(All amounts are in U.S. dollars, unless otherwise indicated)
TORONTO, Aug. 8, 2013 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") reports financial results for the three and
six months ended June 30, 2013. The Company will host a conference call
on Friday, August 9, 2013 beginning at 8:30 a.m. Eastern Time (details
below).
Financial Highlights
For the second quarter, the Company reported the following results:
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Revenues of $57.7 million
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Adjusted net earnings(1) of $6.1 million, or $0.02 per share
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Net loss of $103.5 million, or ($0.42) per share, including non-cash
impairment charges and net realizable value adjustments of $104.9
million, or ($0.42) per share, net of taxes
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Production of 48,003 gold ounces(2)
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Cash costs of $655 per gold ounce(1)
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All-in sustaining costs of $1,189 per gold ounce(3)
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Operating cash flow before changes in working capital(1) of $18.7 million, or $0.08 per share
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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 9,817 pre-production gold ounces produced at Young-Davidson
during the three months ended June 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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Recent Highlights
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Mr.
Alan Edwards
was appointed non-executive Chairman of the Board
effective July 1, 2013. Mr. Edwards was appointed as an independent
director on May 13, 2010.
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The Company's quarterly dividend payment of $0.04 per share for the
second quarter was paid on July 29, 2013. The Company also 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 October 29, 2013
to shareholders of record on October 11, 2013.
"With another quarter of solid results reported from both operations we
continue to demonstrate the potential of our high quality asset base.
The mid-shaft crushing and hoisting system is progressing on schedule
and remains on target to commission during September. The shaft and
hoisting system is the key catalyst that will drive significant
improvements in underground productivities and further cost
efficiencies," stated
Scott Perry
, President and Chief Executive
Officer. He continued, "With quality operations, a strong cash position
and a fully-funded growth profile, the Company is well positioned for
success even in this challenging market environment."
Impairment Charges and Net Realizable Value Adjustment
Due to the lower metal price environment currently being experienced,
the Company's second quarter net earnings were adjusted by $104.9
million, net of taxes, for non-cash impairments and revaluations. Of
that amount, $80 million, net of tax, is related to an impairment
charge associated with the El Chanate mine. This impairment charge was
related to a reduction in the estimated short and long-term metal
prices used in life-of-mine plans, and was charged entirely against
goodwill. The Company also determined that an impairment charge of
$16.5 million, net of tax, was required for the retained interest
royalty in the future life-of-mine free cash flows of the Fosterville
and Stawell mines, which were disposed of in 2012. The remaining $8.4
million, net of tax, is related to net realizable value adjustments for
heap leach and long-term, low-grade stockpile inventories.
Operational Highlights - Continuing Operations
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Young-Davidson |
El Chanate
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Total |
| (in thousands, except ounces, average realized prices and total cash costs) |
Quarter Ended
June 30, 2013 |
Quarter Ended
June 30, 2012 |
Quarter Ended
June 30, 2013 |
Quarter Ended
June 30, 2012 |
Quarter Ended
June 30, 2013 |
Quarter Ended
June 30, 2012 |
| Gold ounces produced |
19,435 |
- |
18,751 |
17,882 |
38,186 |
17,882 |
| Pre-production gold ounces produced(3) |
9,817 |
11,950 |
- |
- |
9,817 |
11,950 |
| Total gold ounces produced |
29,252 |
11,950 |
18,751 |
17,882 |
48,003 |
29,832 |
| Total cash costs per gold ounce(1)(2)(3) |
$716 |
- |
$602 |
$457 |
$655 |
$457 |
| Revenue from mining operations |
$26,670 |
- |
$30,990 |
$27,458 |
$57,660 |
$27,458 |
| Average realized gold price per ounce |
$1,366 |
- |
$1,373 |
$1,610 |
$1,369 |
$1,610 |
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Young-Davidson |
El Chanate |
Total |
| (in thousands, except ounces, average realized prices and total cash costs) |
Six Months Ended
June 30, 2013 |
Six Months Ended
June 30, 2012 |
Six Months Ended
June 30, 2013 |
Six Months Ended
June 30, 2012 |
Six Months Ended
June 30, 2013 |
Six Months Ended
June 30, 2012 |
| Gold ounces produced |
39,987 |
- |
36,640 |
36,975 |
76,627 |
36,975 |
| Pre-production gold ounces produced(3) |
17,546 |
11,950 |
- |
- |
17,546 |
11,950 |
| Total gold ounces produced |
57,533 |
11,950 |
36,640 |
36,975 |
94,173 |
48,925 |
| Total cash costs per gold ounce(1)(2)(3) |
$705 |
- |
$585 |
$435 |
$645 |
$435 |
| Revenue from mining operations |
$63,435 |
- |
$59,110 |
$60,731 |
$122,545 |
$60,731 |
| Average realized gold price per ounce |
$1,507 |
- |
$1,481 |
$1,670 |
$1,494 |
$1,670 |
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Financial Highlights - Continuing Operations
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(in thousands, except per share amounts)
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Quarter Ended
June 30, 2013
|
Quarter Ended
June 30, 2012(2)
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Adjusted net earnings(1)
|
$6,122
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($921)
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Adjusted net earnings per share, basic(1)
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$0.02
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($0.00)
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Net (loss) / earnings
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($103,491)
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$6,640
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Net (loss) / earnings per share, basic
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($0.42)
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$0.03
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Adjusted operating cash flow(1)
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$18,691
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$987
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(in thousands, except per share amounts)
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Six Months Ended
June 30, 2013
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Six Months Ended
June 30, 2012(2)
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Adjusted net earnings(1)
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$17,719
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$4,578
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Adjusted net earnings per share, basic(1)
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$0.07
|
$0.02
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Net (loss) / earnings
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($85,217)
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($6,958)
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Net (loss) / earnings per share, basic
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($0.34)
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($0.02)
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Adjusted operating cash flow(1)
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$38,813
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$6,865
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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 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 21 in the Company's Management's Discussion & Analysis or note
3(a) to the Company's condensed consolidated financial statements for
the three and six months ended June 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
|
Quarter Ended
|
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June 30, 2013
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June 30, 2012
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Net (loss) / earnings from continuing operations
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($103,491)
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$6,640
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Adjustments:
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Impairment charges
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98,688
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-
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Net realizable value adjustments on inventory
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12,245
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-
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Foreign exchange loss on translation of tax basis recorded in deferred
income tax expense
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11,852
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5,688
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Unrealized foreign exchange gain
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(8,741)
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(4,813)
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Gain on option component of convertible notes
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(4,106)
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(9,618)
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Unrealized gain on derivatives
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123
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(896)
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Unrealized loss on contingent consideration
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4,060
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-
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Other
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(4,508)
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2,078
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Adjusted net earnings from continuing operations
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$6,122
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($921)
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Adjusted net earnings from continuing operations, per share
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$0.02
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($0.00)
