Aura Minerals (ORA) AI Stock Analysis

• Market Cap: C$1.97B
• Dividend Yield: 4.38%
• Average Volume (3M): 52.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 44.74%
• EPS Growth: -194.56%
• Country: CA
• Employees: 1,337
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Gold
• EPS (TTM): -0.56
• Shares Outstanding: 73,330,780
• 10 Day Avg. Volume: 43,519
• 30 Day Avg. Volume: 52,629
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.16
• Price to Cash Flow (P/CF): 4.90
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.23
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$25.00
• Price Target Upside: -6.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Aura Minerals shows strong financial growth, especially in revenue and cash flow, but struggles with profitability and leverage. Technical indicators suggest a strong upward trend, though caution is advised due to overbought conditions. The valuation is mixed, with a high P/E ratio offset by a strong dividend yield. Earnings calls and corporate events reflect a positive outlook with strategic growth initiatives, despite some operational challenges.

Aura Minerals Business Overview & Revenue Model

Company Description

Aura Minerals Inc. (ORA) is a mid-tier gold and copper production company based in the Americas. The company is primarily engaged in the exploration, development, and operation of gold and base metal projects. Aura Minerals operates several mines across Brazil, Honduras, and Mexico, focusing on the production of gold and copper, and is committed to sustainable practices and creating value for its shareholders.

How the Company Makes Money

Aura Minerals makes money by extracting and selling gold and copper from its mining operations. The company's revenue model is primarily based on the sale of these metals, which are extracted from its various mines. Key revenue streams include the direct sale of gold and copper to global markets. The company also benefits from strategic partnerships with local governments and other mining companies to optimize production and distribution. Aura Minerals' earnings are significantly influenced by global commodity prices, production efficiency, and operational costs.

Aura Minerals Financial Statement Overview

Summary

Aura Minerals demonstrates strong revenue growth and effective cash flow management, but faces challenges in profitability and increasing leverage. The negative net income in 2024 is a key area of concern, impacting overall financial health. Continued focus on improving profitability and managing leverage will be crucial moving forward.

Income Statement

Aura Minerals shows a strong revenue growth of 42.54% from 2023 to 2024, indicating robust business expansion. However, the net profit margin is negative in 2024 due to a net loss, pointing to profitability issues. The gross profit margin improved to 42.29%, and EBIT margin is healthy at 34.56%, but the net loss is a major concern.

Balance Sheet

The company's debt-to-equity ratio increased to 1.73, reflecting higher leverage, which could pose financial risk. The equity ratio decreased to 20.64%, indicating lower financial stability. Return on equity is negative due to the net loss, highlighting profitability challenges.

Cash Flow

Operating cash flow has significantly increased, and free cash flow grew by 44.38% from 2023 to 2024. The operating cash flow to net income ratio is strong, but the free cash flow to net income ratio is negatively impacted by the net loss. Overall, cash flow management appears solid despite the net loss.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
594.16M	416.89M	392.70M	444.56M	299.87M
	Gross Profit
251.27M	126.02M	125.69M	183.01M	121.88M
	EBIT
205.37M	87.03M	88.23M	123.05M	96.46M
	EBITDA
149.80M	106.42M	127.68M	192.13M	117.52M
	Net Income Common Stockholders
-30.27M	31.88M	66.50M	43.50M	68.48M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
270.19M	237.29M	127.90M	161.49M	117.78M
	Total Assets
1.08B	923.82M	727.31M	592.48M	536.19M
	Total Debt
385.35M	372.24M	253.29M	159.14M	73.37M
	Net Debt
115.16M	134.95M	125.39M	-2.35M	-44.41M
	Total Liabilities
857.31M	609.02M	417.18M	320.20M	223.48M
	Stockholders Equity
222.96M	314.80M	310.13M	272.27M	312.71M
Cash Flow		Free Cash Flow
41.66M	28.85M	-7.00M	51.72M	38.39M
	Operating Cash Flow
222.24M	124.95M	96.36M	131.19M	90.36M
	Investing Cash Flow
-176.40M	-97.66M	-157.50M	-78.16M	-51.06M
	Financing Cash Flow
5.20M	79.43M	21.88M	-8.63M	41.30M

Aura Minerals Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ORA, the sentiment is Positive. The current price of 26.81 is above the 20-day moving average (MA) of 26.18, above the 50-day MA of 24.52, and above the 200-day MA of 17.98, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 56.60 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ORA.

