Aura Minerals (TSE:ORA) reported lower second-quarter production than in the first quarter but said it remains confident in its full-year production and all-in sustaining cost guidance as mine sequencing, expansion work and the turnaround at its MSG operation are expected to support a stronger second half.
President and CEO Rodrigo Barbosa said the company produced 158,000 ounces in the first half of 2026 and expects between 182,000 and 232,000 ounces in the second half. That outlook supports Aura’s maintained annual production guidance of 340,000 to 390,000 ounces.
Financial Results and Shareholder Returns
Second-quarter net revenue totaled $336 million, reflecting lower production and a lower average gold price compared with the first quarter, CFO Kleber Cardoso said. Adjusted EBITDA was $197 million, while trailing 12-month EBITDA exceeded $800 million. Cardoso said Aura has increased its trailing 12-month EBITDA for 12 consecutive quarters since the second quarter of 2023.
Net income for the quarter was $218 million, including unrealized gains on outstanding gold derivatives as gold prices declined between the beginning and end of the quarter. Adjusted net income, excluding non-cash effects, was $97 million.
The company ended the period with cash of roughly $250 million to $260 million and net debt of $168 million. Its net-debt-to-EBITDA leverage ratio remained at 0.2 times, Cardoso said.
Aura’s operating mines generated $117 million during the quarter, according to Cardoso. The company used $37 million to settle gold hedges, invested $58 million in growth initiatives, and returned $68 million to shareholders through dividends and share repurchases.
The board approved a new $60 million dividend, or $0.72 per share, to be paid in the third quarter in relation to second-quarter results. Aura also announced a $200 million share repurchase program. Barbosa said future shareholder returns are expected to be split between dividends and buybacks rather than relying solely on dividends.
He added that Aura intends to conduct buybacks without adversely affecting the company’s trading liquidity, which he said has increased substantially since the company’s Nasdaq listing. Average daily trading volume was close to $100 million in the most recent quarter, compared with roughly $1 million to $2 million per day during the first half of the prior year, according to Barbosa.
MSG Turnaround Remains Central to Second-Half Outlook
MSG was the principal source of weaker production in the first half as Aura prioritized underground development, infrastructure upgrades and equipment reliability over near-term output. Barbosa said the company may land near the lower end of guidance for the operation, though management remains confident in the turnaround’s longer-term prospects.
COO Glauber Luvizotto said the mine’s key constraint is underground production. During the quarter, Aura used lower-grade surface stockpiles to keep the plant operating while directing mining efforts toward development and preparation work.
Aura said underground development productivity is running roughly 80% to 90% above the prior year’s level. Luvizotto said the company expects second-half throughput at MSG to rise by approximately 50% to 60% from first-half levels, while grades could increase by roughly 25% to 35% as more ore is sourced from underground.
The company expects production to rise sequentially through the third and fourth quarters and into the first quarter of 2027. Management’s objective is for MSG to produce close to 80,000 ounces annually in 2027, with all-in sustaining costs near $2,000 to $2,200 per ounce.
Aura also reported increases in MSG’s mineral inventory following six months of work. Proven and probable reserves rose to 753,000 ounces from 370,000 ounces at acquisition, measured and indicated resources increased to 1.8 million ounces from 1 million ounces, and inferred resources rose to more than 2 million ounces from 1.4 million ounces, Barbosa said.
Other Operations and Projects
At Borborema, Aura expects higher grades in the third quarter and additional production benefits in the fourth quarter from a filter debottlenecking project. At Almas, the company is increasing plant capacity from 1.3 million tonnes per year to 3 million tonnes per year and expects to finish the year near that capacity level.
Apoena and Aranzazu are also expected to benefit from higher grades during the second half following first-half mine sequencing. Minosa’s production is expected to remain weaker in the next quarter before improving in the fourth quarter, as higher stacking pads have extended recovery times and increased working-capital needs.
Barbosa said second-quarter all-in sustaining costs were close to $2,000 per ounce, largely due to the MSG turnaround. Excluding MSG, costs would have been closer to $1,500 to $1,600 per gold-equivalent ounce, he said. Management expects higher production and grades in the second half to support costs within annual guidance despite unfavorable currency movements in Brazil and Mexico, as well as higher oil and chemical prices.
Cardoso said Aura is pursuing cost reductions through strategic sourcing, reviewing supplier agreements across business units and internal cost-control programs. He said these efforts should help offset inflation and foreign-exchange pressures, though the company does not expect to beat its all-in sustaining cost guidance this year as it did in the prior year.
Construction at Era Dorada is progressing largely on schedule and budget, according to Barbosa. Aura has spent $15 million on the project, completed about 60% of groundwork, and said 53% of employees are from the local Asunción Mita area and 93% are from Guatemala. The company expects Era Dorada to begin production in 2028.
M&A and Growth Strategy
Barbosa said Aura remains interested in mergers and acquisitions despite gold-price volatility, emphasizing that the company uses market-average gold and copper price projections rather than speculative price assumptions when assessing opportunities. He said Aura continues to focus on assets in the Americas and remains interested in both gold and copper, though it has found stronger returns in gold opportunities in recent years.
The company is evaluating both single-asset acquisitions and potential corporate transactions involving multiple assets. However, Barbosa said Aura does not intend to undertake overlapping major construction projects that could strain its operating teams.
Management identified project execution, reserve and resource growth, and acquisitions as its three primary avenues for value creation. Barbosa said the company sees a path to exceed 600,000 ounces of production in coming years, supported by MSG, Borborema, Almas, Era Dorada, Matupá and possible acquisitions.
About Aura Minerals (TSE:ORA)
Aura is focused on mining in complete terms – thinking holistically about how its business impacts and benefits every one of our stakeholders: our company, our shareholders, our employees, and the countries and communities we serve. We call this 360° Mining. Aura is a company focused on the development and operation of gold and base metal projects in the Americas.The Company’s six 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.Additionally, the Company owns Era Dorada, a gold project in Guatemala ; Tolda Fria, a gold project in Colombia ; and three projects in Brazil : Matupá, which is under development; São Francisco, which is in care and maintenance; and the Carajás copper project in the Carajás region, in the exploration phase.
