Rodrigo Barbosa
Barbosa is CEO of Aura Minerals, a fast-growing gold and copper mining company. Rodrigo has received several recognitions as a business leader such as “Turnaround of the year in Brazil” while CEO of Santista/Tavex in 2014 by Turnaround Management Association and PwC, “Person of the year 2020” by Brasil Mineral on Precious Metals, the most prestigious award in the mining sector in Brazil and, recently, as CEO of the only company to rank number one for two years in a row on the Toronto Stock Exchange. Mr. Barbosa participated in several M&A transactions totaling over USD$3.0 billion and structured and placed over USD$2.5 billion in debt. Mr. Barbosa has served as a board member of leading public infrastructure companies in Brazil and worked as an investment banker for now Itaú Bank in Brazil. He has an MBA from the University of Southern California (USC) and a Bachelor of Mechanical Engineering from the Universidade Mackenzie in Sao Paulo, Brazil.
Could you provide an overview of your role and responsibilities within the company?
In 2017, I assumed the role of President and Chief Executive Officer with a mandate to orchestrate a dramatic turnaround and transformation at Aura, positioning us for rapid growth. Our turnaround strategy is centered on reinforcing three fundamental pillars essential for any company's growth and involved:
Efficient Production Assets and Accretive Greenfield Projects: We embarked on a comprehensive effort to optimize our existing assets and initiate greenfield projects, ensuring efficiency and profitability.
Strong Balance Sheet and Access to Diverse Capital Sources: We fortified our financial position, securing a robust balance sheet and establishing connections to various sources of capital, bolstering our financial stability.
Empowered Team and Culture That Guides Decision-Making: We cultivated the right team and fostered a culture of diversity and innovation which empowered all members to make sound decisions. This led to incredible change and significant improvements and productivity across all operations.
Over the past six years, our dedication to these pillars has yielded remarkable results. We have achieved substantial margin improvements, witnessed production growth exceeding 100 percent, and are poised to double our output within the next two years. Our team has evolved into a diverse and cohesive unit and our results have already generated important recognition including, earning us the prestigious #1 performance ranking on the TSX30 for both 2021 and 2022. We also gained status as the world's highest dividend yield company in 2021 and paid the highest dividend yield in the precious metals industry consistently for the last three years, paying over $143 million in dividends and buybacks during this period alone.
In addition, this year marked a significant milestone as we completed construction of our first greenfield project Almas, in just 16 months and successfully ramped up operation in under 5 months, setting a new industry benchmark. Almas is the first of three projects being brought online by our team.
“We have achieved substantial margin improvements, witnessed production growth exceeding 100 percent, and are poised to double our output within the next two years.”
On the team and culture front, we are embracing a decentralized, non-hierarchical organizational structure that empowers operational autonomy, while our corporate focus remains centered on capital allocation, personnel development, and adhering to rigorous ESG standards.
Our commitment to fostering a corporate culture aligned with these principles has culminated in the widely recognized Aura 360 culture, now synonymous with ESG practices.
Our journey has been one of continuous growth, transformation, and a steadfast commitment to excellence. As we look ahead, we remain dedicated to the pursuit of sustainable success and value creation for all stakeholders under the highest ESG standards.
What are some of the key challenges you face?
There are two paramount challenges we face at Aura, which we believe are also impacting the mining industry: optimal growth and cultivation of a high-performing team, all while contending with inflation. At Aura, these challenges are compounded as we are bringing three greenfield projects online, which requires substantial capital investments of nearly US$400 million during a period when capital raising has proven exceedingly challenging.
Despite the above, we take pride in the successful completion of our inaugural project, achieved on schedule and within budget, even during the pandemic-induced supply chain disruptions. We are also now moving ahead with the construction of our second project Borborema, for which we recently secured funding.
Central to these accomplishments is the Aura 360 culture, an ethos that fosters collaboration and autonomy for our people to reach their full potential. This approach has enabled us to both attract and retain exceptional talent, whose excellence has served as a powerful counterbalance against inflationary pressures, mitigating the majority of their impact. We credit our resilience to our Aura 360° culture, which is underpinned by a progressive and decentralized decision-making framework.
What would you say are some of the futuristic trends that will have an impact in the next 18-24 months?
I firmly believe that Artificial Intelligence (AI) is poised to usher in a profound transformation in the realm of business, particularly within the mining industry and geology. These fields heavily rely on data analysis and the comparison of geological formations with those found elsewhere in the world. While the prospect of aggregating all this data into a unified repository presents its challenges, it is an attainable endeavor. Once accomplished, AI will assume a pivotal role in revolutionizing the process of discovering new deposits while substantially curbing capital expenditures.
Furthermore, AI promises to reshape the way we all engage in work. Through its capabilities in data analysis and the automation of routine tasks, AI will liberate valuable time, allowing us to channel our energies towards more creative and innovative pursuits, ultimately contributing to the advancement of our objectives. At Aura, harnessing AI and its innovative potential is embedded in our Mission Statement, which articulates our dedication to "finding, mining, and providing the most critical and essential ores that empower the world and humanity to create, innovate, and thrive."
AI-enabling technologies may also have the potential to curb supply challenges, equipping us with the ability to fully engage in the transition to sustainable energy sources and serving as a crucial ally in combatting global warming. It is already playing a pivotal role in advancing the world.
What advice would you give to young professionals who are interested in pursuing a similar career, and what qualities do you think are essential for success in this field?
First: Have a Purpose in Your Pursuits - The mining industry presents a wealth of career opportunities and, on a broader scale, offers young individuals a chance to engage with an industry that holds profound significance for the future of our planet. Every facet of human construction, consumption, and sustenance owes its existence to a robust mining sector. Whether it's the fertilizers we use, iron ore, copper, gold, and countless other minerals, these resources are essential for the transition to a green economy. Regrettably, over the past decade, there has been a shortage of investments in mining, making these resources more critical than ever.
Furthermore, the mining industry often ventures into some of the world's most remote and underdeveloped regions, where communities and cities lack basic infrastructure, access to power, clean water, education, healthcare, and in many instances, face hunger or malnutrition. Consequently, the mining industry, aside from its essential role, possesses the unique potential to have a profoundly positive impact on ESG factors. By extending investments and opportunities to these communities, we can significantly enhance their quality of life. This implies that anyone seeking to make a positive impact on the world should view mining through a different lens and collaborate to foster innovation, creation, prosperity, and substantial improvements in the living conditions of underserved communities.
Second: Personal Skills Matter More Than Ever - As we continue to harness the power of Artificial Intelligence (AI) for data analysis and daily tasks, there is an increasing demand for individuals with exceptional interpersonal skills, self-awareness, adaptability to changing circumstances, and the ability to innovate in an industry that perpetually evolves. Critical thinking becomes indispensable in such a dynamic sector. Moreover, it's crucial to have a thirst for learning and a strong work ethic, all while maintaining a balance between personal and professional life. Ultimately, a compassionate heart should guide our decisions and actions, just as in the holistic approach of our Aura 360° Mining, to ensure alignment with the goals of all stakeholders.
