Okay. Morning everyone. Yeah. We start with a summary of the main financial KPIs for the quarter, the last few reporting quarters and accumulated last 12 months for each reporting period.

Joao Kleber Cardoso: Okay. Morning, everyone. We start with a summary of the main financial KPIs for the quarter, the last few reporting quarters, and accumulated last 12 months for each reporting period. We are reporting net revenues of $336 million in Q2, as anticipated by Rodrigo. That is a combination of lower production due to mining sequencing and also a lower average price in Q2 compared to Q1. When we look into the accumulated last 12 months net revenues, we are reporting a record high close to $1.3 billion. In terms of adjusted EBITDA, it is a similar story, $197 million. When we look into accumulated in the last 12 months, over $800 million already, as Rodrigo anticipated. We have been increasing our accumulated last 12 months EBITDA for now 12 quarters in a row since Q2 2023.

Kleber Cardoso: Okay. Morning, everyone. We start with a summary of the main financial KPIs for the quarter, the last few reporting quarters, and accumulated last 12 months for each reporting period. We are reporting net revenues of $336 million in Q2, as anticipated by Rodrigo. That is a combination of lower production due to mining sequencing and also a lower average price in Q2 compared to Q1. When we look into the accumulated last 12 months net revenues, we are reporting a record high close to $1.3 billion. In terms of adjusted EBITDA, it is a similar story, $197 million. When we look into accumulated in the last 12 months, over $800 million already, as Rodrigo anticipated. We have been increasing our accumulated last 12 months EBITDA for now 12 quarters in a row since Q2 2023.

Speaker #1: We're reporting net revenues of 336 million dollars in the second quarter as anticipated by Rodrigo as a combination of lower production due to mining sequencing and also a lower average price in Q2 compared to Q1.

Speaker #1: However, when we look to the accumulated last 12 months net revenues, we are reporting a record high close to 1.3 billion dollars now. In terms of adjustability, it's a similar story.

Speaker #1: $197 million. But then, when we look into accumulated last 12 months, over $800 million already. As Rodrigo anticipated, we have increased our accumulated last 12 months EBITDA for now 12 quarters in a row.

Speaker #1: Since Q2 2023, so now three years in which we are increasing our accumulated EBITDA, which shows the direction we are going in when we look at our annual results.

Joao Kleber Cardoso: Now three years in which we are increasing our accumulated EBITDA, which shows the direction we are going in terms when we look into our annual results. In terms of net income, we are reporting strong net income of $218 million as a combination of the results from the operations and also unrealized gains with the outstanding gold derivatives. Because there was a big reduction between the gold prices at the beginning of the quarter and end of the quarter, we recognized these non-cash gains. Excluding these non-cash impacts, our adjusted net income is likely below last quarter at $97 million this quarter. In terms of cash equivalents and net debts, we closed our cash close to $250 million. There was an expected increase in net debts to $168 million.

Kleber Cardoso: Now three years in which we are increasing our accumulated EBITDA, which shows the direction we are going in terms when we look into our annual results. In terms of net income, we are reporting strong net income of $218 million as a combination of the results from the operations and also unrealized gains with the outstanding gold derivatives. Because there was a big reduction between the gold prices at the beginning of the quarter and end of the quarter, we recognized these non-cash gains. Excluding these non-cash impacts, our adjusted net income is likely below last quarter at $97 million this quarter. In terms of cash equivalents and net debts, we closed our cash close to $250 million. There was an expected increase in net debts to $168 million.

Speaker #1: In terms of net income, we're reporting strong net income of 218 million dollars as a combination of the results from the operations and also unrealized gains with the outstanding gold derivatives.

Speaker #1: Because there was a reduction between the gold prices at the beginning of the quarter and the end of the quarter, we recognized these non-cash gains.

Speaker #1: Excluding these no cash impacts, our adjusted net income slightly below last quarter at 97 million dollars this quarter. And then in terms of cash equivalents and net debts, we close our cash close to 250 million dollars.

Speaker #1: There was an expected increase in net debts to $168 million. However, that was compensated by the increase in the accumulated net debt over EBITDA.

Joao Kleber Cardoso: That was compensated by the increase in the accumulated net debt over EBITDA, which translated into our leverage ratio remaining stable between the quarters at 0.2 times. Moving to understanding the main items impacting between adjusted EBITDA and adjusted net income. When we look at the breakdown for the adjusted EBITDA, we had four business units that came with strong results. Super Bora, Minosa, Almas, and Aranzazú all reporting adjusted EBITDA in the above $43 million, between $43 million and $56 million range. As expected for this quarter, we expected Apoena and MSG to be the weakest quarter in Q2, show stronger results from H2. Amortization and depreciation at $26 million expenses. Pretty much in line with our expectation.

Kleber Cardoso: That was compensated by the increase in the accumulated net debt over EBITDA, which translated into our leverage ratio remaining stable between the quarters at 0.2 times. Moving to understanding the main items impacting between adjusted EBITDA and adjusted net income. When we look at the breakdown for the adjusted EBITDA, we had four business units that came with strong results. Super Bora, Minosa, Almas, and Aranzazú all reporting adjusted EBITDA in the above $43 million, between $43 million and $56 million range. As expected for this quarter, we expected Apoena and MSG to be the weakest quarter in Q2, show stronger results from H2. Amortization and depreciation at $26 million expenses. Pretty much in line with our expectation.

Speaker #1: Which then translated into our leverage ratio remaining stable between the quarters at 0.2 times. Now moving to understanding the main items impacting between adjusted EBITDA and adjusted net income.

Speaker #1: When we look at the breakdown for the adjusted EBITDA, we had four business units that came with strong results. All reporting adjusted EBITDA in the above 43 million dollars between 43 and 56 million dollars range.

Speaker #1: And as expected for this quarter, we expected a plan and MSG to be the weakest quarter in Q2. And then show stronger results from the second half of the year.

Speaker #1: Amortization depression and depreciation amortization at 26 million dollar expenses. Pretty much in line with our expectation. This quarter we're reporting a financial net income of 61 million dollars.

Joao Kleber Cardoso: This quarter, we are reporting a financial net income of $61 million, which is mainly driven by the no gain related to the gold hedges, which I mentioned in the previous page. Partially compensated by the realized losses with the gold hedges. This was the portion of gold collars that expire in the quarter, we made the payments in which we paid $37 million. Income tax expenses of $20 million, as well as expected. Other expenses, we had a gain this quarter of close to $10 million, mainly related to the completion of the sale of the San Francisco mine, which was part of the Apoena complex. We had a non-recurring provision for contingency liabilities this quarter of $5 million, bringing the net income to $218 million, as we saw. Excluding the non-cash impacts, bringing our adjusted net income to $97 million this quarter.

Kleber Cardoso: This quarter, we are reporting a financial net income of $61 million, which is mainly driven by the no gain related to the gold hedges, which I mentioned in the previous page. Partially compensated by the realized losses with the gold hedges. This was the portion of gold collars that expire in the quarter, we made the payments in which we paid $37 million. Income tax expenses of $20 million, as well as expected. Other expenses, we had a gain this quarter of close to $10 million, mainly related to the completion of the sale of the San Francisco mine, which was part of the Apoena complex. We had a non-recurring provision for contingency liabilities this quarter of $5 million, bringing the net income to $218 million, as we saw. Excluding the non-cash impacts, bringing our adjusted net income to $97 million this quarter.

Speaker #1: Which is mainly driven by the no gain related to the gold edges which I mentioned the previous page. Partially compensated by the realized losses with the gold edges.

Speaker #1: This was the portion of gold colors that expire in the quarter and we made the payments. In which we paid the 37 million dollars.

Speaker #1: Income tax expenses of 20 million dollars. As well as expected other expenses we had again this quarter of close to 10 million dollars. Mainly related to the completion of the sale of the San Francisco mining.

Speaker #1: Which was part of the Apoena complex. We had a no recurring provision for contingency liabilities. This quarter 5 million dollars bringing the net income to 218 as we saw.

Speaker #1: And then, excluding the non-cash impacts, bringing our adjusted net income to $97 million this quarter. And now, understanding the main items that changed our cash position between the beginning and the end of the quarter.

Joao Kleber Cardoso: Understanding the main items that changed our cash position between the beginning and the end of the quarter. We started the quarter with around $207 million. The six mines in production, they generated $117 million during the quarter, of which a portion of that was used to pay the hedges that were settled in the quarter. We allocated $37 million for that purpose, invested $58 million for the growth of the company, mainly the expansion CapEx. We had $53 million mostly split between Era Dorada, where we announced the board approval in April and invested already $15 million in Q1. Also expansion of plant capacity and underground development in Almas. Also investments in Oz, in Apoena.

Kleber Cardoso: Understanding the main items that changed our cash position between the beginning and the end of the quarter. We started the quarter with around $207 million. The six mines in production, they generated $117 million during the quarter, of which a portion of that was used to pay the hedges that were settled in the quarter. We allocated $37 million for that purpose, invested $58 million for the growth of the company, mainly the expansion CapEx. We had $53 million mostly split between Era Dorada, where we announced the board approval in April and invested already $15 million in Q1. Also expansion of plant capacity and underground development in Almas. Also investments in Oz, in Apoena.

Speaker #1: We started the quarter with around 207 million dollars. Then the six mines in production they generated 117 million dollars during the quarter. Of which a portion of that was used to pay the hedges that were settled in the quarter.

Speaker #1: We allocated 37 million dollars for that purpose. Invested 58 million dollars for the growth of the company. Mainly the expansion capex. We had 53 million dollars mostly split between Era Dorada.

Speaker #1: We announced the board approval in April and invested already 15 million dollars in the first quarter. And also expansion of plants capacity and underground development in Almas.

Speaker #1: And also investments in Apoena. And then to the right side we see the financial like items. And we highlight the capital return to the shareholders through dividends and share repurchases.

Joao Kleber Cardoso: To the right side, we see the financial-like items, and we highlight the capital return to the shareholders through dividends and share repurchases of $68 million, bringing in the cash to the end of the period closer to $50 million. This is where we end our presentation. Open to questions. Thank you.

Kleber Cardoso: To the right side, we see the financial-like items, and we highlight the capital return to the shareholders through dividends and share repurchases of $68 million, bringing in the cash to the end of the period closer to $50 million. This is where we end our presentation. Open to questions. Thank you.

Speaker #1: Of 68 million dollars. Bringing the cash to the end of the periods close to 50. And this we end our presentation open to questions.

Speaker #1: Thank you.

Speaker #2: We are going to start the question and answer section for investors and analysts. If you wish to ask a question, please press the bottom reaction and then click on raise hand.

Operator: We are going to start the questions and answers section for investors and analysts. If you wish to ask a question, please press the bottom Reaction, and then click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on Put Hand Down. Our first question comes from Mr. Mateus Moreira from Bradesco BBI. Please, you may proceed.

Speaker #2: If your question has already been answered, you can leave the QE by clicking on put hand down. Our first question comes from Mr. Mateus Moreira from Bradesco BBI.

Speaker #2: Please you may proceed.

Mateus Moreira: Hello, good morning all, thank you very much for taking my questions. My first question on capital allocation. We've seen overall, of course, a very volatile macro environment recently, which has weighed on gold prices. I'm wondering whether these changes your M&A appetite in any way. Would you adopt a more conservative stance on M&A in the near term? Within your broader capital allocation framework, you've just announced a new buyback program of up to $200 million. How is management thinking about balancing growth, CapEx, buybacks, and dividends? What are the main priorities here for management going forward? That's my first question, I'll ask my second one.

