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TD Securities Mining Conference
- 1. Ready, Set, Go… TDSecurities Mining Conference January 28, 2014 TSX: AUQ / NYSE: AUQ www.auricogold.com
- 2. FORWARD LOOKING STATEMENTS Thispresentation contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company’s expansion plans, project timelines, production plans, projected cash flows or capital expenditures, cost estimates, projected exploration results, reserve and resource estimates and other statements that express management’s expectations or estimates of future performance. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, including: uncertainty of production and cost estimates; fluctuations in the price of gold and foreign exchange rates; the uncertainty of replacing depleted reserves; the risk that the Young-Davidson shaft will not perform as planned; the risk that mining operations do not meet expectations; the risk that projects will not be developed accordingly to budgets or timelines, changes in laws in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits or approvals for operations or projects such as Kemess; disputes over title to properties; the speculative nature of mineral exploration and development; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affecting operations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to secure capital to execute business plans; volatility of the Company’s share price; continuation of the dividend and dividend reinvestment plan; the effect of future financings; litigation; risk of loss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from derivative instruments or the absence of hedging; adequacy of internal control over financial reporting; changes in credit rating; and the impact of inflation. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained herein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economic conditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial markets generally; revenue and cash flow estimates, production levels, development schedules and the associated costs; ability to procure equipment and supplies and on a timely basis; the timing of the receipt of permits and other approvals for projects and operations; the ability to attract and retain skilled employees and contractors for the operations; the accuracy of reserve and resource estimates; the impact of changes in currency exchange rates on costs and results; interest rates; taxation; and ongoing relations with employees and business partners. 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
- 3. Positioned For ValueCreation ► Politically-friendly jurisdiction ► Two core high-quality mining assets ► Organic year over year production growth ► Lower end of industry cost curve ► Long mine life ► Strong balance sheet ► Pure gold leverage ► Capital return to shareholders (regular dividends) 3
- 4. Quality North AmericanAsset Base Streamlined Asset Base on the Lower End of the Industry Cost Curve $1,895 Cash cost curve (US$/oz) 2011 gold price range $1,319 Young-Davidson Fosterville Ocampo El Cubo Stawell El Chanate Current Assets Divested Assets Percentile of total gold production Monetized high-cost, non-core assets for proceeds of $1 Billion (2012) (1) (1) Refer to endnote #1. Source: 2011 Brook Hunt Data 4
- 5. Robust Financial Position $290Min Liquidity (as of September 30, 2013) $329.6M Returned to Shareholders (as of October 31, 2013) Dividends $29.6M Undrawn Debt Facility $150M Cash & Eq. $140M Share Buyback $300M Fully Funded, Shareholder Value Creation Business Model 5
- 6. Disciplined Growth DrivesShareholder Value Company-Wide Production Growth (6) 55,000 50,000 Gold Ounces Produced 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Q3 12 Q4 12 Q1 13 Young-Davidson Q2 13 Q3 13 Q4 13 El Chanate Solid quarter over quarter production growth (6) Refer to endnote #6. 6
