Meaning for Mining AUGUST 20 | AURA DAY - Aura Minerals
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Meaning for
Mining
AUGUST 20 | AURA DAY
Corporate Strategy Rodrigo Barbosa – CEO AUGUST 2020 | AURA DAY
Purpose Driven
"To find, mine and deliver the planet's most important and essential minerals
that enable the world and humankind to create, innovate, and prosper"
CREATE INNOVATE PROSPER
7
Corporate Responsibility – 360° Mining
Vision: to be one of the
most trusted, responsible, Fiscally
360°
Responsible Zero
well-respected and Responsible
Growth MINING
Incidents
People First
Well-managed
results-driven mining
companies
Source: Company 8
We Have Built a Solid Base – Ready to Grow
Overview Operations and Projects
▪ Profitable gold and copper mining company with attractive economics
and growth perspective
▪ Aura has a superior combination of cash flow and internal growth
projects with exploration upside 4
▪ Diversified production base with operating assets in mining friendly
jurisdictions
▪ 360º mining: focus on company, community and employees 1
▪ Listed on the Toronto Stock Exchange (TSX-ORA) and B3 (AURA32.SA)
2
in Brazil
Production guidance1 1 Aranzazu (prod1. 62-68 kGEO)
Annualized: 8
000 GEO 196-216
222-264k Oz 2 San Andrés (prod1. 63-69 kOz Au)
178
3 EPP (prod1. 62-68 kOz Au) 5
7 6
118-138 4 Gold Road (prod1. 8-10 kOz Au) 3
2nd Semester 106
5 Almas
6 Matupá
1st Semester 72 78
7 São Francisco
2019 2020 8 Tolda Fria
1. As disclosed in the Company's second quarter 2020 MD&A
Source: Company 9
The IPO in Brazil triggered a share's increase in liquidity
and more upsides for liquidity yet to be achieved.
30-Day Mobile Traded Volume Average AURA32 ARMZF ORA.TSX
in US$ Mn/day Retail Brazil
2,5 + upsides NA
2,0
1,5 Institutional Brazil
1,0
0,5 Retail + Institutional
0,0 North America
Mar Apr May Jun Jul Ago
Shareholder Structure
Before IPO1 After IPO2
Others 21.5%
Others 47.7% Northwestern
52.3%
Enterprises
56.7% Northwestern
Monazita 16.5%
Enterprises
Resouces
5.3% 4.9%
Conway Conway
1. As of July 1, 2020; 2. As of August 6, 2020
Source: Companhia 10
With the pillars of our strategy… … we transformed Aura Over
the Past 3 Years
New
controlling shareholder We made strategic
deals
2017 Serrote's sale for US$
We Redeveloped a 40 mn and Merger with
mine Rio Novo
Restart of Aranzazu
We Strengthened
Our balance sheet,
High Quality Strong Balance Business-Building We Enhanced reduced costs and
Assets and Projects Sheet Culture corporate governance, developed local bank
created a strong culture relationship
and attracted top talents
Generate value with Low leverage, wide Build a team and
high-quality assets bank relationship, and culture to support an
We Acquired
and further increasing free cash evolving business 2020 Gold Road which
development of flow to support committed to Listing IPO should be in production
advanced-stage sustainable growth excellence on B3, becoming the already in 2S20
projects first gold producer to be
listed in Brazil
Source: Company 11
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
São Fria
Francisco
Aranzazu Matupá
Gold Road (Step 2)
(Step 2)
Almas
Aranzazu EPP
Gold Road (Step 1)
(Step 1)
196-216
178
2019 2020
guidance1
1. As disclosed in the Company's second quarter 2020 MD&A
Source: Company 12
Operations Glauber Luvizotto – COO AUGUST 2020 | AURA DAY
Safety – People first: Zero Accident targets
Health & Safety Tailings Disposal
▪ Low injuries: Two lost-time injuries over 3.3 M hours worked in 2020 Overview
▪ Enhance Safety Culture based on our high excellence on our Safety Governance Model ▪ Total 04 disposal facilities
– 02 in operation
COVID-19 – 02 inactive and closure process
