Aura Minerals Inc.

Aura Minerals Inc. is an Americas-focused gold and copper production company with a portfolio of six operating mines and several development and exploration projects across Brazil, Mexico, Honduras, Guatemala, and Colombia. The company's core business model revolves around the extraction and processing of gold and copper, with silver and molybdenum as by-products, generating revenue primarily through the sale of gold doré bars and copper concentrates to a concentrated customer base. Aura Minerals emphasizes a decentralized operational culture, supported by a lean corporate team, focusing on operational efficiencies, responsible growth, and sustainability, as evidenced by its "Aura 360" initiative and consistent dividend distributions ⁴. The company holds significant exploration potential, owning over 551,073 hectares of mineral rights ⁵.

The company's revenue generation is primarily from the sale of gold and copper. In the fiscal year ended December 31, 2025, gold represented 73% of total revenue, while copper and gold concentrate revenue accounted for 27% ⁶. The company sold a total of 195,968 ounces of doré gold bars ⁷ at an average realized price of $3,446 per ounce ⁸, and 36.9 million pounds of copper contained in concentrate ⁹. Key customers include Asahi Refining Inc., Trafigura México, S.A. de C.V., Auramet International, Inc., and Metalor Technologies SA, which collectively represented almost the totality of the company's revenue in 2025, with Asahi Refining Inc. accounting for 53.4% ¹⁰ and Trafigura México, S.A. de C.V. for 26.9% ¹¹.

Aura Minerals operates six wholly-owned mines: Minosa (gold) in Honduras, and Almas (gold), Apoena (gold), Borborema (gold), and MSG (gold) in Brazil, along with Aranzazu (copper, gold, silver, molybdenum) in Mexico. The Aranzazu Mine, an underground copper operation, contributed 83,149 GEO ¹² and 26.7% of total revenue in 2025 ¹³. The Minosa Mine, an open-pit heap leach gold operation, produced 71,649 GEO ¹⁴ and accounted for 25.0% of revenue ¹⁵. The Apoena Mine, a gold mining complex in Brazil, yielded 35,304 GEO ¹⁶ and 13.1% of revenue ¹⁷. The Almas Mine, an open-pit gold operation in Brazil, produced 56,979 GEO ¹⁸ and 21.2% of revenue ¹⁹. The Borborema Mine, an open-pit gold mine in Brazil, which achieved commercial production in September 2025, contributed 28,500 GEO ²⁰ and 11.7% of revenue ²¹. The MSG Mine, a gold mining complex in Brazil acquired on December 1, 2025, produced 4,761 GEO ²² and 2.2% of revenue ²³.

For the fiscal year ended December 31, 2025, Aura Minerals reported total revenue of $921.7 million ²⁴, a significant increase from $594.2 million in 2024 ²⁵. Gross profit reached $534.8 million ²⁶, up from $251.3 million in 2024 ²⁷, resulting in a gross margin of approximately 58.0% (534.8/921.7). Operating income was $458.9 million ²⁸, compared to $205.4 million in 2024 ²⁹, yielding an operating margin of approximately 49.8% (458.9/921.7). The company reported a net loss for the year of $79.3 million ³⁰, compared to a net loss of $30.3 million in 2024 ³¹. Adjusted Net Income, a non-IFRS measure, was $196.8 million ³², up from $69.2 million in 2024 ³³. Adjusted EBITDA was $547.8 million ³⁴, with an Adjusted EBITDA Margin of 59.4% ³⁵. Net cash generated by operating activities was $305.2 million ³⁶, and Adjusted Free Cash Flow was $243.3 million ³⁷, with a cash conversion rate of 44.4% ³⁸. Cash costs per gold equivalent ounce sold were $1,136 ³⁹, and All-in Sustaining Cash Costs (AISC) were $1,458 per GEO ⁴⁰. The company's dividend yield plus buybacks was 6.2% ⁴¹.

Comparing 2025 to 2024, total revenue increased by 55.1% from $594.2 million to $921.7 million [24, 25]. Gross profit more than doubled from $251.3 million to $534.8 million [26, 27]. Operating income also more than doubled from $205.4 million to $458.9 million [28, 29]. The net loss for the year widened from $30.3 million to $79.3 million [30, 31], while Adjusted Net Income increased significantly from $69.2 million to $196.8 million [32, 33]. Adjusted EBITDA saw a substantial increase from $266.8 million to $547.8 million ³⁴, and Adjusted EBITDA Margin expanded from 44.9% to 59.4% ³⁵. Net cash generated by operating activities grew from $222.2 million to $305.2 million ³⁶, and Adjusted Free Cash Flow increased from $178.2 million to $243.3 million ³⁷. Cash conversion decreased from 66.8% to 44.4% ³⁸. Cash costs per GEO sold increased from $1,041 to $1,136 ³⁹, and AISC increased from $1,320 to $1,458 per GEO ⁴⁰.

