Voltalia Ord Shs VLTAF

Some cost per Oz's compare

[Bpultra]

Aurico Gold* (AUQ : TSX : $12.37), Net Change: -0.43, % Change: -3.36%, Volume: 884,370

Aurico Suave. Gold producer Aurico Gold continued a string of positive news as the company posted strong Q2/11 results. For

the quarter, the company reported record revenue of US$112.9 million with record operational earning of US
.33 per share. In

Q2/11 the company produced 43,714 ounces of gold and 1.2 million ounces of silver, representing a 53% increase over 2010.

During the quarter the company increased its cash balance to US$102.1 million. The company continues to post lowest quartile

cash costs of US$384 per gold equivalent ounce, with record margins coming in at US$1,125 per ounce. Looking forward,

the company increased 2011 production guidance to 265,000-295,000 gold equivalent ounces at reduced cash costs of US$445-

475 per gold equivalent ounce. Aurico CEO Rene Marion noted, "The solid results reported in the second quarter support our

updated guidance, with increased production and reduced cash cost forecasts for 2011. In the third quarter, our growth profile is

expected to be further enhanced through the continued strong performance at Ocampo, the initial impact of the productivity

enhancements implemented at El Chanate and the recommencement of production at El Cubo in mid-July." Shares have

performed very well over the past six months, as the company benefited from solid performance and a robust underlying gold

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IAMGOLD* (IMG : TSX : $18.96), Net Change: -1.43, % Change: -7.01%, Volume: 5,322,742

IMISSED...IAMGOLD tumbled after releasing lower-than-expected Q2/11 results, driven largely by an extended crusher repair

and water shortage at Essakane. Q2/11 adjusted EPS came in at
.19 versus Canaccord Genuity Precious Metals Steven

Butler’s estimate of
.31 and consensus of
.29, with the variance explained by lower gross margins and higher exploration

expense, partly offset by lower taxes. Attributable production from continuing operations was a considerable miss at 188,000 oz

(sales of 181,750 oz) at total cash costs of $697/oz vs. Butler’s estimate of 242,982 oz at $568/oz. This miss stemmed from

materially lower-than-expected production at Essakane (33,000 oz lower throughput due to extended crusher repair and water

shortage) and Doyon (-18,000 oz, timing of batch processing). Cash costs were notably higher at Yatela, Essakane, and Rosebel.

As a result of the Essakane shortfall and the divesture of Mupane, production guidance for the year from continuing operations

has been revised to 870-930 koz at cash costs of $620-650/oz from 900-960 koz at $590-620/oz. More importantly, Butler

expects to see improved operational performance in H2/11 at Essakane, as the issues appear to have been resolved (crusher

repair completed, water reservoirs filled with the onset of rainy season). He also sees optionality upside associated with a partial

sale and/or the eventual IPO of Niobec, and potential de-risking of his valuation of Sadiola Deeps subject to a positive

construction decision and Quimsacocha subject to permits and a reasonable stability/tax agreement.