Aura Minerals Secures $200M Loan to Fund Era Dorada Expansion

Aura Minerals (Nasdaq: AUGO) has secured a $200-million syndicated loan to finance its aggressive expansion plans in the Americas. The five-year facility, arranged by Citi and Itaú BBA, carries an interest rate of the Secured Overnight Financing Rate plus 2.7%, with a two-year grace period. The proceeds are specifically earmarked for supplier payments and the prepayment of production and selling costs, providing the liquidity needed to sustain operations while capital expenditure accelerates.

This financing move underpins the company's medium-term strategy to lift annual production to more than 600,000 gold-equivalent ounces. This target represents a significant increase from the 313,000 ounces produced in the twelve months through June 2025. The growth trajectory relies on the construction of the Era Dorada project in Guatemala, capacity expansions at the Almas and Borborema mines in Brazil, and operational improvements across its six existing operating sites.

Era Dorada drives capital expenditure

The Era Dorada project is the central pillar of this expansion, with construction approved in April and operations expected to commence in the first half of 2028. The project carries an estimated capital cost of $382 million. Its feasibility study projects average production of approximately 111,000 gold-equivalent ounces annually during the first four years of operation. Based on a gold price assumption of $3,177 per ounce, the study outlined an after-tax net present value of $1.34 billion.

In response to the construction schedule, Aura raised its 2026 capital spending guidance to between $386 million and $463 million, up from a previous range of $236 million to $278 million. Expansion spending accounts for the majority of this revised budget, estimated at $262 million to $314 million. The company has not set a specific date for reaching its 600,000-ounce target, describing it instead as a goal for the coming years as it integrates new assets into its portfolio.

Financial health supports growth phase

Aura entered this expansion cycle with a solid balance sheet, reporting $248.3 million in cash against $441.2 million in gross debt as of June 30. Net debt stood at $168 million, equivalent to 0.21 times trailing adjusted EBITDA. The company generated $175.1 million in recurring free cash flow during the first half of the year, more than double the amount recorded in the same period the prior year. Second-quarter free cash flow alone reached $80.2 million, even as capital spending accelerated.

Production performance remains on track, with Aura producing 158,000 gold-equivalent ounces in the first half of 2025. The company maintains full-year guidance of 340,000 to 390,000 ounces. Borborema entered commercial production in September 2025, contributing to this output. Aura operates four gold mines in Brazil, the Minosa gold mine in Honduras, and the Aranzazu copper-gold-silver mine in Mexico, alongside development projects in Guatemala, Brazil, and Colombia.

Market reaction to financing

Despite the strategic financing, Aura shares declined 2.4% to $86.24 in New York on Friday, valuing the company at approximately $7.23 billion. The stock has traded within a wide range of $29.11 to $110.32 over the past twelve months. Following its Nasdaq listing, the company delisted from the TSX last year, consolidating its primary trading venue in the United States. The move reflects a balanced approach to capital allocation, as stated by President and CEO Rodrigo Barbosa.