Your SlideShare is downloading. ×
BMO Global Metals & Mining Conference
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

BMO Global Metals & Mining Conference

335

Published on

BMO Global Metals & Mining Conference

BMO Global Metals & Mining Conference

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
335
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Committed to ShareholderValue CreationBMO Global Metals & Mining ConferenceFebruary 26, 2013 TSX: AUQ / NYSE: AUQ www.auricogold.com
  • 2. FORWARD LOOKING STATEMENTSCertain information included in this presentation constitutes forward-looking statements, including any information as to our projects, plans and futurefinancial and operating performance. 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, areinherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actualresults 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; changesin foreign exchange rates (particularly the Canadian dollar, Mexican peso and U.S. dollar); the impact of inflation; changes in our credit rating; anydecision to declare a quarterly dividend; employee relations; litigation; disruptions affecting operations; availability of and increased costs associatedwith mining inputs and labor; development delays at the Young-Davidson mine; operating or technical difficulties in connection with mining ordevelopment activities; inherent risks associated with mining and mineral processing; the risk that the Young-Davidson and El Chanate mines may notperform as planned; uncertainty with the Company’s ability to secure capital to execute its business plans; the speculative nature of mineral explorationand development, including the risks of obtaining necessary licenses and permits; contests over title to properties; changes in national and localgovernment legislation in Canada, Mexico and other jurisdictions in which the Company does or may carry on business in the future; risk of loss due tosabotage and civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected futurecash flows; risks arising from holding derivative instruments; business opportunities that may be pursued by the Company. Many of these uncertaintiesand 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. Allof the forward-looking statements made in this presentation are qualified by these cautionary statements. Specific reference is made to the most recentForm 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of thefactors 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, futureevents or otherwise, except as required by applicable law.Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred ResourcesThis presentation uses the terms "measured," "indicated" and "inferred” resources. We advise investors that while those terms are recognized andrequired by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. Under Canadian rules, estimatesof inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume thatall or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned notto assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. 2
  • 3. Capital Markets Profile Capital Structure Analyst Coverage 1. BMO Nesbitt Burns 2. Canaccord Genuity Cash on hand(1) US$300M+ 3. CIBC 4. Credit Suisse 5. Dahlman Rose 6. Desjardins Securities Available Credit Facility(1) US$150M 7. Dundee Securities 8. GMP Securities 9. Mackie Research Fully diluted shares 258.3M 10. Macquarie Securities outstanding(1) 11. Merrill Lynch 12. National Bank Market Capitalization 13. Raymond James $1.6B 14. RBC Capital Markets 15. Scotia Capital NYSE & TSX 3-month avg. 16. TD Securities 4.1M daily trading volume 17. UBS(1) Refer to endnote #1. 3
  • 4. A High Quality, Low Cost Asset BaseStreamlined Asset Base on the Lower End of the Industry Cost Curve $1895 2011 gold price range $1319Cash cost curve (US$/oz) Fosterville El Cubo Young-Davidson Ocampo Stawell El Chanate Percentile of total paid gold Current asset Divested asset Source: Company documents“We have significantly traded up on the overall quality of the asset base which positions AuRico well for reliable, consistent, and sustainable performance.” 4
