1. Healthcare

Built for SUCCESS
TD Mining Conference - January 27, 2015
TSX; NYSE: AUQ
www.auricogold.com
All amounts are in US dollars unless otherwise indicated
Forward Looking Statements
Cautionary Statement
This presentation contains certain information that constitutes “forward-looking information” and “forward-looking statements” as defined under Canadian and U.S. securities
laws. All statements in this press release, other than statements of historical fact, are forward-looking statements. The words “expect”, “believe”, “anticipate”, “contemplate”,
“may”, “could”, “will”, “intend”, “estimate”, “forecast”, “target”, “budget”, “schedule” and similar expressions identify forward-looking statements. Forward-looking statements
in this presentation include, without limitation, statements with respect to our expectations on underground productivity levels, underground unit mining cost, underground
development, mill facility processing rate, cash flow, free cash flow, cash costs, capital investment and timing to completion on the final leg of the Northgate production shaft,
information as to our strategy, plans and future financial and operating performance, such as our expansion plans, project timelines, production plans, projected cash flows or
capital expenditure levels, cost estimates, mining or milling methods, projected exploration results, resource and reserve estimates, other statements that express our
expectations or estimates of future performance, the success of exploration activities, the Company’s ability to delineate additional resources and reserves as a result of such
programs, statements regarding the advancement of the Lynn Lake district, the completion of a feasibility study on the Lynn Lake Project within the indicated timeframe, mineral
reserves and mineral resources and anticipated grades, exploration expenditures, costs and timing of any future development, costs and timing of future exploration and the
Company’s intentions regarding its investment in Carlisle, the presence of and continuity of metals at Kemess East at modeled grades.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management at the time of making such
statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking statements. Such factors and assumptions underlying the forward-looking statements in this press release include,
but are not limited to: changes to current estimates of mineral reserves and resources; fluctuations in the price of gold; changes in foreign exchange rates (particularly the
Canadian dollar, Mexican peso and U.S. dollar); the impact of inflation; changes in our credit rating; any decision to declare a quarterly dividend; employee relations; litigation;
disruptions affecting operations; availability of and increased costs associated with mining inputs and labor; development delays at the Young-Davidson mine; operating or
technical difficulties in connection with mining or development activities; inherent risks associated with mining and mineral processing; the risk that the Young-Davidson and El
Chanate mines may not perform as planned; uncertainty with the Company’s ability to secure capital to execute its business plans; the speculative nature of mineral exploration
and development, including the risks of obtaining necessary licenses, permits, authorizations and/or approvals from the appropriate regulatory authorities for the Kemess
Underground project; contests over title to properties; changes in national and local government legislation in Canada, Mexico and other jurisdictions in which the Company
does or may carry on business in the future; risk of loss due to sabotage and civil disturbances; the impact of global liquidity and credit availability and the values of assets and
liabilities based on projected future cash flows; risks arising from holding derivative instruments; business opportunities that may be pursued by the Company, as well as those
factors discussed under “Risk Factors” in the Company’s most recent Annual Information Form.
Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this presentation.
Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the assumptions set forth in our most recent Form 40F/Annual Information Form. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian
provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.
There can be no assurance that forward-looking statements or information will prove to be accurate, accordingly, investors should not place undue reliance on the forwardlooking statements or information contained herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of
new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources
This presentation uses the terms "measured", "indicated" and "inferred” resources. We advise investors that while those terms are recognized and required by Canadian
regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred resources” have a great amount of uncertainty as to their existence and
as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part
of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an
inferred mineral resource exists, or is economically or legally mineable.
2
AuRico Gold: Built For Success
Significant Production Growth*
Built for Success
350,000
Low cost, long life assets
300,000
Significant production growth
Gold Ounces (5)
250,000
Growing free cash flow profile
200,000
150,000
100,000
50,000
-
FY 12
Strong resource project pipeline
FY 13
FY 14
FY 15E
FY 16E
FY 17E
Growing Free Cash Flow*
Strong liquidity profile
Significant Canadian tax loss pools
Favourable Canadian dollar exposure
Free Cash Flow per Share
0.40
0.30
0.20
0.10
0.00
(0.10)
(0.20)
(0.30)
Quarterly dividend distributions
(0.40)
(0.50)
FY 14E
(5) Refer to endnote #5
FY 15E
* Source: FactSet consensus data.