▪ All mines currently operational
▪ Interruptions in San Andres (Honduras) and Aranzazu (Mexico) mines during most of the second
quarter due to COVID-19
01 In Operation
▪ Actions to avoid internal spread of COVID in our mines 02 Inactive
Tailings disposal management
▪ Internal team with specific skill trained by expert to make inspection and take the instrumentation
measures in daily basis; 01 In Operation
▪ Monthly report prepared by an external consultant expert based on information provided by the site
with inspection in field twice in a year – reports goes directly to Safety Committee (senior manager
+ CEO ) and then to the Board
▪ Our corporate safety committee meets on a monthly basis to closely monitor advances in the
implementation of our safety management system, stability conditions and next steps ▪ All operating dams are Downstream;
▪ Inactive dams follow the same
▪ Heap Leach process in Honduras doesn't require Tailings Dam;
rigorous controls and protocols than
▪ Gold Road uses dry stack at surface that doesn't require Dam; the others in Dams in operation;
Source: Company 14Operation upsides I: We are implementing initiatives to further improve
our production levels
EPP San Andres
Overview Overview
Open Pit & Underground, Open Pit operation, produces gold
producing gold and silver and silver through heap leach
▪ 2 Open Pits and 1 Underground process
operating ▪ Massive epithermal deposit of
▪ 2 Open Pits under development high content and favorable
geometry for exploitation;
Highlights
▪ Consistency on grades/tons over last 2 years, producing ~ 60 kOz/year Highlights
▪ Development of high-grade Ernesto on schedule and on budget,
already producing and full on 2022, driving EPP to 100 kOz/year with avg
▪ Initiating high grade Esperanza region, expected 15% increase in
production
3.0 gpt grade
▪ Plant performance increased over 20% last two years and ongoing study
▪ Over 30% increase of stacking capacity last 3 years
to increase another 10-15% in 2021 ▪ Increase on recovery for non-oxides under studiy
Production Production
kOz kOz
62-68 64 63-69
58 56 58
2018 2019 2020E1 2018 2019 2020E1
1. Guidance as disclosed in the Company's second quarter 2020 MD&A
Source: Company 15Operation upsides II: we recently ramped up Aranzazu and expect to
increase production by more 30%. Gold Road to follow similar strategy
Aranzazu Gold Road
Overview Overview
Underground operation, produces Underground operation, high
copper, gold and silver concentrate grade narrow vein
▪ Restart in 2018, reaching ▪ Prolific gold district since 1892,
stability and full capacity by end having produced more than 2
of 2019 MOz
Highlights ▪ 214 KOz of inferred mineral
resources at the time of
▪ Expected to increase capacity by 30% ahead of the schedule, ramp up acquisition
anticipated to Q4 2020
▪ Production at its record in 2020 since the restart Highlights
▪ Consistency on plant recovery, above 3.2 % in Cu and 26% Au,
compared to feasibility studies ▪ Definition drilling on time and on budget. Confirming the mineralization
to be mined 2020 and beginning 2021;
▪ Studies to double capacity between 2024-25
▪ Mine contractor labor hire on track at 88% of labor hired and performance
Gold Equivalent Production ahead of schedule by 9%
K Oz
63 62-68 ▪ Plan to produce 7-10 kOz in 2020, with its first bullion in September
and to declare commercial production in December 2020;
▪ Technical Study update, NI-43.101 expected for early 2021
2
2018 2019 2020E1
1. Based on 2020 guidance
Source: Company 16Greenfield: Almas starts construction early next year with room for
further improvements. We are quickly advancing in Matupa
Almas Matupa
Overview Potential Open Pit operation with many similarities with Almas
