Drconferencefinal

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Drconferencefinal

  1. 1. Committed to ShareholderValue CreationDahlman Rose & Co. Precious Metals ConferenceJanuary 9, 2013
  2. 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 and silver;changes in foreign exchange rates (particularly the Canadian dollar, Mexican peso and U.S. dollar); the impact of inflation; changes in our credit rating;employee relations; litigation; disruptions affecting operations; availability of and increased costs associated with mining inputs and labor; developmentdelays at the Young-Davidson mine; technical challenges associated with the construction of capital projects; operating or technical difficulties inconnection with mining or development activities; inherent risks associated with mining and mineral processing; the risk that the Young-Davidson, ElChanate and Ocampo mines and may not perform as planned; the ability to complete the sale of Ocampo, Venus and the Los Jarros properties; theability to complete a joint venture agreement on the Orion property; the ability to realize the perceived benefits from the acquisition of Capital Gold andNorthgate and from the divestiture of the Stawell, Fosterville and El Cubo mines; uncertainty with the Company’s ability to secure capital to execute itsbusiness plans; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits;contests over title to properties; changes in national and local government legislation in Canada, Mexico and other jurisdictions in which the companydoes or may carry on business in the future; risk of loss due to sabotage and civil disturbances; the impact of global liquidity and credit availability andthe values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; business opportunities thatmay be pursued by, the company; and the ability of the company to successfully integrate acquisitions. Many of these uncertainties and contingenciescan affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements madeby, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-lookingstatements made in this presentation are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/AnnualInformation Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlyingforward-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 news release 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. 3. Capital Markets ProfileCapital Structure Analyst Coverage Company Analyst BMO Nesbitt Burns David HaughtonFully diluted shares 293MMoutstanding1,2 Canaccord Genuity Rahul Paul CIBC Cosmos ChiuMarket Capitalization $2.3B Credit Suisse Anita Soni Dahlman Rose Adam P. GrafNYSE & TSX 3-months avg. 4.8MM Desjardins Securities Adam Melnykdaily trading volume1. Excluding convertible debentures Dundee Securities Ron Stewart2. Prior to completion of a US$300M Substantial Issuer Bid GMP Securities Craig West$12.00 9,000,000 8,000,000 Mackie Research Barry Allan$10.00 7,000,000 Macquarie Securities Tony Lesiak $8.00 6,000,000 Merrill Lynch Mike Parkin 5,000,000 $6.00 4,000,000 National Bank Paolo Lostritto $4.00 3,000,000 RBC Capital Markets Dan Rollins 2,000,000 $2.00 Scotia Capital Trevor Turnbull 1,000,000 $0.00 0 TD Securities Steven Green UBS Chris Lichtenheldt Volume Close 3
  4. 4. Recent DevelopmentsRecent News Flow• Sale of Australian assets closed May 4/12 (gross proceeds $150M)• Sale of El Cubo closed July 13/12 (gross proceeds $200M)• Sale of equity interest in Endeavour Silver and Crocodile Gold (gross proceeds $104M)• Commercial production declared at Young-Davidson (Sept 1/12)• Settlement of McKenna Class Action ($13.25M)• Sale of Ocampo closed Dec 14/12 (gross proceeds of $750M)• Repayment of $128M debt facility• Announcement of $300M Substantial Issuer BidUpcoming News Flow• Closing of Substantial Issuer Bid (Jan. 23/13)• Reserve and Resources Update (Feb 28/13)• Q4 & YE Financial Results (March 27/13)• Announcement of ongoing dividend policy (March 27/13) 4
  5. 5. High Quality Asset Base A Leading Pure Gold Producer Focused on Quality Assets in North America Young-Davidson, Canada 2012E 2013E Production Au oz. 55-65k 135-155k Cash Costs per Au oz.1 $550-$650 $500-$550 2011 Reserves and Resources (000’s oz Au) Proven and Probable Reserves 3,831 2.56 Au g/t 2 Measured and Indicated Resources 956 2.03 Au g/t 2 Inferred Resources 1,431 2.43 Au g/t 2 Young-Davidson El Chanate, Mexico 2012E 2013EOrion (50%), Mexico3 El Chanate Production Au oz. 70-75k 75-85k2011 Resources (000’s oz Au Eq)Measured and Indicated Cash Costs per Au oz.1 $430-$460 $455-$485Resources 330 9.27 Au g/t 2 OrionInferred Resources 29 4.98 Au g/t 2 2011 Reserves and Resources (000’s oz Au) Proven and Probable Reserves 1,285 0.65 Au g/t 2 Measured and Indicated Resources 38 0.42 Au g/t 2 Inferred Resources 8 0.46 Au g/t 21. 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. Production includes gold ounces only.2. Represents gold or gold equivalent grade as per technical reports and company disclosure.3. Following the completion of a joint venture agreement, which is anticipated in early 2013, Minera Frisco will acquire a 50% interest in the Orion project. 5
  6. 6. Compelling Value PropositionRepositioning for Consistent, Reliable, Sustainable Growth• High quality asset base • North American (low risk) focus • Cash costs below industry average • Organic growth profile • Mine longevity • Peer-leading balance sheet • Growing free cash flow stream • Strong leverage to gold price • Shareholder friendly initiatives focus  6