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Net earnings from discontinued operations
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-
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$15,043
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Adjustments:
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Unrealized foreign exchange gain
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-
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(2,636)
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Net realizable value adjustments on inventory
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-
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14,366
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Loss on disposition of Australian Operations
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-
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1,736
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Other
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-
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(791)
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Adjusted net earnings from discontinued operations
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-
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$27,718
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Adjusted net earnings from discontinued operations, per share
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-
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$0.10
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Adjusted net earnings
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$6,122
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$26,797
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Adjusted net earnings, per share
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$0.02
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$0.09
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(in thousands, except per share metrics)
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Six Months Ended
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Six Months Ended
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June 30, 2013
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June 30, 2012
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Net loss from continuing operations
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($85,217)
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($6,958)
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Adjustments:
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Impairment charges
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98,688
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-
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Net realizable value adjustments on inventory
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12,245
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-
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Foreign exchange loss / (gain) on translation of tax basis recorded in
deferred income tax expense
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12,553
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1,097
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Unrealized foreign exchange (gain) / loss
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(9,677)
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5,009
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(Gain) / loss on option component of convertible notes
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(10,975)
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4,184
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Unrealized gain on derivatives
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(2,071)
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(1,193)
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Unrealized loss on contingent consideration
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6,849
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-
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Other
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(4,675)
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2,439
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Adjusted net earnings from continuing operations
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$17,719
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$4,578
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Adjusted net earnings from continuing operations, per share
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$0.07
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$0.02
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Net earnings from discontinued operations
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-
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$29,856
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Adjustments:
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Unrealized foreign exchange loss
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-
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7,281
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Net realizable value adjustments on inventory
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-
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14,366
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Loss on disposition of Australian Operations
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-
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1,736
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Impairment of Australian Operations
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-
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22,857
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Other
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-
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(791)
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Adjusted net earnings from discontinued operations
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-
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$75,305
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Adjusted net earnings from discontinued operations, per share
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-
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$0.27
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Adjusted net earnings
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$17,719
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$79,883
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Adjusted net earnings, per share
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$0.07
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$0.28
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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
|
Quarter Ended
|
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June 30, 2013
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June 30, 2012
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Operating cash flow from continuing operations
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$13,875
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($4,235)
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Add back: Non-cash change in operating working capital
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4,816
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5,222
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Adjusted operating cash flow from continuing operations
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$18,691
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$987
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Adjusted operating cash flow from continuing operations, per share
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$0.08
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$0.00
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(in thousands, except per share metrics)
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Six Months Ended
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Six Months Ended
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June 30, 2013
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June 30, 2012
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Operating cash flow from continuing operations
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$26,974
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$6,235
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Add back: Non-cash change in operating working capital
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11,839
|
630
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Adjusted operating cash flow from continuing operations
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$38,813
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$6,865
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Adjusted operating cash flow from continuing operations, per share
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$0.15
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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, 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 18 of the Company's
Management's Discussion and Analysis for the three and six months ended
June 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").
Second Quarter Conference Call and Webcast
A webcast and conference call will be held on Friday, August 9, 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
Second 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/1192183/1307011
Archive Call Access
If you are unable to attend the conference call, a replay will be
available until midnight, August 16, 2013 by dialing the appropriate
number below:
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International & Toronto: 1-416-849-0833 Passcode: #13657313
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Canada & U.S. Toll Free: 1-855-859-2056 Passcode: #13657313
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/1192183/1307011
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 press release 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" 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,
competitive and other 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 labour;
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 respect to the future potential of the Kemess
project, 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; and business opportunities that
may be pursued by the Company. Many of these uncertainties and
contingencies can affect our actual results, dividend policy,
development and operating plans and other elements of our business 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 press release 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 press release 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.