Core Insights - U.S. stock markets are experiencing a continued upward trend in 2025, following a strong rally over the past two years, with expectations for the Fed to lower benchmark lending rates due to a weak labor market [1][2] Market Sentiment - Recent U.S. government shutdown and delays in key economic data releases may dampen investor enthusiasm, alongside trade conflicts with China affecting market sentiment [2] - Despite these challenges, some stocks have shown price strength, particularly those on a recent bull run, indicating potential for continued momentum [2][3] Stock Screening - Four stocks identified with recent price strength include Flux Power Holdings Inc. (FLUX), Aura Minerals Inc. (AUGO), Arcturus Therapeutics Holdings Inc. (ARCT), and Sterling Infrastructure Inc. (STRL) [3][8] - The screening criteria for these stocks include: - Percentage Change in Price (4 Weeks) greater than zero - Percentage Change in Price (12 Weeks) greater than 10 - Zacks Rank 1 (Strong Buy) - Average Broker Rating of 1 - Current Price greater than $5 - Current Price/52-Week High-Low Range more than 85% [5][6][7] Individual Stock Performance - **Flux Power Holdings Inc. (FLUX)**: Stock price increased by 92.1% in four weeks, with an expected earnings growth rate of 82.4% for the current year, and earnings estimates rising by 40% over the past 60 days [8][9] - **Aura Minerals Inc. (AUGO)**: Stock price climbed 9.3% in four weeks, with an expected earnings growth rate exceeding 100% for the current year, and earnings estimates improving by 2.5% over the past week [10][11] - **Arcturus Therapeutics Holdings Inc. (ARCT)**: Stock price advanced 2.3% in four weeks, with an expected earnings growth rate of -10% for the current year, and earnings estimates improving by 11.5% over the past 90 days [11][12] - **Sterling Infrastructure Inc. (STRL)**: Stock price gained 0.4% in four weeks, with an expected earnings growth rate of 56.9% for the current year, and earnings estimates improving by 9.7% over the past 60 days [13][15]

Summary of North American Metals & Mining Conference Call Industry Overview - **Industry**: North American Precious Metals - **Key Commodities**: Gold and Silver Core Insights and Arguments 1. **Price Forecasts**: - Gold is projected to reach **$5,000/oz** and silver to **$65/oz** in the next 12-18 months, with 2026 average forecasts for gold raised by **18%** to **$4,329/oz** and silver by **29%** to **$54.88/oz** [1][10][11] - Investment demand for gold is expected to increase by **14%** in 2026, similar to the current year [2] 2. **Market Dynamics**: - Key conditions supporting gold price strength include: - US structural deficit - Inflationary pressures from deglobalization - Threats to the independence of the US central bank - Ongoing global geopolitical tensions [1] 3. **Investment Trends**: - ETF purchases of gold surged by **880% YoY** in September, reaching an all-time high of **$14 billion** [2] - Total physical and paper gold investment has nearly doubled, exceeding **5%** of global equity and fixed income markets [2] 4. **Risks to Monitor**: - Supreme Court ruling on President Trump's tariffs - Potential hawkish pivot from the Federal Reserve if economic data improves - Outcomes of the US mid-term elections affecting economic policy implementation [2] Company-Specific Updates 1. **Net Asset Value (NAV) and Price Objectives (PO)**: - NAV estimates for North American Precious Metals coverage increased by **10%**, with average POs raised by **16%** [3][19] - IAMGOLD (IAG) saw the largest PO increase of **49%** to **$16.75** per share, reflecting improved jurisdictional risk [3][15] - SSR Mining (SSRM) PO raised by **41%** to **$18.00** per share, despite an Underperform rating due to uncertainties regarding Çöpler mine [3][15] 2. **Top Picks**: - Agnico Eagle Mines (AEM) is highlighted as the top pick due to its strong track record and growth projects [4] - Pan American Silver (PAAS) is favored for balanced exposure to silver and gold [4] 3. **EBITDA Revisions**: - Average EBITDA estimates for 2026 and 2027 increased by **25%** and **18%**, respectively, driven by revised commodity price forecasts [20] 4. **Valuation Multiples**: - Target multiples for IAMGOLD and SSR Mining adjusted to **1.60x** and **1.00x**, respectively, reflecting improved performance and market conditions [15][16] Additional Important Information - The report indicates potential conflicts of interest due to BofA Securities' business relationships with covered issuers [6] - The document includes various disclosures and certifications relevant to the research [5][6] This summary encapsulates the key points from the conference call, focusing on industry trends, company-specific updates, and potential investment opportunities and risks.