  7. 7. Young-Davidson MCM Historic Ramp Portal Mine Workings 2012E 2013E 10350L Open PitProduction (gold ounces)4 55,000-65,000 135,000-155,000 YD Historic Mine WorkingsCash Costs (per gold ounce)1,3 $550-$650 $500-$550Capital Expenditures (US$M) 2,3 Up to $240 Up to $130 NG Shaft MCM ShaftP&P Reserves (oz.) 3.8 millionMine Life (years) 18 years UBZ Zone1. Cash costs for the Young-Davidson mine are calculated on a per gold ounce basis, using by- product revenues as a cost credit and are attributable to commercial production ounces only.2. Includes pre-production, sustaining and accelerated underground capital infrastructure costs.3. The following currency assumptions were used to forecast estimates: 9890L • 1:1 Canadian dollars to the US dollar4. 2012 production includes pre-production ounces as well as ounces produced subsequent to the declaration of commercial production.• Commercial production Sept. 1/12 2nd Leg 9590L Northgate• Low cost producer & strong Shaft (450m) production growth profile 9400L• Underground production commenced from UBZ 9200L• Mill above name plate capacity• Hoisting ore during Q3 2013• YD West Zone: strategic 8900L exploration focus YD West Zone 7
  8. 8. El Chanate MineDelivering consistent, stable results; lowest quartile cash costs Open Pit Tonnes Per Day Quarterly Production and Cash Costs $486 $465 $433 $434 $401 $409 101,305 19,093 19,388 97,591 18,080 17,822 82,600 16,444 14,871 64,781 37,625 2010A 2011A Q1-12 Q2-12 Q3-12 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12• Cash costs in lower quartile 2012E 2013E Production (gold ounces) 70,000-75,000 75,000-85,000 Cash Costs (per gold ounce)1,3 $430-$460 $455-$486• Achieved target mining rates of ~100k tpd Capital Expenditures (US$ million) 2,3 Up to $49 Up to $40 P&P Reserves (oz.) 1.3 million• Accelerated pre-development program in 2012 Mine Life 8 years 1. Cash costs for the El Chanate mines are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Production includes gold ounces only. 2. Includes $29.2 million of accelerated pre - stripping of the South East Layback associated with the expansion of the crushing and stacking productivity from 14,000 tpd to 21,000 tpd.• Increasing areas under leach to 80% by end of 3. The following currency assumptions were used to forecast estimates: • 12:1 Mexican pesos to the US dollar 2012 8
  9. 9. New Discoveries 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) 9
  10. 10. Free Cash Generating CapacityIncreasing production profile at declining cash costs 2012E 2013E 2014E 2015E 2016E Production Cash CostsRobust FCF profile driven by long life mines, production growth, declining cash costs and capital expenditure profile 2012E 2013E 2014E 2015E 2016E El Chanate - Capex Young-Davidson - Capex FCF Source: Consensus data 10
  11. 11. Compelling Value PropositionRepositioning for Consistent, Reliable, Sustainable Growth• High quality asset base • North American (low risk) focus • Cash costs below industry average • Organic growth profile • Mine longevity • Peer-leading balance sheet • Growing free cash flow stream • Strong leverage to gold price • Shareholder friendly initiatives focus  11
  12. 12. Committed to ShareholderValue CreationDahlman Rose & Co. Precious Metals ConferenceJanuary 9, 2013
  13. 13. Two Year Outlook - Young-Davidson 2 Year Guidance 2012 2013 Production4 55,000-65,000 135,000-155,000 Cash Costs (per gold ounce)1,3 $550-$650 $500-$550 Capital Expenditures (US$ millions)2,3 Up to $240 Up to $130 Open Pit (US$/tonne)3 $3.30-$3.50 $3.40-$3.60 Underground (US$/tonne)3 $28-$30 $34-$36 Mill (US$/tonne)3 $11-$13 $10-$12 Admin (US$/oz)3 $30-$40 $30-$401. Cash costs for the Young-Davidson mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit and are attributable to commercial production ounces only.2. Includes pre-production, sustaining and accelerated underground capital infrastructure costs.3. The following currency assumptions were used to forecast estimates: • 1:1 Canadian dollars to the US dollar4. 2012 production includes pre-production ounces as well as ounces produced subsequent to the declaration of commercial production. 13
  14. 14. Two Year Outlook – El Chanate 2 Year Guidance 2012 2013 Production1 70,000-75,000 75,000-85,000 Cash Costs (per gold ounce)1,3 $430-$460 $455-$485 Capital Expenditures (US$ millions)2,3 Up to $49 Up to $40 Open Pit (US$/tonne) 3 $1.40-$1.60 $1.20-$1.40 Leach (US$/tonne)3 $2.65-$2.95 $2.40-$2.70 Admin (US$/oz)3 $65-$85 $35-$55 1. Cash costs for the El Chanate mines are calculated on a per gold ounce basis, using by - product revenues as a cost credit. Production includes gold ounces only. 2. Includes $29.2 million of accelerated pre - stripping of the South East Layback associated with the expansion of the crushing and stacking productivity from 14,000 tpd to 21,000 tpd. 3. The following currency assumptions were used to forecast estimates: • 12:1 Mexican pesos to the US dollar 14
  15. 15. 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 15
  16. 16. 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 16
  17. 17. 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 17
  18. 18. 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 completion of a joint venture agreement , which is anticipated in early Dec. 2012, Minera Frisco will acquire 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 18

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