Matheus Moreira: Hello, good morning all, thank you very much for taking my questions. My first question on capital allocation. We've seen overall, of course, a very volatile macro environment recently, which has weighed on gold prices. I'm wondering whether these changes your M&A appetite in any way. Would you adopt a more conservative stance on M&A in the near term? Within your broader capital allocation framework, you've just announced a new buyback program of up to $200 million. How is management thinking about balancing growth, CapEx, buybacks, and dividends? What are the main priorities here for management going forward? That's my first question, I'll ask my second one.

Speaker #3: Hello, good morning all, and thank you very much for taking my questions. My first question is on capitalization. I mean, we've seen, overall, of course, a very volatile macro environment recently.

Speaker #3: Which has weighed on gold prices. I'm wondering whether this changes your M&A appetite in any way. I mean would you adopt a more conservative stance on M&A in the near term?

Speaker #3: And within your broader capital allocation framework. I mean you've just announced a new buyback program of up to 200 million dollars. How is management thinking about balancing growth, capex and growth capex buybacks and dividends?

Speaker #3: What are the main priorities here for management going forward? That's my first question. And then the second one.

Speaker #4: Well thank you all. Mateus for the questions. First in terms of M&A appetite. We continue to have appetite. Independently from gold price. Actually when gold price had a spike too high in the short term period as it happened when reached 5500.

Rodrigo Cardoso Barbosa: Thank you, Mateus, for the questions. First, in terms of M&A appetite, we continue to have appetite independently from gold price. Actually, when gold price had a spike too high in the short-term period, as it happened when we hit 5,500, this is where the gap of the seller and the buyer widened. It is difficult to do transaction when they have those kind of volatility. Actually now, when gold price came back to 4,200, 4,300, we seek a more converging expectations in terms of price from the buyer with the seller. We are always super conservative, and we do not play on gold price. We do our analysis. We put the market's average projections for gold and also copper. That is all. We do not see why we would change our M&A appetite because of this volatility. It is very important step for us in terms of value creation.

Rodrigo Barbosa: Thank you, Mateus, for the questions. First, in terms of M&A appetite, we continue to have appetite independently from gold price. Actually, when gold price had a spike too high in the short-term period, as it happened when we hit 5,500, this is where the gap of the seller and the buyer widened. It is difficult to do transaction when they have those kind of volatility. Actually now, when gold price came back to 4,200, 4,300, we seek a more converging expectations in terms of price from the buyer with the seller. We are always super conservative, and we do not play on gold price. We do our analysis. We put the market's average projections for gold and also copper. That is all. We do not see why we would change our M&A appetite because of this volatility. It is very important step for us in terms of value creation.

Speaker #4: This is where the gap of the seller and the buyer widen. So it's difficult to do transaction when they have those kind of volatility.

Speaker #4: And actually now when gold price came back to 4200, 4300. We see a more converging expectations in terms of price from the buyer with the seller.

Speaker #4: And we are always super conservative and we don't play on gold price. We are on we do our analysis. We put the market average projections for gold and also copper.

Speaker #4: And then so we don't see why we would change our M&A appetite because of this volatility. And it's very important step for us in terms of value creation.

Speaker #4: Just a quick remind for value creation in Aura. It's a very clear three avenues. Number one is execution on greenfield projects. Which we are.

Rodrigo Cardoso Barbosa: Just a quick reminder for value creation in Aura, it is a very clear three avenues. Number one, execution on greenfield projects, which we are. We just implemented Borborema. We are now doing the turnaround of MSG. We are now also implementing at Era Dorada. We are finalizing studies for Matupá. We are very much in line to deliver the first avenue of value creation in projects that have a significantly high return. Number two is to continue to increase resources and reserves. As I mentioned in MSG, in six months of work with the numbers and also adjusting some cutoff grades and inverting the mine sequences, we could increase significant, double the reserves and significant increase measured indicated and also inferred. When we issued the report on resources and reserves this year, we could see that we actually doubled most of our resources and also our reserves.

Rodrigo Barbosa: Just a quick reminder for value creation in Aura, it is a very clear three avenues. Number one, execution on greenfield projects, which we are. We just implemented Borborema. We are now doing the turnaround of MSG. We are now also implementing at Era Dorada. We are finalizing studies for Matupá. We are very much in line to deliver the first avenue of value creation in projects that have a significantly high return. Number two is to continue to increase resources and reserves. As I mentioned in MSG, in six months of work with the numbers and also adjusting some cutoff grades and inverting the mine sequences, we could increase significant, double the reserves and significant increase measured indicated and also inferred. When we issued the report on resources and reserves this year, we could see that we actually doubled most of our resources and also our reserves.

Speaker #4: We just implemented Borborema. We are now doing the turnaround of MSG. We are now also implementing Era Dorada. We are finalizing studies for Matopa.

Speaker #4: So we are very much in line to deliver the first avenue of value creation in projects that have a significantly high return. Number two is to continue to increase resources and reserves.

Speaker #4: As I mentioned in MSG in six months of work with the numbers and also adjusting some cut off grains and inverting the mine sequencing.

Speaker #4: We could increase significant double the reserves and significant increase measure indicated and also inferred. Actually when we issued the report of on resources and reserves this year.

Speaker #4: We could see that we actually doubled most of our resources and also reserves. Then the third avenue to complete the first question is the continue to grow through M&As.

Rodrigo Cardoso Barbosa: The third avenue to complete the first question is the continue to grow through M&As. The sector tends to pay a better price as you grow. Companies that get next to a million ounces tends to have a more fair NAV multiple. Where we are today, we are significantly discounted where we feel we should be. Part of this is also that we need to deliver the growth. We know very much how to get, and we are in the execution to get the 600,000 ounces in the upcoming years. We know that the best valuation starts when you get closer to a million ounces, and that will only happen through M&As. You also question about the dividends and also how we want to invest the capital.

Rodrigo Barbosa: The third avenue to complete the first question is the continue to grow through M&As. The sector tends to pay a better price as you grow. Companies that get next to a million ounces tends to have a more fair NAV multiple. Where we are today, we are significantly discounted where we feel we should be. Part of this is also that we need to deliver the growth. We know very much how to get, and we are in the execution to get the 600,000 ounces in the upcoming years. We know that the best valuation starts when you get closer to a million ounces, and that will only happen through M&As. You also question about the dividends and also how we want to invest the capital.

Speaker #4: The sector tends to have pay a better price or as you grow companies that get next to a million ounces tends to have a more fair NAV multiple where we are today we are significantly discounted where we feel we should be.

Speaker #4: And part of this is also that we need to deliver the growth. We know very much how to get and we are in the execution to get the 600,000 ounces in the upcoming years.

Speaker #4: But we know that the best valuation starts when you get closer to a million ounces. And that we only happen through M&As. Then you also question about the dividends.

Speaker #4: And also, how we want to invest the capital. If you look behind, Mateus, take a look at what happened in '21, '22, '23, '24, '25, and now what's happening that I highlight in '26.

Rodrigo Cardoso Barbosa: If you look behind, Mateus, take a look at what will happen in 2021, 2022, 2023, 2024, 2025, and what is happening that I highlight in 2026. We have been able to do both. This company has such a high payback, right? The payback of our project is one or two years. On the equity will be maybe sometimes less than one year. Once we sequence those projects, we have been able to, number one, implement the greenfield projects, which we did Almas. We implemented also Borborema. We acquired Borborema, we acquired Era Dorada, we acquired MSG. We paid one of the highest dividend yields in the sector in the world, and yet we are 0.2 times net debt to EBITDA. We have not been challenged in order to say to split or, Let us jeopardize growth. Let us pay dividends, or the opposite.

Rodrigo Barbosa: If you look behind, Mateus, take a look at what will happen in 2021, 2022, 2023, 2024, 2025, and what is happening that I highlight in 2026. We have been able to do both. This company has such a high payback, right? The payback of our project is one or two years. On the equity will be maybe sometimes less than one year. Once we sequence those projects, we have been able to, number one, implement the greenfield projects, which we did Almas. We implemented also Borborema. We acquired Borborema, we acquired Era Dorada, we acquired MSG. We paid one of the highest dividend yields in the sector in the world, and yet we are 0.2 times net debt to EBITDA. We have not been challenged in order to say to split or, Let us jeopardize growth. Let us pay dividends, or the opposite.

Speaker #4: We've been able to do though both. This company has such a high payback. The payback of a project one or two years. On the equity you'll be maybe sometimes less than one year.

Speaker #4: So once we sequence those projects we've been able to number one implement the greenfield projects which we did Almas. We implemented also Borborema. Then we acquired Borborema.

Speaker #4: We acquired Era Dorada. We acquired MSG. We paid the one of the highest dividend yield in the sector in the world. And yet we are 0.2 times net that will be done.

Speaker #4: So we don't we have not been challenged in order to see to split out. Let's jeopardize growth. Let's pay dividends. Or the opposite. So we've been able to do a combination of both.

Rodrigo Cardoso Barbosa: We've been able to do a combination of both. This quarter, this semester, as Kleber was mentioned, we produced over $120 million of recurring cash flows and ex the losses of the dividend. This cash was enough to support the development of the greenfield projects, all the cash flow from all the investment expansion, and also the dividend. We continue to be unleveraged. We could even finance, and we should finance at least 50% of greenfield projects. Aura is in a privileged position in order to have such a strong cash flow from operations that we can do this kind of combination and continue to grow and continue to pay strong dividends to our shareholders.

Rodrigo Barbosa: We've been able to do a combination of both. This quarter, this semester, as Kleber was mentioned, we produced over $120 million of recurring cash flows and ex the losses of the dividend. This cash was enough to support the development of the greenfield projects, all the cash flow from all the investment expansion, and also the dividend. We continue to be unleveraged. We could even finance, and we should finance at least 50% of greenfield projects. Aura is in a privileged position in order to have such a strong cash flow from operations that we can do this kind of combination and continue to grow and continue to pay strong dividends to our shareholders.

Speaker #4: This quarter this semester as Kleiber was mentioned we produced a close to 120 million dollars of recurring cash flows and X the losses of the dividend.

Speaker #4: And then this cash wouldn't was enough to support the development of greenfields projects all the cash all the cash flow from all the investment expansion and also the dividend.

Speaker #4: So and we continue to be on leveraged. And then we could even finance and we should finance at least 50% of greenfield projects. So Aura is in a privileged position in order to have such a strong cash flow from operations that we can do this kind of combination and continue to grow and continue to pay strong dividends to our shareholder.

Mateus Moreira: Great, Rodrigo. That's very clear. Maybe if I may, a second question on MSG specifically. It was good to see the significant step up you guys had on both P&P and M&I over the past few months. The company, of course, continues to move forward with its turnaround of the asset. Production in the Q2 was impacted by significantly lower grades, right? I'm just wondering if you could give us an update on what are the key bottlenecks you have been addressing. Be a bit more specific on the key bottlenecks and what are the operational priorities at this point, and also how do you see grades and production evolving over the next few quarters? For MSG, specifically, I understand that the guidance was reinforced for the whole company. For MSG specifically, do you see some risks to guidance on both production and cost?

Matheus Moreira: Great, Rodrigo. That's very clear. Maybe if I may, a second question on MSG specifically. It was good to see the significant step up you guys had on both P&P and M&I over the past few months. The company, of course, continues to move forward with its turnaround of the asset. Production in the Q2 was impacted by significantly lower grades, right? I'm just wondering if you could give us an update on what are the key bottlenecks you have been addressing. Be a bit more specific on the key bottlenecks and what are the operational priorities at this point, and also how do you see grades and production evolving over the next few quarters? For MSG, specifically, I understand that the guidance was reinforced for the whole company. For MSG specifically, do you see some risks to guidance on both production and cost? Thank you.

