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AuRico Reports Fourth Quarter And Annual Financial Results

"The sale of Ocampo in mid-December marked the completion of a two-year initiative aimed at improving the quality of our asset base in order to reposition the Company for low cost, quality production and deliver reliable, sustainable and consistent performance going forward. We have delivered on our commitment to shareholder friendly initiatives through the completion of a $300 million share buy-back in late January, as well the recent implementation of a peer leading ongoing dividend policy," said Scott Perry, President and Chief Executive Officer. He continued, "At our cornerstone Young-Davidson mine, the construction of the mid-shaft crushing and loading infrastructure is advancing on schedule and once commissioned, will be the key catalyst in driving the Company's growing production profile and cash flow steams over the next few years."

    (1)  Continuing operations include the Young-Davidson and El Chanate mine
                                  operations.
    (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.
    (3)    Includes 7,127 and 26,999 pre-production gold ounces produced at
          Young-Davidson during the three months and year ended December 31,
                                 2012, respectively.

Corporate Highlights

  • On March 25, 2013 the Company announced that its Board of Directors has declared the Company's initial quarterly dividend payment of $0.04 per share for the first quarter ended March 31, 2013, payable on April 18, 2013 to shareholders of record at the close of business on April 4, 2013. Using the average gold price realized during 2012, the annual dividend payment represents an equivalent of approximately 23,500 ounces of gold, or 18% of 2012 annual gold production, from continuing operations.
  • On January 29, 2013 the Company announced that it had completed a $300 million "modified Dutch auction" substantial issuer bid and subsequently purchased and cancelled 36,144,578 common shares at a price of $8.30 per share, which represented approximately 12.8% of the shares outstanding on an undiluted basis as of January 23, 2013.
  • On March 25, 2013 the Company reported Proven and Probable Mineral Reserves of 6.8 million gold ounces (201,695 tonnes at 1.05 g/t), a 1.69 million ounce increase over 2011, primarily driven through reserve additions reported from the Kemess Project. Results from the Kemess Underground feasibility study outline the development of an underground block cave operation with average annual production of 105,000 ounces of gold and 44 million pounds of copper at cash costs of $213 per ounce of gold, net of by-product credits, over a mine-life of approximately 12 years.

Highlights - Continuing Operations



    (in thousands,
    except ounces,
    per share
    amounts,
    average realized
    prices and total      Quarter Ended    Quarter Ended      Year Ended       Year Ended
    cash costs)           Dec. 31, 2012    Dec. 31, 2011    Dec. 31, 2012    Dec. 31, 2011
    Gold ounces
    produced(1)                41,145           18,080          127,283           49,395
    Total cash costs
    per gold
    ounce(2)                     $628             $401             $516             $449
    Revenue from
    mining
    operations                $63,119          $29,696         $163,622          $83,932
    Average realized
    gold price per
    ounce                      $1,720           $1,661           $1,690           $1,631
    Adjusted net
    earnings /
    (loss)(2)                 $13,681         ($7,410)          $34,729         ($7,511)
    Adjusted net
    earnings /
    (loss) per
    share, basic(2)             $0.05          ($0.03)            $0.12          ($0.04)
    Non-cash
    goodwill
    impairment
    charge(3)                $127,000                -         $127,000                -
    Net (loss) /
    earnings               ($134,420)          $23,027        ($97,821)          $29,295
    Net (loss) /
    earnings per
    share, basic              ($0.48)            $0.09          ($0.34)            $0.16
    Operating cash
    flow (before
    changes in
    working
    capital)                  $31,148           $3,069          $39,100           $4,861
    Net free cash
    flow(2)                 ($66,340)       ($105,891)       ($368,731)       ($111,054)

    1. The quarter and year ended December 31, 2012 includes pre-production ounces
       from the Young-Davidson mine.
    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.
    3. Non-cash goodwill impairment charge related to the El Chanate mine as
       required under IFRS accounting standards.

Consolidated Highlights - Continuing and Discontinued Operations



    (in thousands,
    except ounces,
    per share
    amounts,
    average realized
    prices and total      Quarter Ended    Quarter Ended      Year Ended       Year Ended
    cash costs)           Dec. 31, 2012    Dec. 31, 2011    Dec. 31, 2012    Dec. 31, 2011
    Gold ounces
    produced(1)                50,730           72,141          250,484          187,423
    Total cash costs
    per gold
    ounce(2)                     $736             $375             $542            ($92)
    Revenue from
    mining
    operations                $89,316         $154,811         $457,367         $450,115
    Average realized
    gold price per
    ounce                      $1,721           $1,672           $1,678           $1,599
    Adjusted net
    earnings(2)               $60,945           $2,876         $114,080          $94,292
    Adjusted net
    earnings per
    share, basic(2)             $0.22            $0.01            $0.40            $0.51
    Non-cash
    goodwill
    impairment
    charge(3)                $127,000                -         $127,000                -
    Net (loss) /
    earnings                ($25,443)          $77,936          $33,231         $176,859
    Net (loss) /
    earnings per
    share, basic              ($0.09)            $0.31            $0.12            $0.96
    Operating cash
    flow (before
    changes in
    working
    capital)                  $34,106          $76,115         $170,375         $201,327
    Net free cash
    flow(2)                 ($90,124)       ($103,842)       ($433,180)        ($65,562)


    1. The quarter ended and year ended December 31, 2012 includes pre-production
       ounces from the Young-Davidson mine.
    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.
    3. Non-cash goodwill impairment charge related to the El Chanate mine as
       required under IFRS accounting standards.

El Chanate Cash Cost Guidance Revision - IFRIC 20

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