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Aura Minerals Inc. J (TSE:ORA)
TSX:ORA
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Aura Minerals (ORA) AI Stock Analysis

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TSE:ORA

Aura Minerals

(TSX:ORA)

Rating:51Neutral
Price Target:
C$42.00
▲(0.05% Upside)
Aura Minerals' stock score is primarily impacted by its financial performance challenges, including negative profitability and high leverage. While technical analysis shows bullish momentum, overbought conditions suggest caution. The valuation is unattractive due to negative earnings, despite a reasonable dividend yield.

Aura Minerals (ORA) vs. iShares MSCI Canada ETF (EWC)

Aura Minerals Business Overview & Revenue Model

Company DescriptionAura Minerals Inc., a gold and copper production company, focuses on the development and operation of gold and base metal projects in the Americas. The company's producing assets include the San Andres gold mine in Honduras; the Ernesto/Pau-a-Pique gold mine in Brazil; and the Aranzazu copper mine located in Mexico. It also holds interests in Sao Francisco gold mine, Almas gold project, and Matupá gold project in Brazil, as well as the Tolda Fria gold project in Colombia and the Gold Road Mine located in Arizona. The company was formerly known as Aura Gold Inc. and changed its name to Aura Minerals Inc. in July 2007. Aura Minerals Inc. is headquartered in Miami, Florida. Aura Minerals Inc. operates as a subsidiary of Northwestern Enterprises Ltd.
How the Company Makes MoneyAura Minerals makes money through the extraction, production, and sale of gold and copper from its mining operations. The company generates revenue primarily by mining these metals and selling them at market prices. Key revenue streams include the sale of gold and copper concentrate to refineries and other buyers in the metals market. Aura Minerals may also engage in strategic partnerships and joint ventures to optimize mining operations and expand its resource base, contributing to its financial performance. Additionally, the company focuses on operational efficiencies and cost management to enhance profitability.

Aura Minerals Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted the company's strong financial performance with record-high EBITDA and a substantial dividend yield. Successful project completions and ongoing expansions indicate positive growth prospects. However, these positives were tempered by a net loss driven by market-to-market losses, increased leverage, and some production challenges.
Q1-2025 Updates
Positive Updates
Record High EBITDA
Achieved a record high EBITDA for the quarter at $81 million, aided by increasing gold prices.
Successful Borborema Project Completion
Completed construction of Borborema on time and on budget, with commercial production projected for Q3.
Strong Dividend Yield
Announced a dividend distribution of $30 million, resulting in an 11% yield over the last 12 months.
Expansion of Production Capabilities
Ongoing ramp-up of Borborema and future growth projects planned, aiming for significant production increase.
Positive Adjusted Net Income
Adjusted net income, excluding market-to-market losses, was a positive $27 million for the quarter.
Safety Achievements
Maintained a high safety standard with only one lost time incident over two years.
Negative Updates
Net Loss Due to Market-to-Market Liabilities
Reported a net loss of $73 million due to non-cash market-to-market liabilities on gold derivatives.
Lower Production and Revenue
Net revenues decreased by 6% compared to the previous quarter due to lower production from mine sequencing.
Increased Leverage
Net debt increased to $272 million, attributed to final phase of Borborema construction and Bluestone acquisition.
Fluctuating All-In Sustaining Costs
All-in sustaining cash costs increased due to investment phase at Apoena, impacting cost stability.
Company Guidance
During the first quarter of 2025 earnings call, Aura Minerals provided robust guidance highlighting their continued growth trajectory. The company achieved a gold equivalent production of 60,000 ounces, albeit 9% below the previous quarter and 7% below Q1 of the previous year. Despite this, Aura recorded a record-high EBITDA of $81 million, driven by favorable gold prices, which stood at $2,786, and have since approached $3,400. The company reported a net loss of $72 million, attributed to mark-to-market losses on gold hedges, yet maintained a positive adjusted net income of $27 million. Aura successfully completed the construction of the Borborema project, aligning with time and budget projections, and anticipates commercial production in Q3. The company also announced a $30 million dividend for the quarter, reflecting an 11% dividend yield over the last 12 months. Furthermore, Aura highlighted strategic growth through M&A activities, including the acquisition of Bluestone, and emphasized plans to enhance liquidity through a U.S. public offering. The guidance underscores Aura's commitment to delivering shareholder value while maintaining high safety standards across its operations.