Speaker #3: Great. Rodrigo that's very clear. And then maybe if I may a second question on EMSG specifically. I mean it was good to see the significant step up.

Speaker #3: You guys had on both PNP and M&I, right, over the past few months. I mean, the company, of course, continues to move forward with its turnaround of the asset.

Speaker #3: Production in the second quarter was impacted by significantly lower grades. I'm just wondering if you could give us an update on what are the key bottlenecks you have been addressing I mean be a bit more specific on the key bottlenecks and what are the operational priorities at this point.

Speaker #3: And also how do you see grades and production evolving over the next few quarters and for MSG specifically I understand that the guidance was enforced for the whole company.

Speaker #3: But for MSG specifically do you see some risks to guidance on both production and cost? Thank you.

Mateus Moreira: Thank you.

Rodrigo Cardoso Barbosa: I will start the answer, then I'll pass to Glauber, that he can go more in details. We had a Q1 and Q2, I would say, in terms of production, more challenging than we expected. That means exactly that we pushed our attention to underground development and the mine preparation infrastructure in order to do the turnaround. We chose to compromise production in order to maintain a very strong outlook for the medium and long term in this mine. That means that perhaps we might be at the lower end of the guidance. Of course, there's always a risk. We cannot ascertain. We are very confident that all the groundwork that's been doing will take us to produce that close to 80,000 ounces and close to $2,000 per ounce.

Rodrigo Barbosa: I will start the answer, then I'll pass to Glauber, that he can go more in details. We had a Q1 and Q2, I would say, in terms of production, more challenging than we expected. That means exactly that we pushed our attention to underground development and the mine preparation infrastructure in order to do the turnaround. We chose to compromise production in order to maintain a very strong outlook for the medium and long term in this mine. That means that perhaps we might be at the lower end of the guidance. Of course, there's always a risk. We cannot ascertain. We are very confident that all the groundwork that's been doing will take us to produce that close to 80,000 ounces and close to $2,000 per ounce.

Speaker #4: I will start the answer then I'll pass to Glover that he can go more in details. And then we had a first and second quarter I would say in terms of production more challenging that we expected.

Speaker #4: But that doesn't mean that that means exactly that we pushed all our attention to underground development in the mine preparation infrastructure in order to do the turnaround.

Speaker #4: So we chose to compromise production in order to maintain a very strong outlook for the medium and long term in this mine. That means that perhaps we might be at the lower end of the guidance.

Speaker #4: Of course, there's always a risk. We cannot ascertain, but we are very confident that all the groundwork that's been done will enable us to produce close to 80,000 ounces at close to $2,000 per ounce.

Rodrigo Cardoso Barbosa: I will let Glauber to give a little bit more color in what is being done in the mine, and why we had a decrease in the grades on Q2, and why we believe that Q3 and Q4 will continue to improve and put this mine into a very high standard next year.

Speaker #4: But I'll let Glover to give a little bit more color in what is being doing in the mine and what we should why we had a decrease in the grades on the second quarter and why we believe that the third and fourth quarter will continue to improve and put this mine into a very high standards next year.

Rodrigo Barbosa: I will let Glauber to give a little bit more color in what is being done in the mine, and why we had a decrease in the grades on Q2, and why we believe that Q3 and Q4 will continue to improve and put this mine into a very high standard next year.

Speaker #5: Yeah, of course. So, as Rodrigo commented, the year is much more for doing all the organization housekeeping and preparing the operations to sustainably achieve production around 80,000 ounces, and the cost, the only sustained cost, around $2,200 per ounce.

Glauber Luvizotto: Yeah, of course. As Rodrigo commented, the year is much more for doing all the organizational housekeeping and preparing the operations for sustainable achieve the production around 80,000 ounces and the all-in sustaining cost around $2,200 per ounce. Straight to the point, the bottleneck is the mine. The challenge is increase the production from the underground mine that we have much higher grade, even considering some contribution from the open pits. The reason for the lower grade in Q2 is mainly because we pushed down. Once the priority in the underground is prepared, develop the mine and release reserves for production in a stable way. We use a lot of ore from the old stockpile, lower-grade stockpile on surface to keep the plant running and to keep producing and, for sure, optimizing the results. Once in the mine, the focus is mine development.

Speaker #5: So but straight to the point the bottleneck is the mine. So the challenge is increase the production from the underground mine that we have much higher grade even considering some contribution from the open pits.

Speaker #5: The reason for the lower grade in the second quarter is mainly because we pushed down so once the priority in the underground is prepared developing the mine and release reserves for production in a stable way.

Speaker #5: We use a lot of ore from the old stockpile lower grade stockpile on surface to keep the plant running to keep producing. And for sure optimizing the results.

Speaker #5: Once in the mine the focus is mine development. So the great news is that we are being able to increase between 80 and 90% the performance in the underground development compared with the performance last year.

Glauber Luvizotto: The great news is that we are being able to increase between 80% and 90% the performance in the underground development compared with the performance last year. The main reason of that is a combination of all the infrastructure that we did the upgrade during H1, and also the upgrade in the underground fleet. If you remember when we did the acquisition, the reliability of the fleet is one constraint in that mine. We are using this lower production and underground to make some upgrades in the equipment as well, and back to the operation in better levels. We are getting much more higher availability. It's much more reliable, the equipment, higher productivity. We are growing this path to increase production.

Speaker #5: The main reason of that is a combination of all the infrastructure that we did the upgrade during the first semesters and also the upgrade in the underground fleet.

Speaker #5: So if you remember in the when we did the acquisition the really reliability of the fleet is one constraint in that mine. So we are using these lower production and underground to make some upgrades in the equipments as well and back to the operation in better levels.

Speaker #5: So we are getting much more higher availability it's much more reliable the equipment higher productivity. So we are growing this path to increase production we will see quarter over quarter the production grow in MSG in the Q2 in the Q3 in Q4 in the Q1 and 2027.

Glauber Luvizotto: We will see quarter over quarter the production grow in MSG in Q2, in Q3, in Q4, in Q1, in 2027. We will be able to gradually increase grades and throughputs in the plant as well.

Speaker #5: So we will be able to gradually increase grades and throughputs in the plant as well.

Mateus Moreira: Great. That's very helpful. Thank you, Rodrigo, Glauber, and Kleber.

Matheus Moreira: Great. That's very helpful. Thank you, Rodrigo, Glauber, and Kleber.

Speaker #3: Great. That's very helpful. Thank you Rodrigo Glover and Kleiber.

Operator: Our next question comes from Mr. Lawson Winder from Bank of America. Please, mister, you may proceed.

Speaker #1: Our next question comes from Mr. Lawson Winder from Bank of America. Please Mr. you may proceed.

Lawson Winder: Thanks very much, Natasha. Hello, Rodrigo and team. Thank you for taking my question. I just wanted to say solid capital return again. It's really great to see you guys leading the pack on that. What I wanted to ask about, though, is more on costs, which is obviously critical in your ability to maintain that strong free cash flow and support those investments. Year to date, at what rate would you say your cost inflation is running, and how does that compare to budget? As we move into the budgeting season for 2027, what makes sense to you as a good inflation rate to assume for 2027 versus 2026?

Speaker #2: Thanks very much Natasha. And hello Rodrigo and team. Thank you for taking my question. I just wanted to say solid capital return again. It's really great to see you guys leading the pack on that.

Speaker #2: What I wanted to ask about, though, is more on cost, which is obviously critical in your ability to maintain that strong free cash flow and support those investments.

Speaker #2: And year to date at what rate would you say your cost inflation is running and how does that compare to budget? And then as we move into the budgeting season for 2027 you know what makes sense to you as a good inflation rate to assume for 2027 versus 2026?

Rodrigo Cardoso Barbosa: No, thank you, Lawson. I'll let Kleber, he can go in more detail. The team is, as you know, we have a very strong team locally, fighting back inflation and trying to renegotiate with changing specifications. They've been able to do since 2022, and will continue to do that. Most of the impact that we have today that you saw, it comes from exchange rate. That's some from inflation. I'll let then Kleber to give a little bit more color on this, and then perhaps give a little bit of view on 2027, although yet we don't have guidance for 2027.

Rodrigo Barbosa: No, thank you, Lawson. I'll let Kleber, he can go in more detail. The team is, as you know, we have a very strong team locally, fighting back inflation and trying to renegotiate with changing specifications. They've been able to do since 2022, and will continue to do that. Most of the impact that we have today that you saw, it comes from exchange rate. That's some from inflation. I'll let then Kleber to give a little bit more color on this, and then perhaps give a little bit of view on 2027, although yet we don't have guidance for 2027.

Speaker #4: Well thank you Lawson. And I'll let Kleiber he can go in more detail. The team is as you know we have a very strong team locally fighting back inflation and trying to renegotiate changing specifications.

Speaker #4: And they've been able to do since 2022. And we continue to do that. Most of the impact that we have today that you saw it comes from exchange rate that some from inflation.

Speaker #4: But I'll let then Kleiber to give a little bit more color on this. And then perhaps give a little bit of view on 2027.

Speaker #4: Although yet we don't have guidance for 2027.

Speaker #2: Yes. Yes. So yeah as Rodrigo commented we of course we do feel the impact for example of oil price as though that's limited. So if you depending on our operations is usually between 5 and 10% of our total cost.

Joao Kleber Cardoso: Yes. As Rodrigo commented, of course, we do feel the impacts, for example, of oil prices, although that's limited. If you take diesel, it's dependent on our operations. It's usually between 5% and 10% of our total cost. So there is some impact, so there is limited. There is some indirect costs, of course, that comes from inflation of increased diesel price. We have been working in different initiatives to compensate and fight back these impacts. That's why Rodrigo mentioned this. When we look into diesel and impact of FX, of course, we feel the impacts. We're confident that we're gonna be in the guidance because of the initiatives that we're working internally. For 2027, I think it's still too early to give any perspective. We're just starting the budget process.

Kleber Cardoso: Yes. As Rodrigo commented, of course, we do feel the impacts, for example, of oil prices, although that's limited. If you take diesel, it's dependent on our operations. It's usually between 5% and 10% of our total cost. So there is some impact, so there is limited. There is some indirect costs, of course, that comes from inflation of increased diesel price. We have been working in different initiatives to compensate and fight back these impacts. That's why Rodrigo mentioned this. When we look into diesel and impact of FX, of course, we feel the impacts. We're confident that we're gonna be in the guidance because of the initiatives that we're working internally. For 2027, I think it's still too early to give any perspective. We're just starting the budget process.

Speaker #2: So there is some impact there is limited. There is some indirect costs of course that comes from inflation of increased good diesel price. But we have been working in different initiatives to compensate and fight back these impacts.

Speaker #2: So that's why Rodrigo mentioned this when we look to diesel and impact of effects. Of course we feel the impacts but we're confident that we're going to be in the guidance because of the initiatives that we're working internally.

Speaker #2: For 2027, I think it's still too early to give any perspective. We're just starting the budget process. We see, on a structural basis, some big upsides and opportunities when you look into what is expected in the OE for the company as a whole.

Joao Kleber Cardoso: We see on a structural basis some big upsides and opportunities when you look into what expected the AISC for the company as a whole. Mainly it's MSJ, because MSJ bringing the own sustained cash costs from where it is now, close to $2,000. As you might imagine, there will be a big positive impact for the AISC of the company as a whole. In addition, the expansion of Almas, for example, all that should play positively. If you go then raw material for more material impact of inflation is a little bit early in our process to comment on that.

