Our vision is to be one of the most trusted, responsible, well-respected and results driven mining companies Meaning for mining Company Presentation September 2020
Disclaimer FORWARD-LOOKING INFORMATION This presentation contains “forward -looking information” and “forward -looking statements”, as defined in applicable securities laws (collectively, “forward -looking statements”) which include, but are not limited to, statements with respect to the activities, events or developments that we expect or anticipate will or may occur in the future. Known and unknown risks, uncertainties and other factors, many of which are beyond our ability to predict or control, could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. We undertake no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If we do update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. NON-IFRS FINANCIAL MEASURES This presentation includes certain non-IFRS financial measures, including Adjusted EBITDA, EBITDA and cash cost, which are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Further details on non-IFRS financial measures are provided in our Management’s Discussion and Analysis accompanying our financial statements filed from time to time on SEDAR at www.sedar.com TECHNICAL AND SCIENTIFIC INFORMATION Except as otherwise indicated, the technical and scientific information included in this presentation has been derived from the technical reports listed in the Appendix at the back of this presentation. The scientific and technical information contained in this presentation since the date of the above referred reports has been prepared, as the case may be, under the supervision of Farshid Ghazanfari (P.Geo), as Qualified Person as that term is defined in National Instrument 43- 101 – Standards for Disclosure for Minerals Projects. TSX:ORA │ B3: AURA32 auraminerals.com 2
Many Reasons to Invest in Aura Diversified, multi-mine gold-copper Expected to significantly Low cash costs with many producer increase annual production opportunities for improvement • • • Operates three mines (EPP, Aranzazu and San Increasing plant capacity at Aranzazu by 30% by Q4 New production from Gold Road, Ernesto, Almas Andres) in three countries (Brazil, Mexico and 2020. New production from Gold Road in Q4 2020 and Matupa with lower cash costs Honduras) • • Developing high-grade Ernesto mine, increasing Expansion at Aranzazu to materially increase • Fourth mine (Gold Road in Arizona, USA) expected EPP copper production and lower costs to achieve commercial production by Q4 2020 • • New production from low-capex, high-IRR expected Benefiting from depreciation of local currencies projects (Ernesto, Gold Road, Almas) (MXN and BRL) We strive to continue to outperform and executive our sector-leading production growth profile New dividend policy First and only pure-play gold miner Management with an excellent listed in Brazil record of maximizing returns • • • To declare dividends based on 20% of annual Completed successful IPO on the B3 Exchange, Since 2017, increased annual production and adjusted EBITDA less sustaining CAPEX and raising gross proceeds of ~ US$ 55 million in EBITDA by 57% and 274%, respectively 1 exploration capital expenditures Brazilian depositary receipts • Turned around operations, restarted Aranzazu at an • • Annual dividend expected to be paid starting in Adds significant share liquidity and expands equity initial investment of US$20M, deleveraged balance sheet and improved Aura’s growth profile through early 2021 financing capabilities in Latin America highly accretive acquisitions (Gold Road, Almas and Matupa) 1. Annual growth based on Q4 2019 production and adjusted EBITDA compared to 2017. Q4 2019 is considered a better measure of run-rate operations due to impact of COVID-19 during H1 2020 TSX:ORA │ B3: AURA32 auraminerals.com 3