- 7. Delivering Reliable andSustainable Growth Q1 Q2 Q3 Q4 Year-end Dec. 31/13 2013 Guidance 28,281 29,252 30,099 33,106 120,738 120,000-140,000 - - - $663 $663 - $694 $716 $666 $983 $757 - $694 $716 $666 $850 $744 $575-$675 17,889 18,751 18,804 16,420 71,864 70,000-80,000 $563 $602 $588 $615 $592 $550-$600 46,170 48,003 48,903 49,526 192,601 190,000-220,000 $635 $655 $628 $766 $676 $565-$645 Young-Davidson Gold Ounces Produced3 Underground Cash Costs per oz. Open Pit Cash Costs per oz. Total Cash Costs per oz.1,2 El Chanate Gold Ounces Produced Total Cash Costs per oz.2 Consolidated Results Gold Ounces Produced3 Total Cash Costs per oz.1,2 1. 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. 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. 2. Cash costs are prior to inventory net realizable value adjustments & reversals, and are estimates only and subject to change. See the Non-GAAP Measures section on page 20 of the Management’s Discussion and Analysis for the nine months ended September 30, 2013. Underground cash costs per ounce and open pit cash costs per ounce do not have a standardized meaning prescribed by International Financial Reporting Standards (“IFRS” or “GAAP”). They are therefore considered to be non-GAAP measures and may not be comparable to similar measures presented by other companies. Underground cash costs per ounce and open pit cash costs per ounce are determined by allocating production and refining costs to the underground and open pit tonnes mined and processed, and then dividing by the relevant ounces produced. 3. Includes pre-production gold ounces from the Young-Davidson underground mine prior to the declaration of commercial production in the underground mine on October 31, 2013. ► Sixth consecutive quarter of company-wide production growth ► Well positioned for continued company-wide production growth 7
- 8. Young-Davidson Mine Q4 2013 2013 2013E(4) 33,106 120,738 120,000-140,000 UndergroundCash Costs per oz. $663 $663 Open Pit Cash Costs per oz. $983 $757 $850 $744 Production (gold ounces)(6) Cash Costs (per gold ounce)(2)(3) Open Pit $575-$675 P&P Reserves (oz.)(5) M&I Resources (oz.)(5) 0.9 million Inferred Resources (oz.)(5) MCM shaft operational April/13 3.8 million 1.3 million ► U/G unit costs: approx. $39/t (Nov/Dec) ► 2014 mine plan is 75% laterally accessed & 100% vertically accessed 9890L 9590L ► Low-cost producer & strong year-over-year production growth profile 9400L ► Long mine life: further expansion as reserves increase Mid-Shaft Loading Pocket 9200L NG Shaft ► MCM Shaft Highly productive, wide zones 8900L (2) Refer to endnote #2. (3) Refer to endnote #3. (4) Refer to endnote #4. (5) Refer to endnote #5. (6) Refer to endnote #6. 8
- 9. Young-Davidson Productivity Annual ProductionGrowth(6) Young-Davidson Milestones 160,000 U/G commercial production declared 140,000 Oct. 31/13 2,590 tpd U/G unit mining costs (target sub-$45/t) $39/t (Nov/Dec) Mill facility productivity (Q4) (nameplate 6,000 tpd) 6,969 tpd Gold Oz. 120,000 U/G productivity (Q4) (Year-End target: 2,000 tpd) 100,000 80,000 60,000 40,000 20,000 Commissioned paste backfill plant Dec. 31/13 - 2012 2013 2014E Young-Davidson ramping-up to be one of largest gold mines in the Abitibi Underground Mine Ramp-up Underground Productivity Growth(6) (Year-End Productivity Targets) 9,000 3,000 8,000 Tonnes per Day Tonnes per Day 2,500 2,000 1,500 1,000 7,000 6,000 5,000 4,000 3,000 2,000 500 1,000 - - Q1 Q2 Q3 Q4 2014 2015 2016 2017 (6) Refer to endnote #6. 9