Kleber Cardoso: We see on a structural basis some big upsides and opportunities when you look into what expected the AISC for the company as a whole. Mainly it's MSJ, because MSJ bringing the own sustained cash costs from where it is now, close to $2,000. As you might imagine, there will be a big positive impact for the AISC of the company as a whole. In addition, the expansion of Almas, for example, all that should play positively. If you go then raw material for more material impact of inflation is a little bit early in our process to comment on that.

Speaker #2: Mainly MSG because MSG bringing the own sustained cash cost from where it is now close to 2,000 as you might imagine there will be a big positive impact for the OE of the company as a whole.

Speaker #2: In addition, the expansion of Almas, for example, should play positively. But if you go, then raw material for raw material and impact of inflation—it's a little bit early in our process to comment on that.

Speaker #3: Okay. Nevertheless helpful. And then if I could follow up on the discussion on M&A to put maybe a slightly finer point on it. I mean when you look at your portfolio you have a number of brownfield and greenfield projects already in the portfolio.

Lawson Winder: Okay. Nevertheless, helpful. If I could follow up on the discussion on M&A, to put maybe a slightly finer point on it. When you look at your portfolio, you have a number of brownfield and greenfield projects already in the portfolio. Thus would it be fair to conclude that the preference might be for operating assets as opposed to greenfield projects? How do you think about that? Playing into that as well, there's obviously just the time of your team, Rodrigo. Do you guys have the capacity to take on another project if you were to acquire something along that line? Thanks.

Speaker #3: Would it be fair to conclude that the preference might be for operating assets as opposed to greenfield projects? How do you think about that?

Speaker #3: And then playing into that as well there's obviously just the time of your team Rodrigo. I mean like do you guys have the capacity to take on another project if you were to acquire something on that line?

Speaker #3: Thanks.

Rodrigo Cardoso Barbosa: That's a good question, we are very focused on being able to deliver in what we acquire. If we look back at the last acquisition was MSJ, something that was running on the top of implementing Araxá. That's why we don't wanna build two projects at the same time, exactly because of the team is the same, right? We wanna make sure that the team can deliver on the construction of Araxá. On the other hand, the turnaround team is different, that's why we felt comfortable to put in MSJ. Now we are doing both. One team doing the construction and then working a lot on the turnaround. Looking ahead, I think we continue to look both alternatives. For example, we would not probably buy anything that we have to start construction next year.

Rodrigo Barbosa: That's a good question, we are very focused on being able to deliver in what we acquire. If we look back at the last acquisition was MSJ, something that was running on the top of implementing Araxá. That's why we don't wanna build two projects at the same time, exactly because of the team is the same, right? We wanna make sure that the team can deliver on the construction of Araxá. On the other hand, the turnaround team is different, that's why we felt comfortable to put in MSJ. Now we are doing both. One team doing the construction and then working a lot on the turnaround. Looking ahead, I think we continue to look both alternatives. For example, we would not probably buy anything that we have to start construction next year.

Speaker #4: That's a good question and we are very focused on being able to deliver in what we acquire. And if we look back at the last acquisition was MSG something that was running on the top of implementing Era Dorada.

Speaker #4: That's why we didn't—we don't want to build two projects at the same time, exactly because the team is the same, right? We want to make sure that the team can deliver on the construction of Era Dorada. On the other hand, the turnaround team is different.

Speaker #4: So that's why we felt comfortable to put in MSG and now we are doing both. One team doing the construction and then working a lot on the turnaround.

Speaker #4: And then looking ahead I think we would do we continue to look both alternatives but for example we would not probably buy anything that we have to start construction next year.

Speaker #4: So in greenfield project would be something that we could take one or two years redesigning or upgrading or downsizing what we do in order to be able to build not in parallel Era Dorada and then see what would be the sequence together with Matupa.

Rodrigo Cardoso Barbosa: In greenfield project would be something that we could take one or two years redesigning or upgrading or downsizing what we do in order to be able to go to build not in parallel Araxá, then see what would be the sequence together with Matupá. On the other hand, there's something that is operational at the turnaround of MSJ. Most of the tension is the first year. We would consider an acquisitions as long as we then along by the end of the year or next year, we can move the turnaround into some operational asset for next year, that we don't overlap, right? Also, we continue to look alternatives in Americas. We're not Africa player or the east side. Gold and copper, right? That's where we play. As I have been widely also mentioning, we've been growing a lot on gold.

Rodrigo Barbosa: In greenfield project would be something that we could take one or two years redesigning or upgrading or downsizing what we do in order to be able to go to build not in parallel Araxá, then see what would be the sequence together with Matupá. On the other hand, there's something that is operational at the turnaround of MSJ. Most of the tension is the first year. We would consider an acquisitions as long as we then along by the end of the year or next year, we can move the turnaround into some operational asset for next year, that we don't overlap, right? Also, we continue to look alternatives in Americas. We're not Africa player or the east side. Gold and copper, right? That's where we play. As I have been widely also mentioning, we've been growing a lot on gold.

Speaker #4: On the other hand there's something that is operational the turnaround of MSG most of the attention is the first year so we wouldn't we would consider an acquisitions as long as we then along by the end of the year or next year we can move the turnaround into some operational asset for next year.

Speaker #4: So that we don't overlap, right. So what—and also, you continue to look for alternatives in the Americas, but not Africa, or the west or the east side.

Speaker #4: And gold and copper, right? That's where we play. And as I have been widely also mentioning, we've been growing a lot on gold. We would like to also add more copper, but copper alternatives have been more scarce, and returns on gold have been higher.

Rodrigo Cardoso Barbosa: We like to also add more copper, but copper alternatives has been more scarce and returns on gold has been higher. That's why we've been choosing gold in the last years. Not because we have a preference, just because the returns has been significantly higher.

Rodrigo Barbosa: We like to also add more copper, but copper alternatives has been more scarce and returns on gold has been higher. That's why we've been choosing gold in the last years. Not because we have a preference, just because the returns has been significantly higher.

Speaker #4: So that's why we've been choosing gold in the last years, not because we have a preference, just because the return has been significantly higher.

Lawson Winder: Okay. Very helpful. Thank you so much, Rodrigo and team.

Speaker #3: Okay. Very helpful. Thank you so much Rodrigo.

Operator: Our next question comes from Mr. Henrique Marques from Goldman Sachs. Please, mister, you may proceed.

Speaker #1: Our next question comes from Mr. Henrique Marques from Goldman Sachs. Please Mr. you may proceed.

Speaker #2: Hey guys. Thank you for taking my question. I just wanted to follow up a bit more in detail on the share buyback program. You guys announced that is on top of the dividend that you've already paying above policy.

Henrique Tavian Marques: Hey, guys. Thank you for taking my question. I just wanted to follow up a bit more in detail on the share buyback program you guys announced. That is on top of the dividend that you're already paying above policy. Company has done an excellent work to keep the high level of trading volume, and it caught our attention that you've opted to announce the buyback program instead of just increase further dividend payments. I just wanted to understand, the stock did suffer an important sell-off in recent months. Is there any key metric here that you saw that made you announce the buyback program? Is there any threshold of valuation? Even what is the perfect balance between dividend and share buyback going forward?

Henrique Marques: Hey, guys. Thank you for taking my question. I just wanted to follow up a bit more in detail on the share buyback program you guys announced. That is on top of the dividend that you're already paying above policy. Company has done an excellent work to keep the high level of trading volume, and it caught our attention that you've opted to announce the buyback program instead of just increase further dividend payments. I just wanted to understand, the stock did suffer an important sell-off in recent months. Is there any key metric here that you saw that made you announce the buyback program? Is there any threshold of valuation? Even what is the perfect balance between dividend and share buyback going forward?

Speaker #2: Company has done an excellent work to keep the high level of trading volume and it caught our attention that you've opted to announce the buyback program instead of just increase further dividend payments.

Speaker #2: So I just wanted to understand like the stock did suffer an important sell off in recent months. Is there any key metric here that you saw that made you announce the buyback program?

Speaker #2: Is there any threshold of valuation or even what is the perfect balance between dividend and share buyback going forward? And on top of that just changing a bit gears here say you of the San Francisco mine good way to monetize a mine that was under care and maintenance program.

Henrique Tavian Marques: On top of that, just changing a bit gears here, sale of the San Francisco mine, good way to monetize a mine that was under care and maintenance program. I know you guys have also Tolda Fria, which is also under care and maintenance. Can we expect something similar to this mine? Is this an asset that you are also seeking to sell? Does the recent change in the Colombian government changes anything, and how do you see this asset? Anything you guys can share with us would be great. Thank you.

Henrique Marques: On top of that, just changing a bit gears here, sale of the San Francisco mine, good way to monetize a mine that was under care and maintenance program. I know you guys have also Tolda Fria, which is also under care and maintenance. Can we expect something similar to this mine? Is this an asset that you are also seeking to sell? Does the recent change in the Colombian government changes anything, and how do you see this asset? Anything you guys can share with us would be great. Thank you.

Speaker #2: I know you guys have also told Afria, which is also under care and maintenance. So can we expect something similar to this mine, or—I mean, is this an asset that you were also seeking to sell?

Speaker #2: Does the recent change in the Colombian government changes anything and how do you see this asset? Anything you guys can share with us would be great.

Rodrigo Cardoso Barbosa: Thank you. As you mentioned, we just announced a share buyback. Again, we also made a significant progress on daily trading volume. We don't think when we analyze that at this level, the share buyback would significantly impact the daily trading volume. We do not want to negatively impact the daily trading volume, so we would perform share buyback as long as it's not jeopardizing the daily trading volume, the liquidity that most of our investors appreciate. Looking ahead, we should see a combination of share buyback and dividends. We don't have exact number how we're going to play. Of course, we have our internal strategy, but it will be a balance. It will be a split, between share buybacks and dividends. We've been able to pay above the guidance, above the policy and dividends. From now on, we should see it split.

Rodrigo Barbosa: Thank you. As you mentioned, we just announced a share buyback. Again, we also made a significant progress on daily trading volume. We don't think when we analyze that at this level, the share buyback would significantly impact the daily trading volume. We do not want to negatively impact the daily trading volume, so we would perform share buyback as long as it's not jeopardizing the daily trading volume, the liquidity that most of our investors appreciate. Looking ahead, we should see a combination of share buyback and dividends. We don't have exact number how we're going to play. Of course, we have our internal strategy, but it will be a balance. It will be a split, between share buybacks and dividends. We've been able to pay above the guidance, above the policy and dividends. From now on, we should see it split.

Speaker #2: Thank you.

Speaker #4: Thank you. So as you mentioned we just announced share buyback. Again we also made a significant progress on daily trading volume. We don't think when we analyze that this at this level the share buyback would significant impact the daily trading volume.

Speaker #4: We to negatively impact the daily trading volume. So we would perform share buyback as long as is not a jeopardizing the daily trading volume the liquidity that most of our investors appreciate.

Speaker #4: And looking ahead we should see a combination of share buyback and dividends. We don't have exact number how we're going to play of course we have our internal strategy but it will be a balance.

Speaker #4: It will be a split. Right. Between share buybacks and dividends and we've been able to pay above the guidance above the policy and dividends but from now on we should split it.

Rodrigo Cardoso Barbosa: Don't expect dividends to be that high and then plus share buybacks. It will be a split, that the total number will be a split of share buybacks and dividends.

Rodrigo Barbosa: Don't expect dividends to be that high and then plus share buybacks. It will be a split, that the total number will be a split of share buybacks and dividends.

Speaker #4: Don't expect dividends to be that high and then plus share buybacks. So it will be a split that the total number will be a split of share buybacks and dividends.

