2. Home Safe, Every Day
Fostering a safety culture where zero injuries are possible
โบ
Young Davidson โ 1.4MM Hours Lost Time Incident Free
โบ
El Chanate - 1.5MM Hours Lost Time Incident Free
โบ
AuRico โ 2.9MM Hours Lost Time Incident Free
Safety training at the Young-Davidson mine
Celebrating a safety milestone at the El Chanate mine
2
3. 2013 Operational Highlights
Company-Wide Production Growth
55,000
50,000
Young-Davidson
El Chanate
Gold Ounces Produced
45,000
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14E
โบ
Young-Davidson and El Chanate reported solid 2013 production in-line with guidance
โบ
Declared commercial production at the Young-Davidson underground mine on October 31
โบ
Construction phase at Young-Davidson completed
3
4. 2014 Operational Guidance
โบ
Gold production increase of up to 25%, with continued annual growth over next 3 years
โบ
AISC anticipated to decrease as production increases to targeted levels
โบ
Up to 40% decrease in capital investment, with additional decreases going forward
2014 Operational Guidance Highlights
250
Growing Production
250
Declining Capex
$1,300
225
All-in Sustaining Costs
$1,200
200
US$ per ounce
$1,100
150
US$ (000โs)
Production Oz. (000โs)
200
175
100
150
$1,000
$900
50
125
$800
100
$700
0
2013
2014
2013
2014
2013
2014
4
5. Young-Davidson Outlook
Gold Production (ounces)
140,000 โ 160,000
Underground Mine Cash Costs
$650 - $750
Open Pit (incl. stockpile)
โบ
Production increase of up to 32%
โบ
Decreasing AISC will be driven by growing
production profile
โบ
2014 mine plan is 75% laterally accessed &
100% vertically accessed
โบ
2014 Young-Davidson Operational Estimates
Lower mine vertical development will
provide access to 20 years of strategic
mine life
$850 - $950
Cash Costs per Ounce
$700 - $800
All-in Sustaining Costs
$1,100 - $1,200
2014 Young-Davidson Capital Investment
Lower Mine Vertical Development
$25,000
Non-Recurring Capital
$25,000
Sustaining Capital
Total Capital Investment
$55,000 - $60,000
$105,000 - $110,000
5
6. Young-Davidson Ramp-Up
Disciplined underground ramp-up
โบ
โบ
โบ
Productivity ramping from 2,500tpd in Q1 to a
year-end exit rate of 4,000tpd
Ultimate target of 8,000tpd by end of 2016
In-line underground unit mining costs
โบ
Underground Mine Ramp-up
9,000
(Year-End Productivity Targets)
8,000
Tonnes per Day
โบ
7,000
6,000
5,000
4,000
3,000
$39/t in November and December
2,000
โบ
$45/t in Q1 with inclusion of pastefill
โบ
Decreasing unit costs throughout the year with
increased productivity
1,000
-
2014
2015
2016
2017
Young-Davidson ramping-up to be one of largest gold mines in the Abitibi
Gold Ounces Produced
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14E
6
7. El Chanate Outlook
2014 El Chanate Operational Estimates
Gold Production (ounces)
70,000 - 80,000
Cash Costs per Ounce
$625 - $725
All-in Sustaining Costs
$1,000 - $1,100
2014 El Chanate Capital Investment
$17,500 - $22,500
Surface Capital Projects
Total Capital Investment
โบ
โบ
$2,500
75,000
$20,000 - $25,000
Consistent year-over-year production
Consistently operating at targeted levels
Stable Annual Gold Production
70,000
Gold Production Oz.
Capitalized Stripping
65,000
60,000
55,000
โบ
Cash costs at the lower end of the industry cost curve
โบ
Significant opportunity to extend mine life
45,000
โบ
Access to an additional 15-20 km of the El Chanate Fault
40,000
50,000
2011
2012
2013
2014E
7
8. Disciplined Quarterly Growth Profile
โบ
Consistent increase in quarterly production since start-up of Young-Davidson
โบ
Delivered sixth consecutive quarter of company-wide production growth
โบ
Quarterly production increase is expected to continue as the YD underground mine ramps-up
Disciplined Quarter over Quarter Production Growth (1)
46,170
48,003
48,903
49,523
Q3-2013
Q4-2013
41,145
37,213
Q3-2012
Q4-2012
Q1-2013
Q2-2013
Q1-2014
Q2-2014
Q3-2014
Q4-2014
(1) 2014 quarterly production indicated in the chart above is illustrative of expected production increases and should not be considered as quarterly guidance
8
9. Positioned For Value Creation
Two quality assets in top
jurisdictions
โข Core assets located in Canada and Mexico
โข Low geo-political risk
Low cost production with
organic growth
โข Production is at lower end of cost curve
โข 3-year organic growth production profile
Long mine life with exploration
potential
Strong financial position
Focused on long-term value
creation
โข Young-Davidson mine life of over 20 years
โข New mineralized targets at El Chanate
โข Strong liquidity position
โข Significantly decreasing capital requirements
โข Positioning operations for long-term success
โข Driving efficiencies for any gold price environment
9
11. 2014 Operational Estimates
2014 Operational Estimates (1)
Gold Production (ounces)
Young-Davidson
El Chanate
Total Production
Cash Costs per Ounce
Young-Davidson
Underground Mine
Open Pit (incl. stockpile)
Young-Davidson Total
El Chanate
Total Cash Costs per Ounce
All-in Sustaining Costs
Young-Davidson
El Chanate
Total All-in Sustaining Costs per Ounce2,3
140,000 โ 160,000
70,000 - 80,000
210,000 โ 240,000
$650 - $750
$850 - $950
$700 - $800
$625 - $725
$675 - $775
$1,100 - $1,200
$1,000 - $1,100
$1,100 - $1,200
11
12. 2014 Operational Estimates
Capital Investment Program (US$000โs)
Young-Davidson
Non-Recurring Capital
Lower Mine Vertical Development
MCM Shaft Deepening
Lower Mine Ramp Advance
Fixed Assets
Underground Mobile Equipment
Underground Ventilation Infrastructure
Surface Capital Projects
Sustaining Capital
Underground Development โ Production Ramp-up
Total Capital Investment โ Young Davidson
El Chanate
Capitalized Stripping
Surface Capital Projects
Total Capital Investment โ El Chanate
Total Capital Investment
Exploration (US$000โs)
Company-wide Exploration
General and Administrative (US$000โs)4
Corporate G&A
1.
2.
3.
4.
$15,000
$10,000
$10,000
$5,000
$10,000
$55,000 - $60,000
$105,000 - $110,000
$17,500 - $22,500
$2,500
$20,000 - $25,000
$125,000 - $135,000
$10,000
$20,000
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
All-in sustaining costs are defined as cash costs, sustaining capital, corporate general and administrative expense and sustaining exploration.
Sustaining capital is defined as capital expenditures required to maintain current levels of production.
Does not include share-based compensation or corporate restructuring costs
12
