Click here to close now.




















Welcome!

Microsoft Cloud Authors: Adine Deford, Elizabeth White, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

AuRico Reports Third Quarter Financial Results and Updates on Young-Davidson

TORONTO, Nov. 12, 2012 /PRNewswire/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or "the Company") reports financial results for the three and nine months ended September 30, 2012 and provides an update on the Young-Davidson mine. All amounts are in U.S. dollars. The Company will host a conference call on Tuesday, November 13, 2012 beginning at 10:00 a.m. Eastern Time.

Third Quarter Financial Highlights


For the third quarter, the Company reported the following results, inclusive of discontinued operations unless otherwise noted:

  • Revenues of $77.1 million.
  • Adjusted net earnings(1) of $29.5 million, or $0.10 per share.
  • Consolidated production of 51,103 gold ounces(2) and 478,497 silver ounces, or 59,727 gold equivalent ounces(2) using the actual gold equivalency ratio of 56:1 realized in the quarter.
  • Consolidated cash costs of $625 per gold equivalent ounce (realized)(1), prior to the reversal of a net realizable value adjustment on the Ocampo ore-in-process heap leach inventory. Inclusive of the reversal, cash costs were $553 per gold equivalent ounce (realized)(1).
  • Operating cash flow (before changes in working capital) of $40.6 million, or $0.14 per share.
  • Cash costs from continuing operations of $504 per gold ounce(3).
  • Average realized margin from continuing operations of $1,169 per ounce, or 70%.

(1)         See the table at the end of this press release for a reconciliation of adjusted net earnings and refer to the discussion of Non-GAAP measures below.
(2)         Includes 7,922 pre-commercial production gold ounces produced at Young-Davidson.
(3)         Continuing operations include the Young-Davidson and El Chanate mine operations.

"During the quarter we announced the sale of the Ocampo mine, which is expected to close in mid-December. Following the completion of the transaction,  the Company will focus on delivering reliable, stable and consistent performance from our two remaining low-cost, long-life, core assets located in Canada and Mexico, which will underpin our commitment to shareholder friendly initiatives. Our expanding production base, strong cash position and growing free cash flow profile should provide a platform for shareholder value creation," said Scott Perry, Chief Executive Officer. He continued, "Our production growth profile is primarily driven by the recently commissioned Young-Davidson mine, which reported solid production and cash cost results in its first month of commercial production. In the latter part of October, the first two underground stopes in the Upper Boundary Zone came into production and as a result, we expect strong production performance at the Young-Davidson mine due to the contribution of this higher grade underground ore during the fourth quarter."

Third Quarter Highlights

         
  Quarter Ended
Sept. 30, 2012(1)
Quarter Ended
Sept. 30, 2011(1)
Nine Months
Ended
Sept. 30, 2012(1)
Nine Months
Ended
Sept. 30, 2011(1)
Revenue from mining operations $77,063 $112,087 $368,051 $295,304
Average realized gold price per ounce $1,664 $1,704 $1,666 $1,552
Average realized silver price per ounce $29.87 $38.15 $30.95 $36.37
Earnings from operations $16,967 $52,793 $80,113 $120,154
Net earnings from continuing operations $43,018 $20,626 $36,199 $6,268
Net (loss) / earnings from discontinued operations ($7,781) $41,988 $22,475 $92,655
Total net earnings $35,237 $62,614 $58,674 $98,923
Net earnings per share from continuing operations, basic $0.15 $0.12 $0.13 $0.04
Net (loss) / earnings per share from discontinued operations, basic ($0.03) $0.24 $0.08 $0.58
Total net earnings per share, basic $0.12 $0.36 $0.21 $0.62
Adjusted net earnings(2) $29,491 $34,767 $111,152 $91,416
Adjusted net earnings per share(2) $0.10 $0.20 $0.39 $0.57
Total operating cash flow $6,170 $51,713 $85,531 $139,747
Total net free cash flow ($103,433) $12,251 ($343,056) $38,280

(1)  The information in this table includes the results of both continuing and discontinued operations, except where indicated.
(2)  See the table at the end of this press release for a reconciliation of adjusted net earnings and refer to the discussion of Non-GAAP measures below.

Operational Results - Continuing Operations

     
  Quarter ended
Sept 30/12
Nine months ended
Sept. 30/12
  El Chanate Young-Davidson Total El Chanate Young-Davidson Total
Gold oz. produced 19,388 9,903 29,291 56,363 9,903 66,266
Gold oz. sold 19,121 3,999 23,120 54,286 3,999 58,285
Pre-commercial production
gold oz. produced(1)
- 7,922 7,922 - 19,872 19,872
Pre-commercial production
gold oz. sold(1)
- 8,701 8,701 - 13,910 13,910
Total cash costs per gold
oz.(2)(3)(4)
$434 $639 $504 $425 $639 $458
Margins per gold oz. $1,221 $1,117 $1,169 $1,240 $1,117 $1,213

(1)  Pre-commercial production ounces produced and sold at Young-Davidson are excluded from consolidated ounces produced and sold, as these ounces are credited against capitalized
project costs.
(2)  Cash costs for the El Chanate mine and Young-Davidson mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit.  Refer to the discussion of Non-GAAP
measures below.
(3)  Gold ounces used to calculate cash costs include ounces sold at the El Chanate mine and ounces produced at the Young-Davidson mine for the three and nine months ended
September 30, 2012.
(4)  The Young-Davidson mine declared commercial production on September 1, 2012 and therefore, cash costs are calculated on post-commercial production ounces only (9,903 ounces). 
Pre-commercial production ounces produced are excluded from the calculation of cash costs as they are credited against capitalized project costs.

