Aura Minerals Inc. · NASDAQ:AUGO

Aura Minerals — Investor Presentation (February 2014)

33 slides from Aura Minerals's investor presentation, Feb 18, 2014

  1. Slide 1: Company Presentation

    Company Presentation Information as of September 30, 2013 (Including preliminary 2013 fourth quarter operational results and 2014 guidance)

  2. Slide 2: Cautionary Notes

    Cautionary Notes This presentation is subject to change without notice and does not purport to be comprehensive or contain all the information necessary to evaluate the subject matter discussed herein. Accordingly, this document should not form the basis of, and should not be relied upon in connecti

  3. Slide 3: Cautionary Notes

    Cautionary Notes • with respect to the Company’s Sao Vicente mine is based on information as set forth in the technical report dated January 31, 2012, with an effective date of September 30, 2011, and entitled “Resource and Reserve Estimates on the Sao Vicente Mine in the Municipality of Nova Lacerd

  4. Slide 4: Forward-Looking Statements

    Forward‐Looking Statements This document contains "forward‐looking information" within the meaning of Canadian securities legislation and "forward‐looking statements" within the meaning of the United States securities law, including but not limited to preliminary Q4 and 2013 full year production and

  5. Slide 5: 1. Company Highlights

    1. Company Highlights Aura Minerals Inc.

  6. Slide 6: Company Snapshot

    Company Snapshot  Canadian mining company focused on the operation and development of copper and gold assets in the Americas  Headquartered in Toronto and publicly traded on the TSX (ticker ORA)  Over 1,300 employees and approximately 1,000 contract workers  Producing asset portfolio includes: 

  7. Slide 7: Asset Summary

    Asset Summary Aranzazu (Mexico) ¹ Primary commodity: Copper Avg. Production: 30M lbs. per year Avg. Cash Costs: $1.15‐1.25 / lb. Life of Mine: 16 years (beginning in 2015) San Andres (Honduras) ² Primary commodity: Gold Avg. Production: 65,000 oz. per year Avg. Cash Costs: $1,000 / oz. Life of Mine:

  8. Slide 8: Key Highlights

    Key Highlights Strong copper and gold resource platform to support organic growth Mine expansion (well advanced), plant expansion (engineered), and roaster package (awarded) optimizing flagship Aranzazu copper asset Disciplined management driving operational improvements and greater operating cash f

  9. Slide 9: Strong Copper and Gold Resource Platform to Support Organic Growth

    Strong Copper and Gold Resource Platform to Support Organic Growth Transforming from a gold‐copper company to a low cost copper producer Copper Gold Estimated Annual Production 2013A 2014E 2015E 2016E 2017E 2018E Aranzazu: 13.623M lbs. in 2013 Ramping up to 18‐19.5M lbs. in 2014 Aranzazu Expansion +

  10. Slide 10: Business Plan Summary

    Business Plan Summary Year Aranzazu San Andres Brazilian Mines Serrote 2013  Engineering and  Operational  Achieve strong  Bridge financing procurement by AMEC efficiency positive cash flow  Community resettlement  Basic engineering for enhancements from both operations  Detailed engineering

  11. Slide 11: Aranzazu Overview and Outlook

    Aranzazu Overview and Outlook  Acquired in 2008 ‐ commercial production Location Zacatecas, Mexico achieved in February, 2011 Ownership 100%  Achieved full production from mine and mill Project Type Open Pit‐Under Ground, throughput, 2,600 tonnes per day (“tpd”) in 2012 flotation and 2013 M&I Reso

  12. Slide 12: Expansion and Upgrade of Flagship Copper Asset, Aranzazu

    Expansion and Upgrade of Flagship Copper Asset, Aranzazu  Transformation of Aranzazu is ongoing, certain items are on hold pending completion of the Production (pending financing) financing  PEA published in August 2012 outlined key improvements  Installation of roaster to reduce arsenic content