Henrique Tavian Marques: Thank you, Rodrigo. Very clear. If you guys can just touch bases on the San Andres mine question.

Henrique Marques: Thank you, Rodrigo. Very clear. If you guys can just touch bases on the San Andres mine question.

Speaker #2: Thank you Rodrigo. Very clear. If you guys can just touch bases on the San Francisco mine question.

Rodrigo Cardoso Barbosa: Okay. Yeah. Well, I think San Andres, we announced, it took a while to approve and finally transfer. Tolda Fria is in Colombia. We just had a recent important change in government in Colombia. That project had been difficult to progress with the licensing. We expect now that potentially can change. We are now monitoring and trying to understand what could be the change in Colombia in order for us to reassess if we should push more investment and then foresee any licensing or continue to do care and maintenance or perhaps sale. That's one thing that we will only understand after the Q3 and Q4, when we see what would be the impact of the change in government through the licensing project to mining.

Rodrigo Barbosa: Okay. Yeah. Well, I think San Andres, we announced, it took a while to approve and finally transfer. Tolda Fria is in Colombia. We just had a recent important change in government in Colombia. That project had been difficult to progress with the licensing. We expect now that potentially can change. We are now monitoring and trying to understand what could be the change in Colombia in order for us to reassess if we should push more investment and then foresee any licensing or continue to do care and maintenance or perhaps sale. That's one thing that we will only understand after the Q3 and Q4, when we see what would be the impact of the change in government through the licensing project to mining.

Speaker #4: Okay. Yeah. No, I think San Francisco, as we announced, took a while to approve and finally transfer. Tolda Fría is in Colombia. We just had a recent, important change in government in Colombia. That project had been difficult to progress with the licensing. We expect now that potentially can change.

Speaker #4: So we are now monitoring and trying to understand what will be the change in Colombia in order for us to reassess if we should push more investment and then foresee any licensing.

Speaker #4: Or continue to do care and maintenance or perhaps sale. So that's one thing that we will only understand after the Q3 and Q4 when we see what would be the impact of the change in government through the licensing project to mining.

Henrique Tavian Marques: Super clear. Thank you.

Henrique Marques: Super clear. Thank you.

Speaker #2: Super clear. Thank you.

Operator: Our next question comes from Mr. Lucas Laghi from XP Investimentos. Please, Mister, you may now proceed.

Speaker #1: Our next question comes from Mr. Lucas Lagis from XP Investimentos. Please Mr. you may now proceed.

Lucas Laghi: Hi. Good morning, everyone. Thank you for the space. I have two quick follow-ups. I guess MSG and cost inflation have been the most discussed topics with investors most recently. Just touching base on those two topics. On MSG, you mentioned in the release that one of the reasons why the asset performs relatively weaker compared to other assets was regarding the evolution of production and sales throughout the quarter. Lower sales in April and increase in production and sales throughout the quarter. Just to ask, one of the most concerns that we hear from investors is still related to the pace and to the turnaround process. Could you provide us an idea of how production actually evolved throughout the quarter?

Speaker #5: Hi. Good morning everyone. Thank you for the space. I have two quick follow ups. I guess MSG and costs inflation has been like the most discussed topics with investors most recently.

Speaker #5: So just touching based on those two topics. But on MSG I mean you mentioned in the release that one of the reasons why the asset performs relatively weaker compared to other assets was regarding the evolution of production and sales.

Speaker #5: Throughout the quarter, lower sales in April and increasing production and sales throughout the quarter. So just to—I mean, as one of the main concerns that we hear from investors is still related to the pace and to the turnaround process.

Speaker #5: I mean, could you provide us an idea of how production actually evolved throughout the quarter? Maybe a run rate of production in June compared to April, and how you're seeing the run rate output in July and August compared to what you saw by the end of the quarter?

Lucas Laghi: Maybe a run rate of production in June compared to April, and how you're seeing the run rate output in July and August, compared to what you saw by the end of the quarter. Just to maybe provide a more comfortable idea of this evolution that you guys already were able to achieve over these past months. On the cost inflation topic, it's a discussion we have been hearing all over factors that we cover, and it's particularly considering the conflict between US and Iran. Rodrigo, you mentioned FX, chemicals, Brent. Any specific cost-mitigating initiative that you guys have been implementing? I don't know if any changes in hedging policy, for example. Just trying to better understand if such impacts have been high enough to drive any particular initiative or hedging policy that you guys are doing. Just to better understand.

Speaker #5: So just to maybe provide a more comfortable idea of this evolution that you guys have already been able to achieve over these past months. On the cost inflation topic, I mean, it's a discussion we've been hearing all over, in all sectors that we cover, and it's particularly relevant considering the conflict between the US and Iran.

Speaker #5: So I mean Rodrigo you mentioned like effects chemicals brand but any specific cost mitigating initiative that you guys have been implementing? I mean I don't know if any changes in hedging policy for example so just trying to better understand if such impacts have been high enough to drive any like particular initiative or hedging policy that you guys are doing.

Lucas Laghi: This production evolution throughout the quarter on MSG and any potential cost-mitigating initiatives on such cost inflation topic, particularly regarding the conflict. Thank you, guys.

Speaker #5: So just to better understand I mean this production evolution throughout the quarter on MSG and any potential cost mitigating initiatives on such cost inflation topic particularly regarding the conflict.

Rodrigo Cardoso Barbosa: Yeah. I will give a quick view on MSG and then Robert can comment in more detail, and then Kleber can talk a little bit on this hedging or cost of inflation. It's not significant to the inflation, right? That's impacting us. Yeah, there's some, and we are fighting back. MSG, yet I have not found a formula to do a turnaround and increase production at the same time. We need to improve maintenance, we need to improve infrastructure. We need to do all the underground development in order to improve production. That means that when you're doing maintenance, when you're doing a turnaround, you'll jeopardize the production of the short term. That's point. There's no single company, there's no single man that will be able to do both. Increase short term and also do the turnaround.

Rodrigo Barbosa: Yeah. I will give a quick view on MSG and then Robert can comment in more detail, and then Kleber can talk a little bit on this hedging or cost of inflation. It's not significant to the inflation, right? That's impacting us. Yeah, there's some, and we are fighting back. MSG, yet I have not found a formula to do a turnaround and increase production at the same time. We need to improve maintenance, we need to improve infrastructure. We need to do all the underground development in order to improve production. That means that when you're doing maintenance, when you're doing a turnaround, you'll jeopardize the production of the short term. That's point. There's no single company, there's no single man that will be able to do both. Increase short term and also do the turnaround.

Speaker #5: Thank you guys.

Speaker #4: Yeah. I'll let I'll give a quick view on MSG and then Robert can comment in more details and then Cleber can talk a little bit on this hedging or cost.

Speaker #4: Inflation with it's not significant to the inflation. Right. That's impacting us but yet there's some and we are fighting back. MSG it's yet I have not found a formula to do a turnaround and increase production at the same time.

Speaker #4: So we need to improve maintenance. We need to improve infrastructure. We need to do all the underground development in order to improve production. That means that when you're doing maintenance when you're doing turnaround you'll jeopardize the production of the short term.

Speaker #4: That point. Right. There's no single company there's no single mine that will be able to do both. Increase short term and also do the turnaround.

Rodrigo Cardoso Barbosa: I correct Glauber can give a little bit more details in what's happening that gives us confidence that Q3, Q4, and much more significant next year, will be higher production. Which is in line what he answered, but perhaps he can expand a little bit more.

Rodrigo Barbosa: I correct Glauber can give a little bit more details in what's happening that gives us confidence that Q3, Q4, and much more significant next year, will be higher production. Which is in line what he answered, but perhaps he can expand a little bit more.

Speaker #4: But like Robert can give a little bit more details in what's happening that give us confidence that Q3 Q4 and much more significant next year I will be higher production.

Speaker #4: Which is in line with what he answered, but perhaps he can expand a little bit more.

Glauber Luvizotto: What we expect and we should see is we will increase production in both lines. We will be able to increase the throughput in the plant, considering that we will have more ore from the underground and also with higher grades. What we expect is a slowly increases from Q3. Not slowly, but it's increasing quarter-over-quarter or month-over-month. It should be 50% more in throughput and 23% more in grade that will be able to change significantly the profile of production. Once we achieve those numbers, the costs as a consequence should reduce as well as a consequence of the higher production. We're still working in the future, in the next year.

Speaker #3: Yeah. So what we expect and we should see is we are we will increase production in both lines. So we will be able to increase the throughput in the plant considering that we will have more ore from the underground and also with higher grade.

Speaker #3: So, what do we expect? This has slowly increased from Q3 to—not slowly, but it has increased quite a bit quarter over quarter, or month over month.

Speaker #3: But it should be 50% more in throughput and 23% more in grade. That may be able to change significantly the profile of production. And, once we achieve those numbers, the costs should, as a consequence, reduce as well, as a consequence of the higher production.

Speaker #3: And we still working in the future in the next year so with this new reserves the concept of the mine design we are changing a little bit to make sure that we can recovery much more ore including in the previous areas that was a red mined.

Glauber Luvizotto: With these new reserves, the concept of the mining design, we are changing a little bit to make sure that we can recover much more ore, including in the previous areas that was already mined. We are on track. We are pretty confident to get the target that we put internally to achieve the 8,000 ounces and the costs that we always comment. We can see it happen. As Rodrigo comment, took a little bit more time as we considering, we decide to do that and to organize everything, to prepare the mine, to prepare the infrastructure in the mine, to make sure that this growth will be sustainable and we will not be surprised in the future.

Speaker #3: So we are on track. So we are pretty confident to get the target that we put internally to achieve the 8,000 ounces and the costs that we always comment.

Speaker #3: We can see it happen. So as Rodrigo comment took a little bit more time as we considering but we decide to do that and to organize everything to prepare the mine to prepare the infrastructure in the mine and to make sure that this growth will be sustainable and we will not be surprised in the future.

Joao Kleber Cardoso: In terms of cost initiatives, we don't have a silver bullet, one single cost initiative. We have a program. For example, we have a big internal project regarding strategic sourcing that reviews material agreements, finds synergies among the business units, and opportunities. We have also internal challenge program to reduce costs across different lines that when you sometimes look individually are not material but combining, yes. With people internally in your organization with internal targets to achieve that. This is not the first time we do. We did this last year, produced good results. You might remember last year we were able to deliver our sustained cash cost below of our guidance. Those initiatives is small by small, when we put together again, they make the difference. This year we see are going to help as well.

Kleber Cardoso: In terms of cost initiatives, we don't have a silver bullet, one single cost initiative. We have a program. For example, we have a big internal project regarding strategic sourcing that reviews material agreements, finds synergies among the business units, and opportunities. We have also internal challenge program to reduce costs across different lines that when you sometimes look individually are not material but combining, yes. With people internally in your organization with internal targets to achieve that. This is not the first time we do. We did this last year, produced good results. You might remember last year we were able to deliver our sustained cash cost below of our guidance. Those initiatives is small by small, when we put together again, they make the difference. This year we see are going to help as well.

Speaker #2: In terms of cost initiatives we don't have a silver bullet. No one single cost initiative. So but we have a program. It's we have for example we have a big internal project regarding strategic sourcing that reviews material agreements find synergies among the business units and opportunities.

Speaker #2: We also have an internal challenge program to reduce costs across different lines that, when you sometimes look at them individually, are not material but combined, yes. And we have people internally in the organization with internal targets to achieve that.

Speaker #2: So this is not the first time we do. We did it this last year produced good results if you might remember last year we were able to deliver all in sustainable cash costs below of our guidance.

