El Chanate Mine, Mexico
The El Chanate mine continues to perform at targeted levels and the Company expects to achieve current production estimates at the mine in 2012 and 2013. During the first six months of 2012, cash costs have favourably outperformed guidance levels and this trend appears to be continuing into the second half of the year. As a result, the Company is reducing cash cost estimates for 2012.
2012 Calendar Year Prior Guidance Revised Guidance Production (Au Oz's) 78,000 to 88,000 78,000 to 88,000 Cash Costs Per Ounce ($/oz) $450 to $480 $430 to $460 Capital Expenditure Up to $49 million Up to $49 million 1. Exclusive of exploration.
In addition to future cash flow from operations, AuRico's financial foundation has recently been bolstered through:
- completing the divestment of the Stawell and Fosterville mines, on May 4, 2012, for a cash payment of CAD$55 million, CAD$10 million in equity shares of Crocodile Gold, as well as a potential participation in future free cash flows from the mines;
- completing the sale of the El Cubo mine and the Guadalupe y Calvo exploration project, on July 13, 2012, for a cash payment of USD$100 million, USD$100 million in equity shares of Endeavour Silver, and up to US$50 million in future contingent payments; and,
- expanding the Company's revolving credit facility on April 25, 2012, to USD$250 million;