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Aura Minerals

Crux Investor Index
6
i
Market Cap (USD)
835386982
Symbol
TSX:ORA
Stage of development
Production
Primary COMMODITY
Gold
Additional commodities
Copper

Aura Minerals Company Overview

Aura Minerals Inc. is a diversified gold and copper producer focused on advancing high-return mining operations across the Americas. With a growing portfolio that includes four operating mines and two active development projects, Aura has positioned itself as a leading mid-tier producer in the industry. Headquartered in Miami, Aura maintains a robust presence in key mineral-producing countries, including Brazil, Mexico, and Honduras. Aura’s growth is driven by its goal to increase production by 90% by 2025, aiming for an annual output of 450,000 gold equivalent ounces (GEO).

Underpinned by the “Aura 360” culture, which emphasizes sustainable practices and operational excellence, the company is committed to long-term value creation through efficient project execution, resource expansion, and responsible environmental management. Aura Minerals is publicly listed on the Toronto Stock Exchange (TSX: ORA), Brazil’s B3 Stock Exchange (B3: AURA33), and OTCQX (ORAAF), with a strong record of shareholder returns, including sector-leading dividend yields.

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Aura Minerals Analyst Notes

No analyst notes

Opportunity

Aura Minerals represents a compelling investment opportunity, offering exposure to a portfolio of established, high-margin operations and an ambitious pipeline of development projects across Latin America. The company’s multi-asset structure ensures diversification, and its proven track record in operational efficiency positions Aura favorably among peers in the mid-tier segment. With production spread across high-quality assets in stable mining jurisdictions, Aura is well-placed to capture value from rising gold and copper demand.

Aura’s growth potential is underpinned by a strategic focus on high-return projects. The company’s near-term production targets include ramping up the Almas mine, Aura’s first greenfield project, as well as advancing the Borborema and Matupá projects in Brazil. The Borborema project, set for commercial production by 2025, is expected to further strengthen Aura’s production base while enhancing cash flow and shareholder returns. Aura’s ongoing investments in exploration and a robust pipeline of development assets provide long-term resource growth, with 337% growth in measured and indicated resources and 110% in reserves since 2018.

With an eye on cost-efficiency, Aura maintains one of the sector’s most competitive production cost profiles, reinforcing its resilience against market volatility. By capitalizing on its growth-oriented portfolio, Aura Minerals is well-positioned to deliver sustainable value to its shareholders while expanding its footprint as a top-tier producer in the Americas.

Aura Minerals Videos

Summary

Management Team

Aura Minerals Inc. is led by a seasoned management team with extensive expertise in mining, project development, and corporate finance. At the helm is President and CEO Rodrigo Barbosa, who brings over two decades of leadership experience in the mining and energy sectors, including previous roles as CFO and Vice President of Operations. Under his leadership, Aura has transformed into a high-growth company with a diversified asset base and a focus on sustainable returns.

The company’s strategic financial management is guided by CFO Kleber Cardoso, who has deep experience in corporate finance and governance within the natural resources industry. Aura’s technical operations are overseen by COO Glauber Luvizotto, whose 13-year career in mining operations and project management ensures efficient project execution and operational excellence across all sites.

Supported by a board of directors composed of industry veterans, Aura’s executive team is well-equipped to achieve the company’s growth objectives while upholding the highest standards of sustainability and community engagement.

Growth Strategy

Aura Minerals Inc. is executing a comprehensive growth strategy aimed at expanding production and enhancing operational efficiency across its portfolio. The company’s growth roadmap is anchored by its ambitious goal to increase production by 90% into 2025, driven by the ramp-up of existing mines and the development of new high-return projects.

Aura’s growth plan focuses on advancing its Almas, Borborema, and Matupá projects in Brazil. The Almas mine, Aura’s first greenfield project, achieved commercial production in 2023, reinforcing the company’s capability to develop and operate large-scale mining assets. The Borborema project is expected to begin commercial production in 2025, offering a projected 83,000 GEO annually, while the Matupá project, planned to start in late 2025, promises to add significant production and resource growth potential.

