| ? AuRico released the results of its feasibility study for its Kemess UG project and, under a base case of $1300/oz gold, generated an after-tax IRR of 10%. We note, however, that this project is levered to higher gold prices, generating an after-tax IRR of 18% at $1650/oz gold. ? With Q4 reporting, AuRico recorded a non-cash write-down of goodwill for its El Chanate asset totaling $127 million. This write-down comes on the back of a review of the asset, using a more stringent approach of only including reserve ounces in its valuation. ? Due to the adoption of a new accounting standard that will result in a greater amount of stripping costs being expensed, total cash cost guidance for El Chanate has been increased to $550-$600/oz (from $475-$525/oz) with a corresponding decrease to sustaining capex by ~$5 million. ? For Q4/12, AuRico reported earnings of $0.05/sh, vs. our estimate of $0.07/sh and consensus of $0.06/sh. Gold production of 41,145 ounces had been pre-released, while total cash costs came in at $628/oz. Production guidance of 190,000-220,000 ounces for 2013 remains unchanged |