RBC Capital Markets Global Mining & Materials Conference
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RBC Capital Markets Global Mining & Materials Conference

RBC Capital Markets Global Mining & Materials Conference

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RBC Capital Markets Global Mining & Materials Conference Presentation Transcript

  • 1. Committed to ShareholderValue CreationRBC Capital Markets’ Global Mining & Materials ConferenceJune 18-19, 2013TSX: AUQ / NYSE: AUQwww.auricogold.com
  • 2. FORWARD LOOKING STATEMENTSThis presentation 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 oroperating performance, such as the Company’s expansion plans, project timelines, production plans, projected cash flows or capital expenditures, costestimates, projected exploration results, reserve and resource estimates and other statements that express management’s expectations or estimates of futureperformance.Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, areinherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from thoseprojected in the forward-looking statements. Such factors include: uncertainty of production and cost estimates; fluctuations in the price of gold and foreignexchange rates; the uncertainty of replacing depleted reserves; the risk that the Young-Davidson and El Chanate mine may not perform as planned; changesin laws or regulations in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits,authorizations or approvals for operations or projects such as Kemess; contests over title to properties; the speculative nature of mineral exploration anddevelopment; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affectingoperations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to securecapital to execute business plans; volatility of the Company’s share price; any decision to declare dividends; the implementation and continued availability ofthe dividend reinvestment plan; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilitiesbased on projected future cash flows; risks arising from holding derivative instruments; risks arising from the absence of hedging; adequacy of internal controlover financial reporting; changes in our 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 containedherein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economicconditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial marketsgenerally; revenue and cash flow estimates, production levels, development rates and the costs for each; our ability to procure equipment and supplies insufficient quantities and on a timely basis; the timing of the receipt of permits and other approvals for our projects and operations; our ability to attract andretain skilled employees and contractors for our operations; the accuracy of our reserve and resource estimates; the impact of changes in currency exchangerates on our costs and results; interest rates; taxation; and our ongoing relations with our 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 orotherwise, 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 and required byCanadian regulations, the United States Securities and Exchange Commission does not recognize them. Under Canadian rules, estimates of inferred mineralresources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measuredor indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of aninferred mineral resource exists, or is economically or legally mineable.2
  • 3. KemessYoung-DavidsonEl ChanateOrionHigh Quality Asset BaseYoung-Davidson, Canada 2012A 2013E(5)Production Au oz.(7) 56,138 120-140kCash Costs per Au oz.(3)(4) $708 $575-$675All-in Sustaining Cash Costsper Au oz.(3)(15) - $1,250-$1,3502012 Reserves and Resources (000’s oz. Au)Proven and Probable Reserves(6) 3,804 2.60 Au g/tMeasured and IndicatedResources(6) 855 2.71 Au g/tInferred Resources(6) 1,260 2.80 Au g/tEl Chanate, Mexico 2012A 2013E(5)Production Au oz.(7) 71,145 70-80kCash Costs per Au oz.(3)(4) $434 $550-$600All-in Sustaining Cash Costsper Au oz.(3)(15) - $900-$1,0002012 Reserves and Resources (000’s oz. Au)Proven and Probable Reserves(6) 1,204 0.67 Au g/tMeasured and IndicatedResources(6) 41 0.37 Au g/tInferred Resources(6) 6 0.48 Au g/tA Pure Gold Producer Focused on Quality Assets in North America(3) Refer to endnote #3. (5) Refer to endnote #5. (7) Refer to endnote #7.(4) Refer to endnote #4. (6) Refer to endnote #6. (15) Refer to endnote #15.Exploration & Development ProjectOperating Gold Mine3
