Aura Min Stock Price, News & Analysis

Aura Minerals Inc. (traded in the U.S. under the symbol ORAAF in the over-the-counter market and listed on Nasdaq under AUGO, with BDRs trading on B3 as AURA33) is a mining company in the gold and base metals sector. According to its public disclosures, Aura is focused on the development and operation of gold and base metal projects in the Americas and operates within the Basic Materials sector.

The company describes its approach as Aura 360° Mining, which it characterizes as mining "in complete terms" by considering how its activities impact its stakeholders, including the company, shareholders, employees, and the countries and communities where it operates. This concept is repeatedly referenced in Aura’s news releases as a core part of its culture and how it manages its operations and growth projects.

Core operations and assets

Aura reports that it has multiple operating mines and development projects across the Americas. Its operating assets include:

• Minosa gold mine in Honduras.
• Almas gold mine in Brazil.
• Apoena gold mine in Brazil.
• Borborema gold mine in Brazil.
• MSG (Mineração Serra Grande) gold mine in Brazil, acquired from AngloGold Ashanti.
• Aranzazu mine in Mexico, which produces copper, gold and silver.

In addition to these operating mines, Aura discloses a pipeline of projects at various stages, including:

• Era Dorada, a gold project in Guatemala.
• Tolda Fria, a gold project in Colombia.
• Matupá in Brazil, described as under development.
• São Francisco in Brazil, described as in care and maintenance.
• Carajás copper project in Brazil, described as being in the exploration phase.

Through these assets, Aura reports production in gold equivalent ounces ("GEO"), a metric it uses to aggregate output from gold and base metal production, particularly at Aranzazu where copper, gold and silver are produced.

Production profile and growth focus

Aura’s public news releases highlight its focus on growing production and extending mine life. The company reports record quarterly and annual GEO production levels across its operations, with contributions from Aranzazu, Minosa, Almas, Apoena, Borborema and, more recently, MSG. Aura also notes that it uses guidance ranges for GEO production and compares actual performance against these ranges.

The company has emphasized three main paths for creating value: developing greenfield projects to increase production, investing in exploration to extend the life of existing mines, and pursuing growth through mergers and acquisitions. Examples mentioned in its disclosures include the ramp-up of the Borborema mine, the acquisition and integration of MSG in Brazil, and the acquisition of Bluestone Resources Inc., which owns the Era Dorada project in Guatemala.

Key projects and transactions

Era Dorada Project (Guatemala): Aura reports that Era Dorada, previously known as the Cerro Blanco Project, is planned as an underground gold mine located in the Department of Jutiapa in southeast Guatemala, near the town of Asunción Mita and close to the border with El Salvador. The company has disclosed the completion of a feasibility study prepared under S-K 1300, describing mineral resources and mineral reserves in gold equivalent terms and outlining a life-of-mine plan. Aura also reports that it has received a construction license and commenced early works, including environmental programs, road works, mine dewatering and preparation of platforms for equipment and temporary facilities.

MSG acquisition (Brazil): Aura states that it completed the acquisition of Mineração Serra Grande S.A. from AngloGold Ashanti, thereby adding the Mineração Serra Grande gold mine in Goiás, Brazil, to its portfolio. The company notes that MSG includes three mechanised underground mines and an open pit, along with a metallurgical plant. Aura characterizes MSG as an asset with significant potential and indicates that it intends to implement a plan to recover production, reduce dilution, increase efficiency and invest to expand mineral resources and reserves.

Altamira Gold Corp. investment: Aura has disclosed that it holds and has exercised common share purchase warrants in Altamira Gold Corp., increasing its share position. Aura describes this as an investment based on the exploration potential of Altamira and notes that it may adjust its holdings over time depending on market conditions and other factors.

Financial and capital markets context

Aura’s news releases refer to consolidated financial and operational results that include net revenue, adjusted EBITDA, cash costs and all-in sustaining costs (AISC), as well as operating cash flow and net debt metrics. The company also reports on its GEO production and sales volumes by mine and on realized prices for gold and copper. Aura has highlighted periods of record production and record adjusted EBITDA, as well as reductions in net debt relative to adjusted EBITDA.

The company has described actions related to its listings and capital structure, including listing its common shares on Nasdaq under the symbol AUGO, delisting from the Toronto Stock Exchange, and maintaining Brazilian Depositary Receipts on B3 under AURA33. Aura has also announced an incentive program for the conversion of BDRs into common shares, with the stated objective of consolidating and increasing trading of its shares on Nasdaq.