- 10. El Chanate GoldMine Consistent, Stable Production Stable Annual Gold Production 75,000 Gold Production Oz. 70,000 65,000 60,000 55,000 50,000 45,000 40,000 2011 ► 2012 2013 2014E High exploration potential for expansion of existing resources 2012 Cash Costs (per gold ounce)(2)(3) ► Northwest extension targets ► 2013E(4) 71,145 Production (gold ounces)(6) 2013 71,864 70,000-80,000 $434 $592 $550-$600 Southeast extension targets P&P Reserves (oz.)(5) (2) Refer to endnote #2. (3) Refer to endnote #3. 1.2 million (4) Refer to endnote #4. (5) Refer to endnote #5. (6) Refer to endnote #6. 10
- 11. New High GradeMineralization Rono(5) Hole ID Length (m) Grade Au g/t CHCI-760 CHCI-761 CHCI-766 18.0 42.0 51.0 7.5 19.5 0.88 0.50 0.33 0.74 0.93 CHCI-821 In-Pit Drilling(5) Hole ID Length (m) Grade Au g/t CHCI-775 CHCI-776 CHCI-799 CHCI-836 54.0 48.0 6.0 24.0 2.56 2.90 7.60 2.70 NW Extension(5) Hole ID CHCI-769 CHCI-800 Length (m) 37.5 28.5 Grade Au g/t 0.94 0.67 Loma Prieta (5) Hole ID (5) Refer to endnote #5. Length (m) Grade Au g/t CHCI-815 CHCI-817 CHCI-818 CHCI-829 19.5 9.0 9.0 6.0 0.78 1.37 0.58 1.18 11
- 12. Kemess Underground Copper/gold porphyrydeposit located in British Columbia, Canada Value Surfacing Opportunity ► Brownfields site with surface infrastructure (incl. mill, power and old pit for tailings storage) ► Gold Eq. reserves: 2.6M ounces(5) ► Underground block cave mine producing 560M lbs Cu and 1.3M oz Au LOM ► Feasibility study (Mar. ‘13) base case at $1,300 Au, $3 Cu and Fx of C$1:US$1 Existing infrastructure: Mill facilities and previously permitted tailings storage Kemess Underground Production Profile(5) 60 250,000 50 200,000 40 150,000 30 100,000 20 50,000 10 Copper Production (millions of pounds) 70 300,000 Gold Production (ounces) 350,000 ► $450M initial capex, $14.56/t unit costs ► Cash costs of $213/oz Au net of Cu credits ► Ongoing optimization work shows potential for >$225M NAV and 12.5% IRR Permitting in progress and IMA signed with First Nations ► 0 ► Significant leverage to higher metal prices 0 1 2 Gold (ounces) (5) Refer to endnote #5. 3 4 5 6 7 8 9 10 Copper (as Au equivalent ounces) 11 12 13 14 Copper (millions of lbs) 12
- 13. Production and CashFlow Growth Gold Ounces Produced Growing production profile(4)(8) 300,000 250,000 200,000 150,000 100,000 50,000 0 2012A 2013A 2014E 2015E Decreasing capital expenditures and growing free cash flow stream(9) US$ (millions) $200 $100 $0 2012A 2013E 2014E 2015E ($100) ($200) ($300) Capex FCF $1,600 Au FCF $1,500 Au ($400) (4) Refer to endnote #4. (8) Refer to endnote #8. (9) Refer to endnote #9. FCF $1,400 Au FCF $1,300 Au FCF $1,200 Au 13
- 14. Positioned For ValueCreation ► Politically-friendly jurisdiction ► Two core high-quality mining assets ► Organic year over year production growth ► Lower end of industry cost curve ► Long mine life ► Strong balance sheet ► Pure gold leverage ► Capital return to shareholders (regular dividends) 14
- 15.
- 16. AuRico Institutional Shareholders AuRicoGold, Inc. (AUQ_TSE) Institutional Ownership (Jan 14/14) Institution Name Shares (AUQ_TSE) % S/O Style City Van Eck Associates Corporation 21,108,959 8.54 Growth New York Wellington Management Company, LLP 20,743,684 8.39 Value Boston Donald Smith & Company, Inc. 20,255,247 8.20 Value New York River Road Asset Management, LLC 9,239,622 3.74 Value Louisville USAA Asset Management Company 7,297,057 2.95 Specialty San Antonio Heartland Advisors, Inc. 6,026,703 2.44 Value Milwaukee Artisan Partners, L.P. 5,552,303 2.25 Growth Milwaukee Fiera Capital Corporation (Asset Management) 4,706,930 1.90 Value Montreal Geologic Resource Partners, LLC 4,484,100 1.81 Alternative Boston Opus Capital Management, Inc. 4,195,496 1.70 Value Cincinnati Columbia Management Investment Advisers, LLC 4,123,130 1.67 Value Boston Sun Valley Gold, LLC (U.S.) 3,493,185 1.41 Alternative Ketchum OppenheimerFunds, Inc. 2,900,000 1.17 Growth New York Wells Capital Management, Inc. 2,593,433 1.05 Aggressive Growth San Francisco CPP Investment Board 2,579,212 1.04 Index Toronto PSP Investments 2,141,809 0.87 Value Montreal BlackRock Asset Management