Young-Davidson Delivers Approximately $9 Million of Positive Net Free
Cash Flow
AuRico Delivers Another Year of Consolidated Annual Production that
Achieves Guidance Estimates
TORONTO, Feb. 19, 2015 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") reports financial results for the three and
twelve months ended December 31, 2014. The Company will host a
conference call on Friday, February 20, 2015 beginning at 8:30 a.m.
Eastern Time (details below). (All amounts are in U.S. dollars, unless otherwise indicated.)
To view "Company Wide Quarterly Production Growth", please click:
http://files.newswire.ca/975/Quarterly.pdf
2014 Results versus Guidance
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Total Production
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2014 Results
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2014 Guidance1
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Young-Davidson
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156,753
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140,000-160,000
|
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El Chanate
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67,279
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70,000-80,000
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|
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224,032
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210,000-240,000
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Total Cash Costs per Ounce
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Young-Davidson Underground
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$719
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$650-$750
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Young-Davidson Historical Stockpile
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$1,071
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$850-$950
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El Chanate
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$669
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$625-$725
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$779
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$675-$775
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Total All-in Sustaining Costs per Ounce2,3
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Young-Davidson
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$1,075
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$1,100-$1,200
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El Chanate
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$1,121
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$1,000-$1,100
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$1,200
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$1,100-$1,200
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Total Capital Investment ($000s)4
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Young-Davidson ($000s)
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$135,100
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$135,000
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El Chanate ($000s)
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$26,100
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$20,000-$25,000
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$161,200
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$155,000-$160,000
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Company-Wide Exploration ($000's)
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$18,700
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$15,000
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Corporate G&A5 ($000's)
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$16,800
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$20,000
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1. The following currency assumptions were used to forecast 2014
estimates: 0.95:1 US dollar to the Canadian dollar
and 13.0:1 Mexican pesos to the US dollar.
|
2. Company-wide all-in sustaining costs are defined as cash costs,
sustaining capital, corporate general and administrative expense
and sustaining exploration.
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3. Sustaining capital is defined as capital expenditures required to
maintain current levels of production.
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4. Capital investment for Young-Davidson and El Chanate operations only.
Excludes exploration costs, capitalized
interest and other corporate capital investment.
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5. Does not include share-based compensation and corporate restructuring
costs.
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Financial Highlights
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(in thousands, except per share amounts)
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Quarter Ended
Dec. 31, 2014
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Quarter Ended
Dec. 31, 2013
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Twelve Months Ended
Dec. 31, 2014
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Twelve Months Ended
Dec. 31, 2013
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Revenue from mining operations
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$71,194
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$50,782
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$291,182
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$227,631
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Adjusted net (loss) / earnings(1)
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($9,492)
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($5,484)
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($37,968)
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$13,052
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Adjusted net (loss) / earnings per share, basic(1)
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($0.04)
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|
($0.02)
|
($0.15)
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$0.05
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Net loss
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($108,259)
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($106,412)
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($169,648)
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($176,770)
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Net loss, basic
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($0.43)
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($0.43)
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($0.68)
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($0.71)
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Adjusted operating cash flow(1)
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$18,367
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$17,508
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$64,709
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$78,079
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Adjusted operating cash flow, per share(1)
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$0.07
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$0.07
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$0.26
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$0.31
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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.
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Operational Highlights
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Quarter Ended Dec. 31, 2014
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Quarter Ended Dec. 31, 2013
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Young-
Davidson
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El Chanate
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Total
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Young-
Davidson
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El Chanate
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Total
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Gold ounces produced
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40,945
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15,638
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56,583
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29,597
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16,420
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46,017
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Gold ounces produced, pre-commercial production(3)
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-
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-
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-
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3,509
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-
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3,509
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Total gold ounces produced
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40,945
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15,638
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56,583
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33,106
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16,420
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49,526
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Underground cash costs per ounce(1)(2)(4)
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$656
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-
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$656
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$663
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-
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$663
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Open pit cash costs per ounce(1)(2)(4)
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$994
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$816
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$873
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$983
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$615
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$812
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Total cash costs per ounce(2)(4)
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$719
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$816
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$746
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$850
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$615
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$771
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Twelve Months Ended Dec. 31, 2014
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Twelve Months Ended Dec. 31, 2013
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Young-
Davidson
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El Chanate
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Total
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Young-
Davidson
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El Chanate
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Total
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Gold ounces produced
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156,753
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67,279
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224,032
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89,236
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71,864
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161,100
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Gold ounces produced, pre-commercial production(3)
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-
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-
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-
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31,502
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-
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31,502
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Total gold ounces produced
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156,753
|
67,279
|
224,032
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|
120,738
|
71,864
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192,602
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Underground cash costs per ounce(1)(2)(4)
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$719
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-
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$719
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$663
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-
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$663
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Open pit cash costs per ounce(1)(2)(4)
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$1,071
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$669
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$839
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$757
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$592
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$677
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Cash costs per ounce(2)(4)
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$825
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$669
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$779
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$744
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$592
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$676
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(1)
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Prior to commissioning the underground mine at Young-Davidson, cash
costs were calculated on ounces produced from the open
pit only. All underground costs were capitalized, and any revenue
related to underground ounces sold was credited against capital.