  13. Slide 13: Aranzazu Capital Projects, 2013 through 2015

    Aranzazu Capital Projects, 2013 through 2015 2013‐2015 Planned Capital Expenditures (Plant Expansion and Roaster pending financing) MINE DEVELOPMENT, $41 million PLANT EXPANSION, $39 million ROASTER, $33 million  Intended to enable access to higher  Additional mill, paste‐fill plant and  Lower tr

  14. Slide 14: Aranzazu Improvements Aimed at Shifting to a Lower Cost Copper Asset

    Aranzazu Improvements Aimed at Shifting to a Lower Cost Copper Asset 1 2015E Industry Copper Cost Curve $4.00 $3.60 $3.20 Cash Cost ($/lb.) $2.80 $2.40 Aranzazu $2.00 midpoint cash cost2 $1.60 $1.20 $0.80 $0.40 $0.00 0% 25% 50% 75% 100% Cumulative Production (Percentile) 1. Source: Wood Mackenzie Me

  15. Slide 15: San Andres Overview

    San Andres Overview  Acquired in August 2009 Location Honduras  Generating significant cash flow Ownership 100% Project Type Open Pit, Heap Leach  2012‐2013 drill program has aimed at identifying additional mineral resources P&P Reserves1 784 Koz. M&I Resources1 1,631 Koz. (includes mineral reser

  16. Slide 16: San Andres Key Operating Initiatives

    San Andres Key Operating Initiatives  Current Initiatives:  Significant operational flexibility with two primary crushers  Installation and operation of new stacker with the objective of reducing pad pressure and improving percolation  New water treatment plant now operational  Successful negot

  17. Slide 17: São Francisco Overview / São Vicente Overview

    São Francisco Overview São Vicente Overview  Open pit, heap leach, gravity circuit  Open‐pit, heap leach, gravity circuit  Plan to stop mining in early 2014, but processing  Mining and processing planned through 2013 anticipated to continue through 2014  Minimal production planned in 2014  Key

  18. Slide 18: Significant Asset Value

    Significant Asset Value  The PEA estimates that the Aranzazu 4,000 tpd expansion will carry an estimated standalone NPV of $200 million Key Results from the Assessment of Expansion Options at Aranzazu* 2,600 tpd 4,000 tpd 5,600 tpd Base Case Expansion Expansion Mine Life 25 years 18 years 13 years

  19. Slide 19: Serrote Provides Valuable Long-Term Option

    Serrote Provides Valuable Long‐Term Option  A wholly‐owned development‐stage copper‐gold Operating Metrics* project which is the Company’s core development Licensing Installation License Granted asset Plant Capacity 7Mtpa Copper Concentrator (flotation)  Significant reserve position LOM Production

  20. Slide 20: Management Team Overview

    Management Team Overview Senior management team focused on development and execution: highly experienced individuals with varied mining, technical, operational and finance skills Jim Bannantine, P. Eng. Rory Taylor, CA President and CEO CFO Joined Aura in October 2011 Joined Aura in March 2012 • Par

  21. Slide 21: Management Driving Positive Earnings And Adjusted EBITDA Growth

    Management Driving Positive Earnings And Adjusted EBITDA Growth • Record gold production for the year in 2013. • Exceeded the upper end of annual gold production guidance and met our annual copper production guidance. Operational and Corporate Restructuring Note: Adjusted EBITDA is a non‐IFRS term.

