News Summary
Aura Minerals released two significant updates on December 8, 2025.
1. Era Dorada Feasibility Study: The company announced robust results for the Feasibility Study (FS) on its Era Dorada Gold Project in Guatemala. Key highlights include Proven and Probable Mineral Reserves of 1.75 million gold equivalent ounces (GEO), an initial CAPEX of US$382 million, and a 16.8-year mine life. The project demonstrates strong economics with an after-tax Net Present Value (NPV at 5%) of US$1,344.5 million and an after-tax Internal Rate of Return (IRR) of 35.6%, based on a gold price of US$3,177/oz. The average All-In Sustaining Cost (AISC) is projected at a competitive US$1,178/oz.
2. Upgraded Growth Outlook: Concurrent with the FS release, Aura upgraded its long-term production growth outlook from a previous target of 450,000 GEO to over 600,000 GEO per year. This increase is attributed to the successful ramp-up of the Borborema mine, the recent acquisition of the MSG mine, and the advancement of the Era Dorada and Matupá projects. The CEO, Rodrigo Barbosa, emphasized that the company has been delivering on its strategy of growing production, extending mine life, and improving valuation since 2020.
Material Impact
The news is a game-changer for Aura Minerals. The Feasibility Study on Era Dorada is a major de-risking event that confirms the project’s world-class potential with exceptional economic returns. An after-tax NPV of US$1.34 billion is highly significant for a company of Aura’s size, and the IRR of 35.6% signals a very profitable venture. The initial CAPEX of US$382 million appears manageable, given the company’s strong balance sheet ($351M cash at Q3-end) and robust free cash flow generation ($115M in Q3 2025).
The upgrade to the long-term production guidance is the most critical takeaway. Increasing the target by over 33% to 600,000 GEO per year solidifies Aura’s path to becoming a significant mid-tier gold producer. This isn’t just a projection; it’s the culmination of a multi-year strategy that has been executed flawlessly. Reviewing historical news shows a clear pattern of management delivering on promises:
– Almas and Borborema: Both projects were built on time and on budget, with Borborema achieving commercial production in September 2025, exactly as planned.
– M&A: The company successfully closed the acquisitions of Bluestone Resources (for Era Dorada) in January 2025 and the MSG mine in December 2025.
– Capital Markets: Aura completed a successful Nasdaq IPO in July 2025, raising over US$200 million and enhancing liquidity, a stated goal.
The combination of a de-risked cornerstone asset and a tangible, credible path to significant production growth fundamentally elevates the company’s investment profile. While jurisdictional risk in Guatemala for the Era Dorada project remains a key concern, the company’s track record and the project’s robust economics provide a substantial buffer. This news confirms that management’s disciplined growth strategy is creating significant shareholder value.
Catalysts
– Era Dorada Final Investment Decision (FID): Look for the board to officially sanction the construction of the Era Dorada project.
– MSG Mine Integration and Performance: The market will be watching the initial production and cost performance from the newly acquired MSG mine in the Q4 2025 and Q1 2026 results to see how effectively Aura integrates the asset and implements its turnaround plan.
– Guatemala Updates: Any news regarding community agreements, government relations, and pre-construction activities for Era Dorada will be critical for further de-risking the project.
– Matupá Project Timeline: With Era Dorada now clearly the priority, watch for updates on the timing and development plan for the Matupá project.
– Q4 and Full-Year 2025 Results: Confirmation of meeting the 266,000-300,000 GEO production guidance for 2025 and updated guidance for 2026, which will provide the first full-year outlook including Borborema and MSG.
Materiality Conclusion
The combination of a highly positive Feasibility Study for a cornerstone asset and a substantial upgrade to the long-term production outlook, backed by a proven track record of execution, is a game-changing development for Aura Minerals. It provides a clear, credible roadmap for transforming the company into a +600,000 ounce per year producer with strong margins.
