Q4 2013 financial results webcast presentation final

50 %
50 %
Information about Q4 2013 financial results webcast presentation final
Investor Relations

Published on March 4, 2014

Author: AuricoGold

Source: slideshare.net

Q4 2013 Financial Results Conference Call and Webcast March 4, 2014 TSX: AUQ / NYSE: AUQ www.auricogold.com

FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company’s expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost estimates, projected exploration results, reserve and resource estimates and other statements that express management’s expectations or estimates of future performance. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, including: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign exchange rates; the uncertainty of replacing depleted reserves; the risk that the Young-Davidson shaft will not perform as planned; the risk that mining operations do not meet expectations; the risk that projects will not be developed accordingly to budgets or timelines, changes in laws in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits or approvals for operations or projects such as Kemess; disputes over title to properties; the speculative nature of mineral exploration and development; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affecting operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure capital to execute business plans; volatility of the Company’s share price; continuation of the dividend and dividend reinvestment plan; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from derivative instruments or the absence of hedging; adequacy of internal control over financial reporting; changes in credit rating; and the impact of inflation. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets generally; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies and on a timely basis; the timing of the receipt of permits and other approvals for projects and operations; the ability to attract and retain skilled employees and contractors for the operations; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; taxation; and ongoing relations with employees and business partners. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources This presentation uses the terms "measured," "indicated" and "inferred” resources. We advise investors that while those terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred” resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable. 2

Scott Perry President & CEO

Corporate Update Total Gold Ounces Produced ► >1.5MM man hours lost time incident free at both operations ► 120,738 140,000 to 160,000 2013 Sixth quarter of company-wide production growth, Q1 well positioned to be the seventh quarter ► Young-Davidson Mine1 2014E 2013 Reserves and Resources reported 29,139 2012 ► ► Gold price assumption reduced to $1,250/oz El Chanate Mine1 Fourth quarter dividend paid (Jan. 29) 71,145 71,864 2012 2013 67,092 ► Cost containment initiatives completed ► 70,000 to 80,000 Assessing a number of shareholder friendly, nondilutive liquidity financing options 2011 1. 2014E Production figures include gold ounces only. Production at the Young-Davidson mine includes pre-production ounces, which include ounces produced prior to the declaration of commercial production on September 1, 2012, and ounces produced from the underground mine prior to the declaration of commercial production on October 31, 2013. 4

Sixth Quarter of Record Gold Production Young-Davidson Sixth Consecutive Quarter of Record Gold Production El Chanate 46,170 50,000 48,003 48,903 49,526 Q2 13 Q3 13 Q4 13 Gold Ounces Produced 41,145 40,000 37,213 30,000 20,000 10,000 0 Q3 12 Q4 12 Q1 13 Q1 14E 2013 Operational Results First Quarter March 31/13 Gold Ounces Produced3 Total Cash Costs per oz.1,2 All-in Sustaining Costs per oz.2 1. 2. 3. Second Quarter June 30/13 Third Quarter Sept. 30/13 Fourth Quarter Dec. 31/13 Year-End Dec. 31/13 46,170 48,003 48,903 49,526 192,602 $635 $655 $628 $771 $676 $1,090 $1,189 $1,210 $1,232 $1,181 Prior to commissioning the underground mine at Young-Davidson, cash costs were calculated on ounces produced from the open pit only. All underground costs were capitalized, and any revenue related to underground ounces sold was credited against capital. Subsequent to the declaration of commercial production in the underground mine, cash costs are calculated on ounces produced from both the open pit and underground mines, and revenue related to the sale of underground ounces is recognized in the Company's Statement of Operations as revenue. Cash costs, prior to inventory net realizable value adjustments. See the Non-GAAP Measures section on page 23 of the Management’s Discussion and Analysis for the year ended December 31, 2013. Includes pre-production gold ounces from the Young-Davidson underground mine prior to the declaration of commercial production on October 31, 2013. 5