Core Insights - Aura Minerals Inc. reported a record high production of 74,227 gold equivalent ounces (GEO) in Q3 2025, marking a 16% increase from Q2 2025 and a 9% increase compared to Q3 2024 [1][2] - The company achieved a total production of 198,347 GEO for the first nine months of 2025, which is 3% higher than the same period in 2024, and is on track to meet its 2025 guidance of 266,000–300,000 GEO [1][2] Production Results - Total production in Q3 2025 was 74,227 GEO, with a breakdown by mine as follows: - Aranzazu: 21,534 GEO, a 3% decrease from Q2 2025 and a 12% decrease from Q3 2024 [6][7] - Minosa: 18,138 GEO, stable compared to Q2 2025 but a 13% decrease from Q3 2024 [6][7] - Almas: 15,088 GEO, a 17% increase from Q2 2025 and stable compared to Q3 2024 [6][7] - Apoena: 9,248 GEO, a 13% increase from Q2 2025 and a 15% increase from Q3 2024 [6][7] - Borborema: 10,219 GEO, reflecting the start of commercial production [6][7] Financial Performance - At current prices, total production for 9M 2025 reached 198,347 GEO, while at guidance prices, it was 203,592 GEO, which is 3% higher than 9M 2024 [1][2][7] - The production results at constant prices showed a record high, with a 17% increase compared to Q2 2025 and a 15% increase compared to Q3 2024 [1][7] Operational Highlights - The Borborema mine commenced commercial production in September 2025, contributing over 10,000 ounces with a recovery rate above 92% [2] - The company emphasized its commitment to operational excellence and sustainable value creation through its "Aura 360" initiative [2][11]

Core Viewpoint - Aura Minerals Inc. is launching an Incentive Program allowing holders of Brazilian Depositary Receipts (BDRs) to convert them into common shares at a ratio of three BDRs to one common share, without incurring conversion fees during a specified period from October 6, 2025, to November 6, 2025 [1][3][4] Summary by Sections Incentive Program Details - The conversion ratio is set at three BDRs for one common share, and each BDR holder can submit only one conversion request during the Subsidy Period [2][3] - Aura will cover the conversion fees charged by Banco Bradesco for eligible shareholders [3] - Holders are responsible for instructing their brokers on the conversion process [4] Company Overview - Aura Minerals focuses on the development and operation of gold and base metal projects across the Americas, with five operating assets including gold mines in Honduras and Brazil, and a copper, gold, and silver mine in Mexico [6] - The company also has several projects in Guatemala, Colombia, and Brazil, including one under development and others in care and maintenance or exploration phases [6] Strategic Intent - The Incentive Program is part of Aura's strategy to consolidate and enhance the trading of its shares on Nasdaq, with no expected impact on the company's financial performance [4]

Group 1 - The company Aura Minerals (NASDAQ: AUGO) has been under analysis since June 2024, focusing on its operating processes, capacity expansion, and cost management [1] - The acquisition of Cerro Blanco has been a significant event, with the project being renamed, indicating a strategic shift or rebranding effort [1] - The analyst has extensive experience across various industries, including airlines, oil, retail, mining, fintech, and e-commerce, which enhances the understanding of macroeconomic and political influences on business [1] Group 2 - The analyst expresses a beneficial long position in AUGO shares, indicating confidence in the company's future performance [2] - The article reflects the analyst's personal opinions and insights, emphasizing an independent analysis without external compensation [2] - There is a disclaimer regarding the nature of past performance not guaranteeing future results, highlighting the importance of individual investor discretion [3]

