Q2 2024 Aura Minerals Inc Earnings Call Transcript
Key Points
- Aura Minerals Inc (ORAAF) reported a strong quarter in terms of results and cash generation, despite it being the weakest quarter of the year due to mine sequencing.
- The company achieved a 33% increase in production compared to the same quarter last year, with expectations of stronger production in the second half of the year.
- Aura Minerals Inc (ORAAF) reported a strong EBITDA of $56 million for the quarter, contributing to a total of nearly $110 million for the first half of the year.
- The company paid close to $25 million in dividends and $4 million in share buybacks, providing an 8.8% yield to shareholders, one of the highest in the gold sector.
- Aura Minerals Inc (ORAAF) is progressing well with the Borborema project, which is 40% complete and on schedule and budget, with expectations to start ramp-up by Q1 next year.
- The company experienced a slight increase in all-in sustaining cash costs due to lower grades and contractor changes, impacting the quarter's financials.
- Aura Minerals Inc (ORAAF) reported a $26 million net income loss for the quarter, primarily due to non-recurring accounting events and exchange rate impacts.
- Production in Apoena and Almas was affected by lower grades and contractor changes, leading to a decrease in production compared to internal projections.
- The company faced non-cash losses related to gold derivatives and FX impacts due to rising gold prices and currency fluctuations.
- Despite strong operational performance, the company’s net debt increased to $142 million due to ongoing investments in the Borborema project and shareholder returns.
Good morning ladies and gentlemen. Welcome to second quarter 2024 earnings call. This conference is being recorded and the replay will be available at the company's website at auraminerals.com/investors. The presentation will also be available for download. (Operator Instructions) (spoken in foreign language).
Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational, and financial projections and goals are the beliefs and assumptions of Aura's Executive Board and the current information available to the company.
These statements may involve risks and uncertainties as they relate to future events and therefore, depend on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry, and other factors that could cause results to differ materially from those expressed in the respective forward-looking statements.
Present at this conference, we have Rodrigo Barbosa, President and CEO; and Kleber Cardoso, CFO.
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