▪ Open Pit operation, 13 Years at Acquired by Aura Minerals in early 2018 through the acquisition of Rio Novo
expected annual production of 45- 347K Oz as M&I resource with targets to be explored;
52 kOz1 during first 6 years
▪ Capex1: USD 61-65 million ▪ Metallurgical Tests and Ore Characteristics are going to define to process
circuit and convert resource into 2P reserves
▪ AISC1,2: $ 696/OZ to US$ 805/Oz
▪ Feasibility Study expected to be concluded in 2021
Highlights
▪ Construction Start 2022 and Production expected late 2023;
▪ Metallurgical tests confirmed 93% Recovery and 1.3Mtpy in a "single
stage" circuit
▪ Environmental tests confirmed no generation of acid drainage for ore,
waste and tailings
▪ Plant Capacity 1.3 Mtpy. Possible increase in capacity up to 2.0 Mtpy
2020 2021 2022 2020 2021 2022 2023
Feasibility Pre-Feasibility
Construction Feasibility
Start Up Construction
Ramp Up Start Up
Ramp
Up
1. Based on a preliminary Desktop Study issued by Ausenco Engineering Canada Inc and Press Release by the Company on July 21, 2020; 2. Non-IFRS measure
Source: Company 17Transformation Office Sergio Castanho – CTO AUGUST 2020 | AURA DAY
Transformation Office
1. People and Performance 2. Exploration Geology 3. Business Development
Management and Innovation
The Transformation Office addresses the
strategic areas to transform the Company
growth and performance
19Investing in People & Performance is key for our success
Guiding Principles Management Tools Sample Dashboards & Reports
87 leaders evaluated last cycle in 4 geographies
1. Talent Management
▪ 9-BOX; 360 assessment
Talent &
Performance 2. Variable compensation
▪ Few targets aggressive compensation
3. PMO for Improvement Initiatives
▪ Focus on 10-15 initiatives that will make the
difference
Focus on
Results 4. Process improvement/design
▪ PDCA
5. Operational and Financial bridges
▪ Action plans from results
6. Control Tower for Capital Projects
Planning ▪ Minimum cash flow
7. Business and People Cycle
▪ Stretch Targets cascaded down
202. Our mineral rights are 10 times larger than the mining concessions.
We increased spend to untap this potential in the next years
Exploration (Opex & Capex) Mineral rights Mining rights
USD, M
Az total 11,181 Ha SA total 4,167 Ha
+22.6%
10,021 4%
8,288 10%
6,672
96% 90%
2017 2018 2019 2020E
EPP total 355,869 Ha Almas total 119,796 Ha
4,948
Almas 2P 534 8% 11%
Almas resource 463
Matupa resource 334 +9.4%
2,639
Other resources 977 2,437 92% 89%
Operating 2,018
1,840 1,391 GR total 5,136 Ha Matupa total 28,674 Ha
Mines 2P 1,192
1,391
Operating mines 967
1,152 6%
resource (M&I)
692 783 692
Operating mines 701 100%
437
resource (inferred) 556 349 463 556
251
Jan/20 Jan-17 Jan-18 Jan-19 Jan-201 94%
1. Excludes Aranzazu Copper Reserves (2P) million Ozs Resources (Inferred) million Oz
Resources (M&I&I) million Oz 21
Source: Company MRMRAs a result of recent investment, we already have interesting results
coming from the exploration work
A Aranzazu B EPP C San Andres D Gold Road E Projects
▪ GH down dip ▪ Completed initial ▪ Started Zona Bufa ▪ Initial results of ▪ Increase resource
completed & positive, exploration drilling in ▪ Started regional Phase I drilling basis and confirm
infill underway Bananal N mapping program porphyry in Matupá
▪ Well balanced ▪ Started infill in ▪ Sharpe stope drilling
pipeline – El Cobre Bananal S from surface started
ready for drilling and ▪ Kicked-off regional
other targets program
identified
Upcoming: Upcoming: Upcoming: Upcoming: Upcoming:
▪ El Cobre start by EOY ▪ Bananal infill results in ▪ Zona Bufa results in ▪ Drilling results in Q4 ▪ Drilling start in Q3,
Q3 Q4 complete by Q4,