Young-Davidson Update Mid-shaft loading project commissioned ► Q4 underground productivity of approx. 2,600tpd ► Productivity ramp-up from 2,500tpd to 4,000tpd at year-end (target of 8,000tpd at end of 2016) Paste Backfill Plant Commissioned ► First paste pour in January 2014 In-line underground unit mining costs ► $39/t in November and December, 2013 ► $45/t in Q1/14 with inclusion of paste fill, decreasing throughout the year with increased productivity Underground Mine Development Advance ► 75% of 2014 mine plan is laterally accessed Lower mine vertical development underway ► Will provide access to 20 years of strategic mine life Mill facility permit increased to 10,000tpd 6

El Chanate Exploration Potential Significant potential to extend mine life Hole ID CHCI-760 CHCI-761 CHCI-766 CHCI-821 Rono(6) Length (m) 18.0 42.0 51.0 7.5 19.5 Grade Au g/t 0.88 0.50 0.33 0.74 0.93 Hole ID CHCI-775 CHCI-776 CHCI-799 CHCI-836 Chanate Deeps(6) Length (m) 54.0 48.0 6.0 24.0 Grade Au g/t 2.56 2.90 7.60 2.70 NW Extension(6) Hole ID CHCI-769 CHCI-800 Length (m) 37.5 28.5 Grade Au g/t 0.94 0.67 Hole ID CHCI-815 CHCI-817 CHCI-818 CHCI-829 Loma Prieta(6) Length (m) 19.5 9.0 9.0 6.0 Grade Au g/t 0.78 1.37 0.58 1.18 Fieldwork initiated on the additional 15-20kms of land acquired northwest and southeast along trend 7

Reserve Highlights Gold price assumption at operations reduced to $1,250 per ounce ► Improves quality of reserve base for low-cost, long-life ounces Proven and Probable gold reserves of 6.5 million gold ounces ► Primarily impacted by depletion from the El Chanate and Young-Davidson open pits ► Young-Davidson open pit fully depleted in Q2 2014 Young-Davidson underground reserves increased by 1% to 3.6 million gold ounces ► Underground grades of 2.81 g/t is consistent with 2012 ► Significant conversion of underground Inferred Resources to M&I Resources El Chanate reserves decreased by 15% to 1.0 million gold ounces ► Reduction primarily related to production depletion ► Reserve grades increased by 5% to 0.70 g/t 8

Rob Chausse Chief Financial Officer Conference Call and Webcast March 4, 2014

Continuing Operations Highlights(1) Quarter Ended (in thousands, except ounces , per share amounts and average realized price) Revenue from mining operations Quarter Ended Dec. 31, 2013 Dec. 31, 2012 $50,782 $63,119 Total gold ounces sold (excluding pre-production ounces) 39,855 36,137 Total gold ounces produced (excluding pre-production ounces) 46,017 34,018 $17,508 $30,426 $0.07 $0.11 $(106,412) $(135,142) $(0.43) $(0.48) $(5,484) $13,052 Adjusted net (loss) / earnings per share, basic(3) $(0.02) $0.05 Average realized price per ounce $1,257 $1,720 Adjusted operating cash flow(2) Adjusted operating cash flow per share, basic(2) Net loss Net loss per share, basic Adjusted net (loss) / earnings(3) 1. 2. 3. Continuing operations include the Young-Davidson and El Chanate mine operations. See the table on slide 18 for a reconciliation of adjusted operating cash flow and refer to the discussion of Non-GAAP measures in the Company’s 2013 Financial Results Press Release. See the table on slide 15 and 17 for a reconciliation of adjusted net earnings and refer to the discussion of Non-GAAP measures in the Company’s 2013 Financial Results Press Release. 10

