Aura Minerals (TSE:ORA) reported record quarterly revenue of $386 million in the third quarter of 2026 as higher production helped lift earnings, and management reiterated its full-year production guidance.
The company produced 96,000 gold-equivalent ounces, up 27% from the second quarter, President and CEO Rodrigo Barbosa said on the earnings call. Production for the first nine months was 253,000 ounces, and Aura maintained its full-year forecast of 340,000 to 390,000 ounces.
Barbosa said production was weighted toward the second half of the year and projected a further improvement in the fourth quarter as grades and productivity rise at several mines. He also expects all-in sustaining costs, which were $1,953 per ounce in the third quarter, to decline enough for Aura to meet its annual cost guidance, potentially near the upper end of the range.
Higher production supports earnings
Third-quarter revenue rose 15% from the previous quarter, while adjusted earnings before interest, taxes, depreciation and amortization reached $237 million. CFO Kleber Cardoso said trailing 12-month revenue exceeded $1.4 billion and adjusted EBITDA reached $886 million.
Net income was $135 million, down from the previous quarter. Cardoso attributed the decline primarily to a larger noncash gain on gold hedges in the second quarter. Adjusted net income, excluding certain noncash items, was approximately $121 million in the third quarter.
Aura reported $124 million in recurring free cash flow after $34 million in payments on settled gold collars. Cardoso said roughly 141,000 ounces remain under gold collars expiring monthly through mid-2028.
The company ended the quarter with approximately $420 million in cash, helped by a $200 million syndicated loan completed in September. Net debt was about $180 million, or 0.2 times EBITDA. Aura declared a dividend of $0.72 per share; Barbosa said the dividend and $10 million of third-quarter share buybacks contributed to a 4% yield over the preceding 12 months.
MSG turnaround and mine outlook
Aura expects fourth-quarter production gains at several operations, including a significant increase at Apoena as higher-grade ore reaches the plant. Barbosa also expects production to improve at Minosa after the company overcame earlier challenges with piling and stacking material on its leach pad.
At MSG, the company is shifting from top-down to bottom-up underground mining and increasing the proportion of higher-grade underground ore fed to the plant. The operation generated $24 million in EBITDA during the quarter, Barbosa said.
COO Glauber Luvizotto said the mine remained in preparation and could need another four or five months to be fully prepared. Nearly half of the ore currently comes from lower-grade surface stockpiles, he said, with underground development expected to increase higher-grade feed.
Barbosa said Aura is targeting annual production near 80,000 ounces at MSG and all-in sustaining costs close to $2,000 per ounce, probably next year. Those figures depend on the turnaround progressing as planned.
Era Dorada spending to rise
Aura reported more than 13% physical progress at its Era Dorada project. Earthmoving for the operational plateau was complete, civil work had begun and construction of processing tanks was underway, Barbosa said.
Management said it was pumping hot water and installing cooling infrastructure to address underground temperatures. Luvizotto said conditions encountered so far were in line with expectations, although work remains at an early stage. Equipment deliveries and advancing mine development are among the milestones for the next 12 months.
Cardoso expects a significant increase in project spending in the fourth quarter. He said negotiations for lower equipment down payments could put 2026 expansion capital spending near or below the low end of guidance, with spending deferred into 2027 rather than changing the project’s total cost. Aura expects to complete the project on budget.
Barbosa said the company is seeking a partner for a geothermal power plant, which could enter production two or three years after operations begin. Other power alternatives would be used in the meantime.
Cost initiatives and growth plans
Aura is transitioning to an in-house mining fleet at Apoena, Almas and Borborema. Luvizotto said the move followed an assessment that found contractor costs were significantly higher than current levels. The transition is subject to approval by CADE, and the company expects some cost reductions at the three mines next year.
Management is also reviewing expenses through a zero-based budgeting process. Barbosa said Aura continues to assess gold and copper acquisitions in the Americas as part of an ambition to reach 1 million ounces of production, while also investing in exploration to extend mine lives.
At Borborema, Luvizotto said the company expects to publish an expansion study by year-end. The remaining work includes assessing plant arrangements and water-supply alternatives.
About Aura Minerals (TSE:ORA)
Aura is focused on mining in complete terms – thinking holistically about how its business impacts and benefits every one of our stakeholders: our company, our shareholders, our employees, and the countries and communities we serve. We call this 360° Mining. Aura is a company focused on the development and operation of gold and base metal projects in the Americas.The Company’s six operating assets include the Minosa gold mine in Honduras ; the Almas, Apoena, Borborema and MSG gold mines in Brazil ; and the Aranzazu copper, gold, and silver mine in Mexico.Additionally, the Company owns Era Dorada, a gold project in Guatemala ; Tolda Fria, a gold project in Colombia ; and three projects in Brazil : Matupá, which is under development; São Francisco, which is in care and maintenance; and the Carajás copper project in the Carajás region, in the exploration phase.
