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]
Aura Minerals Inc(AUGO) - 2025 Q2 - Earnings Call Transcript