  • 4. Capital Markets ProfileAnalyst Coverage1. BMO Nesbitt Burns2. Canaccord Genuity3. CIBC4. Credit Suisse5. Cowen Securities6. Desjardins Securities7. Dundee Securities8. GMP Securities9. Mackie Research10. Macquarie Securities11. Merrill Lynch12. National Bank13. Raymond James14. RBC Capital Markets15. Scotia Capital16. TD Securities17. UBSCapital StructureCash on hand(1) $269MAvailable Credit Facility $150MFully diluted sharesoutstanding(1) 257.7MMarket Capitalization $1.2BNYSE & TSX 3-month avg.daily trading volume4M(1) Refer to endnote #1. 4
  • 5. The Transformed AuRico• High quality operations located in North America• Divested non-core assets ($1.0B+)(2)• Low-cost, quality production ounces• Long mine lives & growing reserves per shareQuality Assets• Strong organic production growth profile• Focused on quality, low-cost ounces• Growing production per shareOrganic Growth Profile• Cash balance of $269M(1)• Undrawn debt facility of $150M• Growing profitability and cash flow per sharePeer-Leading BalanceSheet• Completed $300M substantial issuer bid• Peer-leading dividend policy• Growing dividend per share• Insider buyingShareholder FriendlyInitiativesDelivering Reliable, Consistent, Sustainable Performance(1) Refer to endnote #1. (2) Refer to endnote #2. 5
  • 6. A High Quality Asset BaseStawellFosterville El Cubo$1,319$1,8952011 gold pricerangeEl ChanateYoung-Davidson Ocampo“We have significantly traded up on the overall quality of the asset base which positionsAuRico well for reliable, consistent, and sustainable performance.”Streamlined Asset Base on the Lower End of the 2011 Industry Cost CurveSource: 2011 Brook Hunt DataCashcostcurve(US$/oz)Percentile of total paid goldCurrent AssetsDivested Assets6
  • 7. YD HistoricMine WorkingsOpen PitRamp Portal10350LNG Shaft MCM Shaft9890L9590L9400L9200L8900LMCM HistoricMine WorkingsYoung-Davidson Mine• Low cost producer & strongproduction growth profile• Long mine life: Opportunity forexpansion as reserves increase• Underground productioncommenced Oct./12• Highly productive, wide zones• Hoisting ore targeted during Q32013• Exploration focus on YD WestZone; orebody open at depthUBZ ZoneMid-ShaftLoadingPocketYD WestZone2012A 2013E(5)Production (gold ounces)(7) 56,138 120,000-140,000Cash Costs (per gold ounce)(3)(4) $708 $575-$675All-in Sustaining Cash Costs(per gold ounce)(3)(15) - $1,250-$1,350P&P Reserves (oz.)(6) 3.8 millionResources (oz.)(6) 855,000(3) Refer to endnote #3. (6) Refer to endnote #6.(4) Refer to endnote #4. (7) Refer to endnote #7.(5) Refer to endnote #5. (15) Refer to endnote #15.7
  • 8. 9590 Level Ore Rockbreaker  Completed9590 Level Waste Rockbreaker  Completed2nd Leg of Shaft Reaming  Completed9500 Level Conveyor9530 Level Crusher RoomMid Shaft Loading Pocket CommissioningYoung-Davidson Production ShaftNorthgate Mid-shaft Loading Pocket Milestones:• Commissioning the mid-shaft crushing and hoistingsystem during Q3• Key catalyst for further increases in U/G production• Completed raise boring of the second leg of productionshaft mid-April• Vertical access to 1.8M ounces, or 8 years ofproduction• Vertical depth of ~900m• Loading pocket and crusher installation ongoing 8
  • 9. Underground Mine Productivity02004006008001,0001,2001,4001,6001,8002,000January February March April MayTarget ActualUnderground Mine Productivity (tonnes per day)• Underground productivity averaged 1,800 tpd in May• Target of 2,000tpd by end of 2013• Currently mining in the Upper Boundary Zone (UBZ)• 60,000-80,000 tonne stopes• Mining 30,000-40,000 tonne panels• Overall average ore thickness (current reserves) is 20 metres• Highly productive bulk mining methodologies• Highly mechanized with low manning requirements 9
  • 10. Young-Davidson ProductionYD Delivers Solid Results in Line with Guidance Levels• Solid production growth quarter over quarter• Cash costs in-line with target levels• Underground operations averaging exceeding targeted levels• Mill exceeding nameplate capacity of 6,000 tpd (avg. approx. 7,100 tpd in May)05,00010,00015,00020,00025,00030,0002012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2FYoung-Davidson Total Gold Ounces Produced(7)(7) Refer to endnote #7. 10