results in Q1 ‘21
Down dip positive
hole at more than 200 Bananal South can add New exploration targets The results of the first 4 Matupa working on
meters deeper from significant LOM by the end of the year drill holes confirmed resources (Serrinha)
the known inferred Extensions of current projected grade from and Reserves (X1)
resources1 pits replacing reserves2 the inferred mineral
Conversion inferred resources in the current
to M&I at better mine plan3
grades than expected1 New targets identified
by the end of the year
See press release dated August 19, 2020 for further information; 2. See press release dated February 12, 2020 for further information; 3. See press release dated July14th, 2020 for further information
22
Source: CompanyDespite the growth from our operations and projects, we are
prepared to analyze new opportunities from M&A
Where we are Where we are going
Opportunistic mode – After the successful acquisition Screen Americas for the entire picture of the market
of Gold Road we have defined the main filters, put Companies information
together a technical team and started looking into ▪ Annual reports
▪ 43-101 forms
opportunities ▪ Disclosures
▪ Stock exchange
Filters: Specialized
WM databases
Na articulated set of information
I. Predominantly Gold ▪ Asset datasheets
proprietary, public ▪ Richard Schodde
▪ Mining corporate tool
and specialized data (MINEX) –
II. Americas (preferably US, BR or MX) ▪ Gold cost service
exploration expert
III. Min 60k Oz in max 3 years
IV. Little geological risk
Public information
▪ Specialized journals
▪ Finance and strategic fit ▪ Press
▪ Geological potential
Projected started with flagship business intelligence consulting group
▪ Resources and Reserves
▪ Mine Operations
▪ Engineering and Infrastructure Universe
▪
of potential
Overall operations projects # projects # projects
Screened out Short-listed
▪ Metallurgy and process 252 gold probable
projects
▪ HSE & Communities
▪ Mining rights
Source: Woodmackenzie 23Finance Kleber Cardoso – CFO AUGUST 2020 | AURA DAY
Conservative balance sheet and rigorous capital allocation approaches
to guarantee shareholders' returns
Dividends = 20% * ( Adj. Maintain low leverage
EBITDA (–) Sustaining Capex (< 1 x Adjusted EBITDA)
(–) Exploration Capex )
• Rigorous process to de-risking
financial and technical aspects of
the projects
• Reduction of upfront Capex
• High returns (> 25% IRR)
25Balance sheet: target not to exceed 1x on a continuous base
Net debt and leverage ratio Strong balance sheet, allowing
Leverage ratio (net debt / adjusted EBITDA) ▪ Resilience
▪ Acquisition
Net debt (US$ million)1
▪ Dividend payments
▪ Mine development: ▪ Growth: internal projects and
– Gold Road acquisition M&As
– Ernesto Project in Brazil – Restart of Aranzazu (2018)
44,7
▪ Covid-19 – Gold Road acquisition
0,8 (2020)
– Almas (2021)
0,63 – Matupá (2022)
0,5
(52)
14,2
9,9
3,9 0,1
2017 2018 2019 2020 (jun) Cash from IPO2
1. Includes short term investments and restricted cash;
2. Cash received from IPO in July and August, net of underwriters' fees
3. LTM Adjusted EBITDA
Source: Company’s Financial Statements and Management’s Discussions and Analysis 26Capital allocation: example of the EPP and Aranzazu cases
EPP (acquired in 2016) Aranzazu (restarted in 2018)
▪ Acquisition completed in June 2016 ▪ Aura acquired in 2008 and in Jan/2015 it was put it in C&M
▪ New Feasibility Study completed after acquisition ▪ In 2017, the new Aura's management team reassessed the project
▪ Over 2018, Aura implemented material changes and attained commercial
production by Dec/18 and finished ramp-up in 2H 2019
Initial investment1 Annual production Initial investment2 Annual production
