Highlights from AUQ's presentation at Denver Gold Highlights from AUQ's presentation at recent Denver Gold Forum, if you sat in the audiance you heard:
• Recently appointed CEO Scott Perry is advocating a heightened focus on consistency and reliability of results, particularly at Ocampo with further underground development expected to reduce future production variability (i.e., greater ability to meet guidance). The company expects this to redress below average valuation and unlock shareholder value.
• New guidance represents a de-risked production profile, according to management.
• Key focus is on brownfield expansions, no new M&A expected.
• All assets are now substantially built.
• Young-Davidson: expected to produce 55,000 to 65,000 oz at $550 to $650/oz cash costs in 2012, and 135,000 to 155,000 oz in 2013 at $500 to $550/oz cash costs. Underground production beginning in October 2012 with 1,000 tpd from Upper Boundary zone (highest grade zone at Young-Davidson at 3 to 3.5 g/t Au).
• Ocampo: Accelerating underground development over the next nine months with contract miners to recalibrate the mine and reduce variability of grades, based on large, ready to produce underground inventory.
• El Chanate: Added additional mining fleet to increase material movement rate, expanded heap leach facilities. Heap leach throughputs are up to ~20,000 tpd from ~14,000 tpd under previous operators. Expecting to produce 78,000 to 88,000 oz per year.
• Guidance, total company production: 248,000 to 278,000 oz at $610 to $695/oz cash costs in 2012, to 335,000 to 395,000 oz at $550 to $610/oz cash costs in 2013. Capex in 2012 is estimated at up to $359 million; in 2013, capex is up to $245 million.
• Based on $1,500/oz gold price, Young-Davidson expected to be self-funding next year, and thereafter cash flow positive.
• Growth at Ocampo: Mining throughput at Ocampo underground is currently 1,500 tpd, LOM mine plan seeks to grow production to 3,000 tpd through 2013/14 development. Potentially requires expanding mill facility to accommodate higher throughput. But AuRico will not expand mine production or mill until the mine demonstrates its ability to produce consistent throughputs in a long-term sustainable manner.
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Also on my radar is Abcourt Mines Inc. (TSX-V: ABI) (Pink Sheets: ABMBF) (Frankfurt: AML) which is has 2 near-term production scenarios with reopening of the historic Elder gold mine in Quebec as a priority; From 1944 to 1964 the Elder Gold Mine produced 350,000 ounces of gold. See related insight/synopsis of the investment op here https://miningmarketwatch.net/abi.htm -- in short; dewatering is nearing completion, infrastructure is being upgraded, equipment has been purchased, and a Preliminary Economic Assessment is expected by the end of this September. Currently trading under CDN$0.12 cents per share ABI.V has a market cap under $21M CAD, is capitalized to meet near-term obligations, has no long-term debt, and possesses resources of significance (~20 million ounces silver, ~610 million lbs zinc, ~405,000 oz gold) with large growth potential that appear to position it as grossly undervalued.