By Brazil Stock Guide – Aura Minerals (NASDAQ: AUGO; B3: AURA33) released the Feasibility Study for its Era Dorada project in Guatemala, unlocking a fully licensed underground gold mine with 1.75 million gold-equivalent ounces (GEO) in reserves, average output of 111,000 GEO per year in the first four years, and an after-tax Net Present Value (NPV) of up to $2.17 billion under spot price assumptions. Initial capex is estimated at $382 million, with a payback period of roughly 2.8 years after start-up.
Acquired through the purchase of Bluestone earlier this year, Era Dorada carries an expected mine life of 16.8 years, with average cash costs of $993 per ounce and AISC of $1,178 per ounce, placing the project in the lowest cost quartile of the global gold industry. At a base gold price assumption of $3,177 per ounce, the project delivers an after-tax IRR of 35.6%, rising to 68% in a leveraged structure with partial debt financing.
Chief Executive Officer Rodrigo Barbosa said the new feasibility study consolidates Aura’s operational turnaround following Borborema’s commercial start-up and the MSG acquisition. “This is another clear demonstration of our disciplined growth strategy in action. Era Dorada is a fully permitted underground project with manageable capex and strong economic returns,” he said.
Output Targets Move Past 600,000 Ounces
With Era Dorada added to its project pipeline, Aura upgraded its medium-term production outlook to more than 600,000 gold-equivalent ounces per year, from a prior guidance of around 450,000 GEO. The increase is driven by the full ramp-up of Borborema, the operational turnaround at MSG, the construction and ramp-up of Era Dorada, and the advancement of Matupá, alongside expansion potential at existing mines such as Almas.
According to the mine plan, gold output at Era Dorada is expected to exceed 100,000 ounces annually from 2028, peaking above 120,000 ounces between 2030 and 2032. The operation will be entirely underground, with a processing capacity of 1,600 tonnes per day, using conventional crushing, grinding, leaching and electrowinning circuits to produce doré bars.
Resilient Economics Across Gold Scenarios
Even under conservative assumptions, the project remains economically robust. At a gold price of $2,383 per ounce, Era Dorada still delivers an after-tax NPV of $655 million and an IRR of 21.5%. Under the base case, NPV rises to $1.34 billion, while spot pricing lifts the valuation beyond $2.17 billion.
Aura also models upfront debt of up to $191 million to partially finance construction, reducing the leveraged payback period to 2.15 years in the upside scenario. The company notes that all key operating permits have already been secured and that the project benefits from year-round access and an available skilled labor pool in southeastern Guatemala.
Growth Strategy Gains Scale and Liquidity
The revised outlook comes shortly after the company’s listing on the Nasdaq and a sharp acceleration in trading volumes on both Nasdaq and the B3. In November, average daily trading volume reached approximately $30 million, the company said.
Since 2020, Aura has pursued a combined strategy of greenfield development, reserve expansion, targeted M&A and liquidity enhancement, while maintaining one of the highest dividend yields in the gold sector. Management cautioned, however, that the timeline to surpass 600,000 ounces per year remains subject to final board approvals, permitting schedules and financing conditions.