Q1 2013 Financial Results


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Q1 2013 Financial Results

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Q1 2013 Financial Results

  1. 1. Q1 2013Financial ResultsConference Call and WebcastMay 10, 2013
  2. 2. FORWARD LOOKING STATEMENTSCautionary StatementCertain 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, are inherentlysubject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results todiffer 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; changes inforeign exchange rates (particularly the Canadian dollar, Mexican peso and U.S. dollar); the impact of inflation; changes in our credit rating; any decisionto declare a quarterly dividend; employee relations; litigation; disruptions affecting operations; availability of and increased costs associated with mininginputs and labor; development delays at the Young-Davidson mine; operating or technical difficulties in connection with mining or development activities;inherent risks associated with mining and mineral processing; the risk that the Young-Davidson and El Chanate mines may not perform as planned;uncertainty with the Company’s ability to secure capital to execute its business 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 inCanada, Mexico and other jurisdictions in which the Company does or may carry on business in the future; risk of loss due to sabotage and civildisturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risksarising from holding derivative instruments; business opportunities that may be pursued by the Company. 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 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 that allor any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not toassume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.2
  3. 3. Scott PerryPresident & CEOConference Call and WebcastMay 10, 2013
  4. 4. Recent Key Highlights• Portfolio optimization provided $1 billion(1) in proceeds:• Reduced share count• Peer-leading dividend policy launched• Strong balance sheet• Fully funded growth profile• Divestment strategy provided significant cash reductions:• Reduced G&A• Reduced exploration investment program• Elimination of capital investment obligations from divested assets• Young-Davidson ramp-up on target:• Shaft and hoisting system on track for Q3 commissioning• Reaming completed in mid-April• Ramp-up on schedule• Mill throughput above design and averaged 6,466 tpd (7,230 tpd in March)• All productivity metrics steadily increasing since commercial declaration declaredFocused on Shareholder Value Creation4
  5. 5. Rob ChausseChief Financial OfficerConference Call and WebcastMay 10, 2013
  6. 6. Continuing Operations Highlights(1)Quarter Ended Quarter Ended(in thousands, except ounces and per share amounts) March 31, 2013 March 31, 2012Revenue from mining operations $64,885 $33,273Total gold ounces sold 47,973 18,661Total gold ounces produced 46,170 19,093Adjusted operating cash flow(2) $20,122 $5,878Adjusted operating cash flow per share, basic(2) $0.08 $0.02Net earnings / (loss) $18,274 ($13,598)Net earnings / (loss) per share, basic $0.07 ($0.05)Adjusted net earnings(3) $10,897 $10,090Adjusted net earnings per share, basic(3) $0.04 $0.041. Continuing operations include the Young-Davidson and El Chanate mine operations.2. See the table on slide 14 for a reconciliation of adjusted operating cash flow and refer to the discussion of Non-GAAP measures in the Company’s Q1 2013 Financial Results PressRelease.3. See the table on slide 8 for a reconciliation of adjusted net earnings and refer to the discussion of Non-GAAP measures in the Company’s Q1 2013 Financial Results Press Release.6
  7. 7. Continuing Operations Highlights(1)(in thousands, except ounces, average realized prices andtotal cash costs)Young-DavidsonEl Chanate Q1 2013 Q1 2012(2)Gold ounces produced 20,552 17,889 38,441 19,093Pre-production gold ounces produced 7,729 - 7,729 -Total gold ounces produced 28,281 17,889 46,170 19,093Gold ounces sold 22,430 16,903 39,333 18,661Pre-production gold ounces sold 8,640 - 8,640 -Total gold ounces sold 31,070 16,903 47,973 18,661Total cash costs per gold oz.(3),(4),(5)$694 $563 $635 $416Revenue from mining operations $36,765 $28,128 $64,885 $33,273Average realized price per ounce $1,630 $1,622 $1,627 $1,7231. Continuing operations include the Young-Davidson and El Chanate mine operations.2. Certain comparative information has been restated as a result of the adoption of IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, which was applied prospectivelyto production stripping costs incurred on or after January 1, 2012. For further details, refer to the Critical Accounting Estimates, Policies and Changes section on page 16 in theCompany’s Management’s Discussion & Analysis or note 3(a) to the Companys condensed consolidated financial statements for the three months ended March 31, 2013.3. Cash costs for the El Chanate mine and Young-Davidson mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit.4. Gold ounces used to calculate cash costs include ounces sold at the El Chanate mine and ounces produced at the Young-Davidson mine.5. The Young-Davidson mine declared commercial production on September 1, 2012 however the Young-Davidson underground mine remains in the pre-production period. Pre-production ounces produced are excluded from the calculation of cash costs as they are credited against capitalized project costs.7
  8. 8. Adjusted Net Earnings Reconciliation8Quarter Ended Quarter EndedMarch 31, 2013 March 31, 2012Net earnings / (loss) from continuing operations $18,274 ($13,598)Adjustments:Unrealized foreign exchange (gain) / loss (936) 9,822(Gain) / loss on option component of convertible notes (6,869) 13,802Unrealized gain on derivatives (2,194) (297)Unrealized loss on contingent consideration 2,789 -Other (167) 361Adjusted net earnings from continuing operations $10,897 $10,090Adjusted net earnings from continuing operations, per share $0.04 $0.04Net earnings from discontinued operations - $14,813Adjustments:Unrealized foreign exchange (gain) / loss - 9,917Impairment of Australian Operations - 22,857Adjusted net earnings from discontinued operations - $47,587Adjusted net earnings from discontinued operations, per share - $0.17Adjusted net earnings $10,897 $57,677Adjusted net earnings, per share $0.04 $0.20 (in thousands, except per share metrics)
  9. 9. Scott PerryPresident & CEOConference Call and WebcastMay 10, 2013
  10. 10. The Transformed AuRico• High quality operations located in North America• Divested Non-Core Assets ($1.0B+)(1)• 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• 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. 10
  11. 11. Q&A
  12. 12. Endnotes1. The Company announced proceeds on sale of over $1 billion dollars during 2012, which is comprised of $55 million cash on the saleof Fosterville and Stawell to Crocodile Gold Corporation, $100 million cash and $100 million in common shares on the sale of the ElCubo mine and Guadalupe y Calvo project to Endeavour Silver Corporation, and $750 million in cash on the sale of the Ocampo mineand a 50% interest in the Orion advanced development project to Minera Frisco.12
  13. 13. Appendix
  14. 14. Adj. Operating Cash Flow Reconciliation14(in thousands, except per share metrics) Quarter Ended Quarter EndedMarch 31, 2013 March 31, 2012Operating cash flow from continuing operations $13,099 $10,470Add back: Non-cash change in operating working capital 7,023 (4,592)Adjusted operating cash flow from continuing operations $20,122 $5,878Adjusted operating cash flow from continuing operations, per share $0.08 $0.02