  • 11. El Chanate Mine• Target mining rates of ~100k tpd• Accelerated pre-development program• High exploration potential for expansion ofexisting reserves• Northwest extension targets• Southeast extension targetsDelivering Consistent, Stable Results; High Margin Ounces2012A 2013E(5)Production (gold ounces)(7) 71,145 70,000-80,000Cash Costs (per gold ounce)(3)(4) $434 $550-$600All-in Sustaining Cash Costs(per gold ounce)(3)(15) - $900-$1,000P&P Reserves (oz.)(6) 1.2 million(3) Refer to endnote #3. (5) Refer to endnote #5. (7) Refer to endnote #7(4) Refer to endnote #4. (6) Refer to endnote #6. (15) Refer to endnote #15. 1105,00010,00015,00020,000Q4 2012 Q1 2013 Q2 2013FEl Chanate Gold Ounces Produced
  • 12. New Mineralization at El Chanate(6)Hole 741(view looking south)El Chanate Mine (looking south)North West ZoneHole ID From (m) To (m) Length (m) Au g/tCHCI-731183.0 192.0 9.0 0.31210.0 217.5 7.5 0.26CHCI-732 55.5 82.5 27.0 0.45CHCI-733 24.0 34.5 10.5 0.91CHCI-734 133.5 141.0 7.5 1.51CHCI-735 97.5 103.5 6.0 2.07CHCI-749 7.5 21.0 13.5 0.19RonoHole ID From (m) To (m) Length (m) Au g/tCHCI-740 76.5 135.0 58.5 0.27CHCI-741 114.0 166.5 52.5 0.34Loma PrietaHole ID From (m) To (m) Length (m) Au g/tCHCI-705 46.5 54.0 7.5 0.92CHCI-716 52.5 64.5 12.0 8.35CHCI-71758.5 66.0 7.5 3.6088.5 93.0 4.5 6.52CHCI-725 61.5 75.0 13.5 1.70CHCI-727 48.0 54.0 6.0 4.52CHCI-747 64.5 70.5 6.0 2.10(6) Refer to endnote #6.12
  • 13. Kemess UndergroundKemess, Canada - Gold2012 Reserves and Resources (000’s oz Au)Proven and Probable Reserves(6) 1,805 0.56 Au g/tMeasured and Indicated Resources(6) 854 0.41 Au g/tInferred Resources(6) 125 0.39 Au g/tKemess, Canada - Copper2012 Reserves and Resources (000’s lbs Cu)Probable Reserves(6) 619,151 0.28%Indicated Resources(6) 346,546 0.24%Inferred Resources(6) 46,101 0.21%• Copper/gold porphyry deposit• Located in British Columbia, Canada• Feasibility study completed• Underground block cave operation• 105k oz Au and 44M lbs Cu annually• Cash costs of $213 per gold ounce (net ofby-product credits)• Approx. 12 year mine life• Significant leverage to higher metal prices• Existing infrastructure:• Mill facilities and previously permittedtailings storage• Value surfacing opportunity(6) Refer to endnote #6. 13
  • 14. Production GrowthIncreasing production profile(3)(4)(5)(9)$300$400$500$600$70001002003004002012A 2013E 2014E 2015ECashcostsperounceOunces(000’s)Production Cash CostsDecreasing capital expenditures(5)(9)$0$100$200$300$4002012A 2013E 2014E 2015EUS$(millions)Capex(3) Refer to endnote #3. (5) Refer to endnote #5.(4) Refer to endnote #4. (9) Refer to endnote #9. 14
  • 15. Free Cash Generating CapacityRobust cash flow profile driven by long life mines, production growth and decreasing capital expenditure profile(10) Refer to endnote #10.Quality Assets Generating Free Cash Flow at $1,200 Gold(10)($400)($300)($200)($100)$0$100$2002012A 2013E 2014E 2015EUS$(millions)Consolidated Capex FCF $1,600 AuFCF $1,500 Au FCF $1,400 AuFCF $1,300 Au FCF $1,200 Au15
  • 16. • 2013: Equivalent annual dividend of $0.16 per common share (payable quarterly)• Board decision to use current strong cash position reflects confidence in growing cash flow streamstarting in 2014• 2014: 20% payout ratio of operating cash flow (“OCF”) generated in the preceding quarter,divided by outstanding common shares at time of approval• Peer-leading yield with opportunity to increase• Increased shareholder exposure through recent $300M share buyback• Introduction of Dividend Reinvestment Plan (“DRIP”)Dividend PolicyIllustrative Yield per Street Consensus Operating Cash Flow per Share(8)(11)3.4%3.1%4.3%4.6%2013E 2014E 2015E 2016EPayout ratio: 20% OCFInitial dividend of$0.16/per share(8) Refer to endnote #8. (11) Refer to endnote #11. 16
