Aura Minerals Inc.

Aura Minerals Inc. is a mid-tier gold producer headquartered in Coral Gables, United States, operating primarily in Mexico and South America. The company's portfolio consists of 8 projects, comprising 4 operating mines, 3 development, and 1 advanced exploration project. Key assets include Almas, Aranzazu, and Borborema. The company operates as a mid-tier producer focused on the operation and development of mineral projects. Its business model leverages diverse processing capabilities, including open-pit heap leach operations, underground mining with flotation concentrate production, and carbon-in-leach processing plants. The organization's operational approach relies on specialized skills and knowledge in geology, engineering, metallurgy, and environmental permitting. Revenue streams are diversified, with approximately 67% derived from the sale of dore bars and 33% from concentrate sales during the 2024 fiscal year. The enterprise manages market risk through a customer base that includes major international trading and refining firms, though this results in some customer concentration. Competitive conditions in the mineral exploration and mining business are intense, requiring the company to compete for the acquisition of mineral properties and the recruitment of qualified personnel. The business is subject to global economic cycles that affect the marketability of its products, with prices influenced by factors such as currency strength, inflation expectations, and global political conditions. The company utilizes hedging instruments from time to time to mitigate exposure to price and exchange rate fluctuations.

Strategic priorities are centered on responsible, sustainable, and profitable growth, executed through a combination of organic development and disciplined acquisitions. The company actively manages its portfolio, demonstrated by the recent divestiture of a non-core asset in 2022 and the strategic acquisitions of a greenfield development project in 2022 and a high-grade development asset in 2025. A core component of its financial strategy is returning value to shareholders, supported by a formal dividend policy. This policy, initially based on a semi-annual distribution of 20% of Adjusted EBITDA less sustaining and exploration capital expenditures, was amended in November 2024 to allow for quarterly payments, enhancing dividend frequency. Capital management also includes normal course issuer bids and buyback programs for its shares and Brazilian Depositary Receipts (BDRs), with programs initiated in 2021, 2024, and 2025. The organization's growth is further supported by targeted investments in junior exploration companies, such as the 2023 acquisition of a significant equity stake in an entity focused on exploration and development in a key operating region. This multi-faceted approach aims to expand the production profile while maintaining financial discipline and shareholder returns.

The Board of Directors consists of 7 members, including a Chairman with over 45 years of experience in the mining, energy, and agricultural sectors. Governance is structured through 2 primary committees: an Audit Committee and a Corporate Governance, Compensation and Nominating Committee. The Audit Committee is composed of 3 directors, all of whom are independent and financially literate as defined by regulatory standards. Executive leadership is headed by a President and CEO with a background in leading corporate turnarounds and a Chief Operating Officer with extensive technical expertise in underground operations. In 2024, the management structure was enhanced through the promotion and appointment of several individuals to Director of Operations roles, aiming to strengthen leadership at the operational level. The company's controlling shareholder, an entity controlled by the Chairman, holds approximately 54.15% of the issued and outstanding shares, exercising significant influence over matters requiring shareholder approval. The board and management team possess direct operational experience in the jurisdictions where the company is active, facilitating effective oversight and control over foreign subsidiaries.

The organization's sustainability strategy is overseen directly at the Board level, ensuring integration with core business objectives. An integrated management system based on ISO 45000 and ISO 14000 standards has been implemented across all operations. The company is a signatory to the International Cyanide Management Code, with multiple sites achieving certification. In 2024, the company received compliance certifications from the Responsible Gold Mining Principles and the Conflict-Free Gold Standard and finalized its commitment to the United Nations Global Compact. Environmental performance in 2024 included a 3.2% reduction in specific diesel consumption and a 25% decrease in solid waste generation compared to 2023 totals. A key social initiative, 'Seeds of Hope', was launched to foster local economic diversification through an agricultural venture cultivating grapes for wine production, creating local employment. The company maintains a strong focus on workplace safety, achieving a lost time injury frequency rate of 0.07 per 1,000,000 hours in 2024 and implementing a methodology aligned with International Council on Mining and Metals best practices for managing major risks.

The company holds its material properties through separate, wholly-owned subsidiary corporations. The corporate structure has been actively managed through strategic transactions, including the 2022 divestiture of its indirect subsidiary, Z79 Resources Inc., which held the Gold Road asset. In 2022, the company acquired an 80% interest in Big River Gold Limited to secure a key development project; this interest was increased to 100% in 2023 after its joint venture partner, Dundee Resources, converted its 20% equity stake into a net smelter royalty. A strategic investment was made in 2023 with the acquisition of an 11.35% interest in Altamira Gold Corp., a company focused on exploration in a key operating jurisdiction. In early 2025, the company completed the acquisition of Bluestone Resources Inc., adding the Cerro Blanco asset and the adjacent Mita Geothermal project to its portfolio. The capital structure includes common shares and Brazilian Depositary Receipts (BDRs). In July 2024, a split of its BDRs was completed, adjusting the parity to a new ratio of 1 common share for every 3 BDRs.