Continuing Operations Highlights(1) Year ended (in thousands, except ounces, per share amounts and average realized price) Revenue from mining operations Year ended Dec. 31, 2013 Dec. 31, 2012 $227,631 $163,622 Total gold ounces sold (excluding pre-production ounces) 160,913 94,422 Total gold ounces produced (excluding pre-production ounces) 161,100 100,284 Adjusted operating cash flow(2) $78,079 $37,142 $0.31 $0.13 $(176,770) $(99,779) Net loss per share, basic $(0.71) $(0.35) Adjusted net earnings(3) $13,052 $16,903 $0.05 $0.06 $1,395 $1,690 Adjusted operating cash flow per share, basic(2) Net loss Adjusted net earnings per share, basic(3) Average realized price per ounce 1. 2. 3. Continuing operations include the Young-Davidson and El Chanate mine operations. See the table on slide 18 for a reconciliation of adjusted operating cash flow and refer to the discussion of Non-GAAP measures in the Company’s 2013 Financial Results Press Release. See the table on slide 15 and 17 for a reconciliation of adjusted net earnings and refer to the discussion of Non-GAAP measures in the Company’s 2013 Financial Results Press Release. 11

Continuing Operations Highlights(1) YoungDavidson El Chanate Q4 2013 Q4 2012(2) Gold ounces produced 29,597 16,420 46,017 34,018 Pre-production gold ounces produced 3,509 - 3,509 7,127 Total gold ounces produced 33,106 16,420 49,526 41,145 Gold ounces sold 24,831 15,024 39,855 36,137 Pre-production gold ounces sold 3,416 - 3,416 3,595 Total gold ounces sold 28,247 15,024 43,271 39,732 $850 $615 $771 $650 $31,420 $19,362 $50,782 $63,119 (in thousands, except ounces and total cash costs) Cash costs per ounce, before NRV(3),(4),(5) Revenue from mining operations 1. 2. 3. 4. 5. Continuing operations include the Young-Davidson and El Chanate mine operations. Certain comparative information has been restated as a result of the adoption of IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, which was applied prospectively to production stripping costs incurred on or after January 1, 2012. For further details, refer to the Critical Accounting Estimates, Policies and Changes section on page 30 in the Company’s Management’s Discussion & Analysis or note 3(a) to the Company's consolidated financial statements for the year ended December 31, 2013. Cash costs for the El Chanate mine and Young-Davidson mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Gold ounces used to calculate cash costs include ounces sold at the El Chanate mine and ounces produced at the Young-Davidson mine. The Young-Davidson open pit mine declared commercial production on September 1, 2012 and the Young-Davidson underground mine declared commercial production on October 31, 2013. Pre-production ounces produced and sold are excluded from the calculation of cash costs as they are credited against capitalized project costs. 12

Continuing Operations Highlights(1) YoungDavidson El Chanate Year ended Dec. 31/13 Year ended Dec. 31/12(2) Gold ounces produced 89,236 71,864 161,100 100,284 Pre-production gold ounces produced 31,502 - 31,502 26,999 Total gold ounces produced 120,738 71,864 192,602 127,283 Gold ounces sold 88,878 72,035 160,913 94,422 Pre-production gold ounces sold 31,839 - 31,839 17,505 Total gold ounces sold 120,717 72,035 192,752 111,927 $744 $592 $676 $536 $124,439 $103,192 $227,631 $163,222 (in thousands, except ounces and total cash costs) Cash costs per ounce, before NRV(3),(4),(5) Revenue from mining operations 1. 2. 3. 4. 5. Continuing operations include the Young-Davidson and El Chanate mine operations. Certain comparative information has been restated as a result of the adoption of IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, which was applied prospectively to production stripping costs incurred on or after January 1, 2012. For further details, refer to the Critical Accounting Estimates, Policies and Changes section on page 30 in the Company’s Management’s Discussion & Analysis or note 3(a) to the Company's consolidated financial statements for the year ended December 31, 2013. Cash costs for the El Chanate mine and Young-Davidson mine are calculated on a per gold ounce basis, using by-product revenues as a cost credit. Gold ounces used to calculate cash costs include ounces sold at the El Chanate mine and ounces produced at the Young-Davidson mine. The Young-Davidson open pit mine declared commercial production on September 1, 2012 and the Young-Davidson underground mine declared commercial production on October 31, 2013. Pre-production ounces produced and sold are excluded from the calculation of cash costs as they are credited against capitalized project costs. 13

