TORONTO (miningweekly.com) – Toronto-based AuRico Gold shares on Tuesday declined in value by 7.84%, the day after the company reported a fourth-quarter net loss of $7.4-million or 3c a share, and a $127-million noncash goodwill charge on its El Chanate mine, in Mexico.
Earnings for the quarter were impacted by a noncash goodwill impairment charge related to the El Chanate mine, which AuRico said was identified as part of the company's normal-course value impairment testing. The charge had no impact on the budgeted life-of-mine production or cash flow profiles.
The company reported adjusted net earnings of $13.7-million or 5c a share in the quarter ended December 31, which was broadly in line with analyst expectations. This compared with an adjusted net loss of $7.4-million or 3c a share a year earlier.
Revenues totalled $63.1-million during the period, compared with revenues of $29.7-million a year earlier.
In the quarter, the company more than doubled gold production to 41 145 oz, at a cost of about $628/oz, which was about $200/oz higher than in the comparable year-earlier quarter.
"The sale of Ocampo in mid-December marked the completion of a two-year initiative aimed at improving the quality of our asset base in order to reposition the company for low-cost, quality production and deliver reliable, sustainable and consistent performance going forward.
“We have delivered on our commitment to shareholder-friendly initiatives through the completion of a $300-million share buy-back in late January, as well the recent implementation of a peer-leading ongoing dividend policy," CEO Scott Perry said.
He added that, at the company’s flagship Young-Davidson mine, the construction of the mid-shaft crushing and loading infrastructure was advancing on schedule and once commissioned, would be the critical catalyst to drive the company's growing production profile and cash flow steams over the next few years.
The company also declared its initial quarterly dividend payment of 4c a share for the first quarter ended March 31, payable on April 18, to shareholders of record at the close of business on April 4.
AuRico’s TSX-listed stock on Tuesday closed at C$6.23 apiece.