Canada, LTD 2,101,586 0.85 Index Toronto Global X Management Company, LLC 2,098,312 0.85 Index New York Eagle Boston Investment Management, Inc. 1,719,709 0.70 Value Boston Federated Global Investment Management 1,595,175 0.65 Aggressive Growth New York Intrepid Capital Management, Inc. 1,566,090 0.63 Value Jacksonville Beach TD Asset Management, Inc. 1,561,733 0.63 Growth Toronto Deutsche Bank Trust Company Americas 1,489,341 0.60 Value New York UOB Asset Management, LTD (Singapore) 1,386,800 0.56 Growth Singapore Oxford Asset Management, LLP 1,307,824 0.53 Alternative Oxford 16
- 17. Executive Team Scott Perry,President & Chief Executive Officer Scott Perry has held increasingly senior financial positions in the mining industry over the past 14 years. Most recently, he was AuRico's Chief Financial Officer for over four years. Prior to joining AuRico, he was Chief Financial Officer (seconded from Barrick Gold Corporation) for Highland Gold Mining Ltd., where he managed the Company's financial reporting and compliance commitments, as well as the execution of its short and long-term financial and operational strategies. Scott also led Highland Gold's business and corporate development initiatives. Before being seconded to Highland Gold, Scott held increasingly senior financial roles with Barrick in Australia, the United States, and in Russia, Central Asia where he was instrumental in establishing Barrick's presence in Russia and assembling a strong financial team. Scott holds a Bachelor of Commerce degree from Curtin University, a post-graduate diploma in applied finance and investment as well as a CPA designation. Peter MacPhail, P. Eng., Executive Vice President & Chief Operating Officer Peter MacPhail joined the AuRico team through the Northgate transaction, where he was Chief Operating Officer for eight years. Peter holds over 25 years of solid operational experience in both Canada and Australia. While at Northgate, Peter had overall operations management responsibility for the Kemess, Fosterville and Stawell mines, as well as the Young-Davidson mine project. Prior to joining Northgate, Peter held increasingly senior roles at Noranda, Teck, Homestake and Barrick. Peter holds a BASc degree in Mineral Engineering (1985) from the University of Toronto, and is a licensed professional engineer in Ontario. Robert Chausse, Executive Vice President & Chief Financial Officer Robert Chausse brings with him more than 20 years of international finance and mining experience. Most recently he was the Vice President of Finance, Operations and Projects for Kinross Gold Corporation, a position he held since 2009. Prior to that, Mr. Chausse was Chief Financial Officer for Baffinland Iron Mines Corporation from 2006 to 2009 and held increasingly senior positions with Barrick Gold from 1998 to 2006. Robert received his Chartered Accountant designation in 1990. Trent Mell, Executive Vice President, Corporate Affairs Trent Mell joined the Company in August 2012, with over 13 years of diversified experience in the mining sector. Trent began his mining career as a securities and M&A lawyer at Stikeman Elliott, one of Canada’s leading law firms. Prior to joining AuRico, he held increasingly senior roles at the corporate head offices of Barrick Gold, Sherritt International and North American Palladium. His responsibilities over that period included oversight of the legal, government relations, human resources, and corporate development functions. Trent has led a number of deals, including equity and debt financings, M&A, joint ventures and other mining transactions. He has also had significant involvement in development projects, regional exploration initiatives and investor relations. Trent holds a B.A., B.C.L. (with distinction) and LL.B (with distinction) from McGill University, a LL.M from Osgoode Hall and a joint MBA from the Kellogg School of Management and the Schulich School of Business. He has also published papers on National Instrument 43-101 and has been a guest lecturer on mining topics. 17