Capital Expenditures Young-Davidson El Chanate Corporate Year ended Dec. 31/13 Site infrastructure $112,518 $9,481 - $121,999 Underground development $99,472 - - $99,472 Capital stripping $18,543 $27,398 - $45,941 $(45,464) - - $(45,464) $185,069 $36,879 - $221,948 Capitalized borrowing costs $6,231 $2,177 - $8,408 Exploration $3,930 $5,027 $10,109 $19,066 $195,230 $44,083 $10,109 $249,422 (in thousands) Pre-production revenue credits Total capital expenditures 14

Adjusted Net Earnings Reconciliation Quarter Ended  (in thousands, except per share metrics) Net loss from continuing operations Adjustments: Deferred income tax expense related to foreign exchange Foreign exchange gain Net realizable value adjustments on inventory Impairment charges (Gain) / loss on option component of convertible notes Unrealized losses on investments Unrealized loss on derivatives Equity in loss / (earnings) of jointly-controlled entity Unrealized loss on contingent consideration Gain on disposition of 50% interest in Orion Impact of new Mexican mining tax Other (including tax effect of adjustments) Adjusted net (loss) / earnings from continuing operations Adjusted net (loss) / earnings from continuing operations, per share Net loss from discontinued operations Adjustments: Unrealized foreign exchange gain Loss on disposition of Australian operations Net realizable value adjustment on Ocampo HL inventory Impairment of Australian Operations Disposition-related costs Loss on disposition of El Cubo and GyC Ocampo outside tax basis adjustment Gain on disposition of Ocampo Tax impact Adjusted net earnings from discontinued operations Adjusted net earnings from discontinued operations, per share Adjusted net loss Adjusted net loss, per share Quarter Ended Decem ber 31, 2013 Decem ber 31, 2012 ($106,412) $ $ ($135,142) 19,781 (3,732) 37,196 59,886 (772) 2,533 483 4,917 (19,364) ($5,484) (0.02) 629 (2,298) 127,000 6,186 17,778 210 (83) 3,569 (6,620) 2,276 $13,505 0.05 - $108,977 - (391) 7,778 6,796 2,277 (39,168) (150,793) 80,101 $15,577 $0.06 ($5,484) ($0.02) $29,082 $0.10 15

Scott Perry President & CEO

2014 Operational Guidance ► Gold production increase of up to 25%, with continued annual growth over next 3 years ► Operating costs are anticipated to decrease significantly as annual production increases ► Up to 40% decrease in capital investment, with additional decreases going forward 2014 Operational Guidance Highlights 250 Growing Production $250 Declining Capital Investments $1,300 225 All-in Sustaining Costs $1,200 200 175 US$ per ounce $1,100 US$ (000’s) Production Oz. (000’s) $200 $150 $100 150 $1,000 $900 $50 125 $800 100 $700 $0 2013 2014E 2013 2014E 2013 2014E 17

Positioned For Value Creation Politically-friendly jurisdiction High quality asset base Organic year over year production growth Lower end of industry cost curve Long mine life Strong balance sheet Pure gold leverage Capital return to shareholders 18

