TORONTO, July 16, 2013 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today announces preliminary second quarter
operational results. All amounts are in U.S. dollars unless otherwise
Production and cash costs in the second quarter were in-line with plan
at both operations. Productivities at the Young-Davidson mine continue
to meet or exceed targeted levels with the shaft crushing and hoisting
system on track to be commissioned during September. Once commissioned,
the shaft and hoisting system will drive enhanced underground
productivities and unit cost efficiencies over the remainder of the
Preliminary 2013 Second Quarter Operational Results
June 30, 2013
June 30, 2013
Gold Ounces Produced3
Total Cash Costs per ounce1,2
Gold Ounces Produced
Total Cash Costs per ounce2
Gold Ounces Produced3
Total Cash Costs per ounce2
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.
Cash costs, prior to long-term, low-grade stockpile and heap leach
inventory adjustments (see Net Realizable Value Adjustment disclosure
provided below), are estimates only and are subject to change. See the
Non-GAAP Measures section on page 15 of the Management's Discussion and
Analysis for the three months ended March 31, 2013.
Includes pre-production gold ounces from the Young-Davidson underground
On June 11, 2013, AuRico's Board of Directors approved the introduction
of a dividend reinvestment plan that will provide shareholders with a
cost-effective way to acquire additional common shares by reinvesting
cash dividends. Eligible shareholders may elect to participate in the
dividend reinvestment plan commencing with the July 2013 dividend.
Participation in the dividend reinvestment plan is optional. Further
information on the Company's dividend reinvestment plan is available
through the following link: www.auricogold.com/DRIP.
On June 27, 2013, the Company announced the appointment of Mr. Alan
Edwards as non-executive Chairman of the Board effective July 1, 2013.
Mr. Edwards was appointed as an independent director on May 13, 2010
and has served as Chair of the Sustainability Committee.
On July 3, 2013, the Board of Directors declared the Company's quarterly
dividend payment of $0.04 per share for the second quarter ended June
30, 2013, payable on July 29, 2013 to shareholders of record at the
close of business on July 15, 2013.
Net Realizable Value Adjustment and Impairment Charges
Due to the lower metal price environment currently being experienced,
the Company is currently conducting net realizable value testing on its
historical heap leach and long-term, low-grade stockpile inventories.
These tests may result in the need to recognize a net realizable value
adjustment on these inventories at June 30th. In addition, as a result of the recent and continued significant
decline in the gold price, the Company is evaluating whether its
long-term gold price assumptions should be revised. As indicated in
the Company's Q1 report, this may result in the requirement to perform
an impairment test as of the end of the quarter, specifically on the El
Chanate mine. The impairment charge, if any, would first be allocated
to the $106.5 million goodwill associated with El Chanate.
The Company will complete a final assessment by its second quarter 2013
The Company is currently mining from the fifth and sixth stopes in the
underground mine and productivities continue to ramp-up above targeted
levels and averaged 1,611 tpd during the quarter.
Open pit mine productivities remain at targeted levels and averaged
34,033 tpd during the quarter.
The mill facility continued to operate above nameplate capacity and
averaged approximately 7,017 tpd during the quarter.
The mid-shaft crushing and hoisting system is progressing on schedule
and remains on target to commission during September. The shaft
hoisting system is the key catalyst for driving significant increases
in underground productivities and further cost efficiencies.
El Chanate Update
The El Chanate open pit mine continued to operate at targeted levels and
averaged 98,928 tpd.
Crushing and stacking rates remained at targeted levels and averaged
During the latter part of the quarter, a follow-up drilling program was
launched that targets three new areas of mineralization all located
along trend of the open pit. Drilling is currently focused on the Rono
area, which is located 600 metres northwest of the open pit, with
encouraging results being reported to date.
"Both operations reported another quarter of solid production results
that are in-line with targeted levels. Construction of the
Young-Davidson shaft and hoisting system is in the final stages and
once commissioned will drive enhanced underground productivities and
unit cost efficiencies," stated Scott Perry, President and Chief
Executive Officer. He continued, "The Company is well positioned to
deliver quarter over quarter productivity improvements over the balance
of the year and we remain on target to meet production and cash costs
guidance for the year."
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects
in North America that have solid production growth and exploration
potential. The Company is focused on its core operations including the
Young-Davidson gold mine in northern Ontario and the El Chanate mine in
Sonora State, Mexico. AuRico's project pipeline also includes advanced
development opportunities in Canada and Mexico. AuRico's head office is
located in Toronto, Ontario, Canada.
Certain information included in this press release constitutes
forward-looking statements, including any information as to our
projects, plans and future financial and operating performance, and the
implementation and continued availability of the dividend reinvestment
plan. All statements, other than statements of historical fact, are
forward-looking statements. The words "expect", "believe",
"anticipate", "will", "intend", "estimate", "forecast", "budget",
"schedule" and similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by
management, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include, but
are not limited to: changes to current estimates of mineral reserves
and resources; fluctuations in the price of gold; changes in foreign
exchange rates (particularly the Canadian dollar, Mexican peso and U.S.
dollar); the impact of inflation; changes in our credit rating; any
decision to declare a quarterly dividend; employee relations;
litigation; disruptions affecting operations; availability of and
increased costs associated with mining inputs and labor; development
delays at the Young-Davidson mine; operating or technical difficulties
in connection with mining or development activities; inherent risks
associated with mining and mineral processing; the risk that the
Young-Davidson and El Chanate mines may not perform as planned;
uncertainty with the Company's ability to secure capital to execute its
business plans; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses and
permits; contests over title to properties; changes in national and
local government legislation in Canada, Mexico and other jurisdictions
in which the Company does or may carry on business in the future; risk
of loss due to sabotage and civil disturbances; the impact of global
liquidity and credit availability and the values of assets and
liabilities based on projected future cash flows; risks arising from
holding derivative instruments; and business opportunities that may be
pursued by the Company. Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future performance.
All of the forward-looking statements made in this press release are
qualified by these cautionary statements. Specific reference is made to
the most recent Form 40-F/Annual Information Form on file with the SEC
and Canadian provincial securities regulatory authorities for a
discussion of some of the factors underlying forward-looking
statements. The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
SOURCE: AuRico Gold Inc.
For further information:
For further information please visit the AuRico Gold website at www.auricogold.com or contact:
President and Chief Executive Officer
AuRico Gold Inc.
Vice President, Investor Relations and Communications
AuRico Gold Inc.