  • 17. Accretive Growth Per Share(5) Refer to endnote #5. (10) Refer to endnote #10. (12) Refer to endnote #12.(6) Refer to endnote #6. (11) Refer to endnote #11. (14) Refer to endnote #14.$0.14$0.48$0.72$0.822012A 2013E 2014E 2015EOperating Cash Flow per Share(11)(14)($0.34)$0.25$0.37 $0.382012A 2013E 2014E 2015EEarnings per Share(11)(14)($1.31) ($0.10)$0.36$0.722012A 2013E 2014E 2015EFree Cash Flow per Share(5)(10)(11)8.815.518.224.127.7Apr. 2011(Post CGCAcquisition)Oct. 2011(Post NGXAcquisition)YE 2011 YE 2012 Current(May 2013)2P Reserves per 1,000 Shares (oz.)(6)(11)(12)10.120.836.735.540.7Apr. 2011(Post CGCAcquisition)Oct. 2011(Post NGXAcquisition)YE 2011 YE 2012 Current(May 2013)All-in Resources per 1,000 Shares (oz.)(6)(11)(12)Gold Production per 1,000 Shares (oz.)(5)(12)(14)0.20.50.81.01.22011A 2012A 2013E 2014E 2015E17
  • 18. The Transformed AuRico• High quality operations located in North America• Divested non-core assets ($1.0B+)(2)• Low-cost, quality production ounces• Long mine lives & growing reserves per shareQuality Assets• Strong organic production growth profile• Focused on quality, low-cost ounces• Growing production per shareOrganic Growth Profile• Cash balance of $269M(1)• Undrawn debt facility of $150M• Growing profitability and cash flow per sharePeer-Leading BalanceSheet• Completed $300M substantial issuer bid• Peer-leading dividend policy• Growing dividend per share• Insider buyingShareholder FriendlyInitiativesDelivering Reliable, Consistent, Sustainable Performance(1) Refer to endnote #1. (2) Refer to endnote #2. 18
  • 19. Endnotes1. Company cash on hand as of March 31, 2013. Fully diluted shares (excluding convertible debentures) as of May 9, 2013.2. The Company announced proceeds on sale of over $1 billion dollars during 2012, which is comprised of $55 million cash on the sale of Fosterville and Stawell to Crocodile GoldCorporation, $100 million cash and $100 million in common shares on the sale of the El Cubo mine and Guadalupe y Calvo project to Endeavour Silver Corporation, and $750million in cash on the sale of the Ocampo mine and a 50% interest in the Orion advanced development project to Minera Frisco.3. Cash Costs per Gold Ounce, All-In Cash Costs Per Gold Ounce, and Adjusted Net Earnings are Non-GAAP measures that do not have any standardized meaning prescribed byInternational Financial Reporting Standards (“IFRS” or “GAAP”), and that should not be considered in isolation from or as a substitute for performance measures prepared inaccordance with GAAP. See the Non-GAAP Measures section on page 30 of the Managements Discussion and Analysis for the year ended December 31, 2012 available on theCompany website at www.auricogold.com.4. 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. Gold ounces include ounces soldat the El Chanate mine and ounces produced at the Young-Davidson mine. Prior to commissioning the underground mine at Young-Davidson, cash costs are calculated on ouncesproduced from the open pit only. All underground costs are capitalized, and any revenue related to underground ounces sold is credited against capital expenditures.5. For more information regarding AuRico Gold’s 2013 operational estimates, including production, costs, and capital investments, please refer to the press release dated March 25,2013 titled AuRico Reports Fourth Quarter and Annual Financial Results available on the Company website at www.auricogold.com.6. Reserves and resources for Young-Davidson and El Chanate mines, Kemess Underground Project, and Orion represent gold grade as per technical reports and Companydisclosure. For more information regarding AuRico Gold’s Mineral Reserves and Resources as at December 31, 2012 and the Kemess Feasibility Study, please refer to the pressrelease dated March 25, 2013 titled AuRico Reports 2012 Reserve & Resource Update and Kemess Feasibility Study Results, available on the Company website atwww.auricogold.com. Measured and indicated resources excludes inferred resources.7. Production figures include gold ounces only. Production at the Young-Davidson mine includes pre-production ounces, which include ounces produced prior to the declaration ofcommercial production on September 1, 2012, as well as all ounces produced from the underground mine.8. The illustrative yield assumes the share price as of May 22, 2013. Figures for 2014-2016 operating cash flow apply consensus data for cash costs, production estimates, and