Gold Royalty (GROY) Acquires $45M Net Smelter Royalty on Borborema Gold Mine
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Should l Buy AUGO?
Source: seekingalpha
- Acquisition Announcement: Gold Royalty (GROY) has agreed to acquire a net smelter royalty on the Borborema gold mine from Dundee Corp. (DDEJF) for $45 million, consisting of $30 million in cash and over 3.57 million newly issued common shares, indicating the company's strategic focus on gold mining assets.
- Royalty Details: The acquired royalty applies to the Borborema project operated by Aura Minerals (AUGO), with a royalty rate of 1.5% on the first 1.5 million ounces of payable gold production, decreasing to 1.0% until 2 million ounces are produced, thus securing future revenue streams for the company.
- Existing Royalty: Gold Royalty already holds a 2.0% net smelter return royalty on the Borborema mine, which steps down to 0.5% after 725,000 ounces of payable gold production, and is subject to operator buyback rights after 2.25 million ounces are produced or by 2050, adding a layer of investment uncertainty.
- Production Capacity: Aura Minerals achieved commercial production at the mine in September, currently operating at 80% of design capacity and processing 4,500 metric tons per day, showcasing the project's production potential and market outlook.
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Analyst Views on AUGO
Wall Street analysts forecast AUGO stock price to fall
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 84.210
Low
68.00
Averages
69.00
High
70.00
Current: 84.210
Low
68.00
Averages
69.00
High
70.00
About AUGO
Aura Minerals Inc. is a mid-tier gold and copper production company. It is focused on the development and operation of gold and base metal projects in the Americas. Its five operating assets include the Minosa gold mine in Honduras; the Almas, Apoena, and Borborema gold mines in Brazil; and the Aranzazu copper, gold, and silver mine in Mexico. It also owns Era Dorada, a gold project in Guatemala; Tolda Fria, a gold project in Colombia; and three projects in Brazil: Matupa, which is under development; Sao Francisco, which is in care and maintenance; and the Carajas copper project in the Carajas region, in the exploration phase. The Aranzazu Mine is an underground copper mine that is located within the Municipality of Concepcion Del Oro in the State of Zacatecas, Mexico. Almas is an open-pit mining operation with ore processing through the CIL system, located in the Almas Greenstone Belt. It also owns Mineracao Serra Grande gold mine located in Crixas, in the state of Goias, Brazil.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Aura Minerals Credit Rating Upgraded to BB-
- Credit Rating Upgrade: Aura Minerals' credit rating was upgraded by S&P Global Ratings from 'B+' to 'BB-', while its Brazilian National Scale rating improved from 'brAA' to 'brAA+', reflecting the company's robust EBITDA and cash flow supported by record-high gold prices and consistently increasing production volumes, which bolster its ongoing growth strategy.
- Stable Outlook: S&P anticipates continued production growth over the next two years driven by project development and capacity expansions at existing operations, alongside a gradual improvement in cash costs, which underpins the company's stable outlook.
- Financial Health: Despite increased capital investments and dividend distributions, the adjusted gross debt to EBITDA ratio is expected to remain low, indicating that the company can maintain a solid liquidity position supported by favorable gold prices and higher output.
- Future Growth Expectations: Aura projects a production of 340,000 to 390,000 GEO in 2026, with plans to exceed 600,000 GEO in subsequent years, which will further enhance the company's competitiveness and sustainable growth capabilities in the market.
See More
Aura Minerals Stock Trend Analysis
- Price Growth Trend: Aura Minerals (AUGO) has seen a 93.8% price increase over the past 12 weeks, reflecting investors' sustained willingness to pay more for its potential upside, thereby enhancing its appeal for short-term investing.
- Strong Short-Term Performance: With a 30.1% price increase in the last four weeks, AUGO ensures the continuity of its price trend, which serves as a positive signal for investors indicating that the stock still possesses upward potential.
- Robust Fundamental Support: Currently, AUGO holds a Zacks Rank of #1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, indicating that key factors like earnings estimate revisions and EPS surprises are positively influencing its short-term price movements.
- Optimistic Broker Recommendations: The average broker recommendation for AUGO is #1 (Strong Buy), showcasing analysts' high optimism regarding the stock's near-term performance, further bolstering investor confidence in its future outlook.
See More
Zacks Updates Strong Buy Stock List with Five New Additions
- Aura Minerals Growth Potential: Aura Minerals Inc., focused on gold and base metal projects in the Americas, has seen its current year earnings Zacks consensus estimate increase by 48.6% over the last 60 days, indicating strong profitability and market confidence.
