"While we have met with operational challenges at the Ocampo mine in 2012, we have launched initiatives to address those challenges and return Ocampo to more stable and reliable production levels. We particularly look forward to AuRico's organic growth profile as we expect all our mines to increase gold output, primarily driven by the increasing production at the Young-Davidson mine." stated Scott Perry, President and CEO. He continued, "We have repositioned the Company to deliver improvements in operating performance and provide long-term sustainable growth that is supported by a strong financial foundation. For the remainder of 2012 and into 2013 and beyond, AuRico fully anticipates meeting its targets and creating long term value for our shareholders."
Two Year Guidance (2012 to 2013)
Other than the revisions noted above, the Company believes that estimates at all assets have been revised appropriately and no further updates are anticipated. Consistent with previous years, the Company intends to release updated three-year operational and capital expenditure estimates for the years 2013 to 2015, along with updated reserves and resources, at the end of March 2013.
AuRico's two-year operation and capital expenditure estimates for the years 2012 to 2013, inclusive of the guidance revisions are illustrated in the following table.
2012 2013 Production Gold eq. Oz. Gold eq. Oz. Ocampo 115,000 to 125,000 125,000 to 155,000 El Chanate 78,000 to 88,000 75,000 to 85,000 Young-Davidson 55,000 to 65,000 135,000 to 155,000 Total 248,000-278,000 335,000 to 395,000 2012 2013 Cash Costs Per Gold eq. oz. Per Gold eq. oz. Ocampo $775 to $875 $650 to $750 El Chanate $430 to $460 $455 to $485 Young-Davidson $550 to $650 $500 to $550 Total $610 to $695 $550 to $610 2012 2013 Capex (excluding exploration) US$ (millions) US$ (millions) Ocampo Up to $70 Up to $75 El Chanate Up to $49 Up to $40 Young-Davidson Up to $240 Up to $130 Total Up to $359 Up to $245 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. Forecasted 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 page26 of the Management's Discussion and Analysis for the year ended December 31, 2011About AuRico Gold