Summary of AUGO Q4 2025 Earnings Call

1Key Financial Results and Metrics

Quarterly Production: 82,000 gold equivalent ounces, up 11% from Q3 2025 and 23% year-over-year.

Annual Production: 280,000 ounces, a 9% increase at constant prices.

Quarterly Revenue: $322 million, with an adjusted EBITDA of $208 million, marking a record high for the sixth consecutive quarter.

Annual EBITDA: $548 million, doubling from $270 million in 2024.

Net Loss: $20 million due to noncash losses from gold derivatives; adjusted net income was $73 million.

Recurring Free Cash Flow: Approximately $100 million in Q4.

Dividend: $0.66 per share, yielding 6.2% over the last 12 months.

2Strategic Updates and Business Highlights

Production Strategy: Focus on increasing production through greenfield projects and M&A, while maintaining dividend payments.

Acquisition of MSG: Completed for $76 million, expected to enhance production and cash flow in the long term despite higher initial costs.

Borborema Project: Achieved a significant milestone with the relocation of a road, unlocking 670,000 ounces of reserves.

Safety Record: Achieved over 18 months without lost time incidents, positioning the company as a benchmark in safety within the sector.

Daily Trading Volume: Increased from $1-2 million to $100 million following the NASDAQ listing.

3Forward Guidance and Outlook

2026 Production Guidance: Expected to produce between 50,000 to 60,000 ounces from MSG, with a focus on preparing the mine for future production increases.

Cost Projections: Anticipated increase in all-in sustaining cash costs due to MSG and other projects, expected to be between $2,000 and $3,000 in the near term.

CapEx Plans: Increased due to expansions at Almas and Borborema, with a focus on preparing for higher production capacities.

4Challenges and Points of Concern

Net Loss: The company reported a net loss due to noncash derivative losses, which could raise concerns about cash flow stability.

Production Variability: Lower production at Borborema attributed to a strategic decision to lower cutoff grades, which may impact short-term output.

Cost Management: Higher all-in sustaining cash costs expected in 2026, primarily driven by MSG, which could affect profitability if not managed effectively.

Market Conditions: Competitive pressures and fluctuating gold prices pose risks to future earnings and operational efficiency.

5Notable Q&A Insights

Guidance Clarification: Management confirmed that the 2026 guidance incorporates updated gold prices and lower cutoff grades, which may impact production but enhance long-term reserves.

Expansion Plans: The timeline for the physical relocation of the road at Borborema is approximately two years, with the potential for incremental capacity increases.

M&A Strategy: The company remains open to further acquisitions, particularly in the Americas, with a focus on assets that can enhance production and cash flow.

Era Dorada Project: Expected to move to full construction approval in Q1 or Q2 2026, with a 22-month timeline for completion, impacting future production. This summary encapsulates the key financial metrics, strategic initiatives, forward-looking guidance, challenges faced, and insights from the Q&A session, providing a comprehensive overview of AUGO's performance and outlook.