FY 16E
FY 17E
FY 18E
3
AuRico Gold Overview
Corporate Information (AUQ:TSX,NYSE)
$250M in Liquidity
Capital Structure
Issued and Outstanding Shares
Options
Share Units
Fully Diluted
(as of Sept. 30, 2014)
249.6M
14.2M
1.5M
265.4M
(as of December 31, 2014)
Cash
Analyst Coverage
Broker
Undrawn
debt facility
Analyst
1
Credit Suisse
Anita Soni
2
RBC Capital Markets
Dan Rollins
3
Morgan Stanley
Brad Humphrey
4
National Bank Financial
Adam Melnyk
5
BMO Capital Markets
Brian Quast
6
CIBC World Markets
Cosmos Chiu
7
Pareto Securities
John McClintock
8
Desjardins Securities
Mike Parkin
9
Raymond James
Phil Russo
10
TD Securities
Steve Green
11
Mackie Research
Barry Allan
12
GMP Securities
Ian Parkinson
13
Dundee Capital Markets
Joe Fazzini
14
Canaccord Genuity
Rahul Paul
15
Macquarie Research
Mike Siperco
16
Scotiabank GBM
Trevor Turnbull
$100M
$150M
C$20M Payment and Restructured Royalty Agreement (Jan. 2015)
No Significant Debt Maturities until 2020
2015
2016
2017
2018
2019
2020
$315M
High Yield
Bond
4
Balanced North American Portfolio
YOUNG-DAVIDSON
EL CHANATE
Location: Ontario, Canada
Location: Sonora State, Mexico
Underground Mine
Open Pit Mine
One of Canada’s largest
underground gold mines
Consistent, low cost
open pit mine
KEMESS UNDERGROUND
LYNN LAKE GOLD CAMP
Location: B.C., Canada
Location: Manitoba, Canada
Advanced Development Project
Open Pit Development Project
Advanced Copper Gold porphyry
development project
Advanced high-grade open pit gold mine
development project
5
Strong Operations: Growing Production
Young-Davidson Production Growth (5)
Gold Ounces Produced(5)
40,166 40,538 40,945
29,252 30,099
26,363 28,281
33,106
35,104
17,825
11,950
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Young-Davidson Quarterly Operational Results
Q1/13
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
Q3/14
Q4/14
2014
28,281
29,252
30,099
33,106
35,104
40,166
40,538
40,945
156,753
-
-
-
$663
$808
$803
$656
$656
$719
Open pit cash costs per oz.
$694
$716
$666
$983
$1,350
$974
$923
$994
$1,071
Total cash costs per oz. (1)(2)
$694
$716
$666
$850
$1,009
$871
$723
$719
$825
1,130
1,611
1,417
2,590
2,611
3,595
3,752
4,140
3,530
2.7
2.5
2.8
3.1
2.8
3.3
3.1
3.0
3.1
1,941
2,445
2,620
2,986
3,772
3,545
3,269
3,438
14,024
Gold ounces produced (5)
Underground cash costs per oz.
Underground mine
Tonnes mined per day
Grades (g/t)
Development metres
Mill processing facility
Tonnes processed per day
6,466
7,017
6,747
6,969
7,163
8,230
7,670
7,757
7,707
Grades (incl. open pit stockpile)
1.8
1.7
1.7
2.0
1.8
2.2
1.9
2.0
2.0
Recoveries (%)
86%
85%
89%
88%
87%
88%
90%
88%
88%
(1) Refer to endnote #1
(2) Refer to endnote #2
(5) Refer to endnote #5
6
Young-Davidson: Strategic Canadian Asset
Consecutive Quarterly Production Growth Profile(5)
2014
120.7
156.8
45,000
$663
$719
40,000
Open Pit Cash Costs ($/oz) (1)(2)
$757
$1,071
35,000
($/oz) (1)(2)
$744
$825
30,000
$191
Up to $135
Gold Production (koz) (5)
Underground Cash Costs
Cash Costs
($/oz) (1)(2)
Capital Investment ($M)(3)
Projected Asset Life (years)
+20
Underground Reserves (Moz) (4)
3.6
Au Grade (g/t)
2.81
Underground M&I (Moz) (4)
Gold Ounces Produced
2013
1.5
Au Grade (g/t)
25,000
20,000
15,000
10,000
5,000
-
2.27
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
Significant Gold Production Growth*(5)
Production Ramp-Up (Year-End Exit Rates)
8,000
250,000
200,000
6,000
240
240
U/G miners
U/G miners
4,140
3,000
207
YE target of
U/G miners
4,000tpd
YE target of
170
2,000tpd
U/G miners
2013
2014
Gold Ounces
Ore Tonnes per Day
8,000
150,000
100,000
50,000
-
2015E
2016E
2017E
(1) Refer to endnote #1 (2) Refer to endnote #2 (3) Refer to endnote #3 (4) Refer to endnote #4
(5) Refer to endnote #5
2012
2013
2014
2015E
2016E
2017E
* Source: FactSet consensus data.
