|By PR Newswire||
|November 12, 2012 09:20 PM EST||
TORONTO, November 13, 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
Nine Months Nine Months Quarter Ended Quarter Ended Ended Ended Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2012(1) 2011(1) 2012(1) 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 El Chanate Young-Davidson Total Gold oz. produced 19,388 9,903 29,291 Gold oz. sold 19,121 3,999 23,120 Pre-commercial production gold oz. produced(1) - 7,922 7,922 Pre-commercial production gold oz. sold(1) - 8,701 8,701 Total cash costs per gold oz.(2)(3)(4) $434 $639 $504 Margins per gold oz. $1,221 $1,117 $1,169
Nine months ended Sept. 30/12 El Chanate Young-Davidson Total Gold oz. produced 56,363 9,903 66,266 Gold oz. sold 54,286 3,999 58,285 Pre-commercial production gold oz. produced(1) - 19,872 19,872 Pre-commercial production gold oz. sold(1) - 13,910 13,910 Total cash costs per gold oz.(2)(3)(4) $425 $639 $458 Margins per gold oz. $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.
- 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- El Corporate & Continuing Davidson Chanate Other Operations Ocampo Net earnings / (loss) 2,740 16,590 23,688 43,018 (27,282) Adjustments: Unrealized foreign exchange loss - - 7,952 7,952 1,948 Fair value adjustment on option component of convertible senior notes - - (14,416) (14,416) - Unrealized gain on investments - - (20,251) (20,251) - Other unrealized gains and non-recurring expenses - - (1,598) (1,598) - Disposition-related costs - - - - 3,507 Reversal of NRV adjustment on Ocampo heap leach - - - - (6,074) Ocampo outside tax basis adjustment - - - - 39,168 Gain on disposition of El Cubo and GyC - - - - - Tax impact of adjustments - - 2,323 2,323 333 Adjusted net earnings 2,740 16,590 (2,302) 17,028 11,600 Earnings per share $ 0.06
Discontinued El Cubo Operations Consolidated Net earnings / (loss) 19,501 (7,781) 35,237 Adjustments: Unrealized foreign exchange loss 242 2,190 10,142 Fair value adjustment on option component of convertible senior notes - - (14,416) Unrealized gain on investments - - (20,251) Other unrealized gains and non-recurring expenses - - (1,598) Disposition-related costs 1,820 5,327 5,327 Reversal of NRV adjustment on Ocampo heap leach - (6,074) (6,074) Ocampo outside tax basis adjustment - 39,168 39,168 Gain on disposition of El Cubo and GyC (24,062) (24,062) (24,062) Tax impact of adjustments 3,362 3,695 6,018 Adjusted net earnings 863 12,463 29,491 Earnings per share $ 0.04 $ 0.10
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 http://www.auricogold.com or under the Company's profile on http://www.sedar.com and with the Securities and Exchange Commission at http://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:
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
The webcast will be archived for 90 days by following the link provided below:
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
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.
For further information please visit the AuRico Gold website at http://www.auricogold.com or contact:
Chief Executive Officer
AuRico Gold Inc.
Vice President, Investor Relations
AuRico Gold Inc.
GENBAND has announced that SageNet is leveraging the Nuvia platform to deliver Unified Communications as a Service (UCaaS) to its large base of retail and enterprise customers. Nuvia’s cloud-based solution provides SageNet’s customers with a full suite of business communications and collaboration tools. Two large national SageNet retail customers have recently signed up to deploy the Nuvia platform and the company will continue to sell the service to new and existing customers. Nuvia’s capabilities include HD voice, video, multimedia messaging, mobility, conferencing, Web collaboration, deskt...
Mar. 29, 2015 01:00 AM EDT Reads: 1,446
The WebRTC Summit 2014 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
Mar. 28, 2015 11:00 PM EDT Reads: 1,537
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Mar. 28, 2015 08:00 PM EDT Reads: 1,777
SYS-CON Events announced today that Cisco, the worldwide leader in IT that transforms how people connect, communicate and collaborate, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cisco makes amazing things happen by connecting the unconnected. Cisco has shaped the future of the Internet by becoming the worldwide leader in transforming how people connect, communicate and collaborate. Cisco and our partners are building the platform for the Internet of Everything by connecting the...
Mar. 28, 2015 07:00 PM EDT Reads: 5,181
Temasys has announced senior management additions to its team. Joining are David Holloway as Vice President of Commercial and Nadine Yap as Vice President of Product. Over the past 12 months Temasys has doubled in size as it adds new customers and expands the development of its Skylink platform. Skylink leads the charge to move WebRTC, traditionally seen as a desktop, browser based technology, to become a ubiquitous web communications technology on web and mobile, as well as Internet of Things compatible devices.
Mar. 28, 2015 06:00 PM EDT Reads: 1,820
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Mar. 28, 2015 06:00 PM EDT Reads: 1,452
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
Mar. 28, 2015 06:00 PM EDT Reads: 1,348
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Mar. 28, 2015 04:15 PM EDT Reads: 2,417
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
Mar. 28, 2015 04:15 PM EDT Reads: 1,521
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Mar. 28, 2015 03:30 PM EDT Reads: 2,153
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dr...
Mar. 28, 2015 03:00 PM EDT Reads: 2,785
SYS-CON Events announced today that Liaison Technologies, a leading provider of data management and integration cloud services and solutions, has been named "Silver Sponsor" of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York, NY. Liaison Technologies is a recognized market leader in providing cloud-enabled data integration and data management solutions to break down complex information barriers, enabling enterprises to make smarter decisions, faster.
Mar. 28, 2015 03:00 PM EDT Reads: 3,426
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...
Mar. 28, 2015 02:00 PM EDT Reads: 1,622
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
Mar. 28, 2015 12:45 PM EDT Reads: 4,644
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
Mar. 28, 2015 12:00 PM EDT Reads: 1,418
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
Mar. 28, 2015 11:00 AM EDT Reads: 2,045
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
Mar. 28, 2015 11:00 AM EDT Reads: 1,383
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Mar. 28, 2015 09:15 AM EDT Reads: 2,202
SOA Software has changed its name to Akana. With roots in Web Services and SOA Governance, Akana has established itself as a leader in API Management and is expanding into cloud integration as an alternative to the traditional heavyweight enterprise service bus (ESB). The company recently announced that it achieved more than 90% year-over-year growth. As Akana, the company now addresses the evolution and diversification of SOA, unifying security, management, and DevOps across SOA, APIs, microservices, and more.
Mar. 28, 2015 08:30 AM EDT Reads: 2,030
After making a doctor’s appointment via your mobile device, you receive a calendar invite. The day of your appointment, you get a reminder with the doctor’s location and contact information. As you enter the doctor’s exam room, the medical team is equipped with the latest tablet containing your medical history – he or she makes real time updates to your medical file. At the end of your visit, you receive an electronic prescription to your preferred pharmacy and can schedule your next appointment.
Mar. 28, 2015 08:00 AM EDT Reads: 647