$AUGO earnings report

Aura reported a record operating quarter. Q3 production of 95,557 GEO increased 27% from Q2 2026 and 29% from Q3 2025, while sales increased 20% sequentially and 25% year over year. Borborema delivered a record 22,842 GEO as grade rose to 1.65 g/t and plant feed increased 14% QoQ. Aranzazu produced 24,920 GEO on higher grades and MSG produced 13,321 GEO as its turnaround lifted grade, throughput and recovery. These gains more than offset lower output at Almas and Minosa.

Revenue reached US$385,977 thousand, up 15% QoQ and 56% YoY, supported by higher sales and stronger metal prices. Gross profit increased 16% sequentially and 49% YoY to US$222,631 thousand. Gross margin improved to 58% from 57% in Q2 but remained below the 60% reported in Q3 2025 because COGS increased 66% year over year, faster than net revenue. Adjusted EBITDA rose 20% QoQ and 56% YoY to US$236,871 thousand, with a 61% margin. Borborema, Aranzazu and MSG were the principal earnings contributors, while Apoena Adjusted EBITDA declined 29% YoY and Minosa Adjusted EBITDA declined 20% QoQ.

Profit for the period was US$135,004 thousand, down 38% from Q2 despite higher operating income. The principal sequential factor was the reduction in unrealized gain on gold derivatives to US$12,729 thousand from US$126,013 thousand in Q2 2026. Adjusted Net Income, which excludes specified derivative, foreign-exchange and deferred-tax items, rose 24% QoQ and 77% YoY to US$121,208 thousand. Recurring Free Cash Flow increased to US$123,541 thousand as higher Adjusted EBITDA and lower income-tax and hedge payments more than offset higher CAPEX and working-capital use.

Cost performance remains the primary operational issue. Q3 cash cost improved 8% sequentially to US$1,395/GEO and AISC declined 2% to US$1,953/GEO, but both remained materially above Q3 2025. The 9M 2026 AISC of US$1,921/GEO exceeded guidance. Apoena and MSG had the highest quarterly AISC at US$3,554/GEO and US$3,647/GEO, respectively. The company expects lower costs in Q4 from higher expected production, while higher-grade mine areas at Almas and Apoena and continued MSG turnaround execution are central to that outcome.

Capital allocation balanced growth spending with shareholder distributions. Q3 total CAPEX was US$96.6 million, including US$55.2 million of expansion CAPEX, and Era Dorada reached 13.1% physical progress while remaining on time and on budget. Gross debt rose to US$631.5 million after the US$200 million syndicated loan facility, while cash rose to US$418.2 million. Net debt was US$178.8 million and Net Debt/LTM Adjusted EBITDA was 0.20x. Aura paid US$70.7 million in dividends and share buybacks during the quarter. The company retained 2026 production guidance of 340k–390k GEO and provided cost and CAPEX guidance ranges, with 9M production of 253,131 GEO.

Aura delivered strong year-over-year operating and financial growth in Q2 2026. Total production increased 18% to 75,437 GEO, sales increased 26% to 78,414 GEO and Net Revenue increased 76% to US$335,967 thousand. The growth reflected higher realized metal prices, Borborema commercial production, the addition of MSG and higher volumes at Almas. Gross Profit increased 84% to US$191,477 thousand, Operating Income increased 93% to US$175,301 thousand and Adjusted EBITDA increased 85% to US$196,659 thousand. The H1 2026 result established record production of 157,574 GEO, with Net Revenue of US$718,573 thousand and Adjusted EBITDA of US$440,527 thousand.

The quarter weakened sequentially as lower production, sales and gold prices reduced earnings. Production declined 8%, sales declined 4% and Net Revenue declined 12% from Q1 2026. Gross Profit declined 16% and Adjusted EBITDA declined 19%, while Adjusted EBITDA Margin contracted to 59% from 64%. Lower grades from mine sequencing affected Apoena, Borborema and MSG, while Minosa was affected by higher stacking levels within the leach pad and lower ore plant feed. Aranzazu and Almas were the principal sequential production offsets, with Aranzazu benefiting from copper-to-GEO conversion dynamics and higher grades, and Almas benefiting from increased plant feed.

Reported Net Income reached a record US$217,687 thousand, but the result was materially supported by an unrealized gain on gold hedges of US$126,013 thousand. Adjusted Net Income was US$97,414 thousand, down 11% from Q1 2026 but up 164% from Q2 2025. Realized losses with derivative gold collars were US$37,249 thousand in the quarter. Higher costs also require attention: consolidated Cash Cost was US$1,513/GEO and AISC was US$1,985/GEO. MSG was the largest cost pressure, reporting AISC of US$5,277/GEO and Adjusted EBITDA of (US$1,116 thousand) while Aura invested in underground development and infrastructure for its turnaround.

Cash generation remained positive despite lower sequential EBITDA and higher investment. Recurring Free Cash Flow was US$80,230 thousand, while Total CAPEX rose 91% sequentially to US$84,319 thousand, including US$53.5 million of expansion CAPEX. Net Debt increased to US$168,026 thousand from US$115,181 thousand, as operating cash flow was deployed toward CAPEX and US$67.7 million of dividends and share buybacks. The company also approved programs allowing repurchases of up to an aggregate US$200 million through June 18, 2027.

Aura reaffirmed its 2026 production guidance of 340k – 390k GEO, Total w/ MSG Cash Cost guidance of US$1,303 – US$1,411, Total w/ MSG AISC guidance of US$1,720 – US$1,865 and Total CAPEX guidance of US$386 million – US$462 million. H1 production was 158k GEO, while the company cited second-half guidance of 182k to 232k GEO. The operating path for the second half depends on the MSG turnaround, access to higher-grade Nosde material at Apoena and the expected effects of mine sequencing across the portfolio.