(All amounts are in U.S. dollars, unless otherwise indicated)
TORONTO, Nov. 7, 2013 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") reports financial results for the three and
nine months ended September 30, 2013. The Company will host a
conference call on Friday, November 8, 2013 beginning at 8:30 a.m.
Eastern Time (details below).
Financial Highlights
For the third quarter, the Company reported the following results:
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Revenues of $54.3 million
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Operating cash flow before changes in working capital(1) of $21.8 million, or $0.09 per share
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Adjusted net earnings(1) of $0.8 million, or $0.00 per share
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Net earnings of $14.9 million, or $0.06 per share, including reversals
of net realizable value adjustments previously recognized of $7.4
million, or $0.03 per share
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Production of 48,903 gold ounces(2)
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Cash costs of $628 per gold ounce(1)
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All-in sustaining costs of $1,210 per gold ounce(3)
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First Quarter
March 31/13
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Second Quarter
June 30/13
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Third Quarter
Sept. 30/13
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YTD as of
Sept. 30/13
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Gold Ounces Produced3
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46,170
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48,003
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48,903
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143,076
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Total Cash Costs per oz.1,2
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$635
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$655
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$628
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$640
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All-in Sustaining Costs per oz2.
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$1,090
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$1,189
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$1,210
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$1,164
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1.
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Prior to commissioning the underground mine at Young-Davidson, cash
costs are calculated on ounces
produced from the open pit only. All underground costs are capitalized,
and any revenue related to
underground ounces sold is credited against capital.
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2.
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Cash costs, prior to long-term, low-grade stockpile and heap leach
inventory net realizable value
adjustments & reversals. See the Non-GAAP Measures section on page 20 of
the Management's
Discussion and Analysis for the three months ended Sept. 30, 2013.
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3.
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Includes pre-production gold ounces from the Young-Davidson underground
mine.
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Recent Highlights
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Effective October 31, 2013 the Company declared commercial production of
the Young-Davidson underground mine following the successful
commissioning of the shaft and hoisting infrastructure. This key
milestone will support increased underground productivities and
favourable unit cost efficiencies over the life of the mine and will be
pivotal in unlocking the potential of the Young-Davidson mine and
positioning the Company for the future.
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The Company's quarterly dividend payment of $0.04 per share for the
third quarter was paid on October 29, 2013. The Company has introduced
an optional dividend reinvestment plan to acquire additional common
shares by reinvesting cash dividends. Further information on the
Company's dividend reinvestment plan is available through the following
link: www.auricogold.com/DRIP. The next dividend payment is scheduled to be paid on January 29, 2014
to shareholders of record on January 14, 2014.
"With the declaration of commercial production at the Young-Davidson
underground mine the Company will begin to deliver steadily increasing
annual production growth as the shaft and hoisting system supports
increased underground productivities over the coming years," stated
Scott Perry
, President and Chief Executive Officer. He continued, "With
five consecutive quarters of solid, company-wide results being
reported, we continue to demonstrate the potential of our high quality
asset base and the depth of our operations team. With two quality
operations, a strong cash position and a fully-funded growth profile
that is underpinned by the potential of the Young-Davidson mine, the
Company is well positioned for significant, sustainable and profitable
growth going forward."
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(1)
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See the table at the end of this press release for a reconciliation of
adjusted net earnings and adjusted operating cash flow and refer to the
discussion of Non-GAAP measures below.
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(2)
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Includes 10,447 pre-production gold ounces produced at Young-Davidson
during the three months ended September 30, 2013.
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(3)
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See the discussion of All-in Sustaining Costs and Non-GAAP measures
provided below.