- Universal Insurance Performance Boost: Universal Insurance Holdings has experienced a 19.8% increase in its current year earnings Zacks consensus estimate over the past 60 days, reflecting robust growth in its insurance underwriting and claims business, which enhances investor confidence in its future performance.
- CLEAR Secure Earnings Outlook: CLEAR Secure, Inc. has seen a 13.4% increase in its current year earnings Zacks consensus estimate over the last 60 days, showcasing the appeal of its innovative platform that connects users to their wallet cards and its potential profitability in the market.
- Sezzle Inc. Growth Prospects: Sezzle Inc., a purpose-driven digital payments company, has seen its current year earnings Zacks consensus estimate rise by 7.1% over the last 60 days, demonstrating the popularity of its interest-free installment plans in the e-commerce sector and the strong market demand.
See More
Aura Minerals Q4 Revenue Misses Expectations Despite Record EBITDA
- Revenue Growth: Aura Minerals reported Q4 revenue of $321.7 million, reflecting a 29.8% year-over-year increase, although it fell short of expectations by $1.49 million, indicating strong market demand but facing challenges.
- Record EBITDA: Adjusted EBITDA reached an all-time high of $207.9 million in Q4 2025, marking the sixth consecutive quarter of record performance, showcasing the company's success in cost control and production efficiency.
- Metal Price Benefits: The company capitalized on rising metal prices by increasing production while maintaining disciplined cost control, resulting in adjusted EBITDA more than doubling compared to Q4 2024 and growing 37% over Q3 2025, demonstrating robust profitability.
- Future Outlook: Aura Minerals' strong assets and rich margins provide room for future upgrades; despite current revenue missing expectations, the company's performance in the metals market and strategic positioning remain optimistic.
See More
Aura Minerals Declares 37.5% Increase in Quarterly Dividend
- Significant Dividend Increase: Aura Minerals has declared a quarterly dividend increase from $0.48 to $0.66 per share, representing a 37.5% rise, which reflects the company's strong financial performance and profitability, likely attracting more investor interest.
- Stable Yield: The forward yield of 2.94% not only provides existing shareholders with a reliable cash flow but also enhances the company's appeal in the capital markets, potentially driving up the stock price.
- Clear Payment Schedule: The dividend will be payable on March 18, with a record date of March 11 and an ex-dividend date also on March 11, allowing shareholders to plan their investments effectively and boosting market confidence.
- Positive Market Reaction: With the increase in dividends, Aura Minerals' shareholder return rate improves, which is expected to further drive the stock price up and attract more institutional investors, strengthening its market position.
See More
Aura Minerals Declares $0.66 Dividend Per Share
- Dividend Declaration: Aura Minerals announced a dividend of $0.66 per share, totaling approximately $55.12 million, which exceeds the minimum requirement set by the company's dividend policy, reflecting strong financial performance and profitability.
- Payment Schedule: The dividend will be paid on March 18, 2026, with a record date of March 11, 2026, ensuring shareholders receive timely returns and enhancing investor confidence in the company's financial health.
- BDR Holder Benefits: Holders of Brazilian Depositary Receipts will receive $0.22 per BDR, with payments expected around March 26, 2026, demonstrating the company's commitment to providing returns to investors across different markets.
- Strategic Execution Results: The company achieved record production and EBITDA in Q4, showcasing its strategic execution in developing high-return greenfield projects and expanding resources, further solidifying its leading position in the global gold mining sector.
See More
Aura Minerals Credit Rating Upgraded to BB-
- Credit Rating Upgrade: Aura Minerals' credit rating was upgraded by S&P Global Ratings from 'B+' to 'BB-', while its Brazilian National Scale rating improved from 'brAA' to 'brAA+', reflecting the company's robust EBITDA and cash flow supported by record-high gold prices and consistently increasing production volumes, which bolster its ongoing growth strategy.
- Stable Outlook: S&P anticipates continued production growth over the next two years driven by project development and capacity expansions at existing operations, alongside a gradual improvement in cash costs, which underpins the company's stable outlook.
- Financial Health: Despite increased capital investments and dividend distributions, the adjusted gross debt to EBITDA ratio is expected to remain low, indicating that the company can maintain a solid liquidity position supported by favorable gold prices and higher output.
- Future Growth Expectations: Aura projects a production of 340,000 to 390,000 GEO in 2026, with plans to exceed 600,000 GEO in subsequent years, which will further enhance the company's competitiveness and sustainable growth capabilities in the market.
