AuRico Gold books Q2 loss as charges impact performance
TORONTO (miningweekly.com) – Dual-listed AuRico Gold this week reported a net loss of $103.49-million, or $0.42 a share, for the three months ended June 30, impacted by $104.9-million in after-tax noncash impairments and revaluations.
AuRico, which operates the Young-Davidson mine, in Northern Ontario, and the El Chanate mine, in Mexico, on Thursday said that, of that amount, $80-million was related to a goodwill impairment charge on the El Chanate mine, owing to a reduction in the estimated short- and long-term metal prices used in life-of-mine plans.
The company had also determined that an impairment charge of $16.5-million was required for the retained interest royalty in the future life-of-mine free cash flows of the Fosterville and Stawell mines, in Australia, which were sold to TSX-listed Crocodile Gold Corp in 2012.
The remaining $8.4-million was related to net realisable value adjustments for heap leach and long-term, low-grade stockpile inventories.
The Young-Davidson mine produced 29 252 oz of gold at a cost of $716/oz in the period, bringing total half-year output for the mine to 57 533 oz. The El Chanate mine produced 18 751 oz of gold at a cost of $655/oz in the quarter, bringing half-year output for the mine to 36 640 oz.
Total gold output for the quarter increased 61% year-on-year.
Revenue more than doubled to $57.66-million, up from $27.45-million a year earlier. The company’s average realised gold price in the quarter dropped 15% to $1 369/oz.
Spot gold prices on Friday traded at $1 314/oz, having fallen sharply from the start of the year, hitting a near three-year low at about $1 180/oz in late June. This was prompting miners across the globe to cut spending, adjust plans and defer or divest projects as they struggle to adapt to a low-price environment.
CEO Scott Perry said the midshaft crushing and hoisting system at the Young-Davidson mine was progressing on schedule and remained on target to be commissioned during September.
“The shaft and hoisting system is the key catalyst that will drive significant improvements in underground productivities and further cost efficiencies.
“With quality operations, a strong cash position and a fully funded growth profile, the company is well positioned for success, even in this challenging market environment," he said.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation