TSX:ORA

Stock Analysis Report

Executive Summary

Aura Minerals Inc., a gold and copper production company, focuses on the development and operation of gold and base metal projects in the Americas.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has Aura Minerals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ORA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

16.5%

ORA

-1.5%

CA Metals and Mining

-3.8%

CA Market


1 Year Return

290.5%

ORA

4.9%

CA Metals and Mining

0.5%

CA Market

Return vs Industry: ORA exceeded the Canadian Metals and Mining industry which returned 4.9% over the past year.

Return vs Market: ORA exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

ORAIndustryMarket
7 Day16.5%-1.5%-3.8%
30 Day221.1%3.2%-2.0%
90 Day278.2%10.2%-0.3%
1 Year305.4%290.5%5.6%4.9%3.7%0.5%
3 Year358.9%342.1%-1.9%-3.6%13.6%3.4%
5 Yearn/a28.2%24.6%30.2%11.2%

Price Volatility Vs. Market

How volatile is Aura Minerals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aura Minerals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORA (CA$84) is trading below our estimate of fair value (CA$282.45)

Significantly Below Fair Value: ORA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ORA is good value based on its PE Ratio (11.1x) compared to the Metals and Mining industry average (16.1x).

PE vs Market: ORA is good value based on its PE Ratio (11.1x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ORA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ORA is good value based on its PB Ratio (1.4x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is Aura Minerals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.7%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Aura Minerals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Aura Minerals performed over the past 5 years?

77.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORA has high quality earnings.

Growing Profit Margin: ORA's current net profit margins (11%) are lower than last year (33%).


Past Earnings Growth Analysis

Earnings Trend: ORA has become profitable over the past 5 years, growing earnings by 77.3% per year.

Accelerating Growth: ORA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORA had negative earnings growth (-52.1%) over the past year, making it difficult to compare to the Metals and Mining industry average (11.8%).


Return on Equity

High ROE: ORA's Return on Equity (12.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aura Minerals's financial position?


Financial Position Analysis

Short Term Liabilities: ORA's short term assets ($110.2M) exceed its short term liabilities ($87.4M).

Long Term Liabilities: ORA's short term assets ($110.2M) exceed its long term liabilities ($67.5M).


Debt to Equity History and Analysis

Debt Level: ORA's debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: ORA's debt to equity ratio has reduced from 42.6% to 22% over the past 5 years.


Balance Sheet

Inventory Level: ORA has a high level of physical assets or inventory.

Debt Coverage by Assets: ORA's debt is covered by short term assets (assets are 2.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: ORA is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: ORA is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Aura Minerals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ORA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ORA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ORA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ORA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ORA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Rodrigo Barbosa (45yo)

3.1yrs

Tenure

US$650,000

Compensation

Mr. Rodrigo Cardoso Barbosa has been Chief Executive Officer and President at Aura Minerals Inc. since January 15, 2017 and served as its Chief Financial Officer since September 26, 2016 until January 15,  ...


CEO Compensation Analysis

Compensation vs Market: Rodrigo's total compensation ($USD650.00K) is about average for companies of similar size in the Canadian market ($USD684.74K).

Compensation vs Earnings: Rodrigo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rodrigo Barbosa
President3.1yrsUS$650.00k0.048% $174.7k
Sergio Castanho
Chief Transformational Officer0yrsUS$495.26kno data
Osmel Guzman
Corporate Controller0yrsUS$92.00kno data
João Cardoso
Chief Financial Officer0.9yrsno datano data
Glauber Luvizotto
COO & Interim GM of Aranzazu Operation0yrsno datano data
John Stalker
Consultant0yrsno datano data
Ludovico Costa
Special Advisor to the Chief Executive Officer3.1yrsno datano data

3.1yrs

Average Tenure

Experienced Management: ORA's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rodrigo Barbosa
President3.1yrsUS$650.00k0.048% $174.7k
Philip Reade
Independent Director2.8yrsUS$252.51kno data
Stephen Keith
Lead Director3.1yrsUS$74.00k0.021% $75.6k
Richmond Fenn
Director0.3yrsno datano data
Paulo Carlos Brito
Non-Executive Chairman of the Board3.8yrsUS$62.00k56.57% $206.9m

2.8yrs

Average Tenure

Experienced Board: ORA's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ORA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Aura Minerals Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aura Minerals Inc.
  • Ticker: ORA
  • Exchange: TSX
  • Founded: 1946
  • Industry: Gold
  • Sector: Materials
  • Market Cap: CA$365.725m
  • Shares outstanding: 4.35m
  • Website: https://www.auraminerals.com

Number of Employees


Location

  • Aura Minerals Inc.
  • Craigmuir Chambers
  • PO Box 71
  • Tortola
  • VG1110
  • British Virgin Islands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORATSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 2017
A531DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 2017
ARMZ.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 2017

Biography

Aura Minerals Inc., a gold and copper production company, focuses on the development and operation of gold and base metal projects in the Americas. The company’s producing assets include the San Andres gold mine in Honduras and the Ernesto/Pau-a-Pique gold mine in Brazil. It is also conducting an exploration program at its Sao Francisco gold mine in Brazil; and developing the Almas and Matupá gold projects in Brazil, as well as the Tolda Fria gold project in Colombia. The company was formerly known as Aura Gold Inc. and changed its name to Aura Minerals Inc. in July 2007. Aura Minerals Inc. was incorporated in 1946 and is headquartered in Tortola, British Virgin Islands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 02:36
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.