7
Young-Davidson: Underground Mining
2014 “Proof of Construct” Scorecard
140kozs to 160kozs
157kozs
UG productivity @ 4,140tpd
Q4-2014
UG unit costs @ $39/tonne
Q4-2014
UG cash costs @ $650/oz
Q3-2014
Positive net free cash flow
Q4-2014
9890L
9590L
2015 Business Plan
9400L
Gold production growth of 10-15%
UG productivity increase to 6,000tpd
9200L
UG cash costs under $650/oz
Capital expenditure decrease of approx. 30%
8900L
Growing positive net free cash flows
8
Young-Davidson: Processing Facility
Mill Processing Expansion
8,230
7,670 7,757
7,017
6,466
7,163
6,747 6,969
Tonnes per Day
5,866 5,964
4,340
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14
100%
13%
88%
75%
47%
55%
45%
53%
56%
44%
64%
79%
21%
36%
77%
23%
Surface stockpiles of 2.5mt @ 0.75 g/t*
18%
Gold recovery target increased to 90%
63%
83%
17%
82%
100%
Processing cash flow accretive stockpiles
100%
Mill capacity expanded to 8,000 tpd
37%
Commissioned capacity of 6,000 tpd
25%
Growing Underground Ore Feed
Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 2015E 2016E 2017E
* As of Dec. 31/14
Underground
Open Pit incl. Stockpile
Mill Grade
9
Young-Davidson: Strategic Canadian Asset
Location Map
Gold Producers in Canada
(2015E Gold Production (koz))
Musselwhite
274
Red Lake
(incl. Cochenour) Meadowbank
498
377
Goldcorp Inc.
Agnico Eagle
Mines Ltd.
Source: Scotiabank
Timmins
RouynNoranda
Porcupine Destor
Gold Belt
Detour Lake
540
Detour Gold
Corp.
Kirkland
Lake
Canadian
Malartic (50%)
299
Hemlo
205
Yamana Gold
Inc.
Barrick Gold
Corp.
YoungDavidson
170
AuRico Gold
Inc.
Kirkland Larder
Lake Gold Belt
Young-Davidson
Quebec
Porcupine
293
Canadian
Malartic (50%)
299
Lapa
76
Goldex
99
LaRonde
247
Ontario
Eleonore
350
Duparquet
Matheson
Q4 Cash Flow Estimate ($M's)
Opex
$22
Total Capex
Revenue
$20
$51
Cash Flow
$9
Transitioned to Positive Net Free Cash Flow in Q4-2014
10
Young-Davidson: Strategic Canadian Asset
One of the Largest Underground Gold Mines in Canada
250
1,200
USD/CAD $0.95
1,100
USD/CAD $0.90
200
1,000
900
150
800
100
700
Break Even Cost per Ounce
Gold Ounces (000’s)
USD/CAD $0.85
600
50
500
0
400
2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E
Gold Ounces
USD/CAD $0.95
USD/CAD $0.90
USD/CAD $0.85
Long Life, Low Cost, Significant Free Cash Flow
Note: Gold ounces produced and break-even costs per ounce are estimates only and should not be considered as Company guidance.
11
El Chanate: Consistent Gold Production
Consistent Gold Production(5)
2014
Au Production (koz) (5)
71.9
67.3
70,000
Cash Costs ($/oz) (1)(2)
$592
$669
60,000
Capital Investment ($M)(3)
$39
$20 - $25
Projected Asset Life (years)
7
Reserves (Moz) (4)
1.00
Au Grade (g/t)
0.70
Gold Production Ounces
2013
50,000
40,000
30,000
20,000
10,000
-
2011
2012
2013
2014
Consistent production of up to 70kozs
Industry competitive operating costs
2015 capital decrease of up to 25%
Key exploration focus
(1) Refer to endnote #1 (2) Refer to endnote #2 (3) Refer to endnote #3 (4) Refer to endnote #4 (5) Refer to endnote #5
12
Kemess: High Valuation Upside Opportunity
$1B of Surface Infrastructure - 50ktpd Mill, Grid Power, Tailings Storage Facility, Camp Facilities
2013 Kemess Underground Feasibility Highlights(4)
Mine Type
Underground Block Cave
Avg. LOM Annual Prod.