- 18. Endnotes 1. The Company announcedproceeds on sale of over $1 billion dollars during 2012, which is comprised of $55 million cash on the sale of Fosterville and Stawell to Crocodile Gold Corporation, $100 million c ash and $100 million in c ommon shares on the sale of the El Cubo mine and Guadalupe y Calvo project to Endeavour Silver Corporation, and $750 million in cash on the sale of the Ocampo mine and a 50% interest in the Orion advanced development project to Minera Frisco. 2. Cash Costs per Gold Ounce and All-In S ustaining Costs Per Gold Ounc e 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 wit h GAAP. See the Non-GAAP Measures section on page 20 of the Management's Discussion and A nalysis for the nine months ended S ept ember 30, 2013 available on the Company website at www.auricogold.com. 2013 fourth quart er/year end cash costs are prior to invent ory net realizable value adjustments & reversals, and are estimates only and subject to change. 3. Cash costs for the Young-Davidson and El Chanat e mines are calculated on a per gold ounce basis, net of by-product revenues and net realizable value adjustments. Gold ounc es include ounces sold at t he El Chanate mine and ounc es produced at the Young-Davids on mine. P rior t o commissioning t he underground mine at Y oung-Davidson, cas h costs are 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 c ommercial production in the underground mine, c ash costs are calculated on ounces produced from both the open pit and underground mines, and revenue related to the sale of underground ounc es is recognized in the Company’s Statement of Operations as revenue. 2013 fourt h quarter/y ear end cash costs are prior to inventory net realizable value adjustments & reversals, and are estimates only and subject to change. 4. For more information regarding AuRico Gold’s 2013 operational estimates, including production, costs, and capital investments, please refer to the press releas e dated March 25, 2013 titled AuRico Reports Fourth Quarter and Annual Financial Results available on the Company website at www.auricogold.com. 5. Reserves and resources for Young-Davidson and El Chanate mines, Kemess Underground Project, and Orion represent gold grade as per technical reports and Company disclosure. For more information regarding AuRic o Gold’s Mineral Reserves and Res ourc es as at December 31, 2012 and 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, available on the Company website at www.auricogold.com. Measured and indicated resources excludes inferred resources. Core lengths in El Chanate drilling highlights are not necessarily true widths. 6. Production figures include gold ounces only. Production at the Y oung-Davidson mine includes pre-production ounc es, 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. 7. The illustrative yield assumes the share price as of January 10, 2014. Figures for 2014-2016 operating cash flow apply consensus data for cash costs, production estimates, and capex figures and a $1,300/ oz gold price assumption. Consensus data is as of January 13, 2014. For more information regarding A uRico Gold’s dividend policy, please refer to the press release dated February 21, 2013, available on the Company website at www.auricogold.com. 8. Figures for 2012 include continuing operations only. Figures for 2013 are bas ed on 2013 preliminary operational results released January 14, 2014 . Figures for 2014 and 2015 are based on consensus data only. Consensus data is as of January 13, 2014. 9. Figures for 2012 include continuing operations only. Figures for 2013 are based on 2013 preliminary operational results released January 14, 2014, and consensus data. The calculation of 2014 and 2015 operating c ash flow and free cash flow apply cons ensus data for c ash costs, production estimates, and capex figures, and are based on a $1,300/oz gold price assumption unless noted otherwise. Operating cash flow is before changes in working capital. Consensus data is as of January 13, 2014. 10. 2013 to 2015 per share numbers are based on the number of shares outstanding as of January 2014, subsequent to the completion of a $300M Substantial Issuer Bid. 18