Young-Davidson Update (October)


  • On September 1, 2012, the Young-Davidson mine achieved commercial production.
  • During October, the Young-Davidson mine produced 9,177 gold ounces.
  • Production from the initial two stopes in the Upper Boundary Zone began in the latter part of October.  During the fourth quarter the Company has targeted mining 90,000 tonnes at grades in excess of 3.0 grams per tonne gold, including the 12,000 tonnes mined in October at grades averaging 4.0 grams per tonne gold.
  • Mill feed grades are continuing to increase, through a combination of higher grade open pit ore and the initial production contribution from the underground.
  • The mill facility continued to operate at target levels during October.
  • Raise boring of the second leg (450 metres) of the Northgate shaft is progressing well and is expected to be completed in early 2013. Structural work for the new headframe will be completed before year end, with mechanical installations completed in Q1 2013. Construction of the mid-shaft crushing and loading infrastructure is on schedule for commissioning by mid-year 2013.

Corporate Highlights


  • On October 9, 2012, the Company entered into a definitive agreement with Minera Frisco, S.A.B. de C.V. ("Minera Frisco"), pursuant to which Minera Frisco will acquire the Company's Ocampo mine and the Venus and Los Jarros exploration properties located in Chihuahua, Mexico, as well as a 50% interest in the Orion advanced development project located in Nayarit, Mexico, for total consideration of $750 million in cash. The transaction is expected to close in December 2012.
  • On October 5, 2012, the Company reached an agreement to settle the class action claim filed by Ed J. McKenna, subject to approval of the court and the right of the Company to terminate the agreement under certain circumstances.
  • During October 2012, the Company sold its entire equity interest in Endeavour Silver Corp. and Crocodile Gold Corporation on a block trade basis for gross proceeds of $104.6 million.

Adjusted Net Earnings

                 
  Young-
Davidson
El
Chanate
Corporate &
Other
Continuing
Operations
Ocampo El Cubo Discontinued
Operations
Consolidated
Net earnings / (loss) 2,740 16,590 23,688 43,018 (27,282) 19,501 (7,781) 35,237
Adjustments:                
  Unrealized foreign
exchange loss
- - 7,952 7,952 1,948 242 2,190 10,142
  Fair value adjustment on
option component of
convertible senior notes
- - (14,416) (14,416) - - - (14,416)
  Unrealized gain on
investments
- - (20,251) (20,251) - - - (20,251)
  Other unrealized gains
and non-recurring
expenses
- - (1,598) (1,598) - - - (1,598)
  Disposition-related costs - - - - 3,507 1,820 5,327 5,327
  Reversal of NRV
adjustment on Ocampo
heap leach
- - - - (6,074) - (6,074) (6,074)
  Ocampo outside tax
basis adjustment
- - - - 39,168 - 39,168 39,168
  Gain on disposition of El
Cubo and GyC
- - - - - (24,062) (24,062) (24,062)
  Tax impact of
adjustments
- - 2,323 2,323 333 3,362 3,695 6,018
Adjusted net earnings 2,740 16,590 (2,302) 17,028 11,600 863 12,463 29,491
Earnings per share       $ 0.06     $ 0.04 $ 0.10

Non-GAAP Measures

The Company uses the measures adjusted net earnings, cash costs per ounce, 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 and net free cash flow are reconciled to the Company's financial statements on page 27 of the Company's Management's Discussion and Analysis.

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 investments and derivative liabilities, 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.

Financial Statements and Management's Discussion and Analysis

The interim 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").

Conference Call Details


A webcast and conference call will be held on Tuesday, November 13, 2012 starting at 10:00 a.m. Eastern Time. Senior management will be on the call to discuss the results.

Conference Call Access:

Canada & U.S. Toll Free:  1-888-231-8191
International & Toronto:  1-647-427-7450

Conference Call Live Webcast:

The conference call will be broadcast live on the internet via webcast.

To access the webcast, please follow the link below:

http://www.newswire.ca/en/webcast/detail/1042473/1132593

Archive Call Access:

If you are unable to attend the conference call, a replay will be available until midnight, November 20, 2012 by dialing the appropriate number below:

  • Local Toronto Participants: 1-416-849-0833  Passcode: #35680929
  • North America Toll Free: 1-855-859-2056  Passcode: #35680929

Archive Webcast:

The webcast will be archived for 90 days by following the link provided below:

http://www.newswire.ca/en/webcast/detail/1042473/1132593

About AuRico Gold

AuRico Gold is a leading Canadian gold producer with a diversified portfolio of high quality mines and projects in North America that have significant production growth and exploration potential. Following the divestiture of Ocampo, the Company will be focused on its core operations including the Young-Davidson gold mine in northern Ontario which declared commercial production on September 1st, 2012 and the El Chanate mine in Sonora State. AuRico's strong project pipeline also includes advanced development opportunities in Mexico and British Columbia. AuRico's head office is located in Toronto, Ontario, Canada

Cautionary Statement

Certain information included in this news 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", "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 and silver; changes in foreign exchange rates (particularly the Canadian dollar, Mexican peso and U.S. dollar); the impact of inflation; changes in our credit rating; employee relations; litigation; disruptions affecting operations; availability of and increased costs associated with mining inputs and labor; development delays at the Young-Davidson mine; technical challenges associated with the construction of capital projects; 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, El Chanate and Ocampo mines and may not perform as planned; the ability to realize the perceived benefits from the acquisition of Capital Gold and Northgate; the ability to complete the sale of the Ocampo mine; 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; risks arising from holding derivative instruments; business opportunities that may be pursued by, the company; and the ability of the company to successfully integrate acquisitions. 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 third quarter report 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.

 

 

SOURCE AuRico Gold Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...