Edgard de Souza

Edgard de Souza asked about the softer production expectations for Borborema in the 2026 guidance, specifically if it's a direct consequence of incorporating previously uneconomical material due to cutoff optimization. He also questioned the trade-off between near-term free cash flow and longer life of mine. Additionally, he sought details on the Borborema expansion, including the timeline for road relocation, incremental processing capacity, and water availability constraints.

Answer

Rodrigo Barbosa, President and CEO, Aura Minerals, explained that the lower Borborema production is due to a lower cutoff, which, while impacting short-term grades, significantly increases the project's Net Asset Value (NAV) by making more ounces economical. Glauber (COO, Aura Minerals) added that the plant is being prepared for higher capacity, with new filters to be implemented by mid-2026 to address bottlenecks. He noted that expanding the plant to 4 million tons would require building a new parallel plant and significant CapEx. Rodrigo also mentioned ongoing water assessments, including potential greywater treatment, as a non-issue for future expansion.

Edgard de Souza questioned the Borborema production guidance, specifically how much of the lower profile is due to incorporating previously above-cutoff material and the company's approach to cutoff optimization across the portfolio. He also sought clarification on the timeline for Borborema's road relocation and plant expansion, including the incremental processing capacity and potential CapEx requirements, as well as water availability as a constraint.

Answer

Rodrigo Barbosa, President and CEO, and Kleber Cardozo, CFO, clarified that Borborema's production reduction stems from lower grades due to a lower cutoff, which is a strategic decision to increase NAV and long-term resources/reserves. The road relocation is expected to take about two years, coinciding with the plant expansion. Kleber Cardozo added that the current bottleneck is the filter area, which is approved for expansion this year. Full plant expansion (CIL, mill, crusher) would require building a new parallel plant and significant CapEx. Rodrigo Barbosa noted that water assessments are ongoing, with projects to treat greywater, and it is not expected to be an issue.