Q&A

Adjusted Net Earnings Reconciliation Year Ended Net loss from continuing operations Adjustments: Deferred income tax expense / (recovery) related to foreign exchange Foreign exchange (gain) / loss Net realizable value adjustments on inventory Impairment charges Gain on option component of convertible notes Unrealized loss on investments Unrealized gain on derivatives Equity in loss / (earnings) of jointly-controlled entity Unrealized loss / (gain) on contingent consideration Gain on disposition of 50% interest in Orion Impact of new Mexican mining tax Other (including tax effect of adjustments) Adjusted net earnings from continuing operations Adjusted net earnings from continuing operations, per share Net earnings from discontinued operations Adjustments: Unrealized foreign exchange loss Loss on disposition of Australian operations Net realizable value adjustment on Ocampo HL inventory Impairment of Australian Operations Disposition-related costs Gain on disposition of El Cubo and GyC Ocampo outside tax basis adjustment Gain on disposition of Ocampo Tax impact Adjusted net earnings from discontinued operations Adjusted net earnings from discontinued operations, per share Adjusted net earnings Adjusted net earnings, per share Year Ended Decem ber 31, 2013 Decem ber 31, 2012 ($176,770) ($99,779) 24,999 (10,927) 42,069 158,574 (15,622) (2,183) 2,533 7,395 4,917 (21,933) $13,052 $0.05 (15,785) 10,663 127,000 (4,046) 146 (1,713) (83) (1,568) (6,620) 8,688 $16,903 0.06 - $131,052 - 9,080 1,736 16,070 22,857 12,123 (21,785) (150,793) 83,005 $103,345 $0.37 $13,052 $0.05 $120,248 $0.43 20

Adj. Operating Cash Flow Reconciliation Quarter Ended  (in thousands, except per share metrics) Operating cash flow from continuing operations Add back: Non-cash change in operating working capital Operating cash flow (before changes in working capital) from continuing operations Operating cash flow (before changes in working capital) from continuing operations, per share Quarter Ended Decem ber 31, 2013 Decem ber 31, 2012 $11,954 5,554 $17,508 $ ($7,813) 38,239 $30,426 0.07 $ 0.11 Year Ended  (in thousands, except per share metrics) Operating cash flow from continuing operations Add back: Non-cash change in operating working capital Operating cash flow (before changes in working capital) from continuing operations Operating cash flow (before changes in working capital) from continuing operations, per share Year Ended Decem ber 31, 2013 Decem ber 31, 2012 $63,266 14,813 $78,079 $ 0.31 $ ($7,231) $44,373 $37,142 0.13 21

Add a comment

Related presentations

Related pages

Q4 and FY 2013 Earnings Webcast Presentation

Q4&FY 2013 Earnings Webcast 1 ... Q4&FY 2013 Earnings Webcast 1/30/14 Financial results throughout this ... Q4&FY 2013 Earnings Webcast 1/30/14 FY 2013 ...
Read more

Earnings Conference call Webcast - Autoliv

Earnings Conference call Webcast ... ALV Q4’13 Financial Earnings ... effective tax rate or other future operating performance or financial results, ...
Read more

Third Quarter 2013 - s1.q4cdn.com

Third Quarter 2013 Financial Results November 4 2013. Legal and Other Matters 2 SAFE HARBOR: ... NON-GAAP FINANCIAL MEASURES: In this presentation, ...
Read more

Q3 2013 Earnings Webcast Presentation

Q3 2013 Earnings Webcast 10/24/2013 ... Financial results throughout this presentation reference adjusted results. ... Q4 2012 . Q1 2013 . Q2 2013 . 2012
Read more

2013 Fourth Quarter and Year-End Results Webcast

2013 Fourth Quarter and Year ... Certain information contained in this presentation, including any information relating to New Gold’sfuture financial or ...
Read more

2013 Q4 Report - Rottapharm Madaus

Fourth Quarter 2013 report Webcast presentation ... Key metrics actual results vs . ... 2013 Q4 Report
Read more

Earnings Conference call Webcast - autoliv.com

Earnings Conference call Webcast 3rd Quarter Financial Results October 24, 2013. ... This presentation contains statements that are not historical facts ...
Read more

KINROSS GOLD CORPORATION 2015 - s2.q4cdn.com

... or "Kinross" in this presentation, we mean Kinross Gold Corporation and/or one or more or ... Q4 & FULL-YEAR 2014 FINANCIAL RESULTS ... Q4 2013 Q4 2014 ...
Read more

INVESTOR PRESENTATION Q1-2013 RESULTS - Besi

Q1-2012 Q2-2012 Q3-2012 Q4-2012 Q1-2013) ... 2013 FINANCIAL CALENDAR ... 31-Jul-13 Q2-2013 Results 31-Oct-13 Q3-2013 Results 19 .
Read more