Company Overview - Aura Minerals is a gold and copper mining company based in Tortola, British Virgin Islands, with operations in Mexico, Honduras, and Brazil [3] - The company went public in November 2006 on the Toronto Stock Exchange and completed its U.S. IPO on July 17, 2025, selling 8.1 million shares at $24.25 [2] Financial Performance - Aura is on track to set records for both revenue and operating profits in its 2025 fiscal year [5] - Revenue has increased from $165.8 million in 2015 to $679.9 million in the trailing 12 months ended June 30, representing a compound annual growth rate of 15.2% [5] - Operating income improved from a loss of $1.4 million in 2015 to a profit of $278.1 million at the end of June [5] Market Conditions - The growth in revenue and profits has been partly driven by higher gold and copper prices, with gold increasing from approximately $1,200 per ounce in 2015 to about $3,785 today, and copper from around $2.33 per pound to $4.58 per pound [6] Growth Strategy - Aura is in a growth phase, planning to acquire the Mineração Serra Grande Gold Mine in Brazil for an upfront cash payment of $76 million, along with deferred payments based on net smelter returns [7] - The company has moved up 13 spots in Barchart's Top 100 Stocks to Buy, currently sitting at the 53rd position, indicating strong market interest [1][3]

Core Viewpoint - Aura Minerals Inc. has achieved commercial production at its Borborema gold mine as of September 22, 2025, with significant operational metrics indicating strong performance and potential for future growth [1][2]. Group 1: Production and Operational Metrics - The Borborema mill is operating above 80% of its design capacity, processing 4,500 tonnes per day, with gold recoveries consistently above 90%, reaching up to 92% [1][2]. - The mine has already sold more than 10,000 ounces of gold since the start of production [1]. Group 2: Project Details and Reserves - Borborema has probable mineral reserves of 812,000 ounces of gold, with indicated mineral resources estimated at approximately 1.18 million ounces of gold [2][3]. - The feasibility study completed in August 2023 anticipates production of 748,000 ounces of gold over an 11.3-year mine life, with potential for increased output [3]. Group 3: Environmental and Operational Excellence - The project utilizes 100% treated greywater for all water needs, reflecting the company's commitment to sustainability and environmental responsibility [2]. - The Borborema project was completed on time and on budget, with no Lost Time Incidents (LTI) reported during construction [2]. Group 4: Company Overview - Aura Minerals focuses on the development and operation of gold and base metal projects in the Americas, with five operating assets including Borborema [6]. - The company emphasizes a holistic approach to mining, termed "360° Mining," which considers the impacts on all stakeholders [5].

Group 1 - Aura Minerals Inc. announced a dividend payment of US$0.11 per BDR on August 5, 2025, with a payment date set for September 5, 2025 [1][4] - The effective exchange rate for converting US dollars into Brazilian reais is BRL 5.4134 per USD, resulting in dividends of R$0.593211199 per BDR for holders [4] - A tax of 0.38% will be applied on the financial transaction related to the dividend payment [4] Group 2 - Aura Minerals is focused on the development and operation of gold and base metal projects across the Americas, with five operating assets including gold and copper mines in Honduras, Brazil, and Mexico [3] - The company emphasizes a holistic approach to mining, termed "360° Mining," which considers the impacts and benefits to all stakeholders involved [2]

Financial Data and Key Metrics Changes - The company achieved record high EBITDA of $106 million in Q2, with a gold price of $3,001.85, leading to a last twelve months EBITDA of $344 million at an average gold price of $2,800 [7][29] - Net revenues increased to $190 million in Q2, benefiting from higher production and gold prices, showing a positive trend over the last few quarters [29] - Net profit for the quarter was $8 million, with adjusted net income reaching $37 million [9][31] Business Line Data and Key Metrics Changes - Aranzazoo and Minos contributed approximately $36 million and $34 million to adjusted EBITDA, respectively, while Almas contributed $25 million and ApoENA contributed $16 million [34] - Borborema produced 2,500 ounces of gold in Q2, with expectations for increased production in Q3 and Q4 as it ramps up to commercial production [10][19] Market Data and Key Metrics Changes - The company noted that 20% of its revenue comes from copper production, which is converted into gold equivalent based on market prices [7][8] - The all-in sustaining cash cost for Q2 was $1,449 million, stable compared to Q1 and the same period last year when adjusted for constant prices [20][22] Company Strategy and Development Direction - The company is focused on three avenues to deliver value: building greenfield projects on time and budget, increasing exploration to boost resources and reserves, and pursuing M&A opportunities [12][60] - The company plans to close the acquisition of MSG and is progressing with the construction of Herradorada and Matupa, with both projects expected to be built over the next two years [12][101] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, with expectations for increased production from Borborema and other operations in the second half of the year [10][22] - The company is addressing social licensing in Guatemala and is optimistic about making a final investment decision by the end of the year [44][49] Other Important Information - The company has maintained a strong safety record, with over 1,000 days without lost time incidents during the construction of Borborema [16] - The company announced a dividend of $0.33 per share, resulting in a last twelve months dividend yield of 7.4% [15] Q&A Session Summary Question: Timeline for final investment decision on Matupa and Guatemala - Management expects to make a decision by the end of the year, contingent on social licensing progress in Guatemala [44][48] Question: First impressions from MSG site visits and efficiency improvements - Management noted the need for equipment upgrades and plans to improve efficiency rates, with a focus on underground development [46][50] Question: Potential for additional M&A activity - The company is open to further M&A opportunities but will prioritize current projects and ensure they are accretive [55][60] Question: Expected production levels for Borborema in Q3 and Q4 - Management anticipates reaching around 80% capacity by September, with full production expected by early next year [73][75] Question: Cash impact from gold hedges in upcoming quarters - The company has hedged approximately 80% of projected production from Borborema, with varying impacts expected each quarter [80][81] Question: Details on ongoing exploration areas - Management is consolidating information from various exploration areas and plans to release a technical report early next year [85][91] Question: Production costs and expectations for Almas - Management expects stronger performance in the second half of the year, with ongoing underground development aimed at improving production and reducing costs [92][96]