Speaker #2: Those initiatives is small by small but when we put together again they make the difference. So this year we see are going to help as well.

Joao Kleber Cardoso: Unlike last year, we are not going to be that low. We are not going to beat our lower guidance, for sure this year for the other impacts. Our initiatives that, as we mentioned, are going to help us deliver the guidance despite this impact of inflation and mainly the impact of FX in Brazil and Mexico. I would say it is more a program and pretty much aligned with our culture to be like lean in all levels and in cost cautions in all level, in our business units.

Kleber Cardoso: Unlike last year, we are not going to be that low. We are not going to beat our lower guidance, for sure this year for the other impacts. Our initiatives that, as we mentioned, are going to help us deliver the guidance despite this impact of inflation and mainly the impact of FX in Brazil and Mexico. I would say it is more a program and pretty much aligned with our culture to be like lean in all levels and in cost cautions in all level, in our business units.

Speaker #2: We unlike last year we are not going to be that low that we're not going to beat our lower guidance for sure this year for the other impacts.

Speaker #2: But our initiatives that as we mentioned are going to help us deliver the guidance despite the impact of inflation and mainly the impact of effects in Brazil and Mexico.

Speaker #2: So I would say it's more a program and pretty much aligned with our culture to be like lean in all levels and cost cautions in all level and all business units.

Lucas Laghi: Great. Thank you, Kleber. Glauber, just a quick follow-up, you mentioned 50% on plant feed increase and 23% on grade increases. I couldn't get the number exactly. Which time frame were you referring? I mean, Q3 compared to Q2 or half over half? I mean.

Speaker #5: Great. Thank you Cleber. Glauber just a quick follow up but you mentioned 50% on plant feed increase and 23% on grade increases. I just I couldn't get the number exactly and which time frame were you referring?

Speaker #5: I mean 3Q compared to 2Q or half over half? I mean

Glauber Luvizotto: It is just roughly numbers compared with the performance that we have in H1 and what we have in H2. We should increase around 50% to 6% in throughput. We can see also some increase in grades that once we have much more ore from the underground, instead they use the low-grade stock pile as we did in Q2, the grades should increase significantly. See, the average should be something between 25% and 35%. Roughly numbers.

Speaker #3: No. It's just roughly numbers compared with the performance that we have in the first semester and what we have in the second semester we should increase around throughput and we can see also some increase in grades that once we have much more ore from the underground instead use the low grade stockpile as we did in Q2.

Speaker #3: The grade should increase significantly see the average should be something between 25 and 35%. That's our roughly numbers.

Lucas Laghi: Perfect. Thank you very much, guys. Thank you for the details. Have a great day.

Speaker #5: Perfect. Perfect. Thank you very much guys. Thanks for the details. Have a great day.

Operator: Our next question comes from Mr. Marcelo Arazi from BTG Pactual. Please, you may now proceed.

Speaker #1: Our next question comes from Mr. Marcelo Arazzi from BTG Pactual. Please you may now proceed.

Marcelo Arazi: Hi guys. Two questions on my side as well. I think the first one, back on the M&A discussion. We saw over the past few years, Aura purchasing single asset names rather than companies with more than one asset under their operations. Given the new size of the company and the ambition to reach closer to 1 million ounces over the long term, is purchasing an entire company with more than one asset something under discussion? Is this something that you guys consider? I can let you guys respond to that, and I'll make the second one.

Speaker #2: Hi guys. Two questions on my side as well. I think the first one back on the M&A discussion we solved the past few years our purchasing like single asset names rather than companies with more than one asset under their operations.

Speaker #2: And given the new size of the company and the ambition to reach closer to 1 million ounces over the long term is purchasing like an entire company with more than asset than one asset.

Speaker #2: Something under discussion is this something that you guys consider? I can let you guys respond to that and I'll make the second one.

Rodrigo Cardoso Barbosa: Well, I think it's something that's not non-considered, right? We always look alternatives, yet the alternatives that we found and also could be going engage into a transaction was mostly this single asset. That doesn't mean that we did not consider in the past or does not consider today companies that has more than one assets.

Rodrigo Barbosa: Well, I think it's something that's not non-considered, right? We always look alternatives, yet the alternatives that we found and also could be going engage into a transaction was mostly this single asset. That doesn't mean that we did not consider in the past or does not consider today companies that has more than one assets.

Speaker #4: No. I think it's something that's not non-considered right. So we always look alternatives yet the alternatives that we found and also could be going to engage and do a transaction was mostly this single asset.

Speaker #4: But that doesn't mean that we did not consider in the past or does not consider today companies that has more than one assets.

Marcelo Arazi: Thanks, Rodrigo. That's very clear. I think the second one is on a different topic. Aura has been experiencing much higher volatility in share prices than normal. I think, of course, gold prices haven't been helping on that front. Just wanted to hear from you some thoughts on that and what may be the reason behind this, and if there's anything within your range to eventually reduce that.

Speaker #2: Thanks, Rodrigo. That's very clear. I think the second question, on a different topic: Aura has been experiencing much higher volatility in share prices than normal.

Speaker #2: I think of course gold prices haven't been helping on that front. But just wanted to hear from you some thoughts on that and what may be the reason behind this and if there's anything within your range to eventually reduce that.

Rodrigo Cardoso Barbosa: I don't know if I have a specific answer for this. Of course, we see what happens. What we have, and if you look, Aura has one of the strongest, if not the strongest growth in the market, right? We are coming from, let's say this year, the last 12 months is 313,000 ounces. This year, we are delivering between 304 and 390. Not including that MSG is going to be in full production next year, not including that Era Dorada is being built and 2,800 in production, not including higher production for Borborema, not including Matupá, not including new acquisitions. When you have that high growth company that's been actually delivering, doubling the EBITDA in the last three years.

Rodrigo Barbosa: I don't know if I have a specific answer for this. Of course, we see what happens. What we have, and if you look, Aura has one of the strongest, if not the strongest growth in the market, right? We are coming from, let's say this year, the last 12 months is 313,000 ounces. This year, we are delivering between 304 and 390. Not including that MSG is going to be in full production next year, not including that Era Dorada is being built and 2,800 in production, not including higher production for Borborema, not including Matupá, not including new acquisitions. When you have that high growth company that's been actually delivering, doubling the EBITDA in the last three years.

Speaker #4: No. I don't know if I have a specific answer for this. Of course we see what happens. What we have and if you look it's Aura has one of the strongest if not the strongest growth in the market right.

Speaker #4: We are coming from, let's say, this year, where the last 12 months was 313,000 ounces. This year, we are delivering between 304,000 and 390,000.

Speaker #4: And we have not including that MSG is going to be in full production next year not including that Arado has been built in 28,000 in production not including higher production for Borborema not including Matupá not including new acquisitions.

Speaker #4: So when you have that high growth company that's being actually delivering doubling the EBITDA in the last three years so normally we expect more volatility because that means that we have such a higher upside compared to any other of our peers that the impact of the gold price on our future is way more important than what the other companies that doesn't have that growth has today because the company doesn't have this growth.

Rodrigo Cardoso Barbosa: Normally we expect more volatility because that means that we have such a higher upside compared to any other of our peers that the impact of the gold price on our future is way more important than what the other company that doesn't have this growth has today. Because if the company doesn't have this growth, most of the cash flows already on the NAV. A lot of our NAV is on growth, in doubling, right? If you think they had 313, and we understand that we can go above 600, we're doubling production in the upcoming years. That means that normally company that has this high growth has a higher volatility.

Rodrigo Barbosa: Normally we expect more volatility because that means that we have such a higher upside compared to any other of our peers that the impact of the gold price on our future is way more important than what the other company that doesn't have this growth has today. Because if the company doesn't have this growth, most of the cash flows already on the NAV. A lot of our NAV is on growth, in doubling, right? If you think they had 313, and we understand that we can go above 600, we're doubling production in the upcoming years. That means that normally company that has this high growth has a higher volatility.

Speaker #4: Most of the cash flows are already on the NAV. And a lot of our NAV is on growth and doubling right. If you take the 313 and we understand that we can go above 3600 with doubling production the upcoming years.

Speaker #4: So that means that normally company that has this high growth has a higher volatility.

Marcelo Arazi: That's very clear. Just perhaps a quick follow-up. Is that something that bothers you, like as the CEO of the company, and something that perhaps some shareholders might be concerned about it? Do you feel that?

Speaker #2: That's very clear. Just perhaps a quick follow up. Is that something that bothers you like as the CEO of the company and something that perhaps some shareholders might be concerned about it?

Speaker #2: Do you feel that?

Rodrigo Cardoso Barbosa: No. I think it's natural. As long as we continue to deliver results and continue to deliver growth, you're going to continue to see volatility. Most of the volatility is going to happen on the upside. If you see that today, we are significantly discounted compared to our peers. We are not only chasing the peers, but we also are widening this gap of price by NAV. Volatility might continue, but most of that will happen on the upper side once the market should start to pricing growth and should start to understand that this company has been delivering on the promise. Perhaps price by NAV can shorten the gap.

Rodrigo Barbosa: No. I think it's natural. As long as we continue to deliver results and continue to deliver growth, you're going to continue to see volatility. Most of the volatility is going to happen on the upside. If you see that today, we are significantly discounted compared to our peers. We are not only chasing the peers, but we also are widening this gap of price by NAV. Volatility might continue, but most of that will happen on the upper side once the market should start to pricing growth and should start to understand that this company has been delivering on the promise. Perhaps price by NAV can shorten the gap.

Speaker #4: No. I think it's natural. And then as long as we continue to deliver results and continue to deliver growth you're going to continue to see volatility on the and then most of the volatility is going to happen on the upside.

Speaker #4: If you see that today we are significantly discounted compared to our peers. But we are not only change the peers but we also widen this gap of price per NAV.

Speaker #4: Volatility might continue but most of that will happen on the upper side once the market should start to pricing growth and should start to understand that these companies be delivering on the product that promise and then perhaps price per NAV can shorten the gap.

Marcelo Arazi: That's very clear. Thank you, Rodrigo. Thank you, Tim.

Speaker #2: That's very clear. Thank you Rodrigo. Thank you. Thank you Tim.

Operator: Our next question comes from Mr. Rafael Araujo from Itaú BBA. Please, you may now proceed.

Speaker #1: Our next question comes from Mr. Rafael Araujo from Itaú BBA. Please you may now proceed.

Rodrigo Cardoso Barbosa: If he is asking, I think he is on mute, or maybe he has disconnected there. Rafael? We skip then, right?

Rodrigo Barbosa: If he is asking, I think he is on mute, or maybe he has disconnected there. Rafael? We skip then, right?

Speaker #4: Se ele está perguntando acho que está em mudo. Ou talvez tenha desconectado aí. Rafael? Pulamos então né.

Operator: It seems that Rafael is having some technical problems. Rafael? We are going to the next question right now. Oh, Rafael is here.

Speaker #1: It seems that Rafael is having some technical problems. Rafael? So we are going to the next question right now. It comes from oh Rafael is here.

Rodrigo Cardoso Barbosa: We can't hear your audio. If anything, write it here, Rafael. We read and respond.

Rodrigo Barbosa: We can't hear your audio. If anything, write it here, Rafael. We read and respond.

Speaker #4: Eu acho que não estamos escutando seu áudio. Qualquer coisa escreve aqui. Rafael a gente lê e responde.

Rafael Araujo: Okay.

Rodrigo Cardoso Barbosa: Shall we skip to the next one?

Rodrigo Barbosa: Shall we skip to the next one?

Speaker #2: Okay.

