|By PR Newswire||
|January 14, 2014 06:25 PM EST||
Reports Sixth Consecutive Quarter of Production Growth
TORONTO, Jan. 14, 2014 /PRNewswire/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") today announces preliminary fourth quarter and annual operational results. All amounts are in U.S. dollars unless otherwise indicated.
AuRico reported its sixth consecutive quarter of production growth, with the Young-Davidson and El Chanate operations continuing to report solid production results that are in-line with expectations.
The shaft hoisting infrastructure at the Young-Davidson underground mine was commissioned in October, which facilitated the declaration of commercial production on October 31. The shaft hoisting system has, and will continue to, facilitate significant increases in underground productivities and corresponding cost efficiency improvements. During the first two months of commercial production, underground unit mining costs were approximately $39 per tonne resulting in underground production cash costs of $663 per ounce.
Preliminary 2013 Fourth Quarter Operational Results
|Gold Ounces Produced3||28,281||29,252||30,099||33,106||120,738||120,000-140,000|
|Underground Cash Costs per oz.||-||-||-||$663||$663||-|
|Open Pit Cash Costs per oz.||$694||$716||$666||$983||$757||-|
|Total Cash Costs per oz.1,2||$694||$716||$666||$850||$744||$575-$675|
|Gold Ounces Produced||17,889||18,751||18,804||16,420||71,864||70,000-80,000|
|Total Cash Costs per oz.2||$563||$602||$588||$615||$592||$550-$600|
|Gold Ounces Produced3||46,170||48,003||48,903||49,526||192,601||190,000-220,000|
|Total Cash Costs per oz.1,2||$635||$655||$628||$766||$676||$565-$645|
|1.||Prior to commissioning the underground mine at Young-Davidson, cash costs were calculated on ounces produced from the open pit only. All underground costs were capitalized, and any revenue related to underground ounces sold was credited against capital. Subsequent to the declaration of commercial production in the underground mine, cash costs are calculated on ounces produced from both the open pit and underground mines, and revenue related to the sale of underground ounces is recognized in the Company's Statement of Operations as revenue.|
|2.||Cash costs are prior to inventory net realizable value adjustments & reversals, and are estimates only and subject to change. See the Non-GAAP Measures section on page 20 of the Management's Discussion and Analysis for the nine months ended September 30, 2013. Underground cash costs per ounce and open pit cash costs per ounce do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP"). They are therefore considered to be non-GAAP measures and may not be comparable to similar measures presented by other companies. Underground cash costs per ounce and open pit cash costs per ounce are determined by allocating production and refining costs to the underground and open pit tonnes mined and processed, and then dividing by the relevant ounces produced.|
|3.||Includes pre-production gold ounces from the Young-Davidson underground mine prior to the declaration of commercial production in the underground mine on October 31, 2013.|
"We are pleased to report our sixth consecutive quarter of company-wide production growth and annual production results that are in-line with guidance estimates. Young Davidson is well positioned to drive continued growth in company-wide gold production as the underground operations continue to ramp-up productivity levels over the coming years," stated Scott Perry, President and CEO of AuRico. He continued, "Underpinning our asset base is a strong balance sheet and a management team that is focused on creating shareholder value."
Commercial production of the underground mine was declared on October
31, 2013, following the commissioning of the shaft hoisting system,
which will facilitate significant increases in underground
productivities and ongoing unit operating cost improvements.
During the quarter, the Company averaged 2,590 tpd from the underground
mine (approx. 3,000 tpd in November and December), exceeding the
year-end targeted level of 2,000 tpd with mine grades being in-line
with reserve grade estimates. Underground productivity for the first
quarter of 2014 is expected to remain in-line with overall fourth
quarter levels (approx. 2,500 tpd) and increase steadily throughout the
remainder of the year to reach a productivity target of 4,000 tpd by
the end of the year.
The paste backfill plant has been commissioned and the first pour was
completed in early January. In 2011, the mine plan was re-engineered to
utilize paste backfill to allow for significantly improved mining
recovery and reduced dilution.
During the first two months of commercial production, underground unit
mining costs were approximately $39 per tonne resulting in underground
production cash costs of $663 per ounce. In the first quarter of 2014,
unit mining costs are expected to average approximately $45 per tonne,
reflecting the inclusion of paste fill operations following the
commissioning of the paste backfill plant in early January. The unit
mining costs are then expected to decrease steadily throughout the
year, corresponding with planned quarter-over-quarter increases in
As at year end, development advance exceeded expectations with 75% of
the 2014 mine plan already laterally accessed and 100% vertically
accessed. In 2014, the Company will continue to advance underground
development to optimize available ore inventory and thereby position
the mine for sustainable, period-over-period, productivity increases in
2014 and beyond.
Open pit cash costs were $983 per ounce due to the higher operating
strip ratio that resulted from waste movement in the quarter being
ineligible for capitalization given the open pit mine life of less than
one year. The stripping ratio during the quarter was 3.44:1 versus a
year-to-date strip ratio 1.49:1 and is scheduled to average 2:1 for the
remaining four to six months of open pit operations.
