Analyst Actions: Credit Suisse Neutral on AuRico Gold, Keeps $9 Target
Q4/12 adjusted EPS of $0.05 in-line with Credit Suisse estimate and Bloomberg consensus of $0.05: "AUQ had pre-guided production for the quarter. Headline EPS of ($0.03)/sh includes a $127M non-cash goodwill impairment charge related to El Chanate. The impairment is based on revised operating and economic parameters in an updated LOM plan. While we were not expecting the impairment charge, we value El Chanate at $104M in our NAV."
AUQ adds Kemess Underground to reserves (for 33% reserve growth), reserves unchanged at YD and 6% depletion at El Chanate: "AUQ reported reserves of 6.8Mozs at 2012YE, up from 5.1Mozs in 2011 with the increase driven by a 1.8Moz addition from Kemess Underground. Global resources decreased 4% to 10.0Moz from 10.4Mozs, with the slight decline driven by 0.1Moz fewer ounces in YD's M&I category and 0.17Moz fewer ounces in YD's inferred category."
Kemess Underground feasibility released, AUQ to continue de-risking project: "Based on $1,300/oz gold, $3/lb copper and $23/oz silver, the NPV5% for the project is $134M ($372M NPV at 3-year trailing prices). Credit Suisse currently carries a value of $214M in our NAV for the Kemess properties and we see the feasibility study as in-line with our expectation."
2012FY production & costs pre-guided, 2013 all-in cash cost guidance maintained. "2012FY and Q4/12 production of 127kozs and 41kozs were in-line with operating guidance provided on January 18th and our expectations. Cash costs came at $628/oz, slightly below pre-guidance of $630-$650/oz and our estimate of $647/oz. 2013 guidance remains 190-220kozs (including pre-production ounces from YD underground) at $1,100-$1,200/oz all-in sustaining cash costs."
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