Operator: Okay. Our next question comes from Mr. Ricardo Monegaglia from Safra. Please, Ricardo, you may now proceed.

Speaker #4: Vamos para a próxima.

Speaker #1: Okay. Our next question comes from Mr. Ricardo Monegaglia from Safra. Please Ricardo you may now proceed.

Rodrigo Cardoso Barbosa: We are also having difficulty with the audio. It kept disconnecting.

Rodrigo Barbosa: We are also having difficulty with the audio. It kept disconnecting.

Speaker #4: Também estamos com dificuldade no áudio. Acabou desconectando.

Operator: Okay, we can go to the written questions, okay? Our next question comes from Mr. Graham Tanaka from Tanaka Capital Management. First question, please give us your outlook for gold prices and if you will adjust your hedging strategy. Two, can you give us your estimated ROI on internal expansion and mine investments versus ROI through M&A? How much has the difference changed over the last three years? Three, how much have your ROI realized come in versus your expectations on each of your acquisitions?

Speaker #1: Okay. So we can go to the righting questions. Okay. Our next question comes from Mr. Graham Tanaka from Tanaka Capital Management. First question please give us your outlook for gold prices and if you will adjust your hedging strategies.

Speaker #1: Two can you give us your estimated ROI on internal expansion and mine investments versus ROI through MEA and how much has the difference changed over the last three years?

Speaker #1: Three, how much have your ROIs realized compared to your expectations on each of your acquisitions?

Rodrigo Cardoso Barbosa: There was a lot of questions, I will let Kleber answer the ROI. The first one was which one?

Rodrigo Barbosa: There was a lot of questions, I will let Kleber answer the ROI. The first one was which one?

Speaker #4: There was a lot of questions. So I will let the fiber answer the ROI but the first ones was which one?

Operator: Please give us your outlook for gold prices and if you will-

Speaker #1: Please give us your outlook for gold prices, and if you will adjust your hedging strategies.

Rodrigo Cardoso Barbosa: Okay. The gold price

Rodrigo Barbosa: Okay. The gold price

Operator: adjust your hedging strategies.

Rodrigo Cardoso Barbosa: Yeah. Tanaka, first, thank you for attending and thank you for trusting us as a long-term investor. Gold prices, it's interesting, right? Because it got depressed at $4,000, $4,100. It seems that all the movements and all the situations that push world gold price is just boiling. Right? What is happening today is boiling gold price and perhaps we cannot see. As we saw yesterday, we can continue to see a significant appreciate in gold price, although we do not know where it's going to go, but I know that the fundamentals is just getting stronger and stronger. What are these fundamentals? Number one is the US deficit. The US deficit continue to be high. Yet we don't see any kind of discussion how to address the deficit.

Rodrigo Barbosa: Yeah. Tanaka, first, thank you for attending and thank you for trusting us as a long-term investor. Gold prices, it's interesting, right? Because it got depressed at $4,000, $4,100. It seems that all the movements and all the situations that push world gold price is just boiling. Right? What is happening today is boiling gold price and perhaps we cannot see. As we saw yesterday, we can continue to see a significant appreciate in gold price, although we do not know where it's going to go, but I know that the fundamentals is just getting stronger and stronger. What are these fundamentals? Number one is the US deficit. The US deficit continue to be high. Yet we don't see any kind of discussion how to address the deficit.

Speaker #4: Yeah. Gold prices Tanaka first thank you for attending and thank you for trusting us and it's a long-term investor. Gold prices it's interesting right because it got depressed at 4,04,100.

Speaker #4: It's in that all the but all the movements and all the situations that push gold price it just boiling right. What is happening today it's boiling gold price and perhaps we kind of see as we saw yesterday we can continue to see a significant appreciate in gold price although we do not know where it's going to go but I know that the fundamentals is just getting stronger and stronger.

Speaker #4: What are these fundamentals? Number one is the US deficit the US deficit continue to be high and then it could be fixable but yet we don't see any kind of discussion how to address the deficit.

Rodrigo Cardoso Barbosa: Actually, this government tried to address this situation when he started. It was pushed back. We don't see how to address deficit. The deficit just increasing on the top also of some higher inflation. Actually, when you see the war Iran, there's a higher oil price. It just get the situation worse. Also more spending in military. That happened in the US, it's going to happen also in Europe. In the meanwhile, China continue to buy record high gold in the market. I think the situation for gold is just the environment for gold appreciation is just improving. Yet it's uncertain when this is going to be, we start to fly again. Yet at $4,200, $4,500, $4,100 price is not bad at all.

Rodrigo Barbosa: Actually, this government tried to address this situation when he started. It was pushed back. We don't see how to address deficit. The deficit just increasing on the top also of some higher inflation. Actually, when you see the war Iran, there's a higher oil price. It just get the situation worse. Also more spending in military. That happened in the US, it's going to happen also in Europe. In the meanwhile, China continue to buy record high gold in the market. I think the situation for gold is just the environment for gold appreciation is just improving. Yet it's uncertain when this is going to be, we start to fly again. Yet at $4,200, $4,500, $4,100 price is not bad at all.

Speaker #4: Actually this government tried to address this situation when he started but then was pushed back and then we don't see how to address deficit and the deficit just increasing on the top also of some higher inflation.

Speaker #4: And actually when you see the war Iran this higher old gold higher oil price it just get the situation worse and also more spending in military that's happened in the US is going to happen also in Europe.

Speaker #4: And in the meanwhile China continue to record high by record high gold in the market. So I think a situation for gold is just the environment for gold appreciation is just improving yet is uncertain when this is going to be we start to fly again.

Speaker #4: But yet at 42, 50, 100 price is not bad at all. But we continue to see to be super constructive that this gold price can go to 5, 6 if not more thousand dollars per ounce in the medium term.

Rodrigo Cardoso Barbosa: We continue to see, to be super constructive that this gold price can go to five thousand, six thousand if not more dollars per ounce in the medium term once the market start to understand that this situation of the dollar is not sustainable. Actually, when we see now what is happening with the yen. This is decades of monetary testing, of a very low interest rate that's going downhill. Right? The US needs to support the yen in order not to dump Treasury, which would put the heels to the market and will be difficult. They somehow US already managing interest rates to keep it low. When the markets understand that this case will happen in the medium term and the short term, then gold price will have a significant appreciate.

Rodrigo Barbosa: We continue to see, to be super constructive that this gold price can go to five thousand, six thousand if not more dollars per ounce in the medium term once the market start to understand that this situation of the dollar is not sustainable. Actually, when we see now what is happening with the yen. This is decades of monetary testing, of a very low interest rate that's going downhill. Right? The US needs to support the yen in order not to dump Treasury, which would put the heels to the market and will be difficult. They somehow US already managing interest rates to keep it low. When the markets understand that this case will happen in the medium term and the short term, then gold price will have a significant appreciate.

Speaker #4: Once the market start to understand that this situation of the dollar is not sustainable. And actually when we see now what is happening with the yen right this is a decades of monetary testing of a very low interest rates that's going downhill right and the US needs to support the yen in order not to dump treasury.

Speaker #4: Which would put the yields to the market and will be difficult. So they somehow the US already managing interest rates to keep it low and then when the market understand that this can will happen in the medium term and the short term then gold price will have a significant appreciate.

Rodrigo Cardoso Barbosa: I would invite all investors, keep the eye on what is happening between US and yen while China continue to have a very strong purchaser in gold. Very important variables that can push the gold price way beyond what it is today. Kleber, perhaps you can give a call on what is happening with our IRR, internal rate of return or return on investment on the project, which is outstanding. I have never seen those kind of returns in my life, and we have no reason not to believe that we continue to be like this.

Rodrigo Barbosa: I would invite all investors, keep the eye on what is happening between US and yen while China continue to have a very strong purchaser in gold. Very important variables that can push the gold price way beyond what it is today. Kleber, perhaps you can give a call on what is happening with our IRR, internal rate of return or return on investment on the project, which is outstanding. I have never seen those kind of returns in my life, and we have no reason not to believe that we continue to be like this.

Speaker #4: So, I would invite all investors to keep an eye on what is happening between the US and yen, while China continues to have very strong purchases in gold.

Speaker #4: So, very important variables that can push the gold price way beyond what it is today. Clever, perhaps you can give a caller what's happening with our IRR, internal rate of return, or return on investment on the project, which is outstanding.

Speaker #4: I had never seen those kind of returns in my life and we have no reason not to believe that we continue to be like this.

Joao Kleber Cardoso: Some of you who follow the company might remember when we say our strategy is looking at least 20% internal rate of return and leverage in considering more conservative gold prices. This is a strategy minimum. In reality, if you take the investments that have been made and the results of the feasibility studies, for example, Almas was above 50% of the expected IRR, internal rates of return. The Borborema was also close to 40% at the time of feasibility study. The same, over 30% with Era Dorada. We have the minimal necessary, but what we have invested when we make an investment decision, the expectation is already way above the minimum. I would say has been significantly higher now. If you take not only for gold prices, gold prices has helped.

Speaker #2: Yeah. Yeah. You might be some of you who follow the company might remember when we say our strategy is looking at least 20% internal rate of return and leverage and considering more conservative gold prices.

Kleber Cardoso: Some of you who follow the company might remember when we say our strategy is looking at least 20% internal rate of return and leverage in considering more conservative gold prices. This is a strategy minimum. In reality, if you take the investments that have been made and the results of the feasibility studies, for example, Almas was above 50% of the expected IRR, internal rates of return. The Borborema was also close to 40% at the time of feasibility study. The same, over 30% with Era Dorada. We have the minimal necessary, but what we have invested when we make an investment decision, the expectation is already way above the minimum. I would say has been significantly higher now. If you take not only for gold prices, gold prices has helped.

Speaker #2: This is a strategy minimum, but in reality, if you take the investments that have been made and the results of the feasibility studies—for example, Almas was above 50% of the expected IRR (internal rate of return), and Burborema was also close to 40% at the time of the feasibility study.

Speaker #2: The same over 30% with Fera Dorada so we have the minimum necessary but what we have invested when we make an investment decision the expectation is already way above the minimum.

Speaker #2: And I would say has been significantly higher now if you take not only for gold prices gold prices has helped if you take Almas and Burborema for example the time we decided to make the investment and the expected returns we had at the time the gold prices helped but also the change in the projects and how we have unlocked value has unlocked a lot of upsides.

Joao Kleber Cardoso: If you take Almas and Borborema, for example, the time we decided to make the investment and the expected returns we had at the time, the gold prices helped. Also the change in the projects and how we have unlocked value has unlocks a lot of upsides. Again, in terms of examples, if you take Almas, we build on time or budget. The initial investment was according to expectations. Since then, we have increased life of mine, we have increased plant capacity from 1.3 million tons and going to 3 million tons now, which means that the returns, not including gold prices, the return is only for the way we change and unlock the value have been much higher. The same with Borborema. Borborema, we invested also, we delivered on budget. The initial CapEx output flow was expected.

Kleber Cardoso: If you take Almas and Borborema, for example, the time we decided to make the investment and the expected returns we had at the time, the gold prices helped. Also the change in the projects and how we have unlocked value has unlocks a lot of upsides. Again, in terms of examples, if you take Almas, we build on time or budget. The initial investment was according to expectations. Since then, we have increased life of mine, we have increased plant capacity from 1.3 million tons and going to 3 million tons now, which means that the returns, not including gold prices, the return is only for the way we change and unlock the value have been much higher. The same with Borborema. Borborema, we invested also, we delivered on budget. The initial CapEx output flow was expected.