Avg. LOM Cash Costs
Avg. LOM AISC
(US$/oz) (1)
(US$/oz) (1)
Projected Mine Life (years)
Au.Eq. Reserves
(Moz) (4)
105 koz Au / 44 Mlbs Cu
$213
12
3.3
0.56
Cu Grade (%)
0.28
Au.Eq. Grade (g/t)
1.01
Au.Eq. Resources (Moz) (4)
5.2
Au.Eq. Grade (g/t)
0.92
NPV (5%)
Positive Feasibility Study completed
$352
Au grade (g/t)
(1) Refer to endnote #1 (4) Refer to endnote #4
Fully operational surface infrastructure
Permitting: Phase 2 of 3 phase process
Significant new exploration discovery
Expanded $5-$10M exploration program
>$225M
13
Kemess East: Significant New Discovery(4)
Expanded 2015 Exploration Program ($5 to $10M)
KEMESS EAST
Section A
Looking North
Initial Kemess East Resource of 5.5 Million Gold Equivalent Ounces(4)
Reserves and Resources of 10.6 Million Gold Equivalent Ounces at Kemess Property
(4) Refer to endnote #4
14
Lynn Lake – High Grade Open Pit Project
Project Overview(7)
Mine Type
Open Pit
Au Grade (g/t)
2.2
Au M&I (Moz)
1.50
Avg. LOM Annual Mill Prod. (koz)
145
Avg. LOM Cash Costs (C$oz)
$530
Initial Capex (C$M)
$185
Projected Mine Life (years)
NPV(5%) (C$M)
Optimized PEA
Assumptions (US$)
12
$257
$1,100 Au / $18 Ag
Source: Carlisle Goldfields Company Reports
Strategic Low-Risk Opportunity in Early-Stage, Highly Prospective Lynn Lake Mining District
Significant new value creating opportunity following inexpensive C$10M upfront investment
AuRico is the operator and has controlling representation on management committee
60% ownership interest by funding up to C$20M over 3 years and delivering a feasibility study
(7) Refer to endnote #7
15
Lynn Lake – High Grade Open Pit Project(7)
Source: Company Reports
One of the highest grade open pit deposits in Canada with significant exploration potential
Existing infrastructure in place, low power rates of C$0.027/kwh
Commenced Feasibility Study with Young-Davidson project team as lead
Significant 2015 resource delineation & extension drilling program ($6M to $8M)
16
AuRico: Value Creation Business Plan
Valuation Catalysts
2015
2016
2017
Young-Davidson Gold Mine
Young-Davidson Gold Mine
Production Ramp up to 6,000tpd
Production Ramp up to 8,000tpd
Operation at Full Capacity
Growing Free Cash Flow
Growing Free Cash Flow
Significant Free Cash Flow Profile
El Chanate Gold Mine
El Chanate Gold Mine
Consistent Production
Consistent Production
Consistent Production
Exploration Drilling Program
Exploration Drilling Program
Exploration Drilling Program
Kemess Development Project
Kemess Development Project
Initial Resource Estimate at Kemess East
Expected Receipt of Permits
Construction Decision
Permitting Advancement
Kemess East Feasibility
Kemess East Feasibility Advancement
Lynn Lake Development Project
Lynn Lake Development Project
Exploration Drilling Program Updates
Exploration Drilling Program Updates
Exploration Drilling Program Updates
Resource Extension & Delineation Program
Feasibility Advancement
Feasibility Published
Feasibility Program Advancement
Permitting Advancement
Expected Receipt of Permits
Young-Davidson Gold Mine
El Chanate Gold Mine
Kemess Development Project
Expanded Exploration Drilling Program
Lynn Lake Development Project
Construction Decision
17
Balanced Portfolio: Built for Success
Growing Production Profile*(5)
Growing Operating Cash Flows*
0.70
350
0.60
310
0.50
290
270
Per Share
Ounces Produced (000’s)
330
250
230
210
0.40
0.30
0.20
190
0.10
170
0.00
150
FY 14
FY 15E
FY 16E
FY 17E
FY 14E
FY 18E
FY 15E
FY 16E
FY 17E
FY 18E
Consensus Illustrative Dividend Yield* (6)
Growing Free Cash Flows*
3.0
0.40
0.30
2.5
Dividend Yield (%)
0.20
Per Share
0.10
0.00
(0.10)
(0.20)
2.0
1.5
1.0
(0.30)
0.5
(0.40)
0.0
(0.50)
FY 14E
FY 15E
FY 16E
(5) Refer to endnote #5 (6) Refer to endnote #6
FY 17E
FY 18E
FY 14E
FY 15E
FY 16E
* Source: FactSet consensus data.
