A Member of Pat McKeough’s Inner Circle recently asked for his advice on a company that operates four gold and copper mines across Latin America plus development projects.
Pat likes the fact that gold prices—which are near all-time highs—are driving extraordinary revenue and profit gains for this mid-tier producer. However, Pat notes that the shares are heavily influenced by gold prices as well as copper price.
Aura Minerals Inc. (Symbol ORA on Toronto; www.auraminerals.com) is a mid-tier gold and copper company.
Aura has four operating mines.
The first is the Aranzazu copper-gold-silver mine in Mexico.
The second mine, Apoena, is in Brazil.
The third mine, Almas, is also in Brazil.
The fourth mine, Minosa, is in Honduras.
Aura also has development projects in Brazil, including its Borborema and Matupa prospects. The company has over 630,000 hectares of mineral rights in total.
In January 2025, Aura completed the acquisitor of a 100% interest in Bluestone Resources Inc.’s Cerro Blanco gold project in Mexico and the Mita Geothermal project next to it. The total value of the deal was $74.3 million U.S.
The acquisition should increase Aura’s production to more than 450,000 gold equivalent ounces in the next few years. This will include a mix of gold and copper.
Inner Circle: Both revenue and earnings climb sharply on higher gold prices
In the three months ended June 30, 2025, Aura’s revenue jumped 41.7%, to $190.4 million from $134.4 million a year earlier. (All figures in U.S. dollars.) Revenue was higher mostly due to higher metal prices. The average realized gold price was $3,185 U.S. an ounce, up 44.2% from $2,208.
Excluding one-time items, Aura earned $36.8 million, or $0.50 a share, in the latest quarter. That was up sharply from $9.4 million, or $0.13 a share.
Aura changed its dividend policy with its December 2024 payment. Previously it paid a semi-annual dividend—and it now pays quarterly. The company’s dividend now varies with its performance. Aura will determine quarterly cash dividends in an aggregate amount equal to 20% of its reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the relevant three months less sustaining capital expenditures and exploration capital expenditures for the same period.
The shares currently yield 4.4%.
Like most gold stocks, the company’s shares are heavily influenced by gold prices (in Aura’s case, by copper as well). Still, Aura’s positive earnings and cash flow and rising production provide appeal for growth-seeking investors.
Recommendation in Pat’s Inner Circle: Aura Minerals is okay to hold for aggressive investors.
