Mr. Rodrigo Barbosa reports

AURA ANNOUNCES 2023 ANNUAL FINANCIAL AND OPERATIONAL RESULTS AND 2024 GUIDANCE

Aura Minerals Inc. has filed its audited consolidated financial statements and management's discussion and analysis for the year ended Dec. 31, 2023, which also contains the annual guidance. The full version of the financial and operational results can be viewed on the company's website or on SEDAR+. All amounts are in thousands of U.S. dollars unless stated otherwise.

Rodrigo Barbosa, chief executive officer of Aura Minerals, commented: "The year 2023 showcased our unwavering commitment to growth under the highest environmental, social and governance standards. We achieved remarkable milestones, including zero lost-time incidents across all operations. Our greenfield implementation set new benchmarks as we completed the construction of Almas in just 16 months and rapidly ramped up operations in less than five months. We published a new feasibility study, raised the capital and commenced construction of Borborema, which is on schedule to begin operations in early 2025. Our exploration program continued to expand our resources and reserves, with an update to be released soon. In all, despite temporary challenges in operations, we generated $88-million (U.S.) in recurring free cash flow, enabling us to fund our growth, while paying one of the highest dividend yield in the sector (6 per cent per annum) for the third consecutive year. We are confident that 2024 will bring further achievements, with an increase in [gold equivalent ounce] production, development of greenfield projects like Borborema, and growth in resources and reserves."

• Aura Minerals reached zero lost-time incidents across all its operating business units and projects by the end of 2023, and credits its strong safety culture and robust management systems under its Aura 360 values.
• The company was recognized with the socially responsible company seal by the Honduran Foundation for Social Responsibility (Funhdarse), reflecting its commitment to good operational management and communication practices.
• In fourth quarter 2023, production reached 69,194 GEO, a notable increase of 7 per cent compared with third quarter 2023 and the best quarterly production for the year. The increase was a result of improved operating performance at Apoena (EPP), Minosa (San Andres) and Almas. When compared with the same period last year, production increased by 2 per cent mainly due to Almas achieving commercial production in August, 2023. Total production for 2023 reached 235,856 GEO at current prices, within the range of the Q3 2023 management's discussion and analysis consolidated production guidance of between 231,000 and 253,000 GEO for 2023:
  • Aranzazu: Production of 26,532 GEO was 2 per cent lower compared with Q3 2023 and 1 per cent above Q4 2022 at constant prices due to mine sequencing. In 2023, Aranzazu produced 106,119 GEO, 2 per cent below 2022 at constant prices and in line with the company's guidance.
  • Apoena (EPP): Production of 15,217 GEO was 36 per cent higher in Q4 2023 compared with the previous quarter as the high-grade Ernesto pit was reached and a lower volume of existing low-grade stockpiles was processed. Despite this increase, production was still influenced by the adverse impact of rains during Q3 2023. Aura Minerals anticipates mining to continue in Ernesto during first quarter 2024 with improving production rates. Compared with Q4 2022, production decreased 43 per cent when record production was achieved as a result of initial access to phase 2 in the Ernesto pit. Considering this result, Apoena produced 46,006 GEO in 2023.
  • Minosa (San Andres): Production of 17,854 GEO for the quarter, representing another 2-per-cent increase compared with the previous quarter and an increase of 47 per cent over Q4 2022. This represents the fourth quarterly increase in production in a row due to the higher stacked tonnage resulting from the upgrade in the stacking system in Q3 2023. In 2023, Minosa produced 65,927 GEO, 7.3 per cent above 2022.
  • Almas: Production of 9,591 GEO represented the first full quarter of production. Despite lower volume than expected in the quarter, mine performance improved by 93 per cent between October and December, with 584,000 tons moved in October, 731,000 tons in November and 1,128,000 tons in December, achieving stable performance levels as expected in 2024. In 2023, Almas produced 17,805 GEO.
• Sales volumes were 8 per cent higher than Q3 2023, mainly due to higher production in Apoena, Minosa and Almas. Compared with the same period last year, sales volumes were 1 per cent higher, mainly due to higher production in Minosa and the commencement of commercial production in Almas despite Apoena's decrease. In 2023, sales volumes decreased 5 per cent when compared with the previous year. During the year, sales volumes fluctuated and consistently increased as a result of higher production.
• Revenues were $124,322 in Q4 2023, representing an increase of 12 per cent compared with Q3 2023 and 17 per cent compared with the same period in 2022. Compared with the same period last year, sales volumes were 1 per cent higher, mainly due to higher production in Minosa and the commencement of commercial production in Almas, despite Apoena's decrease. In 2023, revenues reached $416,894, a 6-per-cent increase compared with 2022. Revenues improved significantly in the second semester, reflecting a recovery in production and the commencement of operations in Almas.
• Adjusted earnings before interest, taxes, depreciation and amortization were $40,893 in Q4 2023, an improvement of 37 per cent compared with $30,020 in Q3 2023, as a result of higher production and sales volume from Apoena, Minosa and Almas. Compared with Q4 2022, adjusted EBITDA showed an improvement of 13 per cent, also mainly due to higher production and sales volumes. In 2023, adjusted EBITDA reached $134,107, stable when compared with 2022. This was mainly due to the decrease in Apoenas production in 2023 and partially offset by an increase in Minosa and the ramp-up of Almas.
• All-in sustaining cost during Q4 2023 of $1,311 per GEO represented a decrease of $126 per GEO when compared with Q3 2023 ($1,437 per GEO) mainly due to higher volumes in Minosa and Almas and higher-grade production from the Ernesto pit and lower processing stockpile inventory at Apoena. In 2023, AISC of $1,324 was in line with guidance and 18 per cent above 2022 AISC, partially due to metal prices and the appreciation of the U.S. dollar against the Brazilian real and the Mexican peso, and lower grades at Apoena mines. At constant metal prices and foreign exchange rates, AISC would have increased 11 per cent in 2023 versus 2022.
• By the end of Q4 2023, the company's net debt position was $85,165, a reduction compared with $112,110 reported in the previous quarter. Recurring free cash flow to firm was strong and about $38,000, of which $9,000 was invested in growth activities and $18,000 was returned to shareholders through a dividend payment.
• Strategic Investment in Altamira Gold: In November, Aura Minerals made a strategic investment in Altamira Gold through a non-brokered private placement. This investment resulted in Aura Minerals owning approximately 11.35 per cent of Altamira's issued and outstanding shares (non-diluted) and around 17.00 per cent on a fully diluted basis. The decision to invest was motivated by Altamira's exploration potential and the recent success at the Maria Bonita gold discovery within the Cajueiro gold project in Mato Grosso and Para, Brazil.
• Achievement of commercial production at Almas: In April, 2023, Aura Minerals completed construction and began the ramp-up phase of the Almas project, achieving this milestone on time and mostly within budget over a remarkably quick 16-month period. By August, 2023, Almas had reached commercial production, processing about 8,214 ounces by the end of Q3 2023 and producing 17,805 gold equivalent ounces in its first five months, from August to December, marking significant month-to-month performance improvements. By the end of 2023, Almas was not only operating above its nominal capacity but also embarked on an expansion to increase its capacity from 1.3 million to 1.5 million tons, aiming for a 15-per-cent increase in annual gold production by the end of 2024, setting a new industry standard for rapid development and production scaling.
• Construction under way at the Borborema project: The Borborema project experienced significant progress in 2023, marking a pivotal year with key milestones. In August, Dundee exchanged its 20-per-cent interest in Borborema for a net smelter royalty, allowing Aura Minerals to acquire full ownership. Concurrently, Aura Minerals announced the completion of the Borborema feasibility study under National Instrument 43-101, projecting 748,000 ounces of gold production over an initial life of mine of 11.3 years, with robust economics indicating a net present value of $182-million and an internal rate of return of 21.9 per cent at a gold price of $1,712 per ounce. The study outlined competitive life-of-mine average AISC of $949 per oz, capital expenditures of $188-million and an expected payback within 3.2 years. Following this, the board of directors green-lit the project's construction, with Aura Minerals securing over $145-million in financing through a combination of financing strategies. Construction is well under way with 17 per cent completed to date, aiming for a start in early 2025. The project's advancement includes completed earthworks and continuing civil mobilizations, alongside efforts to relocate a road to access additional resources, with engineering, procurement and construction management services provided by Poyry, ensuring the project remains on schedule.