capexfigures and a $1,600/oz gold price assumption. Consensus data is as of May 21, 2013. For more information regarding AuRico Gold’s dividend policy, please refer to the pressrelease dated February 21, 2013, available on the Company website at www.auricogold.com.9. Figures for 2012 include continuing operations only. Figures for 2013 are based on mid-point of AuRico’s 2013 operational estimates. Figures for 2014 and 2015 are based onconsensus data only. Consensus data is as of May 21, 2013.10. Figures for 2012 include continuing operations only. Figures for 2013 are based on mid-point of AuRico’s 2013 operational estimates, and consensus data. The calculation of 2014and 2015 operating cash flow and free cash flow apply consensus data for cash costs, production estimates, and capex figures, and are based on a $1,600/oz gold priceassumption unless noted otherwise. Operating cash flow is before changes in working capital. Consensus data is as of May 21, 2013.11. 2013 to 2015 per share numbers are based on the number of shares outstanding as of January 31, 2013, subsequent to the completion of a $300M Substantial Issuer Bid.12. Production per 1,000 shares and reserves and resources per 1,000 shares includes the production, reserves and resources of the Young-Davidson mine, El Chanate mine, KemessUnderground Project and Orion for each period presented.13. For further information on Adjusted Net Earnings and Adjusted Net Earnings Per Share, please refer to the reconciliation of adjusted net earnings table and the Non-GAAPMeasures section included in the press release dated March 25, 2013 titled AuRico Reports Fourth Quarter and Annual Financial Results, and the press release dated May 9, 2013titled AuRico Reports First Quarter Financial Results, available on the Company website at www.auricogold.com.14. Figures for 2012 include continuing operations only. Figures for 2013-2015 are based on consensus data as of May 21, 2013. Mid-point of 2013 production guidance is applied for2013 Gold Production per 1,000 Shares.15. All-in costs are defined as cash costs, sustaining capital, corporate general and administrative expense, reclamation, care and maintenance expense, and exploration expenditures.Prior to commissioning the underground mine at Young-Davidson, all-in 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 expenditures.19
  • 20. Committed to ShareholderValue CreationRBC Capital Markets’ Global Mining & Materials ConferenceJune 18-19, 2013TSX: AUQ / NYSE: AUQwww.auricogold.com
  • 21. Appendix
  • 22. 2013 Upper Mine Production & DevelopmentQ2 StopesQ2 StopesQ3 StopesQ4 Stopes22Upper Mine Represents 8 Years of Production
  • 23. 2013 Operational Estimates(5)(5) Refer to endnote #5.2013 Operational Estimates (March 25, 2013)Gold Production (ounces)Young-Davidson 120,000-140,000El Chanate 70,000-80,000Total Production 190,000-220,000Cash Costs per OunceYoung-Davidson $575-$675El Chanate $550-$600Total Cash Costs per Ounce $565-$645All-in Sustaining Cash CostsYoung-Davidson $1,250-$1,350El Chanate $900-$1,000Total All-in Sustaining Cash Costs per Ounce $1,100-$1,200Capital Investment Program (US$000’s)Young-DavidsonNon-recurring Growth CapitalPaste Backfill Plant $45,000-$50,000Shaft and Mid-Shaft Loading and Crushing Facility $25,000-$30,000Open Pit Mine Development $6,000-$8,000Sustaining Capital $59,000-$62,000Total Capital Investment – Young Davidson $135,000-$150,000El ChanateNon-recurring Growth CapitalSoutheast Open Pit Expansion $20,000-$25,000Heap Leach Expansion $2,000-$3,000Sustaining Capital $8,000-$12,000Total Capital Investment – El Chanate $30,000-$40,000Total Capital Investment $165,000-$190,000Depletion and Amortization (US$ per ounce)Young-Davidson $300-$310El Chanate $245-$255Total Depletion and Amortization $280-$290Exploration (US$000’s)Young-Davidson Up to $3,500El Chanate Up to $3,500Other Properties Up to $8,000Total Exploration Up to $15,000General and Administrative (US$000’s)Corporate G&A $25,00023
  • 24. All-in Sustaining Cash Cost AllocationCash CostsSustainingExplorationCorporateG&A2013 All-in Sustaining Cash Costs$1,100-$1,200 per ounceLabour57%Power6%Diesel9%Consumables19%Materials/Mtc9%Cost Allocation(Includes contractlabour)All-in Sustaining Cash Costs• Provides increased transparency• More representative of actual cost of production• Removes influence of accounting treatments• Can be reconciled to OCF24
