AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), (“AuRico”) is pleased to report financial results for the third quarter ended September 30, 2011. All amounts are in U.S. dollars unless otherwise indicated.
During the third quarter the Company continued to deliver strong performance across the key operational and financial metrics including production, cash costs and operating cash flow, and
reported a significantly increased quarter-end cash position of 42% to $145 million. Through the recent transformational acquisition of Northgate Minerals in late October, AuRico has emerged as a new leading intermediate gold producer with a robust production profile, a low cost base, an attractive growth platform and a compelling valuation.
Third Quarter Highlights
Revenues of $112.1 million, a 102% increase over Q3 2010
Record net earnings of $62.6 million, ($0.36 per share), a 580% increase over Q3 2010
Record earnings before other items of $52.8 million ($0.30 per share), a 326% increase over Q3
Increased the quarter-end cash balance by 42% to $145 million over the previous quarter
Strong operating cash flow of $51.7 million ($0.30 per share), a 66% increase over Q3 2010
Strong net free cash flow of $11.6 million, a 197% increase over Q3 2010
Strong production of 45,686 gold ounces and 1.4 million silver ounces, or 76,630 gold equivalent ounces using the actual gold equivalency ratio of 45:1 realized during the quarter, representing a
68% increase over Q3 2010.
Cash costs of $487 per gold equivalent ounce, using the actual gold equivalency ratio of 45:1 realized during the quarter, a 9% increase over Q3 2010. The increase in cash costs includes non-
recurring commissioning costs related to the resumption of production at the El Cubo mine Record margins of $1,217 per ounce (71%) company-wide, a 55% improvement over Q3 2010
The El Chanate mine recently reached 1 million man hours (one year) with no lost time injuries, believed to be the first Mexican-based operation to achieve such a high safety record.
“In the third quarter we continued to report solid operational and financial results from our operations. During the quarter, our production contribution expanded to include three operating mines with all three of those operations expected to deliver increased production in the coming quarters. Our robust cash flow continued to fully fund our expansion and exploration programs and contributed to the increased quarter-end cash position of $145 million,” stated René Marion, President and Chief Executive Officer.
“Looking forward to the fourth and coming quarters, the recent acquisition of Northgate Minerals transforms the Company to be a leading intermediate, low cost gold producer with a substantial growth
platform and a compelling valuation opportunity. The Company’s production and resource base has increased significantly and now includes five producing assets, with the sixth, Young-Davidson,
expected to begin production at the end of Q1 2012.”
The full press release is avaialbe at http://www.auricogold.com/.