Aura Minerals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
K	80 Outperform	$24.71B	18.98	14.66%	0.84%	23.38%	131.87%
ELD	79 Outperform	$5.42B	13.56	8.12%	―	33.06%	177.69%
AGI	77 Outperform	$16.30B	40.62	8.74%	0.36%	33.75%	32.86%
NGD	73 Outperform	$3.72B	26.72	11.14%	―	18.32%	―
ORA	68 Neutral	C$1.97B	―	-11.06%	4.38%	44.74%	-194.56%
BTO	66 Neutral	$5.90B	―	-18.54%	4.56%	-0.18%	-2195.85%
Sector *	49 Neutral	$1.95B	-1.61	-21.88%	3.78%	0.55%	-26.94%

Aura Minerals Corporate Events

Aura Minerals Reports Q1 2025 Production Results and New Mine Commencement

Aura Minerals reported a 9% decrease in Q1 2025 production compared to the previous quarter, with a total output of 60,087 gold equivalent ounces. Despite the decline, Aura remains on track to meet its annual production guidance, bolstered by the commencement of operations at the Borborema mine, which is expected to significantly contribute to the company’s output by the end of the year. The new mine, completed on schedule and within budget, is anticipated to enhance Aura’s production capabilities and cost efficiency, positioning it as a key asset in the company’s portfolio.

Spark’s Take on TSE:ORA Stock

According to Spark, TipRanks’ AI Analyst, TSE:ORA is a Neutral.

Aura Minerals shows strong financial growth, especially in revenue and cash flow, but struggles with profitability and leverage. Technical indicators suggest a strong upward trend, though caution is advised due to overbought conditions. The valuation is mixed, with a high P/E ratio offset by a strong dividend yield. Earnings calls and corporate events reflect a positive outlook with strategic growth initiatives, despite some operational challenges.

To see Spark’s full report on TSE:ORA stock, click here.

Aura Minerals Reports Strong Growth in Mineral Reserves and Resources for 2024

Aura Minerals has reported updated Mineral Reserves and Resources for 2024, highlighting significant exploration activities and a strong growth trajectory. The company drilled over 100,000 meters, investing $21.8 million in exploration, and maintained its Proven and Probable Reserves at 3.4 million GEO despite natural depletion. Notable reserve growth at the Apoena mine extended its life-of-mine, while Measured and Indicated Resources grew by 1% and Inferred Resources by 4%. The updates reflect new data, revised geological interpretations, and changes in mining methods, positioning Aura for long-term growth and enhancing its industry standing.

Aura Minerals Updates Technical Reports for Key Mines

Aura Minerals has updated its technical reports for the Aranzazu, Almas, and Minosa mines, adhering to Canadian regulatory standards. The Aranzazu mine, located in Mexico, has significant mineral resources and reserves, with a planned life of mine of 10 years and an average annual production of 61.2 thousand ounces of gold. The Almas project in Brazil, which began commercial production in 2023, produced 54,003 ounces of gold in 2024, highlighting Aura’s ongoing expansion and operational progress.

Aura Minerals Begins Production Ramp-Up at Borborema Mine, Setting New ESG Standards

Aura Minerals has successfully commenced the production ramp-up at its Borborema Mine in Brazil, with expectations to reach commercial production by Q3 2025. The Borborema Mine is anticipated to become a key asset for Aura, showcasing strong economic fundamentals with a high internal rate of return and significant potential for reserve growth. The project highlights Aura’s commitment to efficient and responsible mining, setting an ESG benchmark with innovations like using grey water and renewable energy. The mine is expected to contribute significantly to regional development, employing a large workforce from the local community.

Aura Minerals Renews Share Buyback Programs to Enhance Shareholder Value

Aura Minerals has announced the renewal of its normal course issuer bid (NCIB) for common shares on the Toronto Stock Exchange and its buyback program for Brazilian depositary receipts (BDRs) on the B3 exchange. This move highlights the company’s commitment to enhancing shareholder value and optimizing its capital structure. The NCIB allows Aura to repurchase up to 2,694,168 common shares, while the BDR buyback program permits the purchase of up to 8,082,504 BDRs, representing 10% of the public float. These initiatives are seen as a strategic use of funds, reinforcing Aura’s market position and potentially benefiting stakeholders.

Aura Minerals Doubles EBITDA in 2024, Sets Strong Foundation for Future Growth

Aura Minerals reported a significant financial performance in 2024, doubling its EBITDA to $267 million, with an all-in sustaining cost (AISC) of $1,320 per ounce, below the industry average. The company achieved an 18% increase in production at constant metal prices and made substantial investments in growth projects, while maintaining a strong safety record. The Almas operation’s strong performance and the upcoming Borborema startup are expected to enhance Aura’s production capabilities further.

Aura Minerals Declares Dividend Reflecting Strong Financial Performance

Aura Minerals has announced a dividend of US$0.25 per share, exceeding the minimum outlined in its Dividend Policy, based on its Q4 2024 financial results. This dividend reflects a 9.2% yield over the last 12 months, highlighting Aura’s strong financial performance and commitment to shareholder value. The company is recognized as one of the top dividend-yielding entities in the global gold mining sector, achieving these returns while advancing significant projects like the Almas mine and Borborema project, and maintaining low debt leverage.