  • 5. The Transformed AuRicoDelivering Reliable, Consistent, Sustainable Performance • High quality operations located in North America • Divested Non-Core Assets ($1.0B+) Quality Assets • Cash costs at lower end of industry cost curve • Long mine lives & growing reserves per share • Strong organic production growth profile Organic Growth Profile • Focused on quality, low-cost ounces • Growing production per share • Cash balance of US$300M(1) Peer-Leading Balance • Undrawn debt facility of $150M(1) Sheet • Growing profitability and cash flow per share • Completed $300M substantial issuer bid Shareholder Friendly • Launched peer-leading dividend policy Initiatives • Growing dividend per share • Insider buying (1) Refer to endnote #1. 5
  • 6. High Quality Asset BaseA Pure Gold Producer Focused on Quality Assets in North AmericaYoung-Davidson, Canada 2012A 2013E(3)Production Au oz.(5) 56,138 120-140kCash Costs per Au oz.(2) $690-$710 $575-$6752011 Reserves and Resources (000’s oz Au)Proven and Probable Reserves 3,831 2.56 Au g/t(4)Measured and Indicated Resources 956 2.03 Au g/t(4) KemessInferred Resources 1,431 2.43 Au g/t(4) Young-DavidsonEl Chanate, Mexico 2012A 2013E(3)Production Au oz. 71,145 70-80kCash Costs per Au oz.(2) $425-$445 $475-$525 El Chanate2011 Reserves and Resources (000’s oz Au) OrionProven and Probable Reserves 1,285 0.65 Au g/t(4)Measured and Indicated Resources 38 0.42 Au g/t(4)Inferred Resources 8 0.46 Au g/t(4)(2) Refer to endnote #2. (4) Refer to endnote #4.(3) Refer to endnote #3. (5) Refer to endnote #5. 6
  • 7. Young-Davidson Mine MCM Historic Ramp Portal Mine Workings 2012A 2013E(3) 10350L Open PitProduction (gold ounces)(5) 56,138 120,000-140,000 YD HistoricCash Costs (per gold ounce)(2) $690-$710 $575-$675 Mine WorkingsP&P Reserves (oz.) (4) 3.8 millionResources (oz.)(4) 1.0 million NG Shaft MCM ShaftMine Life 17 years UBZ Zone • Low cost producer & strong 9890L production growth profile • Long mine life: Opportunity for expansion as reserves increase Mid-Shaft Loading • Underground production 9590L Pocket commenced from UBZ (Oct./12) • Mill exceeding design capacity 9400L • Hoisting ore during Q3 2013 • Exploration Focus: 9200L • YD West Zone • Orebody open at depth 8900L YD West(2) Refer to endnote #2. (4) Refer to endnote #4.(3) Refer to endnote #3. (5) Refer to endnote #5. Zone 7
  • 8. Young-Davidson Life of Mine Significant Mine Life: Opportunity for Expansion as Reserves Increase 9,000 300 8,000 250 7,000 6,000 200 Gold ounces (000’s)Tonnes per day 5,000 150 4,000 3,000 100 2,000 50 1,000 - 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Open Pit Ore Underground Ore Stockpiled Ore Ounces - Expansion Life of Mine profile depicts Proven & Probable Reserves only 8
  • 9. El Chanate Mine Delivering Consistent, Stable Results; Lowest Quartile Cash Costs Open Pit Tonnes Per Day Quarterly Production and Cash Costs $486 $468 $465 $433 $434 $401 $409 101,305 101,804 19,093 19,388 97,591 18,080 17,882 82,600 16,444 14,871 14,782 64,781 37,625 2010 2011 Q1-12 Q2-12 Q3-12 Q4-12 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12• Cash costs in lower quartile 2012A 2013E(3) Production (gold ounces) 71,145 70,000-80,000• Achieved target mining rates of ~100k tpd Cash Costs (per gold ounce)(2) $425-$445 $475-$525• Accelerated pre-development program P&P Reserves (oz.) 1.3 million complete in mid-2013 Mine Life 8 years• Increasing areas under leach to 80%• High exploration potential for expansion of existing reserves (2) Refer to endnote #2. (3) Refer to endnote #3. 9
