Aura Minerals: Record Net Income Masks Weaker Production, but MSG Turnaround Poised for 2027
Brazil-based gold miner delivers record EBITDA and net income, hikes shareholder returns, while MSG turnaround and reserve expansion set up a transformative 2027.
ORAAF · Earnings Call · 2026-08-05
Aura Minerals reported Q2 2026 with a familiar story: production dipped due to planned mine sequencing, yet financial results were anything but weak. The company posted a record net income of $218 million, buoyed by unrealized gains on gold derivatives, and continued its remarkable streak of rising trailing-twelve-month EBITDA for a 12th consecutive quarter.
Record Financials and a Strong Backdrop
Rodrigo Barbosa, CEO, highlighted the contrast: “In terms of net income, a record high net income, $218 million. That's the quarter that gold price has depreciated, unfortunately, but the positive impact that we have a market-to-market up on the net income that was positively by $126 million.” — Rodrigo Barbosa, CEO · 2026-08-05 The high gold price environment remains supportive, even with recent volatility, and management sees the rising gold price trend continuing over the medium term. Adjusting for non‑cash items, adjusted net income came in at $97 million, still strong. Kleber Cardoso, CFO, noted: “we have been increasing our accumulated last 12 months EBITDA for now 12 quarters in a row.” — João Cardoso, CFO · 2026-08-05MSG Turnaround: Short‑Term Pain, Long‑Term Gain
The most important narrative is the MSG mine turnaround. Production was intentionally sacrificed to advance underground development, which management insists is the key to unlocking 80,000 ounces per year at a much lower cost structure. Rodrigo reiterated: “we will not only improve on Q3 and Q4, but by the end of the year, be prepared to in 2027, be able to produce close to 80,000 ounces of gold with the all-in sustaining cash cost nearing down close to $2,000, $2,200 per ounce.” — Rodrigo Barbosa, CEO · 2026-08-05 The team has already doubled reserves in six months, from 370,000 to 753,000 ounces, and accelerated underground development by 80–90% versus the previous owner. This was a deliberate choice, as Rodrigo noted earlier in May: “We need to un-bottleneck the underground mine.” — Rodrigo Barbosa, CEO · 2026-05-07 The market's patience will be tested, but the payoff is expected in 2027.Capital Returns and Growth Pipeline
Aura continues to reward shareholders aggressively. Alongside the regular dividend, the company announced a new $200 million buyback program. As Rodrigo stated:This balanced approach—funding growth, dividends, and buybacks from internal cash flow—is a core pillar of the strategy. Beyond MSG, the pipeline includes the Borborema debottleneck, Almas expansion to 3 million tons, the Era Dorada construction in Guatemala, and the Matupa feasibility study. Management remains open to M&A, focusing on Americas gold and copper assets. The broader current gold prices backdrop supports a healthy appetite, with Rodrigo arguing that fundamentals—US deficits, central bank buying, and geopolitical uncertainty—remain constructive for gold.We just announced as we are producing significant cash flow from the operations being able to fund our growth with the cash flows, we also just announced a new $60 million of dividend, which means $0.72 per share that will be paid during the third quarter related to the second quarter.