Speaker #2: Again in terms of examples if you take Almas we built on time of budget so the initial investment was according to expectations but since then we have increased life of mine we have increased planned capacity from 1.3 million tons and going to 3 million tons now.

Speaker #2: Which means that the returns not including gold prices the return is only for the way we change and unlock the value have been much higher.

Speaker #2: The same with Burborema. Burborema we invested also we delivered on budget so the initial capex output flow was expected but when we look into the expected inflows going forwards when we announce to the market we have 11 years life of mine less than 800,000 ounces of reserves.

Joao Kleber Cardoso: When we look into then expected inflows going forward. When we announced to the market we have 11 years life of mining and less than 800,000 ounces of reserves. Now we have 35 years life of mine, and are already working also to expand the capacity. The returns have been so far way above what we planned, even if you don't consider more favorable gold prices. If you put on that more favorable gold prices has been helping as well a lot. Rodrigo, go ahead.

Kleber Cardoso: When we look into then expected inflows going forward. When we announced to the market we have 11 years life of mining and less than 800,000 ounces of reserves. Now we have 35 years life of mine, and are already working also to expand the capacity. The returns have been so far way above what we planned, even if you don't consider more favorable gold prices. If you put on that more favorable gold prices has been helping as well a lot. Rodrigo, go ahead.

Speaker #2: Now we have a 35-year life of mine and are already working to expand the capacity. So the returns have so far been way above what we planned, even if you don't consider more favorable gold prices.

Speaker #2: If you put on that, more favorable gold prices have been helping as well—a lot. Rodrigo, you...

Rodrigo Cardoso Barbosa: No, I think you answered very well. I made a mistake here raising the hand.

Rodrigo Barbosa: No, I think you answered very well. I made a mistake here raising the hand.

Speaker #4: No I think you answered very well. I made a mistake here raising the hand.

Joao Kleber Cardoso: Oh, okay. Yeah. I think one of the points was on internal versus M&A. We have had these high returns on both. Of course, if you think about brownfield, usually the returns expected should be higher in the case of Almas, in the case of Borborema, because the structure is there. That's why are some of the important projects we have now expanding production capacity, the mines, because all the structure is there, then it's the marginal, the additional CapEx for the returns. We have been seeing and enjoying these very high returns on both assets that we acquired and internal expansions as well.

Kleber Cardoso: Oh, okay. Yeah. I think one of the points was on internal versus M&A. We have had these high returns on both. Of course, if you think about brownfield, usually the returns expected should be higher in the case of Almas, in the case of Borborema, because the structure is there. That's why are some of the important projects we have now expanding production capacity, the mines, because all the structure is there, then it's the marginal, the additional CapEx for the returns. We have been seeing and enjoying these very high returns on both assets that we acquired and internal expansions as well.

Speaker #2: Oh, okay. Yeah. And I think one of the points was on internal versus M&A. So we have had high returns on both.

Speaker #2: Of course if you think about brownfield usually the returns expect should be higher in the case of Almas in the case of Burborema because the structure is there.

Speaker #2: So that's why our two are some of the important projects we have now expanding production capacity the mine is because all the structure is there then is the marginal the additional capex for the returns.

Speaker #2: But we have been seeing and enjoying this very high returns on both on both assets that we acquired and internal expansions as well.

Operator: Our next question comes from Mr. Raphael Araujo from Itaú BBA. Please, Raphael, you may turn on your microphone.

Speaker #1: Our next question comes from Mr. Rafael Araújo from Itaú BBA. Please Rafael you may turn on your microphone.

Rafael Araujo: Hi, guys. Can you hear me?

Speaker #5: Hi guys. Can you hear me?

Rodrigo Cardoso Barbosa: Yes.

Rodrigo Barbosa: Yes.

Rafael Araujo: All right. I have a question here related to El Niño. There has been some discussion around potential climate-related impacts for us Latin American, right? Can you comment on whether El Niño poses any relevant risks or operational challenge for Aura? Thank you.

Speaker #4: Yes.

Speaker #5: All right. So I have a question here related to El Niño. There has been some discussion around potential climate related impacts across Latin America right.

Speaker #5: Can you comment on whether El Niño poses any relevant risks or operational challenges for Aura? Thank you.

Rodrigo Cardoso Barbosa: El Niño can change the rainfall in Central America. That's where probably can impact us. In Era Dorada, most of the groundwork is advancing well, and we're already over 60% completed. A lot is building the plant and doing underground development that can be impacted, but we don't see any major impact that can jeopardize our construction. On the other hand, we need to monitor the amount of water that can go in Honduras. We have an open pit operation with important production Q3 and Q4. If we have a significant excess of water, that can have an impact on productivity. When you put this on the overall Aura, it won't make much of a difference. It can impact Honduras, but on average on the company, we don't see other major impacts.

Rodrigo Barbosa: El Niño can change the rainfall in Central America. That's where probably can impact us. In Era Dorada, most of the groundwork is advancing well, and we're already over 60% completed. A lot is building the plant and doing underground development that can be impacted, but we don't see any major impact that can jeopardize our construction. On the other hand, we need to monitor the amount of water that can go in Honduras. We have an open pit operation with important production Q3 and Q4. If we have a significant excess of water, that can have an impact on productivity. When you put this on the overall Aura, it won't make much of a difference. It can impact Honduras, but on average on the company, we don't see other major impacts.

Speaker #4: El Niño can change the rainfall in Central America that's where probably can impact us and that Adorada most of the groundwork is advancing well and we already over 60% completed and then a lot.

Speaker #4: Building the plant and doing underground development that can be impacted but we don't see any major impact that can jeopardize our construction. On the other hand then we need to monitor the amount of water that can go in Honduras that we have an open pit operation with important production Q3 and Q4.

Speaker #4: So if we have a significant access of water that can have an impact on productivity but when you put this on the overall aura it won't make much of difference.

Speaker #4: It can impact Honduras but when on average on the company we don't see other major impacts.

Rafael Araujo: All right. Thank you very much.

Speaker #5: All right. Thank you very much.

Rodrigo Cardoso Barbosa: I think we're finishing the time here. With that, I will conclude here. The quick wrap up, as always, again, thank you again for participating in this call. Good to see important and different questions, which we are always happy to address. It was a very important quarter, and I would invite again, investors take a look at what can happen in the company in Q3 and Q4, as we should continue to improve production in most of the mines in Q3 and Q4. We're very comfortable, confident that the guidance will be met as we see today, either in production and also in sustaining cash costs. More importantly, see that we looked on the EBITDA, the last 12 months, $800 million or 313,000 ounces of production.

Rodrigo Barbosa: I think we're finishing the time here. With that, I will conclude here. The quick wrap up, as always, again, thank you again for participating in this call. Good to see important and different questions, which we are always happy to address. It was a very important quarter, and I would invite again, investors take a look at what can happen in the company in Q3 and Q4, as we should continue to improve production in most of the mines in Q3 and Q4. We're very comfortable, confident that the guidance will be met as we see today, either in production and also in sustaining cash costs. More importantly, see that we looked on the EBITDA, the last 12 months, $800 million or 313,000 ounces of production.

Speaker #4: So I think we finishing the time here so with that I will conclude here the quick wrap up as always. Again thank again for participating in this call.

Speaker #4: Good to see important and difficult questions which we are always happy to address. It was a very important quarter and I would invite again investors to take a look at what can happen in the company in Q3 and Q4 as we should continue to improve production in most of the mines in Q3 Q4 and we're very comfortable confident that the guidance will be met as we see today.

Speaker #4: Either in production and also in sustaining cash cost and more importantly see that we looked on the EBITDA the last 12 months 800 million dollars or 313,000 ounces of production we are now projecting between 340 and 390 and the gold price of the last 12 months is exactly what it is today so don't kill on Q3 Q4 we should see a continual significant improvement on the EBITDA levels to finish the year again with a significant step compared to last year.

Rodrigo Cardoso Barbosa: We are now projecting between 340 and 390, the gold price of the last 12 months is exactly what it is today. On Q3, Q4, we should see a continued significant improvement on the EBITDA levels to finish the year, again, with a significant step compared to last year. Also, as important as a very good results that we are foreseen in Q3, Q4 is all the groundwork, all the background work that has been doing in the company in order to have a significantly better, again, 2027. Number one, MSG turnaround going on time, on budget. We understand what we are doing and we see the projections of Q3, Q4 improving the production. As important, we want to be prepared for 2027, have a very stronger production compared to what we have today in MSG.

Rodrigo Barbosa: We are now projecting between 340 and 390, the gold price of the last 12 months is exactly what it is today. On Q3, Q4, we should see a continued significant improvement on the EBITDA levels to finish the year, again, with a significant step compared to last year. Also, as important as a very good results that we are foreseen in Q3, Q4 is all the groundwork, all the background work that has been doing in the company in order to have a significantly better, again, 2027. Number one, MSG turnaround going on time, on budget. We understand what we are doing and we see the projections of Q3, Q4 improving the production. As important, we want to be prepared for 2027, have a very stronger production compared to what we have today in MSG.

Speaker #4: Also as important as a very good results that we are foreseeing in Q3 Q4 is all the groundwork all the background work that is being doing in the company in order to have a significantly better again 2027.

Speaker #4: Number one, MSG turnaround is going on time and on budget. We understand what we are doing, and we see the projections of Q3 and Q4 improvements in production. But as important, we want to be prepared for '27, to have a much stronger production compared to what we are today in MSG.

Rodrigo Cardoso Barbosa: We have the bottleneck in Borborema that by the Q4 we will be able to operate at a higher capacity. Higher capacity also in Almas, we are going to finish the 3 million tons. While we continue to build Era Dorada, the production will be only on 2028, we will see improvement in 2027. Another improvement in 2028. We have Matupá to implement, and we have other alternatives to continue to expand our production. Aura, we have been doubling the EBITDA in the last three years, and I have no reason to doubt that we cannot continue a high-speed growth in terms of production, high-speed growth in terms of revenues. With the cash cost controlled, this will have a very leveraged impact on the EBITDA. I thank you all again, and see you in next quarter.

Rodrigo Barbosa: We have the bottleneck in Borborema that by the Q4 we will be able to operate at a higher capacity. Higher capacity also in Almas, we are going to finish the 3 million tons. While we continue to build Era Dorada, the production will be only on 2028, we will see improvement in 2027. Another improvement in 2028. We have Matupá to implement, and we have other alternatives to continue to expand our production. Aura, we have been doubling the EBITDA in the last three years, and I have no reason to doubt that we cannot continue a high-speed growth in terms of production, high-speed growth in terms of revenues. With the cash cost controlled, this will have a very leveraged impact on the EBITDA. I thank you all again, and see you in next quarter.

Speaker #4: Then we are the bottleneck in Burborema that by the Q4 we have we will be able to operate at a higher capacity. Higher capacity also in Almas we're going to finish the 3 million tons plus and then why we continue to build at Adorada and to then the production be only on 28 but we'll see improvement 27.

Speaker #4: Don't improvement in 28 and then we have Matupacho implement and we have other alternatives to continue to expand our production so Aura we've been doubling the EBITDA in the last three years and I have no reason to doubt that we cannot continue a high speed growth in terms of production high speed growth in terms of revenues with the cash cost controlled then this will have a very leveraged impact on EBITDA.

Speaker #4: So I thank you all again and then see you in next quarter.

Operator: Thank you, Rodrigo, for your final remarks. Aura's conference is now closed. We thank you for your participation and wish you a very nice day. Goodbye

Speaker #1: Thank you Rodrigo for your final remarks. Aura's conference is now closed. We thank you for your participation and wish you a very nice day.

Q2 2026 Aura Minerals Inc Earnings Call

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