18
AuRico Gold: Built For Success
Significant Production Growth*
Built for Success
350,000
Exclusive North American portfolio
300,000
Low cost, long life assets
Significant production growth
Gold Ounces (5)
250,000
200,000
150,000
100,000
50,000
Growing free cash flow profile
-
FY 12
Strong resource project pipeline
FY 15E
FY 16E
FY 17E
0.40
Free Cash Flow per Share
Favourable Canadian dollar exposure
FY 14
Growing Free Cash Flow*
Strong liquidity profile
Significant Canadian tax loss pools
FY 13
0.30
0.20
0.10
0.00
(0.10)
(0.20)
(0.30)
Quarterly dividend distributions
(0.40)
(0.50)
FY 14E
(5) Refer to endnote #5
FY 15E
* Source: FactSet consensus data.
FY 16E
FY 17E
FY 18E
19
Appendix
Endnotes
All amounts are in US dollars unless otherwise indicated
1.
Cash Costs per Gold Ounce and All-In Sustaining Costs (“AISC”) Per Gold Ounce are Non-GAAP measures that do not have any standardized
meaning prescribed by International Financial Reporting Standards (“IFRS” or “GAAP”), and that should not be considered in isolation from or as a
substitute for performance measures prepared in accordance with GAAP. See the Non-GAAP Measures section on page 23 of the Management's
Discussion and Analysis for the year ended December 31, 2013 available on the Company website at www.auricogold.com. 2014 fourth quarter and
annual cash costs are prior to inventory net realizable adjustments and reversals, and are estimates only and subject to change.
2.
Cash costs for the Young-Davidson and El Chanate mines are calculated on a per gold ounce basis, net of by-product revenues and net realizable
value adjustments and reversals. Prior to 2014, gold ounces include ounces sold at the El Chanate mine and ounces produced at the YoungDavidson mine. Commencing in 2014 cash costs for both the Young-Davidson and El Chanate mines were calculated based on ounces sold. Prior to
commissioning the underground mine at Young-Davidson, cash costs were calculated on ounces produced from the open pit only. All underground
costs were capitalized, and any revenue related to underground ounces sold was credited against capital expenditures. Subsequent to the
declaration of commercial production in the underground mine, cash costs are calculated on ounces produced from both the open pit and
underground mines, and revenue related to the sale of underground ounces is recognized in the Company’s Statement of Operations as revenue.
3.
For more information regarding AuRico Gold’s 2014 operational estimates, including production, costs, and capital investments, please refer to the
press releases dated February 6, 2014 titled AuRico Gold Announces 2014 Operational Outlook and August 7, 2014 titled AuRico Gold Reports
Second Quarter Financial Results and Eighth Consecutive Quarter of Record Gold Production as Young-Davidson Ramp-Up Exceeds Expectations,
which are available on the Company website at www.auricogold.com.
4.
Reserves and resources for Young-Davidson and El Chanate mines, and Orion represent gold grade as per technical reports and Company
disclosure. For more information regarding AuRico Gold’s Mineral Reserves and Resources as at December 31, 2013, please refer to the press
release dated March 3, 2014 titled AuRico Reports 2013 Reserve & Resource Update available on the Company website at www.auricogold.com.
Measured and indicated resources excludes inferred resources. For more information on the Kemess Feasibility Study, please refer to the press
release dated March 25, 2013 titled AuRico Reports 2012 Reserve & Resource Update and Kemess Feasibility Study Results. For more information
regarding drilling results from the Kemess East discovery refer to the press release issued December 15, 2014 titled AuRico Gold Announces a New
Gold-Copper Porphyry Discovery at the Kemess Project; Initial Resource Estimate Expected in Early 2015. For more information on the initial
resource for Kemess East refer to the press release issued January 21, 2015 titled AuRico Gold Announces Initial Resource of 5.5 Million Gold
Equivalent Ounces at Kemess East; Reserves and Resources of 10.6 Million gold equivalent ounces at Kemess Property.