Aura’s growth strategy also emphasizes operational efficiency, with each project designed to minimize costs through advanced technologies and efficient mining methods. By leveraging existing infrastructure, such as at the Apoena mine, Aura is able to achieve capital efficiency and reduced environmental impact. Additionally, Aura’s exploration efforts are focused on expanding its resource base, with a 337% increase in measured and indicated resources and a 110% increase in proven and probable reserves since 2018.

Through disciplined project execution, strong financial management, and a focus on ESG principles, Aura Minerals is strategically positioned to achieve sustainable growth and deliver long-term value for shareholders while advancing its vision of responsible mining in the Americas.

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Financial Overview

Aura Minerals Inc. is financially well-positioned, supported by a strong asset base and a disciplined approach to capital allocation. The company has demonstrated consistent revenue growth, driven by increasing production across its portfolio. In 2023, Aura reported an EBITDA of $134 million and achieved $54 million in EBITDA in the first quarter of 2024 alone. These results reflect Aura’s efficient operations and ability to generate robust cash flows from its diversified asset base.

Aura maintains a conservative balance sheet with low leverage, allowing it to support ongoing growth projects while continuing to provide shareholder returns, including a sector-leading dividend yield of 8.8% in 2024. Aura’s approach to capital efficiency is further underscored by its investment in high-return projects, such as the Borborema and Matupá projects in Brazil, which are expected to strengthen its production base and enhance cash flow in the coming years. The company’s free cash flow generation remains robust, supporting a flexible capital structure that enables Aura to pursue growth initiatives, reduce debt, and return capital to shareholders.

Aura’s financial strategy is designed to capitalize on its high-margin production profile, with a focus on maintaining one of the sector’s lowest cash operating costs. The company’s disciplined cost management, along with favorable commodity prices, has positioned Aura as a low-cost producer that can weather commodity price fluctuations, providing a stable financial outlook for the future.

Shareholder Breakdown

Risk Factors and Mitigation

Aura Minerals handles multiple business challenges across its mining operations through a comprehensive risk management strategy. The company's revenue depends on gold and copper prices, but maintains profitability through effective cost management and the strategic advantage of having both gold and copper mines in its portfolio, which provides protection against price changes in any single metal.

Operating across several Latin American countries presents regulatory complexities, which Aura manages through active engagement with government agencies and local communities. The company's extensive experience in these regions strengthens its ability to secure necessary permits and maintain compliance. As Aura grows its operations, it partners with experienced engineering and consulting firms to ensure new projects stay on schedule and within budget through detailed planning and risk assessment processes.

The company's "Aura 360" culture demonstrates its commitment to environmental and social responsibility. This framework guides sustainable practices across all operations while maintaining strong relationships with local communities through open communication and partnership programs. Through careful financial management, efficient operations, and proactive stakeholder engagement, Aura Minerals continues to advance its growth plans while maintaining high standards in environmental and social practices.

Conclusion

Aura Minerals Inc. is positioned as a rising leader in the gold and copper mining sector, with a focused growth strategy and a portfolio of high-return assets across the Americas. Through disciplined project execution, Aura has achieved robust production growth, expanded its resource base, and strengthened its financial position, making it an attractive investment opportunity in the mid-tier mining segment.

With plans to increase production by 90% by 2025, Aura’s vision is clear: to become a top-tier, sustainable mining company that generates long-term value for shareholders while upholding the highest standards of environmental and social responsibility. Aura’s low-cost production profile, efficient operations, and diversified asset base provide resilience against market volatility, enabling it to capitalize on favorable commodity prices and growing global demand for gold and copper.

Supported by a skilled management team, a commitment to ESG principles, and a track record of delivering shareholder returns, Aura Minerals is well-equipped to advance its growth projects and unlock additional value. For investors seeking exposure to a high-growth, sustainability-focused mining company with strong cash flow potential, Aura Minerals represents a compelling opportunity in the Americas.