TORONTO (miningweekly.com) – Canadian gold producer AuRico Gold’s cornerstone Young-Davidson mine, near Matachewan, in Northern Ontario, has recorded its eleventh consecutive quarter of record gold output.
Toronto-headquartered AuRico said on Wednesday before markets opened that its Young-Davidson mine was responsible for generating $9-million in net free cash flow in the three-month period.
Net free cash flow comprised operating cash flow less sustaining and growth capital expenditures and included capital changes, and could often be used to see how much cash could be extracted from a company without causing issues to its operations.
AuRico expected the mine's output to grow further amid declining costs this year and further lift net free cash flow going forward in the current gold price environment.
Young-Davidson produced 40 945 oz of gold at an underground cash cost of $656/oz and an openpit cash cost of $994/oz, for a total cash cost of $719/oz. For the full year, the mine produced 156 753 oz of gold at an average cash cost of $825/oz.
During the fourth quarter the company mined an average of 4 140 t/d with an underground grade of 3 g/t gold. The grade from the openpit stockpile was 2 g/t gold. AuRico completed 3 438 m of development work in the quarter and 14 024 m during 2014.
The company said it would continue underground development as the mine ramped up to full capacity.
The mill processed 7 757 t/d in the fourth quarter and 7 707 t/d in the full year. Recoveries averaged 88% for both the quarter and full year.
“During the quarter, the Young-Davidson team has remained focused on driving operational and cost efficiencies throughout the operation and has delivered its eleventh consecutive quarter of record gold production as well as its inaugural quarter of positive net free cash flow.
“The transition to positive free cash flow at only the mid-point of Young-Davidson's ramp-up gives us confidence that even in the current gold price environmen, the cornerstone Young-Davidson mine will continue to generate positive cash flow in future,” AuRico president and CEO Scott Perry commented.
Things were, however, not as rosy-coloured at AuRico’s El Chanate mine, in Mexico, where the company missed its 2014 guidance estimates.
The operation produced 15 638 oz of gold in the fourth quarter and 67 279 oz of gold in 2014.
For the full year, AuRico reported consolidated output of 224 032 oz of gold at a total cash cost of $779/oz.
The company also announced that is had received $20-million from Crocodile Gold and was granted a 2% net smelter royalty from the Fosterville mine, in Australia.
Perry added that AuRico had finished 2014 with a year-end cash balance of about $90-million, before closing the Crocodile Gold deal.