AUGO · Aura Minerals

Aura Minerals delivered exceptional Q1 2026 results, marking the seventh consecutive quarterly record for Adjusted EBITDA at US$243.9 million, up 17% QoQ and 199% YoY, propelled by record net revenues of US$382.6 million from higher production, sales volumes, and metal prices—gold averaged US$4,873/oz (+70% YoY) and copper US$5.81/lb (+27% YoY). Production hit 82,137 GEO, flat QoQ but +37% YoY, with standout contributions from new assets: Borborema at 17,101 GEO and MSG adding 8,580 GEO, offsetting declines at Aranzazu and Apoena due to mine sequencing and GEO conversion issues. Gross margin held strong at 60% despite a 3pp QoQ dip from higher COGS tied to MSG consolidation and FX impacts from appreciating BRL and MXN. AISC rose to US$1,829/GEO (+20% QoQ) largely from MSG's higher costs, but ex-MSG and at constant prices, it was only +4% YoY, with management expecting H2 improvements via cost initiatives and higher output to meet full-year guidance of 340k-390k GEO and AISC US$1,720-1,865/oz. CEO Rodrigo Barbosa highlighted progress on value creation avenues: production growth via Borborema and MSG ramp-up, reserves doubling to 7.2M GEO (per Form 20-F filed April 1, 2026) using updated prices (gold US$2,600/oz), enhanced liquidity with traded volume surging to US$94M daily, and key approvals like Era Dorada construction license and Board go-ahead (US$382M CAPEX, 35.6% IRR at US$3,177/oz gold, start H1 2028) plus Borborema road relocation enabling expansions. This operational strength funded a record US$65M dividend (US$0.78/share), with net income flipping to US$95.2M positive (adjusted US$109.5M) amid lower finance costs and tax benefits. Balance sheet remains solid with net debt at US$115M (0.16x LTM EBITDA) and cash at US$268M, generating consistent free cash flow of US$95M despite tax payments and hedge losses. Investors benefit from robust cash generation, growth pipeline, and capital returns amid a stronger H2 outlook.