5.
Production figures include gold ounces only. 2012 and 2013 production at the Young-Davidson mine includes pre-production ounces, which include
ounces produced prior to the declaration of commercial production on September 1, 2012, and the declaration of commercial production in the
underground mine on October 31, 2013.
6.
The illustrative yield assumes the share price as of January 20, 2015. Consensus data is as of January 20, 2015. 2014 to 2017 per share numbers
are based on the number of shares outstanding as of December 2014. For more information regarding AuRico Gold’s dividend policy, please refer to
the press release dated November 6, 2014, available on the Company website at www.auricogold.com.
7.
For more information regarding the Lynn Lake District, please refer to the press release issued by Carlisle Goldfields dated February 27, 2014 titled
Carlisle Announces Optimized PEA of the Farley and MacLellan deposits at Lynn Lake returns Post-Tax IRR of 26.3% at US$1100 gold price.
21
Cash Flow Linked Dividend Policy
20% of Operating Cash Flow beginning in 2014
• Distributed approx. $36 million in dividends since inception
• Encourages financial discipline
• Linked to changes in business profitability
• Leveraged to gold price
Includes a Dividend Reinvestment Plan (“DRIP”)
Consensus Illustrative Yield* (6)
2.5%
2.0%
1.8%
FY 14E
(6) Refer to endnote #6
FY 15E
FY 16E
* Source: FactSet consensus data.
22
Executive Management
Industry
Experience
SCOTT PERRY
President and CEO
17 years
Background
•
Appointed President and Chief Executive Officer in July 2012
•
Joined AuRico in February 2008 as Chief Financial Officer
•
Former Chief Financial Officer at Highland Gold Mining
•
Held senior roles with Barrick in the United States, Australia,
Russia and Central Asia
•
Appointed Chief Financial Officer in January 2013
•
Former Vice President of Finance, Operations and Projects for
Kinross Gold since 2009
•
Former Chief Financial Officer for Baffinland Iron Mines from
2006 to 2009
•
Held increasingly senior positions with Barrick from 1998 to 2006
•
Joined the AuRico team through the Northgate transaction,
where he was Chief Operating Officer for eight years
•
Prior to joining Northgate, Mr. MacPhail held increasingly senior
roles at Noranda, Teck, Homestake and Barrick
ROBERT CHAUSSE
Executive Vice President
and CFO
21 years
PETER MACPHAIL
Executive Vice President
and COO
30 years
23
AuRico Institutional Shareholders
Institution Name
Shares (AUQ_TSE)
% S/O (AUQ_TSE)
Dominant Style
City
Van Eck Associates Corporation
42,378,167
16.98
Growth
New York
Donald Smith & Company, Inc.
22,733,711
9.11
Value
New York
USAA Asset Management Company
7,422,357
2.97
Specialty
San Antonio
Wellington Management Company
6,000,571
2.40
Value
Boston
Gabelli Funds, LLC
5,847,000
2.34
Value
Rye
River Road Asset Management
5,617,208
2.25
Value
Louisville
IA Michael Investment Counsel
4,900,000
1.96
Value
Toronto
The Dreyfus Corporation
4,665,670
1.87
Value
New York
Columbia Management
4,547,547
1.82
Value
Boston
Fiera Capital Corporation
4,028,416
1.61
Value
Montreal
Geologic Resource Partners, LLC
3,954,548
1.58
Alternative
Boston
I.G. Investment Management, LTD (Canada)
3,598,224
1.44
Growth
Winnipeg
PSP Investments
3,417,841
1.37
Value
Montreal
OppenheimerFunds, Inc
3,340,000
1.34
Growth
New York
Global X Management Company, LLC
2,734,847
1.10
Index
New York
The Boston Company
2,574,443
1.03
Value
Boston
Picton Mahoney Asset Management
2,202,640
0.88
Growth
Toronto
CPP Investment Board
2,112,112
0.85
Growth
Toronto
Commerzbank Corporates & Markets
2,092,860
0.84
Broker
Frankfurt
Artisan Partners, L.P.
2,069,432
0.83
Growth
Milwaukee
The Vanguard Group, Inc.
1,961,369
0.79
Index
Malvern
Lombard Odier Asset Management
1,714,737
0.69
Alternative
Petit-Lancy
BlackRock Asset Management Canada, LTD
1,711,820
0.69
Index
Toronto
Eagle Boston Investment Management, Inc.
