| (1) | See the table at the end of this press release for a reconciliation of adjusted net earnings and adjusted operating cash flow and refer to the discussion of Non-GAAP measures below. |
| (2) | Includes 9,817 pre-production gold ounces produced at Young-Davidson during the three months ended June 30, 2013 |
| (3) | See the discussion of All-in Sustaining Costs and Non-GAAP measures provided below. |
Recent Highlights
- Mr. Alan Edwards was appointed non-executive Chairman of the Board effective July 1, 2013. Mr. Edwards was appointed as an independent director on May 13, 2010.
- The Company’s quarterly dividend payment of $0.04 per share for the second quarter was paid on July 29, 2013. The Company also introduced an optional dividend reinvestment plan to acquire additional common shares by reinvesting cash dividends. Further information on the Company’s dividend reinvestment plan is available through the following link: www.auricogold.com/DRIP. The next dividend payment is scheduled to be paid on October 29, 2013 to shareholders of record on October 11, 2013.
“With another quarter of solid results reported from both operations we continue to demonstrate the potential of our high quality asset base. The mid-shaft crushing and hoisting system is progressing on schedule and remains on target to commission during September. The shaft and hoisting system is the key catalyst that will drive significant improvements in underground productivities and further cost efficiencies,” stated Scott Perry, President and Chief Executive Officer. He continued, “With quality operations, a strong cash position and a fully-funded growth profile, the Company is well positioned for success even in this challenging market environment.”
Impairment Charges and Net Realizable Value Adjustment
Due to the lower metal price environment currently being experienced, the Company’s second quarter net earnings were adjusted by $104.9 million, net of taxes, for non-cash impairments and revaluations. Of that amount, $80 million, net of tax, is related to an impairment charge associated with the El Chanate mine. This impairment charge was related to a reduction in the estimated short and long-term metal prices used in life-of-mine plans, and was charged entirely against goodwill. The Company also determined that an impairment charge of $16.5 million, net of tax, was required for the retained interest royalty in the future life-of-mine free cash flows of the Fosterville and Stawell mines, which were disposed of in 2012. The remaining $8.4 million, net of tax, is related to net realizable value adjustments for heap leach and long-term, low-grade stockpile inventories.