Aura Minerals Q2 gold output rose 18% to 80,322 ounces as the new Matupá mine ramped up. Revenue hit $169 million, and AISC fell to $1,313 an ounce. Full-year guidance held at 280,000-310,000 ounces.
Aura Minerals posted an 18% jump in gold production for the second quarter, driven by the ramp-up at its new Matupá mine in northern Brazil. Total output reached 80,322 ounces, up from 68,271 ounces a year earlier. Revenue came in at $169 million, a 22% increase, as the company sold gold at an average realized price of $2,342 an ounce.
The company's all-in sustaining cost (AISC) per ounce fell to $1,313 from $1,470 in the same period last year. The decline reflects higher grades at the flagship São Francisco mine and the contribution from Matupá, which is operating near its nameplate capacity of 40,000 ounces per quarter, CEO Rodrigo Barbosa said on the earnings call.
Net income rose to $37 million, or $0.52 per share, compared with $28 million, or $0.40 per share, in the year-ago quarter. Adjusted EBITDA was $85 million, up from $68 million. The company ended the quarter with $156 million in cash and equivalents, and total debt of $248 million, leaving net leverage at 0.4 times trailing EBITDA.
Matupá, which poured its first gold in late 2025, contributed 38,500 ounces in the quarter. The mine is on track to reach commercial production by the end of the third quarter, Barbosa said. Output from the Borborema mine, also in Brazil, totaled 19,200 ounces, while the San Andres mine in Honduras produced 22,600 ounces.
For the full year, Aura maintained its guidance of 280,000 to 310,000 ounces at an AISC of $1,250 to $1,400 per ounce. The company expects Matupá to reach steady-state output of 45,000 ounces per quarter by 2027.
On the call, CFO Kleber Cardoso highlighted that the company's free cash flow generation reached $42 million in the quarter, up from $29 million a year ago. He attributed the improvement to lower capex at Matupá, which is largely spent, and higher gold prices.
Aura's stock has climbed 34% year to date, outperforming the NYSE Arca Gold Miners Index by roughly 12 percentage points. The company trades at about 4.5 times consensus 2026 EBITDA, a discount to mid-tier peers like Eldorado Gold and B2Gold, which trade closer to 5.5 to 6.5 times. Banco Bradesco BBI analyst Matheus Moreira, who rates the stock outperform, said the discount could narrow as Matupá's cash flow contribution becomes more visible.
Goldman Sachs analyst Henrique Tavian Marques noted on the call that Aura's net cash cost of $1,130 per ounce puts it in the lowest-cost quartile of global gold producers, a position that becomes more valuable if gold prices hold above $2,200.
The company's Alpha Score sits at 39 out of 100, a moderate reading that reflects its small market capitalization and geographic concentration in Brazil and Honduras, balanced by strong operating margins and a growing production base.
Barbosa said the company is evaluating a preliminary economic assessment for its Serra do Mato project, also in Brazil, with results expected by year-end. A positive study could add a third operating mine in the country within three years.
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