Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

AuRico Gold Announces 2014 Operational Outlook


News provided by

AuRico Gold Inc.

06 Feb, 2014, 21:15 GMT

Share this article

Share toX

Share this article

Share toX

TORONTO, February 6, 2014 /PRNewswire/ --

Company-Wide Production Increasing by up to 25%

AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") announces operational and capital investment estimates for 2014 that include significant production growth from the Young-Davidson mine as the operation enters its first full year of a three-year underground ramp-up to targeted production levels. All amounts are in U.S. dollars unless otherwise indicated. The Company will host a conference call and webcast on February 7, 2014 at 8:30 am ET.

2014 Operational Estimates

In 2014, company-wide production is expected to be in the range of 210,000 to 240,000 gold ounces, an increase of up to 25%. Production growth is primarily driven by quarter over quarter production increases from the cornerstone Young-Davidson mine. Company-wide cash costs are expected to be between $675 and $775 per ounce while all-in sustaining costs are expected to be between $1,100 and $1,200 per ounce. Capital investment requirements of $125 to $135 million have declined by up to 40% over the previous year reflecting the completion of construction activities at the Young-Davidson mine. It is anticipated that annual capital investment requirements as well as all-in sustaining costs per ounce will continue to further decline over the coming years.

Link to Quarterly Production Growth Graph

"Company-wide gold production is expected to significantly increase due to the steadily increasing production profile from our cornerstone Young-Davidson mine. In the first quarter, gold production from both assets is expected to increase over the prior quarter, which will represent the seventh consecutive quarter of company-wide gold production growth. This operational momentum is expected to continue throughout the year positioning the Company to deliver reliable, consistent and sustainable production growth," stated Scott Perry. He continued, "The Company is uniquely positioned with a low-cost asset base located in top jurisdictions that provide significant organic growth and a management team that is focused on quality production and a capital allocation strategy that positions the Company for long term value creation."

2014 Operational Estimates

                      2014 Operational Estimates[1]
    Gold Production (ounces)
    Young-Davidson                                  140,000 - 160,000
    El Chanate                                        70,000 - 80,000
    Total Production                                210,000 - 240,000
    Cash Costs per Ounce
    Young-Davidson
    Underground Mine                                      $650 - $750
    Open Pit (incl. stockpile)                            $850 - $950
    Young-Davidson Total                                  $700 - $800
    El Chanate                                            $625 - $725
    Total Cash Costs per Ounce                            $675 - $775
    All-in Sustaining Costs
    Young-Davidson                                    $1,100 - $1,200
    El Chanate                                        $1,000 - $1,100
    Total All-in Sustaining Costs per Ounce[2],[3]    $1,100 - $1,200
    Capital Investment Program (US$000's)
    Young-Davidson
    Non-Recurring Capital
    Lower Mine Vertical Development
    MCM Shaft Deepening                                       $15,000
    Lower Mine Ramp Advance                                   $10,000
    Fixed Assets
    Underground Mobile Equipment                              $10,000
    Underground Ventilation Infrastructure                     $5,000
    Surface Capital Projects                                  $10,000
    Sustaining Capital
    Underground Development - Production Ramp-up    $55,000 - $60,000
    Total Capital Investment - Young Davidson     $105,000 - $110,000
    El Chanate
    Capitalized Stripping                           $17,500 - $22,500
    Surface Capital Projects                                   $2,500
    Total Capital Investment - El Chanate           $20,000 - $25,000
    Total Capital Investment                      $125,000 - $135,000
    Exploration (US$000's)
    Company-Wide Exploration                                  $10,000
    General and Administrative (US$000's)[4]
    Corporate G&A                                             $20,000

1. The following currency assumptions were used to forecast 2014 estimates: 0.95:1 US dollar to the Canadian dollar and 13.0:1 Mexican pesos to the US dollar

2. All-in sustaining costs are defined as cash costs, sustaining capital, corporate general and administrative expense and sustaining exploration.