Aura: a diversified, growing mid-tier gold producer Excellent Track Record of Production Growth Large Portfolio of Assets Across the Americas Project pipeline to continue significantly increasing production over next several years Covid 74% growth 4 236-276 since 2016 Operational 196-216 Near operational 9 178 1 Projects 136 126 122 2 H2’20E 2016 2017 2018 2019 2020E 1 Long Term 8 annualized 2 (illustrative) 1 Aranzazu (2020E prod. 62-68K GEO 1 ) 5 2 San Andrés (2020E prod. 63-69K oz Au 1 ) 7 6 Uniquely diversified across jurisdiction and metals 3 EPP (2020E prod. 62-69K oz Au 1 ) 3 USA Copper 4 Gold Road (2020E prod. 9-10K oz Au 1 ) 5% 23% 5 Almas 32% Honduras Brazil 32% Q4 2019 6 Matupá 2020E Revenues Production 7 São Francisco 8 Tolda Fria Gold 77% 31% 9 Corporate Office (Miami) Mexico 2020 Guidance released in the Company’s Q2 2020 MD&A; 2. based on H2 guidance from Q2 MD&A presented on an annualized basis. 1. TSX:ORA │ B3: AURA32 auraminerals.com 4
Well Executed, Multi-Year Transformation With the pillars of our strategy… … we transformed Aura over the past 3 years New controlling shareholder We made strategic deals Serrote's sale for US$ 40 2017 mn and Merger with Rio Novo We Redeveloped a mine Restart of Aranzazu We Strengthened Our balance sheet, reduced We Enhanced High Quality Strong Balance Business-Building costs and developed local corporate governance, Assets and Projects Sheet Culture bank relationship created a strong culture Generate value with Low leverage, wide Build a team and culture and attracted top talents high-quality assets and bank relationship, and to support an evolving We Acquired further development of increasing free cash business committed to Gold Road which should be advanced-stage 2020 flow to support excellence IPO & Listing on B3 projects in production already in sustainable growth becoming the first gold 2S20 producer to be listed in Brazil TSX:ORA │ B3: AURA32 auraminerals.com 5
Case Study: Building Shareholder Value at Aranzazu Proven execution track-record: de-risked Aranzazu to redevelop and restart after being inactive for 4 years ◼ Aranzazu is a 100%-owned underground mine located in Zacatecas, Mexico that produces copper, gold, and silver Due to higher costs and lower copper prices, Aranzazu was put in care-and-maintenance in January 2015 ◼ ◼ In 2017, Company reassessed the mine with new geology, metallurgy, geotechnical and Feasibility Study focusing on the first 5 years to later expand the LOM In 2018, Aura implemented material changes and attained commercial production by December of the same year ◼ Initiatives Clear objectives : de-risking, implementing meritocracy, and focusing on safety, operational excellence and cash flow mine by value (NSR) ◼ Commercial : negotiated a 3-year off-take agreement with Louis Dreyfus ◼ Technical : improved geological understanding of the deposit and selective mine layout recoveries and gain efficiency ◼ Team : re-engaged management and operational staff with new business culture, redesigned salaries, bonuses and KPIs, implemented safety standards, growing the safety culture Increased production… …with greater quality… …with better recovery rates… …at lower costs (recovery, %) (Cash costs (1) , US$/pound CuEq) (Copper concentrate, DMT) (grade, % of Cu) 2014 2019 1,40% 43.396 88% $2,87 80% 76% 0,86% 28.101 57% $1,41 Copper Gold 2014 2019 2014 2019 2014 2019 This is a non- IFRS measure. See applicable reconciliation to IFRS in our Management’s Discussion and Analysis accompanying our f inancial statements filed from time to time on SEDAR at www.sedar.com. 1. TSX:ORA │ B3: AURA32 auraminerals.com 6
Delivering Strong Growth in Production & Cash Flow Substantial Improvements in Financial Performance and Prepared to Give Another Step Forward Adjusted EBITDA 1 and Margin (%) Production Net Revenues & Average Gold Price (000 GEO) (US$M, US$/oz) (US$M) 39% $1,282 $1,481 $278,6 108,7 31% 214 +469% +57% +77% 136 $157,7 12% 12% $69,7 27,2 53 $60,8 $19,1 $48,6 19,0 40 37 5,8 2017 Q4 2019 Q4 2019 Q1 2020 Q2 2020 2017 Q4 2019 Q4 2019 Q1 2020 Q2 2020 2017 Q4 2019 Q4 2019 Q1 2020 Q2 2020 Annualized Annualized Annualized Impact of COVID-19 Impact of COVID-19 Impact of COVID-19 Notes: (1) This is a non- IFRS measure. See applicable reconciliation to IFRS in our Management’s Discussion and Analysis accompa nying our financial statements filed from time to time on SEDAR at www.sedar.com. TSX:ORA │ B3: AURA32 auraminerals.com 7
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