US$ million kOz of gold US$ million kOz GEO
58 62-68 63 62-68
54 56
2
2017 2018 2019 20203 2018 2019 2020
Adjusted EBITDA4
Adjusted EBITDA4
US$ million
US$ million
17,1 20 19,0
9 11,7
8,3
Debt -0,5
Debt 2017 2018 2019 2018 2019
1. Cash to start the project, not including NSR granted to the seller and shares/options issued by the Company as part of the asset purchase agreement;
2. Only including investment to restart the operation in 2018. Not including previous C&M expenses, expenses related to a new Feasibility Study and any costs, expenses or revenues for previous
attempts to put the mine in operation;
3. Latest Company's guidance
4. Non-IFRS measure
Source: Company’ 27Capital allocation: example of the Almas Project Case
▪ Acquired by Aura in 2018
▪ Series of new/deep studies have been developed since then
▪ Production rate was reduced from 2.0 Mt/year to 1.3 Mt/year and layout was optimized (while
keeping the critical process equipment, such as the grinding circuit and key infrastructure at 2.0
Mt/year)
▪ Shift in focus regarding production, allowing the Company to di-risk the ramp-up and access
higher grades in the first years
>= 13
Upfront Capex Pre-tax NPV5 Potential Pre-tax IRR years7 Pre-tax payback
in US$ million in US$ million upsides6 % p.a. years
97 370 115 1,8
89 338
61 74 1,2 1,1
147
34
Original (2016)2 Original (new assumptions)3 Current4
1. This disclosure is presented on a pre-tax basis (mainly income taxes) due to the preliminary nature of the desktop study. NPV, IRR and payback will be adjusted accordingly to reflect the impact
of taxes on Almas, the analysis of which is part of the ongoing assessment. See press release on Almas of July 21, 2020
2. According to Feasibility Study published in 2016; 3. Updated with gold prices: $ 1,800/Oz; Exchange rate: R$ 5.50/USD; 4. Ausenco's desktop study prepared in the first semester of 2020. Gold 28
prices: $ 1,800; exchange rates R$ 5.50/USD; 5. Considering a discount rate of 5%; 6. LOM extension, increase in production; Current LOM based on reservesFinal Comments Rodrigo Barbosa – CEO AUGUST 2020 | AURA DAY
We have a clear strategy for next years... it is common sense strategy
under highly disciplined execution
▪ Operating Assets full of upsides (under invested/ I. High growth profile w/ Brownfield & Green field
explored in the past). Expansion
High Quality ▪ Greenfield projects highly accretive and di-risked II. Potential for new Resources and Reserves
Assets and ▪ Proven track-record: EPP, Aranzazu, Gold Road, expansion (EPP, Aranzazu, Gold Road, Almas,
Projects Rio Novo Matupá )
III. Cost reduction in all assets (low second quartile
by 2023-25)
▪ Balance Sheet discipline I. Projects fully funded + room for new growth
▪ Cash Positive/negative net debt II. Opportunity to further reduce capital cost
Strong Balance ▪ Room to reduce cost of capital III. Dividend policy recently approved: 20% Adj
Sheet ▪ Enough room for Dividends and expansion EBITDA – Capex – Geology
▪ Corporate Focus on Management Culture, Capital I. ESG/Safety Focus – increase budget 2021
Allocation, Operations/Projects Coordination II. Talent and Perf. Management – continued efforts
Business-Building
▪ Lean structure – e.g.: WeWork office to attract, develop, retain talents – pursue for
Culture ▪ ESG, Meritocracy and to be the best we can in all excellence
aspects III. Respectful, sustainable, Safe, Meritocratic,
Innovative and Responsible – 360 Aura Way
30THANK YOU! "To find, mine and deliver the planet's most important and essential minerals that enable the world and humankind to create, innovate, and prosper" August 20, 2020
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