1,658,938
0.66
Value
Boston
BMO Asset Management Inc.
1,591,266
0.64
Growth
Toronto
Source: Ipreo (January 9, 2015)
24
2013 Mineral Reserve Estimates - Gold
Mineral Reserve Estimates - Gold
Young-Davidson
Surface
Category
Tonnes (000’s)
Proven
3,298
1.01
107
686
1.52
33
P&P
3,984
1.10
140
Proven
10,626
2.90
990
Probable
28,669
2.78
2,566
P&P
39,296
2.81
3,556
P&P
43,280
2.66
3,696
Proven
29,223
0.72
676
Probable
16,115
0.67
346
P&P
45,337
0.70
1,023
-
-
-
Probable
100,373
0.56
1,805
P&P
100,373
0.56
1,805
P&P
188,990
1.07
6,524
Probable
Underground
Total
El Chanate
Total
Kemess
Underground
Proven
Total
AuRico Total
Grade (g/t)
Ounces (000’s)
25
2013 Mineral Resource Estimates - Gold
Mineral Resource Estimates - Gold
Young-Davidson
Surface
Underground
Total
Surface
Underground
Total
El Chanate
Total
Kemess
Underground
Total
Orion (50%)
Total
AuRico Total
Category
Tonnes (000’s)
Measured
Indicated
M&I
Measured
Indicated
M&I
M&I
Inferred
Inferred
Inferred
Measured
Indicated
M&I
Inferred
Measured
Indicated
M&I
Inferred
M&I
Inferred
M&I
Inferred
M&I
Inferred
233
535
769
5,300
11,659
16,960
17,729
31
3,689
3,720
2,158
2,129
4,287
579
65,432
65,432
9,969
554
554
91
88,001
14,357
Grade (g/t)
0.96
1.41
1.28
2.95
2.62
2.72
2.66
0.99
2.72
2.71
0.31
0.40
0.36
0.75
0.41
0.41
0.39
3.66
3.66
3.33
0.88
1.02
Ounces (000’s)
7
24
32
504
981
1,484
1,516
1
323
324
22
27
49
14
854
854
125
65
65
10
2,484
472
Note: Mineral Resources are in addition to Mineral Reserves
26
2013 Mineral Resource Estimates –
Copper and Silver
Mineral Reserve and Resource Estimates – Copper and Silver
Grade
Category
Kemess
Underground
Probable Reserves
Indicated Resources
Inferred Resources
Orion (50%)
Indicated Resources
Inferred Resources
Contained Metal
Tonnes (000’s)
Ag (g/t)
Cu (%)
Ag (000’s) oz
Cu (000’s) lbs
100,373
2.0
0.28
6,608
619,151
65,432
1.8
0.24
3,811
346,546
9,969
1.6
0.21
503
46,101
554
309
-
5,503
-
91
95
-
275
-
Note: Mineral Resources are in addition to Mineral Reserves
27
Notes to Reserves and Resources
Notes to Mineral Reserve and Resource tables:
•
Mineral Reserves and Resources have been stated as at December 31, 2013.
•
Mineral Resources are exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
•
El Chanate and Young-Davidson assumed a gold price of $1,250 per ounce for reserves and $1,450 per ounce for resources.
•
Kemess Underground assumed a gold price of $1,300 per ounce, a silver price of $23.00 per ounce for silver, and a copper price of $3.00 per pound
for reserves. Kemess assumed a $13.00 NSR cutoff for resources.
•
Orion assumed a gold price of $850 per ounce and a silver price of $13.00 per ounce for resources.
•
Mineral Reserves assume the following cutoff grades and process recoveries:
• Young-Davidson – Surface: 0.50 gpt cutoff, 91% mill recovery
• Young-Davidson – Underground: 2.05 gpt cutoff, 91% mill recovery
• El Chanate: 0.15 gpt cutoff, 30%-65% leach recovery
• Kemess Underground: $15 NSR cutoff, mill recovery of 72% for gold and 91% for copper
•
Reserves have been reported in accordance with NI 43-101, as required by Canadian securities regulatory authorities. In addition, while the terms
“Measured”, “Indicated and “Inferred” Mineral Resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian
standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar
information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that “Inferred” Mineral
Resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition,
investors are cautioned not to assume that any part or all of AuRico’s Mineral Resources constitute or will be converted into Reserves.