Financial Data and Key Metrics Changes - The company achieved record high EBITDA of $106 million in Q2 2025, with a last twelve months EBITDA of $344 million, benefiting from stable cash costs and higher gold prices [7][31] - Net revenues increased to $190 million in Q2 2025, reflecting a significant rise due to increased production and gold prices [31] - Net profit for the quarter was reported at $8 million, with adjusted net income reaching $37 million [9][33] Business Line Data and Key Metrics Changes - Gold equivalent production for Q2 was 64,000 ounces, an increase from 60,000 ounces in Q1 2025, and consistent with the same period last year [6][19] - Copper production contributed approximately 20% to revenues, with adjustments made for gold equivalent calculations based on copper sales [7][8] - The adjusted EBITDA contributions from various business units included Aranzazoo and Minos at $36 million and $34 million respectively, while Almas contributed $25 million [35] Market Data and Key Metrics Changes - The average gold price for the last twelve months was approximately $2,800, with current prices hovering around $3,400, indicating potential for further EBITDA improvement [7][31] - The company is experiencing stable all-in sustaining cash costs at BRL $1,449 million, consistent with previous quarters and last year when adjusted for constant prices [22][24] Company Strategy and Development Direction - The company is focused on three strategic avenues: delivering greenfield projects on time and budget, increasing exploration investments, and pursuing M&A opportunities [15][96] - Recent acquisitions include Bluestone and MSG, with plans to ramp up production at Borborema and Herradorada, expected to contribute significantly to future output [10][12] - The company aims to improve its market multiple by increasing production and addressing trading volume through its NASDAQ listing [13][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about production increases in the second half of the year, particularly with Borborema expected to reach commercial production by September [11][73] - The company is actively engaging with local communities and authorities in Guatemala to ensure smooth project development [44][47] - Management highlighted the importance of maintaining safety standards, with over 1,000 days without lost time incidents during construction [17] Other Important Information - The company announced a dividend of $0.33 per share, resulting in a last twelve months dividend yield of 7.4% [16] - The IPO on NASDAQ is seen as a strategic move to enhance liquidity and market presence [14][96] Q&A Session Summary Question: What is the timeline for the final investment decision between Matupa and Guatemala? - Management expects to make a decision by the end of the year, contingent on social licensing progress in Guatemala [44][49] Question: What are the first impressions from site visits to MSG and opportunities for improvement? - Initial assessments indicate potential for increased production and reduced costs through equipment upgrades and operational efficiencies [46][50] Question: Is there space for additional M&A given the stronger cash position? - The company remains open to M&A opportunities while focusing on current projects, with a cautious approach to ensure accretive acquisitions [54][60] Question: What is the expected production and sales level for Borborema in Q3 and Q4? - The company anticipates reaching around 80% capacity by September, with plans to achieve full capacity by the end of the year [71][73] Question: What is the cash impact from gold hedges in the coming quarters? - The company has hedged approximately 80% of projected production from Borborema, with varying impacts expected in the second semester [72][78]