  • 10. New Mineralization at El Chanate Loma Prieta Hole ID From (m) To (m) Length (m) Au g/t CHCI-705 46.5 54.0 7.5 0.92 CHCI-716 52.5 64.5 12.0 8.35 North West Zone 58.5 66.0 7.5 3.60 Hole ID From (m) To (m) Length (m) Au g/t CHCI-717 88.5 93.0 4.5 6.52 183.0 192.0 9.0 0.31 CHCI-725 61.5 75.0 13.5 1.70 CHCI-731 210.0 217.5 7.5 0.26 CHCI-727 48.0 54.0 6.0 4.52 CHCI-732 55.5 82.5 27.0 0.45 CHCI-747 64.5 70.5 6.0 2.10 CHCI-733 24.0 34.5 10.5 0.91 CHCI-734 133.5 141.0 7.5 1.51 CHCI-735 97.5 103.5 6.0 2.07 CHCI-749 7.5 21.0 13.5 0.19 Rono Hole ID From (m) To (m) Length (m) Au g/t CHCI-740 76.5 135.0 58.5 0.27 CHCI-741 114.0 166.5 Hole 741 52.5 0.34(view looking south) El Chanate Mine (looking south) 10
  • 11. Kemess Underground Kemess, Canada - Copper 2011 Resources (000’s lbs Cu) Measured and Indicated 861,000 0.29%(4) Resources Inferred Resources 30,000 0.22%(4) Kemess, Canada - Gold 2011 Resources (000’s oz Au) Measured and Indicated 0.56 Au 2,610 Resources g/t(4) 0.42 Au Inferred Resources 90 g/t(4)• Copper/gold porphyry deposit located in British Columbia, Canada• Draft Feasibility Study complete• Value surfacing opportunity(4) Refer to endnote #4. 11
  • 12. Orion Joint Venture• 50/50 Joint Venture partnership Orion, Mexico • AuRico and Minera Frisco 2011 Resources (000’s oz Au Eq) Measured and Indicated Resources 330 9.27 Au g/t(4) • $2.0M (10,000m) combined exploration program (2013) Inferred Resources 29 4.98 Au g/t(4)• 110,000 hectare land package (Nayarit State, Mexico) • Historic mining district • Low sulfidation, high-grade, epithermal vein system mapped over 12km • Less than 3% of property has been drill tested • Minimal exploration near surface and untested at depth• Value surfacing opportunity(4) Refer to endnote #4. 12
  • 13. Free Cash Generating CapacityIncreasing production profile (7) 400 $700 Cash costs per ounce Ounces (000’s) 300 $600 200 $500 100 $400 0 $300 2012 2013 2014 2015 Production Cash CostsRobust cash flow profile driven by long life mines, production growth and decreasing capital expenditure profile (7) $250 $150 US$ (000s) $50 ($50) ($150) ($250) ($350) ($450) 2012 2013 2014 2015 Consolidated Capex FCF(7) Refer to endnote #7. 13
  • 14. Dividend Policy• 2013: Equivalent annual dividend of $0.16 per common share (payable quarterly)• 2014: 20% payout ratio of operating cash flow (“OCF”) generated in the preceding quarter, divided by outstanding common shares at time of approval• First quarterly dividend expected to be declared on March 25, 2013• Leverage to growing cash flow stream• Peer-leading yield with opportunity to increase• Increased shareholder exposure through recent US$300M share buyback Illustrative Yield per Street Consensus Operating Cash Flow per Share(6) Payout ratio: 20% OCF Initial dividend of $0.16/per share 3.3% 2.7% 2.4% 2.3% 2013 2014 2015 2016 (6) Refer to endnote #6. 14
  • 15. Accretive Growth Per Share(7)Operating Cash Flow per Share (US$) Earnings per Share (US$) Free Cash Flow per Share (US$) $0.84 $0.83 $0.57 $0.66 $0.47 $0.64 $0.40 $0.41 $0.35 ($0.10) $0.30 ($1.51) 2012E 2013E 2014E 2015E 2012E 2013E 2014E 2015E 2012E 2013E 2014E 2015E Proven & Probable Reserves per 1,000Gold Production (ounces) per 1,000 Shares All-in Resources per 1,000 Shares(8) Shares 37.4 20.8 1.2 32.7 32.6 18.2 18.1 1.0 15.5 0.8 20.8 8.8 0.5 10.1 0.2 2011 2012 2013E 2014E 2015E Apr. 2011 Oct. 2011 YE 2011 YE 2012 Current (Feb. Apr. 2011 Oct. 2011 YE 2011 YE 2012 Current (Feb. (Post CGC (Post NGX 2013) (Post CGC (Post NGX 2013) Acquisition) Acquisition) Acquisition) Acquisition) (7) Refer to endnote #7. (8) Refer to endnote #8. 15
  • 16. The Transformed AuRico Delivering Reliable, Consistent, Sustainable Performance • High quality operations located in North America • Divested Non-Core Assets ($1.0B+) Quality Assets • Cash costs at lower end of industry cost curve • Long mine lives & growing reserves per share • Strong organic production growth profile Organic Growth Profile • Focused on quality, low-cost ounces • Growing production per share • Cash balance of US$300M(1) Peer-Leading Balance • Undrawn debt facility of $150M(1) Sheet • Growing profitability and cash flow per share • Completed $300M substantial issuer bid Shareholder Friendly • Launched peer-leading dividend policy Initiatives • Growing dividend per share • Insider buying(1) Refer to endnote #1. 16
