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AuRico Gold Announces Preliminary Fourth Quarter And Annual Operational Results And Provides 2013 Operational Outlook

Company-wide production in 2013 is expected to be in the range of 190,000 to 220,000 gold ounces, significantly increasing production over 2012, primarily as a result of increasing production from the Young-Davidson mine as underground production ramps-up over the year and as improved productivity is achieved through the commissioning of the shaft infrastructure during the third quarter. As a result, production in the second half of the year is expected to strengthen and will exceed production during the first half of the year. Cash costs are expected to be in the range of $540 to $620 per ounce and all-in costs[1] are expected be between $1,100 and $1,200 per ounce. The Company intends to provide all-in cash costs as a reported measure in 2013.

    2013 Operational Estimates[2]
    Gold Production (ounces)
    Young-Davidson                                     120,000-140,000
    El Chanate                                           70,000-80,000
    Total Production                                   190,000-220,000
    Cash Costs per Ounce
    Young-Davidson[3]                                        $575-$675
    El Chanate                                               $475-$525
    Total Cash Costs per Ounce                               $540-$620
    All-in Cash Costs[1]
    Young-Davidson[3]                                    $1,250-$1,350
    El Chanate                                             $900-$1,000
    Total All-in Cash Costs per Ounce                    $1,100-$1,200
    Capital Investment Program (US$000's)
    Young-Davidson
    Non-recurring Growth Capital
    Paste Backfill Plant                               $45,000-$50,000
    Shaft and Mid-Shaft Loading and Crushing Facility  $25,000-$30,000
    Open Pit Mine Development                            $6,000-$8,000
    Sustaining Capital[4]                              $59,000-$62,000
    Total Capital Investment - Young Davidson        $135,000-$150,000
    El Chanate
    Non-recurring Growth Capital
    Southeast Open Pit Expansion                       $20,000-$25,000
    Heap Leach Expansion                                 $2,000-$3,000
    Sustaining Capital[4]                              $13,000-$17,000
    Total Capital Investment - El Chanate              $35,000-$45,000
    Total Capital Investment                         $170,000-$195,000
    Depletion and Amortization (US$ per ounce)
    Young-Davidson                                           $300-$310
    El Chanate                                               $245-$255
    Total Depletion and Amortization                         $280-$290
    Exploration (US$000's)
    Young-Davidson                                        Up to $3,500
    El Chanate                                            Up to $3,500
    Other Properties                                      Up to $8,000
    Total Exploration                                    Up to $15,000
    General and Administrative (US$000's)[5]
    Corporate G&A                                              $25,000
    [1]. All-in costs are defined as cash costs, sustaining capital, corporate
         general and administrative expense and exploration expense.
    [2]. The following currency assumptions were used to forecast 2013
         estimates:
                        - 12.5:1 Mexican pesos to the US dollar
                        - 1:1 Canadian dollars to the US dollar
    [3]. Prior to commissioning the underground mine, cash costs are
         calculated on ounces produced from the open pit only. All underground
         costs are capitalized, and any revenue related to underground ounces
         sold is credited against capital.
    [4]. Sustaining capital is defined as capital expenditures required to
         maintain current levels of production.
    [5]. Does not include share-based compensation.
 

"Our outlook for 2013 is consistent with our philosophy of delivering reliable, consistent, sustainable performance that will underpin our commitment to shareholder friendly initiatives such as the recently announced Substantial Issuer Bid and the announcement of an ongoing dividend policy before the end of March. Over the past number of months we have streamlined our asset base to focus on quality production going forward and our 2013 production profile is based on quality, low cost, achievable ounces. Our growing production profile is primarily driven by the Young-Davidson mine, where over the last four months of commercial production we have demonstrated the growing potential of this asset," stated Scott Perry. He continued, "In 2013, we will be focused on completing our non-recurring capital investment projects, including the commissioning of the Northgate shaft during the third quarter, which will enhance unit costs and improve underground productivities at Young-Davidson. We enter 2013 as a transformed company with a management team committed to delivering shareholder value."

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Stock quotes in this article: AUQ 

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