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Operational Highlights - Continuing Operations
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Young-Davidson
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El Chanate
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Total
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(in thousands, except ounces, average
realized prices and total cash costs)
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Quarter
Ended
September 30,
2013
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Quarter
Ended
September 30,
2012
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Quarter
Ended
September 30,
2013
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Quarter
Ended
September 30,
2012
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Quarter
Ended
September 30,
2013
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Quarter
Ended
September 30,
2012
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Gold ounces produced
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19,652
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9,903
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18,804
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19,388
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38,456
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29,291
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Pre-production gold ounces produced(3)
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10,447
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7,922
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-
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-
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10,447
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7,922
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Total gold ounces produced
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30,099
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17,825
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18,804
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19,388
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48,903
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37,213
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Total cash costs per gold ounce(1)(2)(3)
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$666
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$639
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$588
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$470
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$628
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$528
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Revenue from mining operations
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$29,584
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$7,067
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$24,720
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$32,705
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$54,304
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$39,772
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Average realized gold price per ounce
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$1,333
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$1,756
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$1,330
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$1,655
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$1,332
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$1,672
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Young-Davidson
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El Chanate
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Total
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(in thousands, except ounces, average
realized prices and total cash costs)
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Nine Months
Ended
September 30,
2013
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Nine Months
Ended
September 30,
2012
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Nine Months
Ended
September 30,
2013
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Nine Months
Ended
September 30,
2012
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Nine Months
Ended
September 30,
2013
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Nine Months
Ended
September 30,
2012
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Gold ounces produced
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59,639
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9,903
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55,444
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56,363
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115,083
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66,266
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Pre-production gold ounces produced(3)
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27,993
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19,872
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-
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-
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27,993
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19,872
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Total gold ounces produced
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87,632
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29,775
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55,444
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56,363
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143,076
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86,138
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Total cash costs per gold ounce(1)(2)(3)
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$692
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$639
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$586
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$448
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$640
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$477
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Revenue from mining operations
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$93,019
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$7,067
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$83,830
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$93,436
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$176,849
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$100,503
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Average realized gold price per ounce
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$1,447
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$1,756
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$1,433
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$1,665
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$1,440
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$1,671
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Financial Highlights - Continuing Operations
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(in thousands, except per share amounts)
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Quarter Ended
September 30, 2013
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Quarter Ended
September 30, 2012(2)
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Adjusted net earnings / (loss)(1)
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$816
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($1,180)
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Adjusted net earnings / (loss) per share, basic(1)
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$0.00
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($0.00)
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Net earnings
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$14,859
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$42,321
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Net earnings per share, basic
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$0.06
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$0.15
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Adjusted operating cash flow(1)
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$21,758
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($149)
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(in thousands, except per share amounts)
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Nine Months Ended
September 30, 2013
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Nine Months Ended
September 30, 2012(2)
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Adjusted net earnings(1)
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$18,536
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$3,398
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Adjusted net earnings per share, basic(1)
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$0.07
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$0.01
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Net (loss) / earnings
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($70,358)
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$35,363
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Net (loss) / earnings per share, basic
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($0.28)
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$0.12
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Adjusted operating cash flow(1)
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$60,571
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$6,716
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(1)
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See the tables at the end of this press release for a reconciliation of
adjusted net earnings and adjusted operating cash flow and refer to the
discussion of Non-GAAP measures below. Total cash costs per gold ounce
have been presented prior to net realizable value adjustments and
reversals on the Young-Davidson low-grade long-term stockpile inventory
and the El Chanate heap leach ore in process inventory. The Company
has restated adjusted net earnings for 2012.
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(2)
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Certain comparative information has been restated as a result of the
adoption of IFRIC 20, Stripping Costs in the Production Phase of a
Surface Mine, which was applied prospectively to production stripping
costs incurred on or after January 1, 2012. For further details, refer
to the Critical Accounting Estimates, Policies and Changes section on
page 24 in the Company's Management's Discussion & Analysis or note
3(a) to the Company's condensed consolidated financial statements for
the three and nine months ended September 30, 2013.
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(3)
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The Young-Davidson open pit mine declared commercial production on
September 1, 2012, and is therefore excluded from consolidated cash
costs prior to this date. Pre-production ounces produced are excluded
from consolidated ounces produced as these ounces are credited against
capitalized project costs when sold.
