Aura Minerals Inc. · NASDAQ:AUGO
Aura Minerals — Investor Presentation (July 2020)
37 slides from Aura Minerals's investor presentation, July 2020
Slide 1: Company Presentation
Meaning for mining Company Presentation July, 2020
Slide 2: Disclaimer
Disclaimer Forward-Looking Information This presentation contains “forward-looking information” and “forward-looking statements”, as defined in applicable securities laws (collectively, “forward- looking statements”) which include, but are not limited to, statements with respect to the activities, e
Slide 3: We are a 360° Mining Company
We are a 360o Mining Company We are engaged, ... whether in thoughtful and 360° Fiscally Responsible corporate offices respectful of the Responsible Zero Incidents Growth MINING People First or in our mining communities where operations. Well-managed we do business... 3
Slide 4: Aura's Snapshot
Aura’s Snapshot Counter cyclical and dollarized sector Strong cash flow generation and dividend distribution proposition High growth platform Developed by experienced shareholders with over 45 years in the sector Managed by an experienced and complementary team 4
Slide 5: Aura's Presentation - Agenda
Aura’s Presentation - Agenda Who Are We? 1 We Created a Strong Growth Platform with Proven Track Record Where Are We Going? 2 We Have a Clear Strategy to Deliver Near Term Growth 3 Why Us? We Built Strong Team Under Wining Management Culture 4 Key Takeaways 5
Slide 6: We Have Built a Solid Base – Ready to Grow
We Have Built a Solid Base – Ready to Grow Overview Operations and Projects ◼ Profitable gold and copper mining company with attractive economics and growth perspectives ◼ Aura has a superior combination of cash flow and internal growth projects with exploration upside 4 ◼ Diversified production bas
Slide 7: Self-reinforcing aspects supporting growth
We Worked to Develop Key Pillars to Sustain Our Next Steps Self-reinforcing aspects supporting growth High Quality Strong Balance Business-Building Assets and Projects Sheet Culture Generate value with Low leverage, wide Build a team and high-quality assets bank relationship, and culture to support
Slide 8: We Transformed Aura Over the Past Years
We Transformed Aura Over the Past 3 Years We Implemented Material Changes to Our Core Business... Appointment of We Unlocked Value We Redeveloped We Enhanced a new management Serrote’s sale a mine. corporate governance, team and Board for US$ 40 mn Restart of Aranzazu created a strong culture and at
Slide 9: We are Already Harvesting Results, While Prepared for More
We are Already Harvesting Results, While Prepared for More Substantial Improvements in Financial Performance and Prepared to Give Another Step Forward Net Revenues and Average Au Price Production (kGEO) (US$ mn, $/oz) Adj. EBITDA(1)(2) (US$ mn) and Margin (%) 1,282 1,481 12% 39% 279 214 +77% +69% 10
Slide 10: What Have We Done: Aranzazu
What Have We Done: Aranzazu Proven execution track-record – de-risking Aranzazu to redevelop and restart it after 4 years inactive Overview Outcomes • Aranzazu is a 100% owned mine located in Zacatecas, Mexico. The mine is Increased production… underground and produces copper, gold, and silver (Copp
Slide 11: Aura's Presentation - Agenda
Aura’s Presentation - Agenda Who Are We? 1 We Created a Strong Growth Platform with Proven Track Record Where Are We Going? 2 We Have a Clear Strategy to Deliver Near Term Growth 3 Why Us? We Built Strong Team Under Wining Management Culture 4 Key Takeaways 11
Slide 12: High Quality Asset Base and Growth Pipeline
High Quality Asset Base and Growth Pipeline Diversified production base with operating assets in mining friendly jurisdictions – focused exclusively in the American continent Operating(¹) Near-Term Production(2) Engineering(3) Aranzazu Advanced Exploration(4) Metals: Copper and Gold C&M(5) Productio
Slide 13: Strong and De-risked Project Pipeline
On Top of Our Recent Results, We Have Created a Strong and De-risked Project Pipeline Estimated Production We Created Accretive Growth Opportunities Impact ▪ Acquisition with a high growth prospect and a low risk asset Gold Road ▪ Project with a high grade mine, great location, and promising geology