  • 17. Endnotes1. Company cash on hand and fully diluted shares (excluding convertible debentures) as of December 31, 2012, have been adjusted for the completion of a US$300M Substantial Issuer Bid. For more information on the Substantial Issuer Bid, please refer to the press release dated January 29, 2013, available on the Company website at www.auricogold.com. AuRico Gold established a $150M credit facility February 1, 2013.2. Cash costs for the Young-Davidson and El Chanate mines are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Cash costs for the Young-Davidson mine are attributable to commercial production ounces only. Cash cost per ounce is a non-GAAP performance measure management uses to better assess the Company’s performance for the current period and its expected performance in the future. This non-GAAP measure does not have any standardized meaning prescribed by GAAP, and should not be considered in isolation from or as a substitute for performance measures prepared in accordance with GAAP. For more information regarding this measure, please refer to the press release dated November 12, 2012, under the heading “Non-GAAP Measures”, available on the Company website at www.auricogold.com.3. For more information regarding AuRico Gold’s 2013 operational estimates, including production, costs, and capital investments, please refer to the press release dated January 18, 2013, available on the Company website at www.auricogold.com.4. Reserves and resources for Young-Davidson and El Chanate mines, Kemess Underground, and Orion represent gold or gold equivalent grade as per technical reports and Company disclosure. For more information regarding AuRico Gold’s Mineral Reserves and Resources as at December 31, 2011, please refer to the press release dated March 5, 2012, available on the Company website at www.auricogold.com. Resources excludes inferred resources.5. Production figures include gold ounces only. 2012 production at the Young-Davidson mine includes pre-production ounces as well as ounces produced subsequent to the declaration of commercial production on September 1, 2012.6. The illustrative yield assumes the share price as of February 13, 2013 and consensus data available as of February 2013. For more information regarding AuRico Gold’s dividend policy, please refer to the press release dated February 21, 2013, available on the Company website at www.auricogold.com.7. Figures include 2012 preliminary results, consensus data available as of February 2013, AuRico Gold’s 2013 operational outlook disclosed in the press release dated January 18, 2013, available on the Company website at www.auricogold.com, and shares outstanding assumed to be constant at the January 31, 2013 level subsequent to the completion of a US$300M Substantial Issuer Bid. 2012 data reflects current asset base.8. Includes reserves. Excludes Orion (50%) and Kemess. Based on reserves and resources as at December 31, 2011. 17
  • 18. Committed to ShareholderValue CreationBMO Global Metals & Mining ConferenceFebruary 26, 2013 TSX: AUQ / NYSE: AUQ www.auricogold.com
  • 19. Appendix
  • 20. 2013 Operational Estimates (3) 2013 Operational Estimates 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 $575-$675 El Chanate $475-$525 Total Cash Costs per Ounce $540-$620 All-in Cash Costs Young-Davidson $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 $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 $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) Corporate G&A $25,000(3) Refer to endnote #3. 20
