Aura Minerals Inc. Common Shares 2026 Q2 Earnings Call

Thank you very much, 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 through the details of the results, 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 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 Q4, as we have done in the past with a weaker production in the first semester, and a stronger production on the second semester.

Actually this year, as we're going to go through mine by mine, we'll see that this balance between first and second semester can be even bigger than what happened in the past. Overall, we produce on the first half of the year, 158,000 ounces. As I mentioned to you, we are 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 to 232,000 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. That means that we are very much on track to produce a very significant improvement during the Q3 Q4. That is a combination of mine sequences and also the ramp-up of MSG.

Our revenues on the quarter, which is $336 million, of course, lower gold price and also lower production means lower revenues. We look on the EBITDA, on the other hand, we reached close to $200 million. I would also highlight that for 12 consecutive quarters, Aura has been increasing the EBITDA. 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 third and fourth quarter, 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. The first number that we see, close to 2,000 ounces per ounce 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 of gold equivalent ounces. Understanding that we have a significant high production coming in from MSG. We have a significant high production for Apoena, Borborema, so we still have improvements on all-in sustaining cash costs coming during the second semester due to mine sequencing and also expansion that is happening either in Almas and also in Borborema. In terms of recurring cash flow, we reached $80 million.

You exclude the losses of the gold hedges, which is going to happen this year and also next year, we would've 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 and then 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 Claudio can also go through a little bit more detail, by the end of the presentation.

In terms of net income or record high net income, $218 million, that's the quarter that gold price has depreciated, unfortunately, but the positive impact that since we have a mark-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 the third quarter related to the second quarter. Together with this dividend that we also approved, a share buyback program of $200 million. From now on, investors should see a split between a 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.

In terms of our projects at Aura, mostly on time, on budget. I have on the slide to give you more details. Also the average daily traded volume is significantly 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 the first semester, and now we are close to $100 million per day on average, during the last quarter. In terms of safety, as we mentioned on last quarter, unfortunately, we had one lost time incident in Borborema in March this year. A lost time incident that the person is already fastly recovering and is already fully recovered and 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. If you look the last two years, we had only one 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 returns 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 a 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. That's because the ramp up of Borborema, that we actually continue to increase our production. Now from now on, after the first quarter and the second quarter of weaker production in MSG, although we are planning a much higher production for next year, we will see a gradual improvement on MSG on Q3 and in Q4 and on top of other mines also that will improve. We will continue to see these last 12 months, improving, from the 313, of course, then reaching 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 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 due to infrastructure investments and infrastructure activities that we had to implement in MSG. Part of that was planned, part was challenging when we faced the first, and started producing in MSG. We faced a more challenging situation in terms of infrastructure in that when we deviated all the equipment, when we had to make a 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 will structurally change the mining order for us to be able to produce close to 80,000 ounces per year, production and only 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 strong confidence that we will not only improve from 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 Cost nearing down close to $2,000, $2,200 per ounce. In terms of Borborema, our first quarter, 17,000 ounces, second quarter, 14,000 ounces. That is super planned. It's a mine sequence. It's great. But as we come to Q3 and Q4, we will see a combination of both. 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 deep bottleneck.

The plant wants to take the bottleneck in the filters, and we are implementing new filters that should be online by Q4, between Q3 and mostly Q4, that we will also be able to increase production on the top of high production. We should see a higher production of Borborema coming in on the second semester. Almas, it's a slight 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. That will gradually improve capacity as we should finish the year at close to 3 million tons per year, and that will also have an impact on the quarter production. In Minosa, we had a decrease from 17,000 to 14,000 ounces.