Aura Minerals Financial Statement Overview

Summary
Aura Minerals faces challenges in profitability and financial stability, as reflected in its negative net profit margin and high leverage. While revenue growth is a positive sign, the company needs to address its operational inefficiencies and manage its debt levels to improve financial health. The cash flow situation is mixed, with adequate operating cash flow but declining free cash flow growth, indicating potential liquidity issues.
Income Statement
45
Neutral
Aura Minerals has shown a mixed performance in its income statement. The company experienced a revenue growth rate of 8.98% in the TTM period, indicating positive momentum. However, the net profit margin is negative at -15.13%, reflecting ongoing profitability challenges. The gross profit margin improved to 44.55% in the TTM, but the EBIT margin decreased significantly to 4.96%, suggesting increased operational costs or inefficiencies.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio of 2.79 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative at -44.87%, highlighting the company's struggle to generate returns for shareholders. The equity ratio stands at 11.99%, showing a low proportion of equity financing relative to total assets, which could be a concern for financial stability.
Cash Flow
50
Neutral
The cash flow statement shows a decline in free cash flow growth at -141.9% in the TTM, which is concerning. However, the operating cash flow to net income ratio is 0.78, indicating that the company is generating cash from operations despite net losses. The free cash flow to net income ratio is low at 0.09, suggesting limited cash flow available for reinvestment or debt repayment.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue679.91M594.16M416.89M392.70M444.56M299.87M
Gross Profit335.65M251.27M126.02M125.69M183.01M121.88M
EBITDA127.50M149.80M106.42M127.68M192.13M117.52M
Net Income-60.38M-30.27M31.88M66.50M43.50M68.48M
Balance Sheet
Total Assets1.17B1.08B923.82M727.31M592.48M536.19M
Cash, Cash Equivalents and Short-Term Investments167.94M270.19M237.29M127.90M161.49M117.78M
Total Debt375.11M385.35M372.24M253.29M159.14M73.37M
Total Liabilities1.03B857.31M609.02M417.18M320.20M223.48M
Stockholders Equity139.76M222.96M314.80M310.13M272.27M312.71M
Cash Flow
Free Cash Flow34.52M41.66M28.85M-7.00M51.72M38.39M
Operating Cash Flow263.87M222.24M124.95M96.36M131.19M90.36M
Investing Cash Flow-244.15M-176.40M-97.66M-157.50M-78.16M-51.06M
Financing Cash Flow-38.20M5.20M79.43M21.88M-8.63M41.30M

Aura Minerals Technical Analysis

Technical Analysis Sentiment
Positive
Last Price41.98
Price Trends
50DMA
36.34
Positive
100DMA
33.10
Positive
200DMA
26.37
Positive
Market Momentum
MACD
1.95
Negative
RSI
72.61
Negative
STOCH
84.65
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ORA, the sentiment is Positive. The current price of 41.98 is above the 20-day moving average (MA) of 39.05, above the 50-day MA of 36.34, and above the 200-day MA of 26.37, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 72.61 is Negative, neither overbought nor oversold. The STOCH value of 84.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ORA.

Aura Minerals Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$2.85B12.1539.89%81.12%514.82%
69
Neutral
20.03%-46.48%
62
Neutral
$10.28B6.210.76%2.84%3.10%-36.03%
51
Neutral
C$3.47B-32.74%3.13%39.55%-89.48%
$1.77B-4.84%
$1.69B23.194.38%2.40%
46
Neutral
C$2.26B-37.26%36.21%33.44%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:ORA
Aura Minerals
43.77
31.06
244.37%
SA
Seabridge Gold
17.73
1.71
10.67%
TSE:CXB
Calibre Mining
2.99
0.76
34.08%
TSE:WDO
Wesdome Gold Mines
19.58
7.22
58.41%
CGAU
Centerra Gold
8.64
2.37
37.80%
TSE:AAUC
Allied Gold Corporation
20.83
12.19
141.09%

Aura Minerals Corporate Events

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Aura Minerals Enhances Market Position with U.S. Listing and Share Sale
Positive
Aug 6, 2025

Aura Minerals Inc. announced the successful closure of the sale of 897,134 common shares due to the partial exercise of the underwriters’ option in connection with its U.S. initial public offering. This move aims to transfer Aura’s principal listing to the U.S. equity market, enhancing share liquidity and diversifying its shareholder base. The proceeds will be used to fund strategic growth initiatives, including acquisitions and exploration projects, thereby strengthening the company’s financial flexibility and market position.

Delistings and Listing ChangesM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Aura Minerals Achieves Record Financial Results in Q2 2025
Positive
Aug 6, 2025

Aura Minerals reported a record-high Adjusted EBITDA of $106 million for Q2 2025, driven by increased production and higher gold prices. The company achieved significant milestones such as the publication of the Preliminary Economic Assessment for Era Dorada, a successful IPO on Nasdaq, and the signing of a purchase agreement for MSG. Aura’s net revenue reached a record $190.4 million, marking a 42% increase from Q2 2024, attributed to higher gold prices. The company anticipates meeting its production and cost guidance for the year, with commercial production at Borborema and the completion of the MSG acquisition expected in Q3.

DividendsBusiness Operations and Strategy
Aura Minerals Announces Dividend, Reinforces Strong Yield Position
Positive
Aug 6, 2025

Aura Minerals Inc. has declared a dividend of US$0.33 per share and US$0.11 per Brazilian Depositary Receipt (BDR) based on its Q2 2025 results, resulting in a 7.4% dividend yield over the last twelve months. This move reinforces Aura’s position as a top dividend-yielding company in the global gold mining industry and highlights its strategy of delivering shareholder value through greenfield projects, exploration, and strategic acquisitions.

