TORONTO, April 16, 2012 /PRNewswire/ --
Update Follows Recently Announced Divestitures of Non-Core Assets
AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or "AuRico Gold" or the "Company") is pleased to provide an update to its operational guidance for the next three years. While guidance on production, cash costs, and capital expenditures at AuRico's core operations has not changed, the Company wishes to highlight updated consolidated guidance that reflects the recently announced divestitures of its non-core mines. On March 27, AuRico announced the execution of a definitive agreement regarding the divestiture of its Australian mines, and on April 15, AuRico announced the execution of a definitive agreement regarding the sale of the El Cubo mine and the Guadalupe y Calvo project in Mexico.
The divestitures are consistent with AuRico Gold's strategy of focusing on its large, low cost, core assets in North America. AuRico Gold is now directing all of its attention to delivering value for shareholders from its three core operating mines, including Young- Davidson where first production is imminent, and its development pipeline in Mexico and Canada.2012 Quarterly Operational Guidance For 2012, the Company's quarter by quarter guidance on estimated production and cash costs are summarized in the table below.
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Total 2012 Production Gold eq. oz. Gold eq. oz. Gold eq. oz. Gold eq. oz. Gold eq. oz. Ocampo 36,000-38,000 50,000-56,000 47,000-53,000 47,000-53,000 180,000-200,000 El Chanate 18,000-20,000 20,000-22,000 20,000-23,000 20,000-23,000 78,000-88,000 Young-Davidson - 15,000-17,000 23,000-27,000 27,000-31,000 65,000-75,000 Total 54,000-58,000 85,000-95,000 90,000-103,000 94,000-107,000 323,000-363,000 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Total 2012 Cash Costs Per Gold eq. Per Gold eq. Per Gold eq. Per Gold eq. Per Gold eq. oz. oz. oz. oz. oz. Ocampo $510-$540 $425-$455 $440-$470 $500-$530 $465-$495 El Chanate $410-$440 $475-$505 $455-$485 $455-$485 $450-$480 Young-Davidson - - $450-$550 $450-$550 $450-$550 Total $480-$505 $445-$470 $455-$480 $490-$515 $465-$490
1. Production and cash costs for the Ocampo mine and on a consolidated basis are calculated on a per gold equivalent ounce basis. Gold equivalent production and cash costs are based on a gold equivalency ratio of 55:1 unless otherwise indicated. 2. Cash costs for the Young-Davidson and El Chanate mines are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Production includes gold ounces only. 3. Anticipated cash costs at the Young-Davidson mine do not include pre-production ounces reported prior to the declaration of commercial production. 4. The following currency assumptions were used to forecast 2012 estimates: - 12:1 Mexican pesos to the US dollar - 1:1 Canadian dollars to the US dollar 5. See the Non-GAAP Measures section on page 26 of the Management's Discussion and Analysis for the year ended December 31, 2011.Three Year Guidance