Tortola-based gold and copper miner Aura Minerals (AUGO) moved up 13 spots in Barchart’s Top 100 Stocks to Buy on Monday. Sitting in the 53rd spot, the stock appears to have the right ingredients to continue moving higher.
If you’re unfamiliar with the company, it first went public in November 2006 on the Toronto Stock Exchange. In July 2020, it listed its BDRs (Brazilian Depositary Receipts) on the São Paulo Stock Exchange. Finally, on July 17, 2025, it completed its U.S. IPO, selling 8.1 million shares at $24.25, and listed on Nasdaq.
Based in Tortola, the largest of the British Virgin Islands in the Caribbean, it is a gold and copper miner, with four mines in operation in Mexico, Honduras, and two in Brazil. It’s expected to add a fifth, the Mineração Serra Grande Gold Mine in Brazil, once it completes its acquisition from Anglogold Ashanti (AU).
There is no question that Aura is in growth mode. With its shares up 40% since its July IPO, the big question is whether AUGO stock can continue to move higher.
Here are my two cents on investing in one of the top 100 stocks to buy.
Growth Is Not an Issue
Halfway through its 2025 fiscal year, Aura is on track to set a record for both revenue and operating profits.
In fact, since 2015, the company has increased its revenue in seven of the 10 years, from $165.8 million to $679.9 million in the trailing 12 months ended June 30, a compound annual growth rate of 15.2%. In terms of profits, it has grown its operating income from a loss of $1.4 million in 2015 to a profit of $278.1 million at the end of June.
Growth has come, in part, due to higher gold and copper prices over the past decade. In 2015, gold was trading around $1,200 an ounce; today, it’s about $3,785. The same goes for copper, albeit with greater volatility. In September 2015, copper traded at around $2.33 per pound; today, it trades at $4.58 per pound.
Acquisitions have also contributed to its growth. In June, as I alluded to in the introduction, Aura announced that it would acquire the Mineração Serra Grande Gold Mine in Brazil for an upfront cash payment of $76 million. Additionally, it will pay deferred consideration payments equivalent to 3% of net smelter returns over the life of MSG’s current mineral resources and reserves, paid quarterly.
“Since 2018, we have delivered 113% production growth (from 112 kGEO for the 12 months ended December 31, 2018 to 259 kGEO for the 12 months ended March 31, 2025) through operational efficiencies, development and inorganic expansion while maintaining attractive exploration upside at competitive costs,” stated pg. 130 of its IPO prospectus.
Furthermore, it has increased its proved and probable reserves by 50% since 2020 to 4.2 million gold-equivalent ounces (GEO) as of the end of 2024. Its production over this time has increased from 204 million GEOs in 2020 to 267 million in 2024.
The company’s playbook appears to be acquiring non-core mines from other businesses, such as Anglogold Ashanti. It refines them, while also developing new reserves from its own exploration and development projects in Brazil.
Trading at 12 times its 2025 earnings per share estimate of $2.85 and less than six times the 2026 estimate of $6.24, it has a reasonable chance of trading significantly higher over the next 12 months.
Debt Could Be a Problem
Admittedly, I’m not a gold hound or a mining expert, for that matter, so my concern about higher debt could be nothing but a red herring.
At the end of June, its net debt was $281 million, representing a 97% increase from $142 million as of Q2 2024. However, its net debt to the latest 12-month EBITDA (earnings before interest, taxes, depreciation and amortization) was 0.81x, down two basis points from a year ago to 0.79x, and 11 basis points from Q1 2025.
In 2025, it expects gold production to be 283,000 ounces at the midpoint of its guidance. Through the first half of the year, it’s produced about 44% of this estimate. Aura management believes it’s on track to meet its forecasts for production, cash cost, AISC (all-in sustaining cost), and CAPEX (capital expenditures).
Based on 283,000 gold ounces produced and a gold price per ounce of $3,500 (the average price over the second half), you’re looking at possible net revenue in 2025 of over $900 million.
The only concern is whether gold prices will fall significantly in the final quarter of the year and into 2026. With most estimates exceeding $4,000 next year, prices are unlikely to be a concern.
The Bottom Line
Chairman Paulo Carlos de Brito, through his holding company, Northwestern Enterprises, owns 47.51% of Aura Minerals post IPO.
The Brazilian investor first invested in the company in December 2014, buying 43.8 million shares of Aura through Sercor Ltd. for $3.3 million. That represented 19.2% of Aura’s equity. A year later, Sercor acquired an additional 8.2 million shares of Aura for $656,000. In April 2016, Northwestern acquired 83.5 million shares for $7.5 million.
So, in less than two years, de Brito acquired 48% of Aura for $11.5 million. Today, his 48% stake is worth $1.37 billion, an annualized return of 70%.
For every dollar Aura’s share price increases, de Brito’s wealth from the gold company grows by $40 million. Now a billionaire, I don’t imagine he’ll be selling any time soon.
With gold prices looking to remain at elevated levels for the foreseeable future, if you’re looking for gold exposure and don’t mind a Latin American-focused business, Aura remains a reasonable buy despite the 40% gain since July.
