aurico gold 2014 operational outlook
TRANSCRIPT
2014 Operational Outlook
February 7, 2014
TSX: AUQ / NYSE: AUQ
www.auricogold.com
Home Safe, Every Day
► Young Davidson – 1.4MM Hours Lost Time Incident Free
► El Chanate - 1.5MM Hours Lost Time Incident Free
► AuRico – 2.9MM Hours Lost Time Incident Free
Fostering a safety culture where zero injuries are possible
Safety training at the Young-Davidson mine Celebrating a safety milestone at the El Chanate mine 2
2013 Operational Highlights
3
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14E
Gol
d O
unce
s Pr
oduc
ed
Company-Wide Production Growth
Young-Davidson El Chanate
► Young-Davidson and El Chanate reported solid 2013 production in-line with guidance
► Declared commercial production at the Young-Davidson underground mine on October 31
► Construction phase at Young-Davidson completed
2014 Operational Guidance
4
2014 Operational Guidance Highlights
100
125
150
175
200
225
250
2013 2014
Prod
uctio
n O
z. (0
00’s
)
Growing Production
0
50
100
150
200
250
2013 2014
US$
(000
’s)
Declining Capex
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
2013 2014
US$
per
oun
ce
All-in Sustaining Costs
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► Gold production increase of up to 25%, with continued annual growth over next 3 years
► AISC anticipated to decrease as production increases to targeted levels
► Up to 40% decrease in capital investment, with additional decreases going forward
Young-Davidson Outlook
► Production increase of up to 32%
► Decreasing AISC will be driven by growing production profile
► 2014 mine plan is 75% laterally accessed & 100% vertically accessed
► Lower mine vertical development will provide access to 20 years of strategic mine life
2014 Young-Davidson Operational Estimates
Gold Production (ounces) 140,000 – 160,000
Underground Mine Cash Costs $650 - $750
Open Pit (incl. stockpile) $850 - $950
Cash Costs per Ounce $700 - $800
All-in Sustaining Costs $1,100 - $1,200
2014 Young-Davidson Capital Investment
Lower Mine Vertical Development $25,000
Non-Recurring Capital $25,000
Sustaining Capital $55,000 - $60,000
Total Capital Investment $105,000 - $110,000
5
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14E
Gol
d O
unce
s Pr
oduc
ed
Young-Davidson Ramp-Up
Young-Davidson ramping-up to be one of largest gold mines in the Abitibi
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2014 2015 2016 2017
Tonn
es p
er D
ay
Underground Mine Ramp-up (Year-End Productivity Targets)
► Disciplined underground ramp-up
► Productivity ramping from 2,500tpd in Q1 to a year-end exit rate of 4,000tpd
► Ultimate target of 8,000tpd by end of 2016
► In-line underground unit mining costs
► $39/t in November and December
► $45/t in Q1 with inclusion of pastefill
► Decreasing unit costs throughout the year with increased productivity
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El Chanate Outlook
► Consistent year-over-year production
► Consistently operating at targeted levels
► Cash costs at the lower end of the industry cost curve
► Significant opportunity to extend mine life
► Access to an additional 15-20 km of the El Chanate Fault
2014 El Chanate Operational Estimates
Gold Production (ounces) 70,000 - 80,000
Cash Costs per Ounce $625 - $725
All-in Sustaining Costs $1,000 - $1,100
2014 El Chanate Capital Investment
Capitalized Stripping $17,500 - $22,500
Surface Capital Projects $2,500
Total Capital Investment $20,000 - $25,000
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40,000
45,000
50,000
55,000
60,000
65,000
70,000
75,000
2011 2012 2013 2014E
Gol
d Pr
oduc
tion
Oz.
Stable Annual Gold Production
Disciplined Quarterly Growth Profile
8 (1) 2014 quarterly production indicated in the chart above is illustrative of expected production increases and should not be considered as quarterly guidance
Disciplined Quarter over Quarter Production Growth (1)
37,213
41,145
46,170 48,003 48,903 49,523
Q3-2012 Q4-2012 Q1-2013 Q2-2013 Q3-2013 Q4-2013 Q1-2014 Q2-2014 Q3-2014 Q4-2014
► Consistent increase in quarterly production since start-up of Young-Davidson
► Delivered sixth consecutive quarter of company-wide production growth
► Quarterly production increase is expected to continue as the YD underground mine ramps-up
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Positioned For Value Creation
• Core assets located in Canada and Mexico • Low geo-political risk
Two quality assets in top jurisdictions
• Production is at lower end of cost curve • 3-year organic growth production profile
Low cost production with organic growth
• Young-Davidson mine life of over 20 years • New mineralized targets at El Chanate
Long mine life with exploration potential
• Strong liquidity position • Significantly decreasing capital requirements
Strong financial position
• Positioning operations for long-term success • Driving efficiencies for any gold price environment
Focused on long-term value creation
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Appendix
2014 Operational Estimates
2014 Operational Estimates (1) Gold Production (ounces)
Young-Davidson 140,000 – 160,000 El Chanate 70,000 - 80,000
Total Production 210,000 – 240,000 Cash Costs per Ounce
Young-Davidson Underground Mine $650 - $750 Open Pit (incl. stockpile) $850 - $950
Young-Davidson Total $700 - $800 El Chanate $625 - $725
Total Cash Costs per Ounce $675 - $775 All-in Sustaining Costs Young-Davidson $1,100 - $1,200 El Chanate $1,000 - $1,100 Total All-in Sustaining Costs per Ounce2,3 $1,100 - $1,200
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2014 Operational Estimates Capital Investment Program (US$000’s)
Young-Davidson Non-Recurring Capital
Lower Mine Vertical Development MCM Shaft Deepening $15,000 Lower Mine Ramp Advance $10,000 Fixed Assets Underground Mobile Equipment $10,000 Underground Ventilation Infrastructure $5,000 Surface Capital Projects $10,000
Sustaining Capital Underground Development – Production Ramp-up $55,000 - $60,000
Total Capital Investment – Young Davidson $105,000 - $110,000 El Chanate
Capitalized Stripping $17,500 - $22,500 Surface Capital Projects $2,500
Total Capital Investment – El Chanate $20,000 - $25,000 Total Capital Investment $125,000 - $135,000 Exploration (US$000’s) Company-wide Exploration $10,000 General and Administrative (US$000’s)4
Corporate G&A $20,000 1. The following currency assumptions were used to forecast 2014 estimates: 0.95:1 US dollar to the Canadian dollar and 13.0:1 Mexican pesos to the US dollar 2. All-in sustaining costs are defined as cash costs, sustaining capital, corporate general and administrative expense and sustaining exploration. 3. Sustaining capital is defined as capital expenditures required to maintain current levels of production. 4. Does not include share-based compensation or corporate restructuring costs 12