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Adjusted Net Earnings Reconciliation
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(in thousands, except per share metrics)
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Quarter Ended
September 30, 2013
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Quarter Ended
September 30, 2012
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Net earnings from continuing operations
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$14,859
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$42,321
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Adjustments:
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Deferred income tax recovery related to foreign exchange
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(7,335)
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(17,511)
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Unrealized foreign exchange loss
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2,482
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7,952
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Net realizable value adjustments on inventory
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(7,372)
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-
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Gain on option component of convertible notes
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(3,875)
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(14,416)
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Unrealized gains on investments
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-
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(20,251)
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Unrealized gain on derivatives
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-
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(730)
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Unrealized loss / (gain) on contingent consideration
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63
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(5,137)
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Other (including tax effect of adjustments)
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1,994
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6,592
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Adjusted net earnings / (loss) from continuing operations
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$816
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($1,180)
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Adjusted net earnings / (loss) from continuing operations, per share
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$0.00
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($0.00)
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Net loss from discontinued operations
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-
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($7,781)
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Adjustments:
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Unrealized foreign exchange loss
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-
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2,190
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Net realizable value adjustments on inventory
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-
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(6,074)
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Disposition-related costs
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-
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5,327
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Gain on disposition of El Cubo and Guadalupe y Calvo
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-
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(24,062)
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Ocampo outside tax basis adjustment
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-
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39,168
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Tax impact
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-
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3,695
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Adjusted net earnings from discontinued operations
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-
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$12,463
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Adjusted net earnings from discontinued operations, per share
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-
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$0.04
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Adjusted net earnings
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$816
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$11,283
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Adjusted net earnings, per share
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$0.00
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$0.04
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(in thousands, except per share metrics)
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Nine Months Ended
September 30, 2013
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Nine Months Ended
September 30, 2012
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Net (loss) / earnings from continuing operations
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($70,358)
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$35,363
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Adjustments:
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Deferred income tax expense / (recovery) related to foreign exchange
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5,218
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(16,414)
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Unrealized foreign exchange (gain) / loss
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(7,195)
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12,961
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Net realizable value adjustments on inventory
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4,873
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-
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Impairment charges
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98,688
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-
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Gain on option component of convertible notes
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(14,850)
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(10,232)
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Unrealized gains on investments
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-
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(17,632)
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Unrealized gain on derivatives
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(2,071)
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(1,923)
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Unrealized loss / (gain) on contingent consideration
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6,912
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(5,137)
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Other (including tax effect of adjustments)
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(2,681)
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6,412
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Adjusted net earnings from continuing operations
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$18,536
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$3,398
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Adjusted net earnings from continuing operations, per share
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$0.07
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$0.01
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Net earnings from discontinued operations
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-
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$22,075
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Adjustments:
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Unrealized foreign exchange loss
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-
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9,471
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Loss on disposition of Australian operations
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-
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1,736
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Net realizable value adjustments on inventory
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-
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8,292
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Impairment of Australian Operations
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-
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22,857
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Disposition-related costs
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-
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5,327
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Gain on disposition of El Cubo and Guadalupe y Calvo
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-
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(24,062)
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Ocampo outside tax basis adjustment
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-
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39,168
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Tax impact
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-
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2,904
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Adjusted net earnings from discontinued operations
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-
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$87,768
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Adjusted net earnings from discontinued operations, per share
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-
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$0.31
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Adjusted net earnings
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$18,536
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$91,166
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Adjusted net earnings, per share
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$0.07
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$0.32
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Adjusted Operating Cash Flow Reconciliation
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(in thousands, except per share metrics)
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Quarter Ended
September 30, 2013
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Quarter Ended
September 30, 2012
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Operating cash flow from continuing operations
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$24,338
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($5,653)
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Add back: Non-cash change in operating working capital
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(2,580)
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5,504
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Adjusted operating cash flow from continuing operations
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$21,758
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($149)
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Adjusted operating cash flow from continuing operations, per share
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$0.09
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($0.00)
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(in thousands, except per share metrics)
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Nine Months Ended
September 30, 2013
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Nine Months Ended
September 30, 2012
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Operating cash flow from continuing operations
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$51,312
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$582
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Add back: Non-cash change in operating working capital
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9,259
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6,134
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Adjusted operating cash flow from continuing operations
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$60,571
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$6,716
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Adjusted operating cash flow from continuing operations, per share
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$0.24
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$0.02
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Non-GAAP Measures
The Company uses the measures adjusted net earnings, cash costs per
ounce, all-in sustaining costs per ounce, adjusted operating cash flow
and net free cash flow in this press release, which do not have a
standardized meaning prescribed by International Financial Reporting
Standards ("IFRS" or "GAAP"). They are, therefore, considered to be
non-GAAP measures and may not be comparable to similar measures
presented by other companies. The non-GAAP measures cash costs per
ounce, all-in sustaining costs per ounce and net free cash flow are
reconciled to the Company's financial statements beginning on page 20
of the Company's Management's Discussion and Analysis for the three and
nine months ended September 30, 2013.
Adjusted net earnings is comprised of net earnings from both continuing
and discontinued operations, adjusted for specific items. While the
adjustments to net earnings in this measure include items that are
recurring, adjusted net earnings is a useful measure as the unrealized
gains / losses on foreign exchange, fair value adjustments on
contingent consideration and derivatives, impairment charges, net
realizable value adjustments, and other non-recurring items do not
reflect the underlying operating performance of the Company's core
mining business in the periods presented and are not necessarily
indicative of future operating results.