Subsequent to the declaration of commercial production in the
underground mine on October 31, 2013, cash costs are calculated
on ounces from both the open pit and underground mines, and revenue
related to the sale of underground ounces is recognized
in the Company's Statement of Operations as revenue.
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(2)
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Cash costs are prior to inventory net realizable value adjustments,
where applicable. See the Non-GAAP Measures section on
page 22 of the Management's Discussion and Analysis for the three and
twelve months ended December 31, 2014.
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(3)
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Includes pre-production gold ounces from the Young-Davidson underground
mine prior to the declaration of commercial production
on October 31, 2013.
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(4)
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For the three and twelve months ended December 31, 2014, cash costs per
gold ounce are calculated using gold ounces sold at
the El Chanate and Young-Davidson mines. For 2013, cash costs per gold
ounce were calculated using gold ounces sold at the
El Chanate mine and gold ounces produced at the Young-Davidson mine.
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Recent Highlights
-
On January 21, 2015 the Company released an initial resource Kemess East
of 5.5 million gold equivalent ounces that is comprised of indicated
resource of 2.1 million gold equivalent ounces and an inferred resource
of 3.4 million gold equivalent ounces. The Kemess East discovery (refer
to press release dated December 15, 2014) is located one kilometre east
of the previously delineated Kemess Underground deposit and 6.5
kilometres north of the existing Kemess mill facility. Combined with
the Kemess Underground reserves and resources, the entire Kemess
Property resource has doubled to 10.6 million gold equivalent ounces.
-
On January 14, 2015, the Company completed a revised agreement with
Crocodile Gold ("Crocodile"), whereby AuRico received a C$20 million
upfront payment and was granted a net smelter return royalty of 2% from
Crocodile's Fosterville Gold Mine beginning in 2015 and 1% from
Crocodile's Stawell Gold Mine beginning in 2016.
-
On November 11, 2014, the Company announced a joint venture strategic
partnership with Carlisle Goldfields ("Carlisle") in the Lynn Lake Gold
Camp ("Lynn Lake"). Under the joint venture agreement the Company has
acquired a 25% interest in Lynn Lake for an initial cash contribution
of C$5 million and can earn up to a 60% interest by funding C$20
million on the project over a three-year period and delivering a
feasibility study within that time period. The transaction represents
a low risk opportunity to participate in the early stage advancement of
a highly prospective mining district in Canada.
Young-Davidson Highlights
-
At the end of the year, the Young-Davidson mine had achieved a record 21
months of lost time incident free operations.
-
Production of 40,945 gold ounces for the quarter represented the
eleventh consecutive quarter of record gold production. For 2014, the
Young-Davidson mine produced 156,753 gold ounces, representing the
high-end of the Company's annual production guidance estimates. The
operation expects to deliver period-over-period production increases
going forward as the underground mine ramps-up to year-end targeted
levels at the end of 2016.
-
Underground cash costs for the quarter were $656 per gold ounce,
consistent with the prior quarter and primarily driven by increased
production, lower unit processing costs and lower underground unit
mining costs. For 2014, underground cash costs were $719 per gold
ounce, in-line with the Company's annual guidance levels.
-
During the quarter, underground mine productivity exceeded year-end
target levels and averaged approximately 4,140 tonnes per day (4,214
tonnes per day in December) at grades in-line with reserve grade
estimates. With underground productivity remaining ahead of target, the
operation is well positioned to achieve the 2015 year-end target of
6,000 tonnes per day and an ultimate productivity level of 8,000 tonnes
per day at the end of 2016.
-
Underground unit mining costs declined to approximately $39 per tonne in
the fourth quarter, exceeding the year-end target of $40 per tonne.
