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Re: Aurico Gold (TSE:AUQ)

PostPosted: Thu Sep 15, 2011 10:30 am
by fexx
Another good AUQ article here;

The market reacted quite badly to the business combination because on the surface it looks like Aurico is taking over a high cost producer in Northgate Minerals, but Northgate has arguably the best high impact project in Young Davidson expected to produce 500,000 oz’s of gold per year at cost of around $400 per ounce. Northgate has mines in Australia that operate at around a $900 per ounce cash cost, but other than those 180,000 ounces, any future ounces that Aurico and Northgate produce are expected at less than $500 per ounce. ... ucers.html

Re: Aurico Gold (TSE:AUQ)

PostPosted: Fri Sep 16, 2011 4:11 pm
by Pixel8r
MARKET TALK: Analysts Feeling Better About AuRico Gold's Big Deal

Aug 30, 2011 10:57:32 (ET)(Dow Jones) AuRico Gold's (AUQ) $1.5B takeover of Northgate (NXG) gets some positive analyst comments, though the sticker price shocked some when first announced yesterday. Dundee says it looks expensive on the surface but estimates AUQ is paying just $170/ounce of gold reserves, a reasonable price given gold is above $1,800/oz, and AUQ will get a higher multiple as it's promoted to a top-tier gold producer. Scotia says deal sets up AUQ to do more acquisitions supported by its larger size. Also, UBS upgrades to Primero (P.T) to buy,

August 30, 2011 10:57 ET (14:57 GMT)

AuRico Gold Raised To Sector Outperform From Sector Perform By CIBC >AUQ

Aug 30, 2011 07:22:55 (ET)

Re: Aurico Gold (TSE:AUQ)

PostPosted: Wed Nov 23, 2011 8:22 pm
by Pixel8r
AuRico Achieves Major Milestone at Young-Davidson

TORONTO, November 18, 2011 /PRNewswire via COMTEX/ -- Open Pit Mine Development Commences on Schedule

AuRico Gold Inc. CA:AUQ -1.50% AUQ -2.29% , ("AuRico", or the "Company") is pleased to report that open pit pre-production development has commenced at Young-Davidson with the Company successfully completing its first open pit blast on Thursday, November 17, 2011. Commissioning of the Young-Davidson mine project remains on schedule with the first gold pour anticipated for the end of March 2012.

The Young-Davidson open pit is expected to establish an ore stockpile of between 500,000 and 750,000 tonnes ahead of the mill prior to commissioning, and to produce ore for up to three years while the underground ramps up to full production. The Company has initiated engineering studies to analyze whether underground production can be commenced earlier than the original target of Q1 2014. In addition, the Company is also evaluating the potential to increase mine and mill production beyond the 6,000 tonnes per day envisioned in the original feasibility study. Results of these new engineering studies are expected to be available by the end of Q1 2012...

Re: Aurico Gold (TSE:AUQ)

PostPosted: Sat Jul 21, 2012 12:32 pm
by Pixel8r
Is This A Buying Opportunity For AuRico Gold?

AuRico Gold (AUQ) is now trading for prices it hasn't seen in the last 20 months after it announced a reduced production rate and resignation of its CEO. The stock is down 18% in the last 2 days and this may provide a good opportunity to buy for gold bugs.

Last year, gold (GLD) had a massive rally when its price rallied all the way up to $1,900s per ounce at one point. Many people were expecting gold to pass $2,000, but it didn't happen since Fed refused to launch a new quantitative easing since then. Now gold is trading in a range between $1,500 and $1,600, which is significantly lower than its 52-week high price, however it is still significantly higher than its historical price. There are 2 things that determine profitability of gold companies: 1) gold price, 2) production rate. While gold price is still decently high, production rates may play a big role how well a gold company will do.

AuRico gold announced on Monday that it is experiencing an unusually high turnover rate for high skilled employees in northern part of Mexico which is affecting the company's production rate significantly. Ocampo mine in the region has been able to deliver 69,000 ounces of gold as opposed to expectations of 90,000 this year. The company is expected to produce between 155,000 and 170,000 ounces of gold this year. Each ounce of gold is expected to cost the company between $540 and $570. Given the current price of gold, the company is looking at an operating profit around $1,000 per ounce of gold. Compared to historic standards, this is very impressive. Apart from gold, the company produces other materials such as silver...

Re: Aurico Gold (TSE:AUQ)

PostPosted: Wed Sep 05, 2012 7:31 pm
by Ziknik ... production

(Reuters) - AuRico Gold Inc (AUQ.TO) cut its full-year production forecast for the second time in as many months and said costs would exceed earlier plans as the gold miner focuses on developing its biggest mine in Mexico.

The company's shares fell 25 percent to their lowest in more than three years.

"It appears it will take two years to get Ocampo (mine) where it should be, and ... it is too large an opportunity cost for investors to bear," Scotiabank analyst Trevor Turnbull wrote in a note to clients.

Development of the underground mine at Ocampo in Chihuahua state was delayed by labor problems, reducing production in the second quarter.

AuRico now expects to produce 115,000 to 125,000 gold equivalent ounces at the Ocampo mine in 2012, down from earlier estimates of 155,000 to 170,000 ounces.

TD Securities analyst Brian Christie said the company's production target cut was much deeper than expected.