Adjusted operating cash flow excludes the change in non-cash operating
working capital, which includes changes in receivables, inventories,
prepaid assets, and payables.
Financial Statements and Management's Discussion and Analysis
The financial statements and related Management's Discussion and
Analysis can be found on the Company's website at www.auricogold.com or under the Company's profile on www.sedar.com and with the Securities and Exchange Commission at www.sec.gov/edgar.shtml ("Edgar").
Third Quarter Conference Call and Webcast
A webcast and conference call will be held on Friday, November 8, 2013 starting at 8:30 a.m. Eastern Time. Senior management will be on the call to discuss the results.
Conference Call Access
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International & Toronto: 1-647-427-7450
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Canada & U.S. Toll Free: 1-888-231-8191
When the operator answers, please ask to be placed into the AuRico Gold
Third Quarter Results Conference Call.
Conference Call Live Webcast
The conference call will be broadcast live on the internet via webcast.
To access the webcast, please follow this link: http://www.newswire.ca/en/webcast/detail/1236207/1361801
Archive Call Access
If you are unable to attend the conference call, a replay will be
available until midnight, November 15, 2013 by dialing the appropriate
number below:
-
International & Toronto: 1-416-849-0833 Passcode: #76263849
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Canada & U.S. Toll Free: 1-855-859-2056 Passcode: #76263849
Archive Webcast
The webcast will be archived for 90 days. To access the archived
webcast, visit the Company's website at www.auricogold.com or follow this link: http://www.newswire.ca/en/webcast/detail/1236207/1361801
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects
in North America that have solid production growth and exploration
potential. The Company is focused on its core operations including the
Young-Davidson gold mine in northern Ontario and the El Chanate mine in
Sonora State, Mexico. AuRico's project pipeline also includes
development opportunities in Canada and Mexico. AuRico's head office is
located in Toronto, Ontario, Canada.
Cautionary Statement
Certain information included in this presentation constitutes
forward-looking statements, including any information as to our
projects, plans and future financial and operating performance. All
statements, other than statements of historical fact, are
forward-looking statements. The words "expect", "believe",
"anticipate", "will", "intend", "estimate", "forecast", "budget",
"schedule" and similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by
management, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements.
Such factors include, but are not limited to: changes to current
estimates of mineral reserves and resources; fluctuations in the price
of gold; changes in foreign exchange rates (particularly the Canadian
dollar, Mexican peso and U.S. dollar); the impact of inflation; changes
in our credit rating; any decision to declare a quarterly dividend;
employee relations; litigation; disruptions affecting operations;
availability of and increased costs associated with mining inputs and
labor; development delays at the Young-Davidson mine; operating or
technical difficulties in connection with mining or development
activities; inherent risks associated with mining and mineral
processing; the risk that the Young-Davidson and El Chanate mines may
not perform as planned; uncertainty with the Company's ability to
secure capital to execute its business plans; the speculative nature of
mineral exploration and development, including the risks of obtaining
necessary licenses and permits; contests over title to properties;
changes in national and local government legislation in Canada, Mexico
and other jurisdictions in which the Company does or may carry on
business in the future; risk of loss due to sabotage and civil
disturbances; the impact of global liquidity and credit availability
and the values of assets and liabilities based on projected future cash
flows; risks arising from holding derivative instruments; business
opportunities that may be pursued by the Company. Many of these
uncertainties and contingencies can affect our actual results and could
cause actual results to differ materially from those expressed or
implied in any forward-looking statements made by, or on behalf of, us.
Readers are cautioned that forward-looking statements are not
guarantees of future performance. All of the forward-looking statements
made in this presentation are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a discussion of some of the
factors underlying forward-looking statements.
The Company disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information,
future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and
Inferred Resources
This presentation uses the terms "measured," "indicated" and "inferred"
resources. We advise investors that while those terms are recognized
and required by Canadian regulations, the United States Securities and
Exchange Commission does not recognize them. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or other economic studies. United States investors are
cautioned not to assume that all or any part of measured or indicated
mineral resources will ever be converted into mineral reserves. United
States investors are also cautioned not to assume that all or any part
of an inferred mineral resource exists, or is economically or legally
mineable.
SOURCE AuRico Gold Inc.