-
Approximately 3,438 metres of underground development advance were
completed during the quarter and 14,024 metres for the year, which is
at the high end of planned levels. The Company will continue to focus
on advancing underground development to best position the mine for
sustainable, period-over-period, productivity increases in 2015 and
beyond.
-
During the quarter, the mill facility averaged 7,757 tonnes per day with
recoveries of 88%, in-line with targeted levels.
-
Approximately 2.5 million tonnes of open pit ore, at an average grade of
approximately 0.75 grams per tonne, is stockpiled ahead of the mill
facility for future processing. As the related mining costs associated
with the open pit stockpile were expended in prior periods, the
processing of this ore will favourably augment the mine's free cash
flow profile going forward. The open pit stockpile will continue to
supplement underground ore feed to the mill processing facility as the
underground mine ramps up to targeted levels and the remaining
stockpile will be processed at the end of the mine life.
El Chanate Highlights
-
During the quarter, the open pit mining rate averaged 89,602 tonnes per
day.
-
During the quarter the operation produced 15,638 gold ounces. For 2014,
the mine produced 67,279 ounces of gold, slightly below 2014
operational guidance estimates.
-
During the quarter, cash costs were $816 per gold ounce. For 2014, cash
costs were $669 per gold ounce, in-line with 2014 operational guidance
estimates.
"In 2014, we continued to deliver on our commitment to operational
excellence and shareholder value creation. We delivered another year of
production growth and declining costs at our cornerstone Young-Davidson
mine, which underpinned the asset's transition to net free cash flow
status in the fourth quarter where the operation reported an impressive
$9 million in net free cash flow." stated
Scott Perry
, stated President
and Chief Executive Officer. He continued, "In 2015, we will continue
to focus on positioning the Company as a low cost, high margin
operation with an organic growth profile and an expanded portfolio of
quality properties located in the leading jurisdictions of Canada and
Mexico."
Adjusted Net Earnings Reconciliation
|
|
|
|
|
|
|
(in thousands, except per share metrics)
|
Quarter Ended
Dec. 31, 2014
|
|
Quarter Ended
Dec. 31, 2013
|
|
Net loss
|
($108,259)
|
|
($106,412)
|
|
Adjustments:
|
|
|
|
|
|
Deferred income tax expense related to foreign exchange
|
$14,128
|
|
$12,826
|
|
|
Foreign exchange losses
|
2,017
|
|
3,223
|
|
|
Loss on retained interest royalty
|
3,033
|
|
-
|
|
|
Net realizable value adjustments on inventory
|
16,437
|
|
37,196
|
|
|
Impairment charges
|
91,006
|
|
59,886
|
|
|
Gain on option component of convertible notes
|
-
|
|
(772)
|
|
|
Unrealized loss on contingent consideration
|
-
|
|
483
|
|
|
Impact of new Mexican mining tax
|
-
|
|
4,917
|
|
|
Other (including tax effect of adjustments)
|
(27,854)
|
|
(16,831)
|
|
Adjusted net loss
|
($9,492)
|
|
($5,484)
|
|
Adjusted net loss, per share
|
($0.04)
|
|
($0.02)
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share metrics)
|
Twelve Months Ended
Dec. 31, 2014
|
|
Twelve Months Ended
Dec. 31, 2013
|
|
Net loss
|
($169,648)
|
|
($176,770)
|
|
Adjustments:
|
|
|
|
|
|
Deferred income tax expense related to foreign exchange
|
$16,913
|
|
$9,783
|
|
|
Foreign exchange loss / (gain)
|
5,238
|
|
4,289
|
|
|
Loss on retained interest royalty
|
10,825
|
|
-
|
|
|
Net realizable value adjustments on inventory
|
23,534
|
|
42,069
|
|
|
Impairment charges
|
91,622
|
|
158,574
|
|
|
Gain on transfer of litigation claim
|
(3,177)
|
|
-
|
|
|
Loss on convertible notes tender offer
|
15,645
|
|
-
|
|
|
Corporate restructuring costs
|
2,716
|
|
-
|
|
|
Unrealized and realized (gain) / loss on investments
|
(6,589)
|
|
-
|
|
|
Gain on option component of convertible notes
|
-
|
|
(15,622)
|
|
|
Unrealized gain on derivatives
|
-
|
|
(2,071)
|
|
|
Unrealized loss on contingent consideration
|
-
|
|
7,395
|
|
|
Impact of new Mexican mining tax
|
-
|
|
4,917
|
|
|
Other (including tax effect of adjustments)
|
(25,047)
|
|
(19,512)
|
|
Adjusted net (loss) / earnings
|
($37,968)
|
|
$13,052
|
|
Adjusted net (loss) / earnings, per share
|
($0.15)
|
|
$0.05
|
|
|
|
|
|
|
Adjusted Operating Cash Flow Reconciliation
|
|
|
|
|
(in thousands, except per share metrics)