  • 25. Proven and Probable ReservesProven Reserves Probable ReservesTonnes(000s)Gold(g/t)Gold Oz.(000s)Tonnes(000s)Gold(g/t)Gold Oz.(000s)El Chanate 36,845 0.68 801 19,015 0.66 403Young-Davidson - Surface 3,934 1.28 162 2,491 1.36 109Young-Davidson - Underground 4,547 2.97 434 34,490 2.80 3,100Total Young-Davidson 8,481 2.19 596 36,981 2.70 3,209Kemess Underground (KUG) - - - 100,373 0.56 1,805AuRico - Total 45,326 0.96 1,397 156,369 1.08 5,417Total Proven and Probable ReservesTonnes(000s)Gold(g/t)Gold Oz.(000s)El Chanate 55,859 0.67 1,204Young-Davidson - Surface 6,425 1.31 271Young-Davidson - Underground 39,037 2.82 3,534Total Young-Davidson 45,462 2.60 3,804Kemess Underground (KUG) 100,373 0.56 1,805AuRico - Total 201,695 1.05 6,81325
  • 26. Measured and Indicated ResourcesTotal Measured and Indicated ResourcesTonnes(000s)Gold(g/t)Gold Oz.(000s)El Chanate 3,468 0.37 41Young-Davidson - Surface 291 1.70 16Young-Davidson - Underground 9,531 2.74 839Total Young-Davidson 9,821 2.71 855Kemess Underground (KUG) 65,432 0.41 854Orion (50%) 554 3.36 65AuRico - Total 79,274 0.71 1,815Measured Resources Indicated ResourcesTonnes(000s)Gold(g/t)Gold Oz.(000s)Tonnes(000s)Gold(g/t)Gold Oz.(000s)El Chanate 1,233 0.31 12 2,235 0.40 29Young-Davidson - Surface 98 1.60 5 193 1.76 11Young-Davidson - Underground 877 4.17 118 8,654 2.59 722Total Young-Davidson 975 3.91 123 8,846 2.58 733Kemess Underground (KUG) - - - 65,432 0.41 854Orion (50%) - - - 554 3.66 65AuRico - Total 2,208 1.90 135 77,067 0.68 1,68026
  • 27. Inferred and Copper ResourcesInferred ResourcesTonnes(000s)Gold(g/t)Gold Oz.(000s)El Chanate 409 0.48 6Young-Davidson - Surface 31 0.99 1Young-Davidson - Underground 13,983 2.80 1,259Total Young-Davidson 14,014 2.80 1,260Kemess Underground (KUG) 9,969 0.39 125Orion (50%) 91 3.33 10AuRico - Total 24,483 1.78 1,400Copper Reserves & ResourcesKemessTonnes(000’s)Copper(%)Copper lbs.(000’s)Probable Reserves 100,373 0.28 619,151Indicated Resources 65,432 0.24 346,546Inferred Resources 9,969 0.21 46,101Silver ResourcesOrion (50%)Tonnes(000s)Silver(g/t)Silver Oz.(000s)Indicated Resources 554 309 5,503Inferred Resources 91 95 27527
  • 28. Notes to Reserves and ResourcesNotes:• Mineral Reserves and Resources have been stated as at December 31, 2012.• Mineral Resources are in addition to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability when calculated using MineralReserve assumptions. Reserves have been reported 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 ofthe SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves 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. Inaddition, investors are cautioned not to assume that any part or all of AuRico’s Mineral Resources constitute or will be converted into Reserves.• Following the completion of a joint venture agreement, Minera Frisco has a 50% interest in the Orion Project.• Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.The following metal prices were used for the calculation of Reserves and Resources:Reserves ResourcesUSD Au $/oz Ag $/oz Cu $/lb Au $/oz Ag $/oz Cu $/lbEl Chanate $1,400 - - $1,600 - -Young-Davidson $1,400 - - $1,600 - -Kemess Underground $1,300 $23.00 $3.00 $13.00 NSROrion - - - $850 $13.00 -Reserves and Resources were prepared under the supervision of the following Qualified Persons:Resources ReservesEl ChanateJeffrey Volk, CPG, FAusIMM, Director Reservesand Resources, AuRico Gold Inc.Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc.Young-Davidson - Open PitJeffrey Volk, CPG, FAusIMM, Director Reservesand Resources, AuRico Gold Inc.Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc.Young-Davidson - UndergroundJeffrey Volk, CPG, FAusIMM, Director Reservesand Resources, AuRico Gold Inc.Chris Bostwick, FAusIMM, SVP Technical Services,AuRico Gold Inc.Kemess UndergroundJeffrey Volk, CPG, FAusIMM, Director Reservesand Resources, AuRico Gold Inc.Chris Bostwick, FAusIMM, SVP Technical Services,AuRico Gold Inc.OrionJeffrey Volk, CPG, FAusIMM, Director Reservesand Resources, AuRico Gold Inc.28