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AuRico re-evaluates inventory values, long-term gold price assumptions

17th July 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – TSX- and NYSE-listed AuRico Gold, which on Tuesday reported solid preliminary production results for the June quarter, also told shareholders that it was re-evaluating the value of its historical heap leach and long-term, low-grade stockpile inventories, owing to the lower metal price environment.

“These tests may result in the need to recognise a net realisable value adjustment on these inventories at June 30,” the gold miner said in a statement.

Owing to the decline in the gold price in recent months, the company was also evaluating whether its long-term gold price assumptions needed to be revised. It warned that this might result in an impairment charge.

AuRico expected to complete a final assessment by the time it releases its financial results for the second quarter.

Meanwhile, the company’s Young-Davidson mine, in Northern Ontario, Canada, produced 29 252 oz of gold in the three months ended June 30, bringing total half-year output for the mine to 57 533 oz.

The El Chanate mine, in Mexico, produced 18 751 oz of gold in the quarter, bringing half-year output for the mine to 36 640 oz.

"Both operations reported another quarter of solid production results that are in line with targeted levels. Construction of the Young-Davidson shaft and hoisting system is in the final stages and, once commissioned, will drive enhanced underground productivities and unit cost efficiencies,” said AuRico president and CEO Scott Perry.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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