|
Quarter Ended
|
Quarter Ended
|
|
Dec. 31, 2014
|
Dec. 31, 2013
|
|
Operating cash flow
|
$28,486
|
$11,954
|
|
Add back: Non-cash change in operating working capital
|
(10,119)
|
5,554
|
|
Adjusted operating cash flow
|
$18,367
|
$17,508
|
|
Adjusted operating cash flow, per share
|
$0.07
|
$0.07
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share metrics)
|
Twelve Months Ended
|
Twelve Months Ended
|
|
Dec. 31, 2014
|
Dec. 31, 2013
|
|
Operating cash flow
|
$60,414
|
$63,266
|
|
Add back: Non-cash change in operating working capital
|
4,295
|
14,813
|
|
Adjusted operating cash flow
|
$64,709
|
$78,079
|
|
Adjusted operating cash flow, per share
|
$0.26
|
$0.31
|
|
|
|
|
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization
("Adjusted EBITDA")
|
|
|
|
|
(in thousands)
|
Quarter Ended
|
Quarter Ended
|
|
Dec. 31, 2014
|
Dec. 31, 2013
|
|
EBITDA
|
($87,309)
|
$80,069
|
|
Add back:
|
|
|
|
|
Exploration
|
17
|
20
|
|
|
Non-cash items identified in supplemental cash flow note, excluding
amortization and depletion, and deferred income tax expense / recovery
|
108,434
|
95,228
|
|
Adjusted EBITDA
|
$21,142
|
$15,179
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
Twelve Months Ended
|
Twelve Months Ended
|
|
Dec. 31, 2014
|
Dec. 31, 2013
|
|
EBITDA
|
($43,960)
|
($103,213)
|
|
Add back:
|
|
|
|
|
Exploration
|
77
|
41
|
|
|
Non-cash items identified in supplemental cash flow note, excluding
amortization and depletion, and deferred income tax expense / recovery
|
129,803
|
196,986
|
|
Adjusted EBITDA
|
$85,920
|
$87,814
|
|
|
|
|
|
Non-GAAP Measures
The Company uses the measures adjusted net earnings, cash costs per
ounce, adjusted operating cash flow, EBITDA and Adjusted EBITDA 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 and EBITDA are reconciled to the
Company's financial statements beginning on page 22 of the Company's
Management's Discussion and Analysis for the three and twelve months
ended December 31, 2014.
Adjusted net earnings is comprised of net earnings, 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,
unrealized and realized gains and losses on investments, corporate
restructuring costs, losses on the retained interest royalty and
convertible notes tender offer, impairment charges, gain on the
transfer of a litigation claim, net realizable value adjustments on
inventory, 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. Management uses adjusted operating cash
flow as a measure internally to evaluate the underlying operating cash
flow performance of the Company as a whole for the reporting periods
presented, and to assist with the planning and forecasting of future
operating cash flow.
Adjusted EBITDA represents EBITDA, adjusted for exploration expense and
other non-cash items included in earnings. While the adjustments to net
earnings in this measure includes items that are recurring, adjusted
EBITDA is a valuable indicator of the Company's ability to generate
liquidity by producing operating cash flow to fund working capital
needs, service debt obligations, and fund capital expenditures.
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").
Q4 2014 Dividend Declared
The quarterly dividend is linked to operating cash flow ("OCF"), whereby
the Company pays out 20% of the OCF generated in the preceding quarter,
divided by the Company's outstanding common shares at the time the
dividend is approved. On February 19, 2015, the Board of Directors
declared the Company's quarterly dividend payment of $0.023 per share
for the fourth quarter ended December 31, 2014, payable on March 16,
2015 to shareholders of record at the close of business on March 2,
2015.
Dividend Reinvestment Plan Highlights
The Company implemented a Dividend Reinvestment Plan ("DRIP" or "the
Plan") on June 11, 2013 that provides a convenient and cost-effective
way for eligible shareholders to acquire additional common shares
("shares") of the Company by reinvesting cash dividends paid on their
shareholdings. Highlights of the Plan include:
-
Shares issued under the Plan from the treasury of the Company may be
issued at a discount not to exceed 5% from the average market price of
the shares over the five day period preceding the relevant dividend
payment date as further described in the Plan. The current discount has
been set at 5% and shall apply until further notice by press release.