Re: Aurico Gold (TSE:AUQ)

PostPosted: Tue Oct 09, 2012 10:28 pm
by Pixel8r
AuRico Gold to Sell the Ocampo Mine and Enters into a Joint Venture Agreement on the Orion Project for $750 Million in Cash

(all amounts are in U.S. dollars unless otherwise indicated)

Toronto: October 9, 2012: AuRico Gold Inc. (TSX:AUQ) (NYSE: AUQ), (“AuRico Gold” or “the Company”) is pleased to announce that it has entered into a definitive agreement pursuant to which Minera Frisco, S.A.B. de C.V (“Minera Frisco”) will acquire the Ocampo mine and the adjacent exploration projects “Venus” and “Los Jarros” all located in Chihuahua State, Mexico and a 50% interest in the Orion advanced development project located in Nayarit State, Mexico from AuRico Gold, for a total cash consideration of $750 million (the “Transaction”). Minera Frisco (BMV: MFRISCO, OTC: MSNFY) is a leading Mexican mining company that was spun out of Grupo Carso S.A. de C.V. (BMV: GCARSO, OTC: GPOVY) in November 2010 and is listed on the Mexican Stock Exchange with a current market capitalization of approximately $10.7 billion. The transaction is expected to close in December 2012.

Upon closing of the Transaction, the Company expects to use the net proceeds from the Transaction to eliminate certain debt obligations, invest in internal growth opportunities, provide sufficient working capital and liquidity for the Company going forward and to undertake a significant return of capital to shareholders.

Scott Perry, President and CEO of AuRico Gold commented, “Minera Frisco presented a compelling, all-cash offer that will strengthen the Company’s balance sheet and repositions AuRico to execute on its strategy of delivering consistent, reliable and sustainable production from our two core assets in Canada and Mexico. The Transaction will allow us to deliver a meaningful return of capital to our shareholders, significantly enhance our liquidity position, give us considerable financial flexibility to support our current operations and examine brownfield expansion opportunities. Following the Transaction, the Company will be well positioned to meet its key objectives of growing its profitability and cash flow through the long life, low cost Young-Davidson and El Chanate operations located in low risk jurisdictions while maintaining a strong organic growth profile primarily driven by increasing production at Young-Davidson. In addition, we have gained a solid partner to further evaluate and potentially advance the Orion project in the coming years through the joint venture with Minera Frisco.”

The Transaction is subject to certain closing conditions, including a standard review by the competition and anti-trust commission of Mexico and the approval of a simple majority of Minera Frisco’s shareholders. The Transaction is not subject to any financing conditions.

Re: Aurico Gold (TSE:AUQ)

PostPosted: Mon Dec 17, 2012 1:57 pm
by Pixel8r
AuRico Gold Announces US$300M Share Buy-Back Through Substantial Issuer Bid

Toronto: December 17, 2012: AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), (“AuRico” or the “Company”) announces that following its receipt of gross proceeds of $750 million relating to the recent sale of the Ocampo mine, the Board of Directors has authorized the making of a substantial issuer bid, pursuant to which the Company will offer (the “Offer”) to purchase for cancellation up to 36,144,578 of its outstanding common shares (the “Shares”) for an aggregate purchase price not exceeding $300 million. AuRico anticipates that the Offer will commence on or about December 18, 2012 and be completed in late January 2013, unless extended or withdrawn. The Company intends to fund purchases of Shares pursuant to the Offer from the Ocampo proceeds and has used $128 million of the proceeds to retire its existing debt facility...

Re: Aurico Gold (TSE:AUQ)

PostPosted: Tue Jan 29, 2013 10:02 pm
by Pixel8r
AuRico Gold Announces the Completion of $300 Million Substantial Issuer Bid

TORONTO, Jan. 29, 2013 /CNW/ - AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ), ("AuRico" or the "Company") announced today that it has taken up and paid for 36,144,578 common shares ("Shares") at a price of $8.30 per Share (the "Purchase Price") under the Company's "modified Dutch auction" substantial issuer bid to purchase for cancellation up to $300,000,000 of its Shares (the "Offer").

The Shares purchased represent approximately 12.8% of the Shares outstanding on an undiluted basis as of January 23, 2013 (the expiry date of the Offer). After giving effect to the purchase, as of that date, AuRico had 246,395,391 Shares issued and outstanding on an undiluted basis.

Shareholders that validly tendered at the Purchase Price had approximately 34.3% of their tendered Shares purchased by AuRico, except that "odd lot" tenders (of fewer than 100 Shares) at the Purchase Price were not subject to pro-ration.

In accordance with the terms of the Offer, Shares tendered under an auction tender at a price higher than the Purchase Price were not purchased. Any Shares not purchased under the Offer, including Shares tendered at prices higher than the Purchase Price or invalidly deposited, will be returned to shareholders promptly by Computershare Investor Services Inc. (the "Depositary"), as depositary for the Offer.

Payment and settlement of the purchased Shares will be effected to registered shareholders by the Depositary on or about January 31, 2013 in accordance with the settlement procedures described in the Offer.

RBC Dominion Securities Inc. and, RBC Capital Markets, LLC acted as dealer managers in connection with the Offer in Canada and the United States, respectively, and as financial advisor to AuRico.