  • 21. All-in Costs & Cost Allocation All-in Costs 2013 All-in Consolidated Costs • Provides increased transparency $1,100-$1,200 per ounce • More representative of actual cost of production Corporate G&A • Removes influence of accounting treatments Exploration • Can be reconciled to OCF Sustaining Cash Cost Allocation Materials/Mtc 9% Consumables 19% Labour Cash Costs 57% (Includes contract Diesel labour) 9% Power 6% 21
  • 22. 22
  • 23. 23
  • 24. Proven and Probable Reserves Proven Reserves Probable Reserves Tonnes Gold Gold Tonnes Gold Gold (000s) (g/t) Ounces (000s) (g/t) Ounces (000s) (000s)Total - El Chanate 41,783 0.63 851 19,745 0.68 433Young-Davidson - Surface 4,173 1.40 188 3,394 1.27 139Young-Davidson - Underground 5,799 3.05 568 33,259 2.75 2,936Total Young-Davidson 9,972 2.36 756 36,653 2.61 3,075AuRico - Total 51,755 0.97 1,607 56,398 1.93 3,508 Proven and Probable Reserves Tonnes Gold Gold (000s) (g/t) Ounces (000s)Total - El Chanate 61,528 0.65 1,285Young-Davidson - Surface 7,567 1.34 327Young-Davidson - Underground 39,058 2.79 3,504Total Young-Davidson 46,625 2.56 3,831AuRico - Total 108,153 1.47 5,116 24
  • 25. Measured and Indicated Resources Measured Resources Indicated Resources Tonnes Gold Silver Gold Silver Tonnes Gold Silver Gold Silver (000s) (g/t) (g/t) Ounces Ounces (000s) (g/t) (g/t) Ounces Ounces (000s) (000s) (000s) (000s)El Chanate 1,162 0.38 - 14 - 1,652 0.44 - 23 -Young-Davidson - Surface 739 2.02 - 48 - 3,499 1.26 - 142 -Young-Davidson - Underground 1,527 3.01 - 148 - 8,864 2.17 - 619 -Total Young-Davidson 2,266 2.69 - 196 - 12,363 1.91 - 761 -Orion (50%) - - - - - 554 3.36 309 65 5,503Kemess Underground - - - - - 136,500 0.56 - 2,610 -AuRico - Total 3,429 1.90 0 210 0 151,068 0.71 1 3,459 5,503 Measured and Indicated Resources Tonnes Gold Silver Gold Silver (000s) (g/t) (g/t) Ounces Ounces (000s) (000s)El Chanate 2,814 0.42 - 38 -Young-Davidson - Surface 4,238 1.39 - 190 -Young-Davidson - Underground 10,391 2.30 - 767 -Total Young-Davidson 14,629 2.03 - 956 -Orion (50%) 554 3.36 309 65 5,503Kemess Underground 136,500 0.56 - 2,610 -AuRico - Total 154,497 0.74 1 3,669 5,503 25
  • 26. Inferred and Copper Resources Inferred Resources Tonnes Gold Silver Gold Silver (000s) (g/t) (g/t) Ounces Ounces (000s) (000s)El Chanate 549 0.46 - 8 -Young-Davidson - Surface 3,515 1.26 - 142 -Young-Davidson - Underground 14,784 2.71 - 1,289 -Total Young-Davidson 18,299 2.43 - 1,431 -Orion (50%) 91 3.33 95 10 275Kemess Underground 6,000 0.42 - 90 -AuRico - Total 24,938 1.92 0 1,539 275 Copper Resources Tonnes Copper Copper (000’s) (%) PoundsKemess Underground (000s)Indicated 136,500 0.29 861,000Inferred 6,000 0.22 30,000 26
  • 27. Notes to Reserves and ResourcesNotes to Reserves and Resources:• Mineral Reserves and Resources have been stated as at December 31, 2011.• AuRico acquired Capital Gold Corporation, including the El Chanate and Orion properties, in April 2011. AuRico acquired Northgate Minerals Corporation, including the Young-Davidson, Fosterville, Stawell and Kemess properties, in October 2011.• Mineral Resources are in addition to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability when calculated using Mineral Reserve assumptions.• Following the joint venture agreement completed early 2013, where Minera Frisco acquired a 50% interest in the Orion project.• Reserves have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory authorities. In addition, while the terms “Measured”, “Indicated and “Inferred” Mineral Resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and Mineral Resources disclosed in accordance with the requirements of the SEC. Investors should understand that “Inferred” Mineral Resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of AuRico Gold’s Mineral Resources constitute or will be converted into Reserves.The following metal prices were used for the calculation of Reserves and Resources: Reserves Resources Au $/oz Ag $/oz Au $/oz Ag $/oz Cu $/lbEl Chanate $1250 USD - $1450 USD - -Young-Davidson $1250 USD - $1450 USD - -Orion - - $850 USD $13.00 USD -Kemess Underground - - $1100 USD $20.00 USD $2.80 USD 27

×