Business Operations and Strategy
Aura Minerals’ Outlook Upgraded to Positive by S&P Global
Positive
Jul 22, 2025

Aura Minerals announced that S&P Global Ratings has upgraded its outlook on the company’s credit ratings to positive, reflecting Aura’s potential for accelerated growth, successful project management, and record high gold prices boosting cash flow. This upgrade suggests a strong future for Aura, contingent on successful project expansions and maintaining financial metrics, which could enhance its industry position and stakeholder confidence.

Delistings and Listing ChangesPrivate Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Aura Minerals Prices U.S. IPO to Boost Liquidity and Growth
Positive
Jul 16, 2025

Aura Minerals Inc. has announced the pricing of its U.S. initial public offering, setting the price at $24.25 per common share for 8,100,510 shares. This move aims to transfer its principal listing to the U.S. stock exchange to enhance share liquidity and diversify its shareholder base. The proceeds will be used to fund the acquisition of Mineração Serra Grande S.A., support strategic growth initiatives, and provide financial flexibility. The shares will be listed on the Nasdaq Global Select Market under the symbol ‘AUGO’, with trading set to commence on July 16, 2025.

Delistings and Listing ChangesPrivate Placements and Financing
Aura Minerals Launches U.S. Public Offering to Raise $210 Million
Positive
Jul 7, 2025

Aura Minerals Inc. has announced the launch of its U.S. public offering of common shares, aiming to raise approximately US$210 million. The shares are expected to be listed on the Nasdaq Global Select Market under the symbol ‘AUGO.’ This strategic move is coordinated by major financial institutions and is expected to enhance Aura’s market presence and operational capabilities, although it excludes preemptive rights for certain stakeholders and is not registered for public offering in Brazil or Canada.

Business Operations and StrategyFinancial Disclosures
Aura Minerals Reports 7% Increase in Q2 2025 Production
Positive
Jul 3, 2025

Aura Minerals announced its preliminary Q2 2025 production results, reporting a total production of 64,033 gold equivalent ounces, marking a 7% increase from Q1 2025 and maintaining levels compared to Q2 2024. The production increase is attributed to higher grades and improved recoveries at its Aranzazu and Minosa mines, while the Almas mine benefited from plant expansion and a new contractor. Despite a decrease in production at Apoena due to its investment phase, the company remains on track to meet its annual targets. Borborema’s first gold pour positions it for commercial production by the end of Q3 2025, indicating positive progress in Aura’s operational strategy.

Shareholder MeetingsBusiness Operations and Strategy
Aura Minerals Announces 2025 AGM Results with Strong Shareholder Support
Positive
Jun 16, 2025

Aura Minerals Inc. announced the results of its 2025 Annual General Meeting of Shareholders, where all proposed directors were elected, and KPMG was appointed as the company’s auditor. The meeting results reflect strong shareholder support for the company’s leadership and financial oversight, which may positively impact Aura’s strategic initiatives and stakeholder confidence.

Business Operations and StrategyFinancial Disclosures
Aura Minerals Releases Promising Economic Assessment for Era Dorada Project
Positive
Jun 10, 2025

Aura Minerals has announced the preliminary economic assessment for its Era Dorada Project in Guatemala, highlighting strong economic potential with an after-tax NPV of $485 million and an IRR of 24% at a gold price of $2,410 per ounce. The project, acquired from Bluestone Resources, is expected to produce 1.4 million ounces of gold over 17 years, with significant local collaboration to meet environmental and social standards, potentially impacting local employment and economic development.

Delistings and Listing ChangesRegulatory Filings and Compliance
Aura Minerals Announces U.S. Public Offering Plans
Neutral
Jun 7, 2025

Aura Minerals Inc. has filed a registration statement with the U.S. Securities and Exchange Commission for a proposed public offering of its securities in the United States. This move is part of Aura’s strategy to list its common shares on the Nasdaq Global Select Market, aiming to improve stock liquidity and consolidate its presence in the U.S. equity market, with BofA Securities and Goldman Sachs as global coordinators.

Business Operations and StrategyRegulatory Filings and Compliance
Aura Minerals Unveils 2024 Sustainability Achievements
Positive
Jun 5, 2025

Aura Minerals has released its 2024 Sustainability Report, highlighting significant progress in safety, responsibility, sustainability, and innovation. The report details achievements across eight ESG pillars, including digital transformation, community empowerment, and environmental management. Aura has strengthened its ESG leadership by complying with global mining standards and has been recognized for its efforts in diversity and workplace culture. The company has also increased its production and maintained a strong safety record, reflecting its commitment to sustainable growth and responsible mining.

M&A TransactionsBusiness Operations and Strategy
Aura Minerals to Acquire Serra Grande Gold Mine in Brazil
Positive
Jun 2, 2025

Aura Minerals has entered into an agreement to acquire the Mineração Serra Grande gold mine in Goiás, Brazil, from AngloGold Ashanti. The acquisition involves an upfront payment of $76 million and deferred payments based on net smelter returns. The transaction is expected to close by the end of 2025, pending regulatory approvals and other conditions. This acquisition aligns with Aura’s strategy to enhance its portfolio and improve the performance of its mining operations, potentially making Serra Grande a key asset in its portfolio.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025