- 19. Analyst Coverage Analyst Coverage 1. BMONesbitt Burns 2. Canaccord Genuity 3. CIBC 4. Credit Suisse 5. Cowen Securities 6. Desjardins Securities 7. Dundee Securities 8. GMP Securities 9. Mackie Research 10. Macquarie Securities 11. Merrill Lynch 12. Raymond James 13. RBC Capital Markets 14. Scotiabank 15. TD Securities 19
- 20. 2013 Operational Estimates 2013Operational Estimates (March 25, 2013)(4) Gold Production (ounces) Young-Davids on El Chanate 120,000-140,000 70,000-80,000 Total Production 190,000-220,000 Cash Costs per Ounce Young-Davids on $575-$675 El Chanate $550-$600 Total Cash Costs per Ounce $565-$645 All-in Sustaining Cash Costs Young-Davids on El Chanate $1,250-$1,350 $900-$1,000 Total All-in Sustaining Cash Costs per Ounce $1,100-$1,200 Capital Investment Program (US$000’s) Young-Davids on Non-recurring Growth Capital Paste Backfill Plant Shaft and Mid-Shaft Loading and Crushing Facility Open Pit Mine Development Sustaining Capital Total Capital Investment – Young-Davidson $45,000-$50,000 $25,000-$30,000 $6,000-$8,000 $59,000-$62,000 $135,000-$150,000 El Chanate Non-recurring Growth Capital Southeast Open Pit Expansion Heap Leach Expansion Sustaining Capital Total Capital Investment – El Chanate Total Capital Investment $20,000-$25,000 $2,000-$3,000 $8,000-$12,000 $30,000-$40,000 $165,000-$190,000 Depletion and Amortization (US$ per ounce) Young-Davids on $300-$310 El Chanate $245-$255 Total Depletion and Amortization $280-$290 Exploration (US$000’s) Young-Davids on Up to $3,500 El Chanate Up to $3,500 Other Properties Total Exploration Up to $8,000 Up to $15,000 General and Administrative (US$000’s) (4) Refer to endnote #4. Corporate G&A $25,000 20
- 21. All-in Sustaining CashCost Allocation All-in Sustaining Cash Costs 2013 All-in Sustaining Cash Costs $1,100-$1,200 per ounce Corporate G&A Exploration • Provides increased transparency • More representative of actual cost of production • Removes influence of accounting treatments • Can be reconciled to FCF Sustaining Cost Allocation Materials/ Mtc 9% Consumables 19% Cash Costs Diesel 9% Labour 57% (Includes contract labour) Power 6% 21
- 22. Sustainable Dividend Policy ► Peer-leading,sustainable dividend ► 20% of OCF beginning in 2014 ► ► ► Encourages financial discipline Linked to changes in business profitability Includes a Dividend Reinvestment Plan (“DRIP”) Illustrative Yield per Street Consensus Operating Cash Flow per Share(7)(10) Initial dividend of $0.16/per share Payout ratio: 20% OCF 4.1% 2.5% 2.9% 1.8% 2013 (7) Refer to endnote #7. (10) Refer to endnote #10. 2014E 2015E 2016E 22
- 23. Proven and ProbableReserves Proven Reserves Tonnes (000's) Probable Reserves Gold (g/t) Gold Oz. (000's) Tonnes (000's) Gold (g/t) Gold Oz. (000's) El Chanate 36,845 0.68 801 19,015 0.66 403 Young-Davidson - Surface 3,934 1.28 162 2,491 1.36 109 Young-Davidson - Underground 4,547 2.97 434 34,490 2.80 3,100 Total Young-Davidson 8,481 2.19 596 36,981 2.70 3,209 Kemess Underground (KUG) - - - 100,373 0.56 1,805 AuRico - Total 45,326 0.96 1,397 156,369 1.08 5,417 Total Proven and Probable Reserves Tonnes (000's) Gold (g/t) Gold Oz. (000's) El Chanate 55,859 0.67 1,204 Young-Davidson - Surface 6,425 1.31 271 Young-Davidson - Underground 39,037 2.82 3,534 Total Young-Davidson 45,462 2.60 3,804 Kemess Underground (KUG) 100,373 0.56 1,805 AuRico - Total 201,695 1.05 6,813 23