Dividends and shareholder returns

Aura has disclosed a dividend policy under which it may determine quarterly cash dividends based on a percentage of adjusted EBITDA, less sustaining and exploration capital expenditures for the relevant period. In its public communications, the company has announced cash dividends per share and per BDR and has referenced dividend and buyback yields over trailing periods. These disclosures indicate that Aura uses dividends as one component of shareholder returns alongside growth investments.

Geographic footprint

According to its press releases, Aura’s operating mines and projects are located in several countries in the Americas:

• Honduras (Minosa gold mine).
• Brazil (Almas, Apoena, Borborema and MSG gold mines; Matupá, São Francisco and Carajás projects).
• Mexico (Aranzazu copper, gold and silver mine).
• Guatemala (Era Dorada gold project).
• Colombia (Tolda Fria gold project).

The company also notes that it is headquartered in Road Town, in the British Virgin Islands, in the datelines of its news releases.

Business model and reporting metrics

Aura’s disclosures show a business model centered on owning and operating producing mines while advancing development and exploration projects. The company reports production in gold equivalent ounces to combine gold and base metal output, particularly where copper, gold and silver are produced together. It uses metrics such as cash cost per GEO and AISC per GEO to describe operating costs, and adjusted EBITDA to describe operating profitability before certain items.

The company also reports mineral resources and reserves for specific projects, such as Era Dorada, using S-K 1300-compliant technical reports and feasibility studies. These reports include information on mineral resource classifications, cut-off grades, metallurgical recoveries, operating cost assumptions and financial indicators such as net present value and internal rate of return, as disclosed in Aura’s press releases summarizing those studies.

Risk and regulatory context

Aura’s news releases consistently include cautionary statements regarding forward-looking information and forward-looking statements. The company notes that its expectations and assumptions are subject to risks and uncertainties, including commodity price volatility, changes in debt and equity markets, geological interpretation risks, cost increases, environmental compliance and regulatory changes, interest and exchange rate fluctuations, general economic conditions and other risks associated with mineral exploration and development. The company refers readers to its filings with Canadian securities regulators and the U.S. Securities and Exchange Commission for more detailed risk discussions.

FAQs about Aura Minerals Inc. (ORAAF)

• What does Aura Minerals Inc. do?
  Aura Minerals Inc. is a mining company focused on the development and operation of gold and base metal projects in the Americas. It reports production in gold equivalent ounces from a portfolio of operating mines and development projects.
• Which mines does Aura operate?
  Aura reports that its operating assets include the Minosa gold mine in Honduras; the Almas, Apoena, Borborema and MSG gold mines in Brazil; and the Aranzazu copper, gold and silver mine in Mexico.
• What is Aura 360° Mining?
  Aura 360° Mining is the term Aura uses to describe its approach to mining, which it characterizes as considering the impacts and benefits of its operations for the company, shareholders, employees, and the countries and communities where it operates.
• Where are Aura’s development projects located?
  Aura has disclosed development and exploration projects including the Era Dorada gold project in Guatemala, the Tolda Fria gold project in Colombia, and the Matupá, São Francisco and Carajás projects in Brazil.
• What is the Era Dorada project?
  Era Dorada is a gold project in southeast Guatemala, in the Department of Jutiapa near Asunción Mita and close to the border with El Salvador. Aura has completed a feasibility study under S-K 1300 and reports mineral resources, mineral reserves and life-of-mine production plans for this planned underground mine.
• What is MSG in Aura’s portfolio?
  MSG refers to Mineração Serra Grande S.A., which owns the Mineração Serra Grande gold mine in Goiás, Brazil. Aura completed the acquisition of MSG from AngloGold Ashanti and describes MSG as comprising three mechanised underground mines, an open pit and a metallurgical plant.
• How does Aura describe its growth strategy?
  Aura’s news releases describe a strategy focused on growing production through greenfield projects and expansions, extending mine life through exploration to increase resources and reserves, and pursuing growth through mergers and acquisitions.
• How does Aura return capital to shareholders?
  Aura has disclosed a dividend policy under which it may pay quarterly cash dividends based on a percentage of adjusted EBITDA after sustaining and exploration capital expenditures. The company has announced specific dividends per share and per BDR in its public communications.
• On which markets are Aura’s securities traded?
  Aura’s common shares are listed on Nasdaq under the symbol AUGO, and its Brazilian Depositary Receipts trade on B3 under the symbol AURA33. The ORAAF symbol represents trading of Aura’s shares in the U.S. over-the-counter market.
• Where can investors find more detailed technical and financial information?
  Aura refers investors to its audited consolidated financial statements, earnings releases, feasibility studies and technical reports filed on SEDAR+, with the U.S. Securities and Exchange Commission, and with Brazilian securities regulators for detailed financial, operational and technical information.