3. Sustaining capital is defined as capital expenditures required to maintain current levels of production.

4. Does not include share-based compensation or corporate restructuring costs.

Young-Davidson

  • Production is expected to increase by up to 32% to between 140,000 and 160,000 ounces. Productivity from the underground mine for the first quarter of 2014 is expected to average approximately 2,500 tpd and is expected to grow steadily throughout the year as the underground mine ramps-up to a targeted year-end exit rate of 4,000 tpd. The Company anticipates achieving an ultimate sustainable productivity rate of 8,000 tpd by the end of 2016.
  • In November and December 2013, underground unit mining costs averaged $39 per tonne. 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 throughout the year, corresponding with planned quarter-over-quarter increases in underground productivity.
  • Underground cash costs are expected to average between $650 and $750 per ounce for the year in-line with targeted levels and underpinned by the efficiencies realized through the shaft hoisting system. Further cost efficiencies are expected to be realized as productivity increases over the next three years.
  • Site-wide cash costs, which include higher cost open pit ore, are expected to average between $700 and $800 per ounce. Open pit mining operations are scheduled to cease in mid-year as the open pit mine reaches the end of its scheduled mine life.
  • All-in sustaining costs are expected to average between $1,100 and $1,200 per ounce and are anticipated to continue decreasing as production ramps-up to targeted levels.
  • In the Upper mine, which primarily represents the next 8 years of mine life, 75% of the 2014 mine plan is already laterally accessed and 100% is vertically accessed. Beginning in 2014, the Company will commence vertical development of the Lower Mine, which is the portion of the ore body below the 9590 level that will provide access to the entire ore body and secure production over the 20 year strategic mine life. In 2014, vertical development activities will primarily be focused on advancing decline development into the lower mine and sinking the MCM services shaft to final depth.

El Chanate

  • Production is expected to be between 70,000 and 80,000 ounces, consistent with previous year's production levels as the mine continues to consistently operate at targeted levels.
  • Cash costs are expected to be between $625 and $725 per ounce. All-in sustaining costs are expected to be between $1,000 and $1,100 per ounce.
  • Following a successful drilling program in 2013, the Company will focus on follow-up drilling in the three key areas of mineralization that were identified outside the open pit as well as the El Chanate Deeps area located under the current open pit floor. The Company will also begin fieldwork to identify new potential targets on the Company's expanded land package located northwest and southeast of the mine site, which provides access to an additional 20 kilometres along the prospective El Chanate Trend.

Cost Containment Initiatives

  • Due to the current gold price environment, management undertook a thorough review of the Company's cost structure in order to streamline the business and best position the Company for long-term success. In the fourth quarter of 2013, numerous contracts were renegotiated on more favourable terms and more than 50 positions were eliminated at the El Chanate mine site.
  • During the first quarter of 2014, the Company reduced its corporate head office personnel by 30%. The Board of Directors also reduced the size of the board from nine to eight, rather than fill an existing vacancy. These initiatives are intended to preserve the long-term health and success of the Company.

Upcoming News Flow

The Company expects to issue the following updates during the first half of 2014:

  • 2013 Reserves and Resources (first week of March)
  • Fourth Quarter and Annual financial results (March 3)
  • Q1 2014 Production Preview (mid-April)
  • Company-Wide Exploration Update (late-April)
  • Q1 2014 Financial Results (May 8)
  • Annual General Meeting (May 9)

Conference Call and Webcast

The Company will host a conference call and webcast on Friday, February 7, 2014 beginning at 8:30 a.m. ET.

Conference Call Access:

Please ask the operator to connect you to the AuRico Gold conference call.

  • International & Toronto: 1-647-427-7450
  • Canada & U.S. Toll Free: 1-888-231-8191

Conference Call Live Webcast:

The conference call will be broadcast live on the internet via webcast.

To access the webcast, please follow the link below:

http://www.newswire.ca/en/webcast/detail/1299905/1434237

Archive Call Access:

If you are unable to attend the conference call, a replay will be available until midnight, February 14, 2014 by dialing the appropriate number below:

    - Local Toronto Participants: 1-416-849-0833 Passcode: # 62848125
    - North America Toll Free:   1-855-859-2056 Passcode: # 62848125

Archive Webcast:

The webcast will be archived for 90 days by following the link provided below:

http://www.newswire.ca/en/webcast/detail/1299905/1434237

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.

Cautionary Statement

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 and the possible recalculation or reduction of reserves and resources; 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 according 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 or Ejido 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 ability to do so 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.

PDF available at: http://stream1.newswire.ca/media/2014/02/06/20140206_C8174_DOC_EN_36397.pdf

For further information:

For further information please visit the AuRico Gold website at http://www.auricogold.com or contact:
Scott Perry
President and Chief Executive Officer
AuRico Gold Inc.
+1-647-260-8880

Anne Day
Vice President, Investor Relations and Communications
AuRico Gold Inc.
+1-647-260-8880

(AUQ. AUQ)

Modal title

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.