Aura Minerals Reports Solid Q1 Operational Performance and Advances Growth Pipeline

• Q1 gold production was 53,000 ounces, lower than Q4 2021 due to mine sequencing at EPP as expected.
• Q1 revenue was $97 million and adjusted EBITDA was $37 million, similar to Q4 2021 despite lower production.
• Almas mine construction completed on time and budget, ramp-up underway and on track for commercial production in Q3 2023.
• Advancing Borborema project, expect to start construction in June/July after completing feasibility study and securing financing.
• Released updated mineral resources and reserves, significantly increasing inferred and measured+indicated resources and proven+probable reserves.

Aura Minerals announced its first quarter 2023 results, highlighting stable financial performance despite lower production related to expected mine sequencing. The company generated revenues of $97 million and adjusted EBITDA of $37 million, similar to Q4 2022. Aura also continued advancing key growth projects while boosting mineral resources and reserves. With major milestones achieved in Q1, Aura appears on track to grow production toward its 2025 target.

Q1 Production Down Due to Anticipated Mine Sequencing

Aura’s gold equivalent production in Q1 2023 was 53,000 ounces compared to 68,000 ounces in Q4 2022. CEO Rodrigo Barbosa attributed the decrease primarily to lower grades at the EPP mine in Brazil as mining progressed into a new zone. He noted the company had forecasted the seasonal production decline based on the mining sequence. Barbosa expects output at EPP to improve over the next quarters, likely reaching 20,000-25,000 ounces per quarter in the second half of 2023. Despite the dip in Q1, Aura maintained its full-year guidance for EPP.

Financial Performance Holds Steady

CFO Clever Cardoso reported that while Q1 revenues declined to $97 million with lower volumes, EBITDA remained flat at $37 million compared to Q4 2022. He highlighted Aura’s increased margins resulting from higher gold and copper prices. The company generated net income of $19 million, up 58% from $12 million in Q4. Cardoso said Aura maintained a strong cash position of $103 million at quarter-end after investing $28 million in growth projects.

Advancing Pipeline of Growth Projects

Aura provided updates on key expansions expected to drive growth toward its target of 450,000 gold-equivalent ounces of annual production by end of 2025:

• Almas Construction Completed, Ramp-Up On Track – The Almas mine in Brazil was built in just 16 months and the ramp-up is progressing well, currently employing over 1,200 people. Barbosa said Aura remains on pace to declare commercial production in Q3 2023.
• Borborema Advancing to Construction – Aura is finalizing studies on the Borborema project to start construction in June/July after securing financing. The company continues to optimize the project to reduce costs and improve returns.
• Growing Resources and Reserves – Aura reported significant increases in measured, indicated and inferred resources along with growth in proven and probable reserves. This demonstrates the success of its expanded exploration program.

With construction of its first greenfield mine complete and Borborema rapidly progressing, Aura appears to have strong momentum advancing its portfolio of growth projects.

The Investment Thesis for Aura Minerals

• Operator of established, cash-flow generating mines in favorable mining jurisdictions
• Clear path to significant production growth from current asset base and pipeline of projects
• Proven track record executing construction of new mines on time and on budget
• Committed to expanding resources and reserves to extend existing mine life
• Experienced management team with operational expertise to drive continued expansion
• Trading at discount valuation relative to peers based on production and growth outlook