2024 guidance

The company's updated gold equivalent production, AISC and cash operating cost per gold equivalent ounce sold, and capex guidance for 2024 are detailed herein.

In 2024, Aura Minerals is set to achieve significant progress across its portfolio, with production guidance indicating a promising increase in gold equivalent ounces ranging from 244,000 to 292,000 GEO, marking an 8,000 to 56,000 GEO increase (3 per cent to 24 per cent) compared with 2023, primarily due to the full-scale production at Almas. Highlights include operational advancements at Minosa (San Andres) with an expected production volume increase, strategic expansions at Apoena (EPP) and Almas to enhance plant capacity and productivity, and steady production at Aranzazu.

On the financial front, Aura Minerals anticipates varied cash cost and all-in sustaining cost adjustments across projects, with notable cost reductions at Almas due to increased mine productivity and plant enhancements. The year also focuses on the Borborema project's construction, reflecting a significant portion of the year's capital expenditures, alongside continued investments in exploration and development, to bolster the life of mine across Aura Minerals' operations. For a detailed breakdown of the 2024 guidance including production volumes, cash costs, AISC, and insights into new projects and expansions, review management's discussion and analysis and earnings release documents for comprehensive information.

Q4 2023 earnings call

The company will hold an earnings conference call on Wednesday, Feb. 21, 2024, at 8 a.m. Eastern Time.

Date:  Feb. 21, 2024

Time:  8 a.m. (New York and Toronto) or 10 a.m. (Brasilia)

Qualified person

Farshid Ghazanfari, PGeo, mineral resources and geology director for Aura Minerals, has reviewed and confirmed the scientific and technical information contained within this news release, and serves as the qualified person as defined in National Instrument 43-101. All technical information related to Aura Minerals' properties and the company's mineral reserves and resources is available on SEDAR+.

About Aura Minerals Inc.

Aura Minerals is focused on mining in complete terms -- thinking holistically about how its business impacts and benefits every one of its stakeholders: the company, its shareholders, its employees, and the countries and communities it serves. It calls this 360-degree mining.

Aura Minerals is a mid-tier gold and copper production company focused on operating and developing gold and base metal projects in the Americas. The company has four operating mines including the Aranzazu copper-gold-silver mine in Mexico, the Apoena (EPP) and Almas gold mines in Brazil, and the Minosa (San Andres) gold mine in Honduras. The company's development projects include Borborema and Matupa, both in Brazil. Aura Minerals has unmatched exploration potential owning over 630,000 hectares of mineral rights, and is currently advancing multiple near-mine and regional targets along with the Serra da Estrela copper project in the prolific Carajas region of Brazil.

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