Slide 14: Our Pipeline Brings Significant Upside for Sustainable Growth
Our Pipeline Brings Significant Upside for Sustainable Growth Strong upsides from the current pipeline to continue to grow from operating assets, advanced projects and projects under early exploration Opportunistic acquisitions Tolda Fria São Francisco Aranzazu Matupá (Step 2) Gold Road Aranzazu Alm
Slide 15: Details on Gold Road and Almas
Details on Gold Road and Almas Gold Road Almas Project taken over by Aura in early Acquisition closed in March, 2020 2018 following the Rio Novo merger Shift of focus: first years on higher grades Narrow vein underground mine located in the historical Oatman New feasibility studies started in April,
Slide 16: We Have a Strong Balance Sheet
We Have a Strong Balance Sheet Deleveraged Company Exposure to Local Financial Institutions Relationship established with multiples local (US$ mn) 1Q20 / 2019 financial institution, including: Gross debt 71.7 / 43.0 Cash 29.9 / 39.1 Net debt 41.8 / 3.9 Debt pushdown with wide exposure to local banks
Slide 17: Conservative Financial Practices to Maintain Resilient Balance Sheet
Conservative Financial Practices to Maintain Resilient Balance Sheet ◼ Budget for project development requires board approval and both economical and technical feasibility studies ◼ Maintain strong liquidity ◼ Access to capital through through cash position multiple banking relationships and access
Slide 18: Additional Levers: Pandemic Impacts and Long Term Trends
Additional Levers Pandemic Impacts and Long Term Trends In our view, macroeconomic and long term trends far outweigh short term impacts of operational restrictions OPERATIONAL LOGISTICS COSTS M&A GOLD FX PRICES FINANCING COSTS ◼ Gold prices rallying since pandemic outbreak ◼ Emerging markets currenc
Slide 19: Aura's Presentation - Agenda
Aura’s Presentation - Agenda Who Are We? 1 We Created a Strong Growth Platform with Proven Track Record Where Are We Going? 2 We Have a Clear Strategy to Deliver Near Term Growth 3 Why Us? We Built Strong Team Under Wining Management Culture 4 Key Takeaways 19
Slide 20: Our Culture Supports Execution
Our Culture Supports Execution: Focus on Meritocracy, Value, Safety, Community and Environment Responsibility Disciplined Decentralization 360 Concept Geographic Focus Full Alignment Financial Approach Increased operational Simple and direct Focus on mining-friendly Full alignment: Low leverage and
Slide 21: Global Best Practices – Tailing Dams
Global Best Practices – Tailing Dams ◼ Corporate standard for safety management of Tailings Facilities in implementation since 2019 ◼ Our corporate safety committee meets on a monthly basis to closely monitor advances in the implementation of our safety management system, stability conditions and ne
Slide 22: Strong Management Team Supported by World-class Board of Directors
Strong Management Team Supported by World-class Board of Directors Corporate Executives Rodrigo Barbosa Kleber Cardoso Sergio Castanho Glauber Luvizotto President & CEO Chief Financial Chief Transformation Chief Operations +3 years at Aura Officer – CFO Officer – CTO Officer – COO +1 year at Aura +2
Slide 23: Aura's Presentation - Agenda
Aura’s Presentation - Agenda Who Are We? 1 We Created a Strong Growth Platform with Proven Track Record Where Are We Going? 2 We Have a Clear Strategy to Deliver Near Term Growth Why Us? 3 We Built Strong Team Under Wining Management Culture 4 Key Takeaways 23
Slide 24: Key Takeaways
Key Takeaways Counter cyclical and dollarized sector Strong cash flow generation and dividend distribution proposition High growth platform Developed by experienced shareholders with over 45 years in the sector Managed by an experienced and complementary team 24
Slide 25: Appendix
Appendix
Slide 26: Appendix A – Disclaimer Technical Reports