- 24. Measured and IndicatedResources Measured Resources Tonnes (000's) Gold (g/t) Indicated Resources Gold Oz. (000's) Tonnes (000's) Gold (g/t) Gold Oz. (000's) El Chanate 1,233 0.31 12 2,235 0.40 29 Young-Davidson - Surface 98 1.60 5 193 1.76 11 Young-Davidson - Underground 877 4.17 118 8,654 2.59 722 Total Young-Davidson 975 3.91 123 8,846 2.58 733 Kemess Underground (KUG) - - - 65,432 0.41 854 Orion (50%) - - - 554 3.66 65 AuRico - Total 2,208 1.90 135 77,067 0.68 1,680 Total Measured and Indicated Resources Tonnes (000's) Gold (g/t) Gold Oz. (000's) El Chanate 3,468 0.37 41 Young-Davidson - Surface 291 1.70 16 Young-Davidson - Underground 9,531 2.74 839 Total Young-Davidson 9,821 2.71 855 Kemess Underground (KUG) 65,432 0.41 854 Orion (50%) 554 3.36 65 AuRico - Total 79,274 0.71 1,815 24
- 25. Inferred and CopperResources Inferred Resources Tonnes (000's) Gold (g/t) Gold Oz. (000's) El Chanate 409 0.48 6 Young-Davidson - Surface 31 0.99 1 Young-Davidson - Underground 13,983 2.80 1,259 Total Young-Davidson 14,014 2.80 1,260 Kemess Underground (KUG) 9,969 0.39 125 Orion (50%) 91 3.33 10 AuRico - Total 24,483 1.78 1,400 Copper Reserves & Resources Kemess Tonnes (000’s) Copper (%) Copper lbs. (000’s) Probable Reserves 100,373 0.28 619,151 Indicated Resources 65,432 0.24 346,546 Inferred Resources 9,969 0.21 46,101 Silver Resources Indicated Resources 554 309 Silver Oz. (000's) 5,503 Inferred Resources 91 95 275 Orion (50%) Tonnes (000's) Silver (g/t) 25
- 26. Notes to Reservesand Resources Notes: • Mineral Reserves and Resources have been stated as at December 31, 2012. • Mineral Resources are in addition to Mineral Res erves. Mineral Resources that are not Mineral Reserves do not have demonstrated ec onomic viability when calculat ed using Mineral Reserve assumptions. Reserves have been report ed in accordance with NI 43-101, as required by Canadian securities regulatory aut horities. In addition, while the terms “Measured”, “Indicated and “Inferred” Mineral Resources are required pursuant to NI 43-101, the SEC does not rec ognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resourc e information contained herein is not comparable to similar information regarding mineral res erves disclosed in accordance with the requirements of the SEC. Investors should understand that “Inferred” Mineral Res ources have a great amount of uncertainty as to their existence and great uncert ainty 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. • Following the completion of a joint venture agreement, Minera Frisco has a 50% interest in the Orion Project. • Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. The following metal prices were used for the calculation of Reserves and Resources: Reserves Resources USD Au $/oz Ag $/oz Cu $/lb Au $/oz Ag $/oz Cu $/lb El Chanate $1,400 - - $1,600 - - Young-Davids on $1,400 - - $1,600 - - Kemess Underground $1,300 $23.00 $3.00 - - - Orion $13.00 NSR $850 $13.00 - Reserves and Resources were prepared under the supervision of the following Qualified Persons: Resources Reserves El Chanate Jeffrey Volk, CPG, FAusIMM, Director Reserves and Resources, AuRico Gold Inc. Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc. Young-Davidson - Open Pit Jeffrey Volk, CPG, FAusIMM, Director Reserves and Resources, AuRico Gold Inc. Chris Sharpe, P.Eng, Manager Mining, AuRico Gold Inc. Young-Davidson - Underground Jeffrey Volk, CPG, FAusIMM, Director Reserves and Resources, AuRico Gold Inc. Chris Bostwick, FAusIMM, SVP Technical Services, AuRico Gold Inc. Kemess Underground Jeffrey Volk, CPG, FAusIMM, Director Reserves and Resources, AuRico Gold Inc. Chris Bostwick, FAusIMM, SVP Technical Services, AuRico Gold Inc. Orion Jeffrey Volk, CPG, FAusIMM, Director Reserves and Resources, AuRico Gold Inc. 26