See More
Aura Minerals Stock Trend Analysis
- Price Growth Trend: Aura Minerals (AUGO) has seen a 93.8% price increase over the past 12 weeks, reflecting investors' sustained willingness to pay more for its potential upside, thereby enhancing its appeal for short-term investing.
- Strong Short-Term Performance: With a 30.1% price increase in the last four weeks, AUGO ensures the continuity of its price trend, which serves as a positive signal for investors indicating that the stock still possesses upward potential.
- Robust Fundamental Support: Currently, AUGO holds a Zacks Rank of #1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, indicating that key factors like earnings estimate revisions and EPS surprises are positively influencing its short-term price movements.
- Optimistic Broker Recommendations: The average broker recommendation for AUGO is #1 (Strong Buy), showcasing analysts' high optimism regarding the stock's near-term performance, further bolstering investor confidence in its future outlook.
See More
Zacks Updates Strong Buy Stock List with Five New Additions
- Aura Minerals Growth Potential: Aura Minerals Inc., focused on gold and base metal projects in the Americas, has seen its current year earnings Zacks consensus estimate increase by 48.6% over the last 60 days, indicating strong profitability and market confidence.
- Universal Insurance Performance Boost: Universal Insurance Holdings has experienced a 19.8% increase in its current year earnings Zacks consensus estimate over the past 60 days, reflecting robust growth in its insurance underwriting and claims business, which enhances investor confidence in its future performance.
- CLEAR Secure Earnings Outlook: CLEAR Secure, Inc. has seen a 13.4% increase in its current year earnings Zacks consensus estimate over the last 60 days, showcasing the appeal of its innovative platform that connects users to their wallet cards and its potential profitability in the market.
- Sezzle Inc. Growth Prospects: Sezzle Inc., a purpose-driven digital payments company, has seen its current year earnings Zacks consensus estimate rise by 7.1% over the last 60 days, demonstrating the popularity of its interest-free installment plans in the e-commerce sector and the strong market demand.
See More
Aura Minerals Q4 Revenue Misses Expectations Despite Record EBITDA
- Revenue Growth: Aura Minerals reported Q4 revenue of $321.7 million, reflecting a 29.8% year-over-year increase, although it fell short of expectations by $1.49 million, indicating strong market demand but facing challenges.
- Record EBITDA: Adjusted EBITDA reached an all-time high of $207.9 million in Q4 2025, marking the sixth consecutive quarter of record performance, showcasing the company's success in cost control and production efficiency.
- Metal Price Benefits: The company capitalized on rising metal prices by increasing production while maintaining disciplined cost control, resulting in adjusted EBITDA more than doubling compared to Q4 2024 and growing 37% over Q3 2025, demonstrating robust profitability.
- Future Outlook: Aura Minerals' strong assets and rich margins provide room for future upgrades; despite current revenue missing expectations, the company's performance in the metals market and strategic positioning remain optimistic.
See More
Aura Minerals Declares 37.5% Increase in Quarterly Dividend
- Significant Dividend Increase: Aura Minerals has declared a quarterly dividend increase from $0.48 to $0.66 per share, representing a 37.5% rise, which reflects the company's strong financial performance and profitability, likely attracting more investor interest.
- Stable Yield: The forward yield of 2.94% not only provides existing shareholders with a reliable cash flow but also enhances the company's appeal in the capital markets, potentially driving up the stock price.
- Clear Payment Schedule: The dividend will be payable on March 18, with a record date of March 11 and an ex-dividend date also on March 11, allowing shareholders to plan their investments effectively and boosting market confidence.
- Positive Market Reaction: With the increase in dividends, Aura Minerals' shareholder return rate improves, which is expected to further drive the stock price up and attract more institutional investors, strengthening its market position.
See More
Aura Minerals Declares $0.66 Dividend Per Share
- Dividend Declaration: Aura Minerals announced a dividend of $0.66 per share, totaling approximately $55.12 million, which exceeds the minimum requirement set by the company's dividend policy, reflecting strong financial performance and profitability.
- Payment Schedule: The dividend will be paid on March 18, 2026, with a record date of March 11, 2026, ensuring shareholders receive timely returns and enhancing investor confidence in the company's financial health.
- BDR Holder Benefits: Holders of Brazilian Depositary Receipts will receive $0.22 per BDR, with payments expected around March 26, 2026, demonstrating the company's commitment to providing returns to investors across different markets.
- Strategic Execution Results: The company achieved record production and EBITDA in Q4, showcasing its strategic execution in developing high-return greenfield projects and expanding resources, further solidifying its leading position in the global gold mining sector.
See More