Significant operational developments in 2025 included the completion of the acquisition of Bluestone Resources on January 13, 2025, which brought the Era Dorada Project in Guatemala into the portfolio ⁴². The consideration for this acquisition included $18.3 million in cash ⁴³, 1,007,186 common shares ⁴⁴, and 146,519,452 non-interest bearing contingent value rights ⁴⁵. On December 1, 2025, Aura Minerals completed the acquisition of Mineração Serra Grande S.A., owner of the MSG gold mine in Brazil, for an upfront cash consideration of $72.8 million ⁴⁶ on an agreed enterprise value of $76 million ⁴⁷. The Borborema Mine achieved commercial production in September 2025 ⁴⁸. Exploration drilling in 2025 included 6,747m in 99 reverse circulation holes and 2,827.3m in seven diamond drill holes at Minosa ⁴⁹, 24,212.08 meters in 114 drillholes at Apoena near-mine targets ⁵⁰, and 23,802m in 49 exploration drill holes at Aranzazu ⁵¹. At Almas, 92 diamond drill holes totaling 24,280.15 meters were completed across six exploration targets ⁵².

The company's outlook for the Matupá Project projects an annual production of 55,000 GEO during its first four years of operation, with average grades of 1.36 g/ton, a strip ratio of 1.83, a cash cost of $529 per ounce, and an AISC of $710 per ounce ⁵³. The Era Dorada Project's Feasibility Study, completed on December 8, 2025, incorporated new gold and silver metal prices of $3,177 and $37.20 per ounce, respectively, and an optimized mine plan, resulting in Reserves of 1.75 million GEO ⁵⁴.

Operationally, the Almas process plant operated near 2.0 Mtpa in 2025, with an overall gold recovery for open pit material averaging approximately 88.5% ⁵⁵. The planned Phase 3 expansion at Almas introduces a new 4.0 Mtpa crushing plant and a thermal carbon regeneration system, which are expected to support improved metallurgical consistency as throughput increases toward 2.7 Mtpa to 3 Mtpa ⁵⁶. Enhanced carbon regeneration is anticipated to mitigate fouling and improve adsorption kinetics ⁵⁷. For underground material at Almas, a conservative 85.17% recovery is currently applied in mine planning and reserve estimation until dedicated metallurgical test work becomes available ⁵⁸.

The company plans to incorporate Responsible Gold Mining Principles (RGMP) and Conflict-Free Gold Standard (CFGS) into new units, Borborema and MSG, in 2026 through a structured self-assessment process ⁵⁹. At Almas, the Remineralizer Project, which aims to convert rock powder into a sustainable agricultural input, is planned for further testing across soil types and preparation of a technical dossier for product registration in 2026 ⁶⁰. At Aranzazu, studies on the reuse of tailings as underground backfill have been initiated ⁶¹.

The Aranzazu Mine's offtake agreement with Trafigura Mexico, S.A. de C.V. for 100% of its copper concentrate production from the Macocozac I mining lot is set to expire in December 2027 ⁶². The agreement allows Trafigura to purchase any excess volume and quality unless waived, and if less than the minimum quantity is delivered, Trafigura may unilaterally extend the contract term ⁶³.

Aura Minerals faces significant risks from market fluctuations, particularly in gold and copper prices, which are influenced by global economic activity, inflation, and currency exchange rates ⁶⁴. The company's actual costs may exceed estimates from feasibility studies, and failure to achieve production estimates could materially impact cash flows and profitability ⁶⁵. Mineral reserve and resource estimates are inherently uncertain and may be lower than actual recoverable volumes, with more stringent regulations or market price fluctuations potentially rendering certain reserves uneconomical ⁶⁶. The company relies on third-party contractors and suppliers, and any deficiencies or delays in their performance could adversely affect operations ⁶⁷. Operating in Latin America exposes Aura to political instability, adverse economic conditions, illegal activity, and exchange rate volatility ⁶⁸. The declaration of the "Semidesierto Zacatecano" site as a protected natural area in Mexico could prevent the renewal of existing mining concessions or the acquisition of new ones in the affected exploration areas, though current mining operations remain unaffected due to a definitive injunction ⁶⁹. Transitioning to a lower-carbon economy may entail significant investments and expenses to comply with new regulations and standards, and failure to progress in these areas could impact the business and access to capital ⁷⁰. The company's holding company structure makes it dependent on the earnings and cash flow of its operating subsidiaries, which could be affected by restrictions on dividend distributions or exchange rate fluctuations ⁷¹.

Management emphasizes a commitment to delivering long-term value through operational efficiencies, responsible portfolio growth, and sustainable mining practices, guided by a decentralized culture and a lean corporate team ⁷². The company has a track record of expanding and building new mines on time and on budget, generating consistent cash flow, and distributing dividends ⁷³. Strategic priorities include focusing on high-IRR growth opportunities while balancing capital appreciation with reliable dividend distributions ⁷⁴. Management highlights the "Aura 360 Culture" which integrates ESG principles into all operations, evidenced by achievements such as only one minor lost-time accident in 2024 and zero in 2025 ⁷⁵, and numerous environmental and community initiatives. The company also achieved Great Place to Work (GPTW) certification in all operating countries, with 81% of employees aligning with the Aura 360 culture and 100% of senior management positions filled by internal candidates by December 31, 2025 ⁷⁶. Looking ahead to 2026, the company plans to incorporate Responsible Gold Mining Principles (RGMP) and Conflict-Free Gold Standard (CFGS) into new units (Borborema and MSG) through a structured self-assessment process ⁷⁷.