-
Brokerage commissions and administrative costs for the shares issued
under the Plan will be borne by the Company and not the registered
shareholder, however beneficial shareholders may incur fees in respect
of services provided by their nominee.
-
Shares distributed under the Plan will, at the option of the Company, be
purchased by the Plan agent from the treasury of the Company or in the
open market on the New York Stock Exchange, or a combination of both.
A copy of the Plan is available on the Company's website at www.auricogold.com/DRIP.
Webcast and Conference call
A webcast and conference call will be held on Friday, February 20, 2015 starting at 8:30 a.m. Eastern Time. Senior Management will be on the call to discuss the results.
Conference Call Access:
-
International & Toronto: 1-647-427-7450
-
Canada & U.S. Toll Free: 1-888-231-8191
Please ask to be placed into the AuRico Gold 2014 Fourth Quarter and
Year-End 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/1470369/1636711.
Archive Call Access
If you are unable to attend the conference call, a replay will be
available until midnight, February 27, 2015 by dialing the appropriate number below:
-
International & Toronto: 1-416-849-0833 Passcode: #64802471
-
Canada & U.S. Toll Free: 1-855-859-2056 Passcode: #64802471
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/1470369/1636711.
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects
in North America that have significant production growth and
exploration potential. The Company is focused on its core operations
including the cornerstone Young-Davidson gold mine in northern Ontario,
and the El Chanate mine in Sonora State, Mexico. AuRico's project
pipeline also includes the advanced development Kemess Property in
northern British Columbia and the Lynn Lake Gold Camp in northern
Manitoba. The Company also has other exploration opportunities in
Canada and Mexico. AuRico's head office is located in Toronto, Ontario,
Canada.
Cautionary Statement
This press release contains certain information that constitutes
"forward-looking information" and "forward-looking statements" as
defined under Canadian and U.S. securities laws. All statements in this
press release, other than statements of historical fact, are
forward-looking statements. The words "expect", "believe",
"anticipate", "contemplate", "may", "could", "will", "intend",
"estimate", "forecast", "target", "budget", "schedule" and similar
expressions identify forward-looking statements. Forward-looking
statements in this press release include, without limitation, those
under the headings , "Young-Davidson Highlights" and "El Chanate Highlights" which include, without limitation, statements with respect to our
expectations on underground productivity levels, underground unit
mining cost, underground development, mill facility processing rate,
cash flow, free cash flow, cash costs, capital investment estimates,
information as to our strategy, plans and future financial and
operating performance, such as our expansion plans, project timelines,
production plans, projected cash flows or capital expenditure levels,
cost estimates, mining or milling methods, projected exploration
results, resource and reserve estimates and other statements that
express our expectations or estimates of future performance.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by management
at the time of making such statements, 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 and assumptions underlying the forward-looking
statements in this press release 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, including the
necessary licenses, permits, authorizations and/or approvals from
appropriate regulatory authorities; 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, as well as those
factors discussed under "Risk Factors" in the Company's most recent
Annual Information Form.
Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied by the forward-looking
statements contained in this press release. Such statements are based
on a number of assumptions which may prove to be incorrect, including,
but not limited to, the assumptions set forth in our most recent Form
40-F/Annual Information Form. 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.
In particular, forward-looking information included in this document
includes, but is not limited to: (1) production estimates and
production growth rates, which assume accuracy of projected ore grade,
mining rates, recovery timing and recovery rate estimates and may be
impacted by unscheduled maintenance, labour and contractor
availability; (2) capital expenditures and other cash costs, which
assume foreign exchange rates and accuracy of production estimates, and
may be impacted by unexpected maintenance, the need to hire external
resources and accelerated capital plans; (3) profits and free cash
flow, which assume production and expenditure estimates and may be
impacted by gold prices, production estimates, and the timing of
payments, and (4) reserves and resources which are forward looking
statements by their nature involving implied assessment, and may be
impacted by metal prices, future drilling results, operating costs,
mining recoveries and dilution rates.
There can be no assurance that forward-looking statements or information
will prove to be accurate, accordingly, investors should not place
undue reliance on the forward-looking statements or information
contained herein. 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. "Inferred resources" have
a great amount of uncertainty as to their existence and as to their
economic and legal feasibility. It cannot be assumed that all or any
part of an inferred resource will ever be upgraded to a higher
category. 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.
PDF available at: http://stream1.newswire.ca/media/2015/02/19/20150219_C9745_DOC_EN_43380.pdf