Appendix “A” – Disclaimer Technical Reports • the technical report with an effective date of January 31, 2018, and entitled “Feasibility Study of the Re-Opening of the Aranzazú Mine, Zacatecas, Mexico,” prepared for Aura Minerals by F. Ghazanfari, P.Geo. (Farshid Ghazanfari Consulting), A. Wheeler,
Slide 27: Appendix B – Disclaimer Additional Technical Reports
Appendix “B” – Disclaimer Additional Technical Reports • the technical report dated May 3, 2018, titled “NI 43-101 Technical Report, Preliminary Economic Assessment of the Gold Road Mine, Arizona, USA” prepared for Soma Gold Corp. (formerly Para Resources Inc., the vendor of the Gold Road Project, o
Slide 28: Our Actions Amid the Pandemic
Our Actions Amid the Pandemic Food donations to local families, medication and medical supplies to healthcare centers, and biosafety equipment to health control checkpoints Ensuring essential activities remain functioning, including tailing dams safety, environmental risk prevention and other critic
Slide 29: COVID-19 Impacts on Gold and Gold Miners
COVID-19 Impacts on Gold and Gold Miners The Gold Mining Industry is Among the Most Resilient Large cap gold companies have already surpassed pre-crisis valuation levels Share prices in 100 basis Latam High Growth Global select Gold 120 114 113 110 109 100 90 80 70 60 50 20-Feb 3-Mar 15-Mar 27-Mar 8
Slide 30: Portfolio Summary
Portfolio Summary Diversified asset base in the Americas, producing mainly gold and copper, with diverse life stages and LOM Aranzazu San Andrés EPP Gold Road Almas Matupá São Francisco Tolda Fria Country Concepción del Pontes e Near Pontes e City La Unión Arizona Almas Matupá Manizalez Oro Lacerda
Slide 31: Portfolio Summary (cont'd)
Portfolio Summary (cont’d) Producing Assets Overview Aranzazu Production (Au and Cu, GEO(1)) Highlights (4Q19) • 100% owned, located in Zacatecas, Mexico, close proximity to two large cities 19,953 Cash $0.97 cost(2) per lbs • Restarted and attained commercial production in 13,678 Dec/2018 Copper/Go
Slide 32: Portfolio Summary (cont'd) – Almas Project
Portfolio Summary (cont’d) Almas Project Project Snapshot Location Almas – Tocantins, Brazil Size Reserves of 534 kOz (Au) and Resources of 997 kOz (Au) Project consists of three separate open pit mining areas and a central processing station Highlights The main deposits are along 15km long excerpt
Slide 33: Portfolio Summary (cont'd) – Matupá Project
Portfolio Summary (cont’d) Matupá Project Project Snapshot Location Guaranta do Norte – Mato Grosso, Brazil Size Measured + Indicated: 332 kOz (Au) Indication of copper porphyry: noted a significant copper and molybdenum anomaly Highlights Region characterized with extensive amount of gold deposits
Slide 34: Portfolio Summary (cont'd) – São Francisco Mine
Portfolio Summary (cont’d) São Francisco Mine Under C&M Project Snapshot Location Vila Bela da Santíssima Trindade, 85 km away from EPP plant – Mato Grosso, Brazil Size Processing capacity of 3.0 MTPY, replacement cost of ~100M (plant and facilities) and currently idle. Highlights Comprised a proces
Slide 35: Portfolio Summary (cont'd) – Tolda Fria Project
Portfolio Summary (cont’d) Tolda Fria Project Project Snapshot Location Manizalez – Caldas, Colombia Size 43-101 compliant inferred resource is 947 kOz (Au) Contains high-grade mineralization and 14 km of underground development for exploration access used to complete a 43- Highlights 101-compliant
Slide 36: Gold Road Acquisition
Sustainable Growth Commitment Gold Road Acquisition Sound transaction rationale… Gold Road Mine • High grade mine and TR-UE Vein • Great location: very stable jurisdiction, patented land, good logistics and nearby cities with good infrastructure • Management and operation practices already applied o
Slide 37: 360° Mining Social and Environmental Well-being
360o Mining Social and Environmental Well-being ▪ Community care: thoughtful and respectful interaction with the communities, celebrating their diversities ▪ Wide variety of environmental initiatives to optimize the surroundings of our mines ▪ San Andres mine awarded “Virtud Verde”, for its engageme