Open pit mine productivities remained at targeted levels and averaged
35,299 tpd during the quarter. As anticipated in the mine plan, the
open pit will be fully depleted in coming months at which time
approximately 3.0 million tonnes of open pit ore will be stockpiled
ahead of the mill facility for future processing.
- The mill facility continued to operate above nameplate capacity and averaged approximately 6,969 tpd during the fourth quarter.
El Chanate Update
The El Chanate open pit mine returned to targeted material movement
levels, mining an average of 98,487 tpd during the quarter as compared
to 87,366 tpd in the prior quarter as contractor equipment availability
returned to normal levels.
- Crushing and stacking rates remained in-line with targeted levels and averaged 17,462 tpd.
Fourth Quarter Dividend Declared
On January 3, 2014, the Board of Directors declared the Company's quarterly dividend payment of $0.04 per share for the fourth quarter ended December 31, 2013, payable on January 29, 2014 to shareholders of record at the close of business on January 14, 2014. Further information on the Company's dividend reinvestment plan (DRIP) is available through the following link: www.auricogold.com/DRIP.
Net Realizable Value Adjustment and Impairment Charges
Due to the lower metal price environment currently being experienced, the Company will be conducting net realizable value testing on ore inventories. These tests may result in the need to recognize a net realizable value adjustment on these inventories at December 31. In addition, the Company will be performing its annual impairment test utilizing updated economic and operational factors, which may result in the need to record impairment adjustments.
The Company will complete a final assessment by its fourth quarter and annual 2013 results release.
Upcoming News Flow
The Company expects to issue the following updates during the first quarter of 2014:
2014 Operational Guidance (first week of February)
2013 Reserves and Resources (first week of March)
- Fourth Quarter and Annual Financial results (March 3)
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.
This press release contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company's expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost estimates, projected exploration results, reserve and resource estimates and other statements that express management's expectations or estimates of future performance.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, including: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign exchange rates; the uncertainty of replacing depleted reserves; the risk that the Young-Davidson shaft will not perform as planned; the risk that mining operations do not meet expectations; the risk that projects will not be developed accordingly to budgets or timelines, changes in laws in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits or approvals for operations or projects such as Kemess; disputes over title to properties; the speculative nature of mineral exploration and development; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affecting operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure capital to execute business plans; volatility of the Company's share price; continuation of the dividend and dividend reinvestment plan; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from derivative instruments or the absence of hedging; adequacy of internal control over financial reporting; changes in credit rating; and the impact of inflation. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets generally; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies and on a timely basis; the timing of the receipt of permits and other approvals for projects and operations; the ability to attract and retain skilled employees and contractors for the operations; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; taxation; and ongoing relations with employees and business partners. 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 applicable law.
SOURCE AuRico Gold Inc.
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, will provide the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” uses open source attack tools that are free and available for download by anybody. Attendees will learn where to find and how to operate these tools for the purpose of testing their own IT infrastructu...
Sep. 3, 2015 06:30 AM EDT Reads: 500
Containers are not new, but renewed commitments to performance, flexibility, and agility have propelled them to the top of the agenda today. By working without the need for virtualization and its overhead, containers are seen as the perfect way to deploy apps and services across multiple clouds. Containers can handle anything from file types to operating systems and services, including microservices. What are microservices? Unlike what the name implies, microservices are not necessarily small,...
Sep. 3, 2015 06:00 AM EDT
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
Sep. 3, 2015 06:00 AM EDT
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
Sep. 3, 2015 05:15 AM EDT Reads: 2,017
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Sep. 3, 2015 05:00 AM EDT Reads: 493
The 3rd International WebRTC Summit, to be held Nov. 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 15th International Cloud Expo, 6th International Big Data Expo, 3rd International DevOps Summit and 2nd Internet of @ThingsExpo. WebRTC (Web-based Real-Time Com...
Sep. 3, 2015 05:00 AM EDT Reads: 1,582
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Sep. 3, 2015 04:45 AM EDT Reads: 521
ElasticBox, the agile application delivery manager, announced freely available public boxes for the DevOps community. ElasticBox works with enterprises to help them deploy any application to any cloud. Public boxes are curated reference boxes that represent some of the most popular applications and tools for orchestrating deployments at scale. Boxes are an adaptive way to represent reusable infrastructure as components of code. Boxes contain scripts, variables, and metadata to automate proces...
Sep. 3, 2015 04:30 AM EDT
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
Sep. 3, 2015 04:00 AM EDT Reads: 731
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Sep. 3, 2015 02:30 AM EDT Reads: 1,685
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
Sep. 3, 2015 01:00 AM EDT Reads: 1,641
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
Sep. 2, 2015 11:45 PM EDT Reads: 641
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so the...
Sep. 2, 2015 11:15 PM EDT Reads: 235
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development...
Sep. 2, 2015 10:45 PM EDT Reads: 1,617
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device acce...
Sep. 2, 2015 10:00 PM EDT Reads: 311