  22. Slide 22: Corporate Social Responsibility

    Corporate Social Responsibility  Aura’s corporate responsibility framework includes four core principles:  Protect the environment and the health and safety of people  Value honesty and integrity  Promote open communication and transparency  Strive to continuously improve corporate responsibili

  23. Slide 23: 2. Financial Overview

    2. Financial Overview Aura Minerals Inc.

  24. Slide 24: Historical Annual Summary Financials

    Historical Annual Summary Financials Production Revenue $342.3 250.0 16.0 $350.0 13.6 206.7 $307.4 Copper Produced (M lbs.) Gold Produced (000 oz.) 11.0 14.0 $288.4 173.3 $300.0 200.0 160.2 12.0 Revenue ($M) $250.0 137.5 150.0 7.1 10.0 $200.0 $163.7 8.0 100.0 $150.0 6.0 $100.0 4.0 50.0 2.0 $50.0 0.0

  25. Slide 25: Historical Quarterly Summary Financials

    Historical Quarterly Summary Financials Production Revenue 60.0 4.0 $342.3 3.6 $350.0 Copper Produced (M lbs.) 48.3 3.5 Gold Produced (000 oz.) 50.0 $300.0 3.0 Revenue ($M) $250.0 40.0 55.63.8 2.5 3.3 52.4 $200.0 50.3 50.4 3.2 42.43.043.1 3.0 30.0 2.0 37.6 2.5 $150.0 2.2 1.5 $88.6 $81.3 $86.0 20.0 $

  26. Slide 26: Overview of Key Financial Policies

    Overview of Key Financial Policies  Hedging program  Board approved use of foreign currency contracts and gold and copper collar contracts to mitigate exposure to price fluctuations  Management policy is to hedge a substantial amount of twelve month production  Management actively and continuous

  27. Slide 27: Appendix: Company Information

    Appendix: Company Information

  28. Slide 28: Reserve & Resource Statement – Copper

    Reserve & Resource Statement – Copper Aranzazu Mineral Resources (as of September 1, 2011) Tonnes Copper Copper Gold Gold Silver Silver Category (‘000) (%) (‘000 lbs) (g/t) (‘000 oz.) (g/t) (‘000 oz) Measured 8,338 1.36 250,215 0.82 219 14.06 3,768 Indicated 9,432 1.63 338,523 0.56 171 21.45 6,504 M

  29. Slide 29: Reserve & Resource Statement – Copper

    Reserve & Resource Statement – Copper Serrote Mineral Reserves (for Sulphide material as of April 10, 2012) Classification1 Material t (x 1,000) Cu (%) Au (g/t) Magnetite (%) NSR $/t 50,805 Proven2, 4 0.54 0.10 7.09 25.26 Probable2, 3, 4 34,667 0.50 0.09 7.82 22.77 Total Reserves 85,471 0.52 0.10 7.

  30. Slide 30: Reserve & Resource Statement – Gold

    Reserve & Resource Statement – Gold San Andres Mineral Reserves and Resources (as at December 31, 2011) Reserve Category Tonnes (000) Au (g/t) Contained Ounces (000) Proven 33,536 0.54 581 Probable 12,227 0.52 203 Total Proven and Probable Reserves 45,762 0.53 784 * Mineral Reserves at cut‐off of 0.

  31. Slide 31: Reserve & Resource Statement – Gold

    Reserve & Resource Statement – Gold Sao Francisco Mineral Reserves and Resources Mineral Reserve and Resource Estimates as at September 30, 2011* Reserve Category Tonnes (000) Au (g/t) Contained Ounces (000) Proven ‐ ‐ ‐ Probable 10,890 0.91 318 Total Proven and Probable Mineral 10,890 0.91 318 Rese

  32. Slide 32: Reserve & Resource Statement – Gold

    Reserve & Resource Statement – Gold Sao Vicente Mineral Reserves and Resources Mineral Reserve and Resource Estimates as at September 30, 2011* Reserve Category Tonnes (000) Au (g/t) Contained Ounces (000) Proven 2,165 0.85 59 Probable 779 0.79 20 Total Proven and Probable Mineral 2,943 0.84 79 Rese

  33. Slide 33: Contact Information

    Contact Information Aura Minerals Inc. 155 University Ave, Suite 1240 Toronto, ON M5H 3B7 Canada Ph: +1.416.649.1033 Fax: +1.416.649.1044 Email: info@auraminerals.com

Aura Minerals — Investor Presentation (February 2014) on 6ix