•
Orion Mineral Resources are reflected on a 50% basis. Following the completion of a joint venture agreement, Minera Frisco, S.A.B. de C.V. has a
50% interest in the Orion project.
•
Mineral Reserve and Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
•
Mineral Resources were prepared under the supervision of Jeffrey Volk, CPG, FAusIMM, the Director of Reserves and Resources, for AuRico Gold
Inc. Mineral Reserves were prepared under the supervision of Chris Bostwick, FAusIMM, the Senior Vice President Technical Services, for AuRico
Gold Inc. Both Messrs Volk and Bostwick are “Qualified Persons” as defined by National Instrument 43-101.
28
Kemess East Initial Resource
Kemess East Mineral Resource Estimates
Tonnes
(000’s)
Au
(g/t)
Ag
(g/t)
Cu
(%)
Au
(000's) oz.
Ag
(000’s) oz.
Cu
(000’s) lbs.
Au eq.
(000’s) oz.
Indicated Resources
55,864
0.52
2.00
0.41
939
3,601
503,663
2,101
Inferred Resources
117,152
0.38
1.79
0.34
1,424
6,739
871,407
3,435
Category
Notes to Kemess East Resources
• Gold equivalent grade and ounces were calculated using assumed metal prices of US$1,300 per ounce for gold, US$23.00 per ounce for silver, and USD 3.00 per pound for copper. No
metallurgical recoveries were applied.
• Samples were prepared at an on-site sample preparation lab. The majority of prepared 250 g samples, crushed to 80% passing 10-mesh and pulverized to 85% passing 150-mesh, were
shipped in security sealed pails to ALS Chemex Laboratory in North Vancouver for analysis, with some 2007 samples submitted to Assayers Canada Laboratories in Vancouver. At both
accredited laboratories, samples were analyzed for a suite of 35 elements, including iron, molybdenum, and silver, using 2-acid digestion and ICP atomic emission spectroscopy on a one
gram sub-sample prior to 2010 and a 4-acid digestion thereafter. Copper analyses were completed by AA spectrometry, following a 3-acid digestion. Gold analyses were completed by
standard 1-assay-ton fire assay with an AA finish. Samples from significantly mineralized zones were also submitted for molybdenum assay, which included 4-acid digestion with an AA
finish.
• Quality control (QC) samples (blanks, duplicates, and certified reference materials) were inserted into the sample stream at regular intervals such that 1 in 25 (4%) samples were
submitted for quality control purposes. QC sample performance was monitored on a regular basis, independently of the laboratories, and failures addressed in a timely manner. All
sample batches were also subjected to each laboratory’s internal quality control procedures, for an additional 40% QC sample volume.
• Initial testwork for Kemess East has yielded similar metallurgical recoveries and concentrate grades to those exhibited for Kemess Underground. Metallurgical recoveries assumed for the
calculations of NSR’s are 91% for copper, 72% for gold and 65% for silver. Metallurgical testwork is ongoing.
• Resources were generated from 27 holes drilled at Kemess East in 2006, 2007, 2013 and 2014.
• The block model was constrained within a US$15 NSR grade shape. The resources reported herein were further constrained within block caving shapes of varying potential footprint
geometries and potential cave heights.
• Potential caving blocks were generated using the floating stope optimizer within Vulcan. Operating cost assumptions were similar to those determined within the Kemess Underground
Feasibility Study, with additional costs applied to mining to account for additional depth below surface.
• Resources reported herein are reported at a zero NSR cutoff, and as such includes internal dilution within the potential caving blocks. External dilution has not been included or
calculated.
• A National Instrument 43-101 compliant technical report is being prepared and will be filed on SEDAR at www.sedar.com within 45 days.
• Exploration activities by AuRico at the Kemess East Project have been conducted under the supervision of Wade Barnes, PGeo, Kemess Project Geologist, for AuRico Gold Inc. Mr.
Barnes is a “Qualified Person” as defined by National Instrument 43-101.
• Mineral Resources were prepared under the supervision of Jeffrey Volk, CPG, FAusIMM, the Director of Reserves and Resources, for AuRico Gold Inc. Mr. Volk is a “Qualified Person”
as defined by National Instrument 43-101.
Chris Bostwick, FAusIMM, Senior Vice President, Technical Services for AuRico Gold Inc. has reviewed and approved the scientific and technical information contained
within this press release. Mr. Bostwick is a “Qualified Person” as defined by National Instrument 43-101.
29