AuRico Gold (AUQ) CEO Scott Perry on Q1 2014 Results - Earnings Call Transcript

May. 9.14 | About: AuRico Gold (AUQ)

Start Time: 08:37

End Time: 09:09

AuRico Gold Inc. (NYSE:AUQ)

Q1 2014 Earnings Conference Call

May 9, 2014 08:30 AM ET

Executives

Scott Perry - President & CEO

Robert Chausse - CFO

Peter MacPhail - EVP & COO

Anne Day - VP, IR

Analysts

Cosmos Chiu - CIBC World Markets

Nicholas Jarmoszuk - RBC Capital Markets

Rahul Paul - Canaccord Genuity

Bruce Klein - Credit Suisse

Operator

Good morning. My name is Steve and I will be your conference operator today. At this time, I’d like to welcome everyone to the AuRico Gold Inc Q1 2014 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I’d now like to turn the conference over to Anne Day, VP of Investor Relations. Please go ahead.

Anne Day

Thank you, operator, and good morning, everyone. Thanks for joining us today for the AuRico Gold first quarter earnings results conference call and Webcast. On the line today we have Scott Perry, President and CEO; Rob Chausse, CFO; and Peter MacPhail, COO. They along with other members of the Senior Management team will be available during the Q&A period at the end of the call.

At the end of the presentation, the operator will provide instructions for those who wish to ask questions. Today’s presentation, financial results, and press release are all available on our website at auricogold.com.

Before we begin, I’ll go through an abbreviated version of our forward-looking statements, which are also provided in the press release and today's presentation. Some of today's commentary may contain forward-looking information for AuRico. In this respect, we refer you to our detailed cautionary note regarding forward-looking statements in our press release and presentation. You are cautioned that actual results and future events could differ materially from the respective conclusions, forecasts, or projections. We refer you to the section entitled the risk factors in our latest MD&A and other filings available on CEDAR, which set out the material factors that would cause results to differ.

I’ll now turn the call over to Scott Perry.

Scott Perry

Okay. Thanks, Anne, and good morning ladies and gentlemen and thank you for participating in our conference call and Webcast.

Just referencing the Webcast presentation, a copy of which is available on the company’s Web page. I am just starting off on Slide 4, entitled Corporate Update. At the beginning of last year, we rolled out a new safety program. We entitled that safety program Home Safe Everyday. And I think it’s really important that we give recognition to that operations just in terms of the exemplary safety performance that they’ve demonstrated since the rollout of that program.

At Young-Davidson, we just recently achieved a key milestone. We now have 1.7 million man hours of lost time incident free operations and in addition to that now achieved one-year of lost time incident free. Likewise, down at El Chanate, down in Mexico, we recently achieved key milestone of 2 million hours of lost time incident free operations.

We in the industry, we always advocate that safety performance is one of the leading indicators of a quality operation and I think you’re really seeing our portfolio demonstrate such. Where you do see this resonating in terms of operational excellence, in terms of our most recent Q1, that featured our seventh consecutive quarter of the company-wide quarter-over-quarter production growth and we’re seeing very good momentum in the operations, especially at our flagship operation, Young-Davidson. I think we are very well positioned to see a continuation of that trend and Q2 will likely be our eighth consecutive quarter of continued growth in gold output.

The third bullet point here on the left side of the slide, as you would have seen in Q1, we took advantage of the what we saw as an opportune window in the financing markets and we completed a high yield financing, that is to refinance one of the existing debt maturities on our balance sheet. As a result of that financing, we now extended out our debt maturities to the year 2020. So that from now leading up to 2020 we don’t have any debt maturity profiles or what have you falling due for redemption. And that really gives us a very strong liquidity foundation to operate from and I think we have got a very tactical robust position there, that will really allow us to continue executing with our strategy and our business plans even in a variable gold price climate.

Likewise, in terms of shareholder value creation, just recently declared our quarterly dividend. It was a dividend of $0.02 per share and that’s as per the existing dividend mechanism whereby we’re committing 20% of our operating cash flow distribution to the shareholders.

Just transitioning to the next slide, on Slide 5, slide entitled seventh quarter of record gold production. Just want to reference the chart here at the top of the slide. It’s a chart that myself, the management team, all the employees, we take a lot of pride in this. It really does speak to the quality of the portfolio. Q1 as I mentioned, was the seventh consecutive quarter. We are seeing very good momentum. You can see in this chart here, we’re providing a forward looking quarter, in that we expect a continuation of this trend and Q2 will likely represent the eighth consecutive quarter of growth. So good operating momentum across all the unit operations and I think we continue to be very well positioned as we make our way towards the end of this year.

Referencing the table there, at the bottom of the Slide 5, you can see the production results, also the corresponding cash costs per ounce results. Just referencing the first quarter results, that came in at $870 per ounce which is higher than the recent preceding quarter. Key thing to note that there was the open pit operations at Young-Davidson, which are winding down and we pretty much measure these in weeks until when we’re going to be fully exhausted that. We are seeing some higher open pit costs there, but they won’t be with us as we move forward into Q2, Q3, Q4.

I do want to highlight El Chanate. El Chanate came in at Q1 of the cash costs per ounce results that was actually below the lower end of our guidance for the full-year. So our team down in Mexico continues to demonstrate solid performance.

Just moving on to the next slide, on Slide 6, just providing a little bit more detail on Young-Davidson. Myself and management team, we just recently returned from Young-Davidson and we’ve been up there the majority of this week. We took our Board of Directors up to Young-Davidson and that’s where we actually had our Board meetings. I think we’re all coming away, very impressed with what we’re seeing there, be it the morale, be it the safety record, be it the infrastructure, the operational performance, more than ever, we’re really seeing our operation that its poised to success.

In terms of underground mine productivity, in Q1 we averaged 2,600 tonnes per day. Our shareholders may recall that our guidance for this year was to commence the year at 2,500 tonnes per day. So we actually exceeded that level of performance. We are guiding that we will exit this year at 4,000 tonnes per day. Worth noting that in the month of April we actually achieved the productivity rate at some 3,200 tonnes per day. So we’re almost operating at 75% of the targeted year-end capacity.

So the momentum is very good there and really what that reflects is something that we highlight quite often, which is that our focus on underground development. Again, you may recall that we came into this year with 75% of this year’s calendar mine planned, derisked essentially, in that we had all the lateral development in place and that’s what really allows us to incorporate the utmost flexibility just in terms of that sequencing and phasing of underground operations. I think you’re really seeing that in terms of the productivity rates, but also the unit costs.

As for the next bullet point here, underground unit mining costs came right in on $45 per tonne. Again, that was our guidance for this year. Again, we’re guiding that, we’ll commence this year at $45 per tonne and over the course of the year you see that unit mining cost decreased to a year-end average of around $40 per tonne and really what’s driving that decrease in cost per (indiscernible) is the economies of scale and the natural scale up of the underground operation.

Other key quarterly highlights, Paste Backfill Plant was commissioned on January 1st, so we really do have all the infrastructure in place now and increasingly as we move forward, it’s just a blocking and tackling mentality and just continuing to focus on execution and ramping up the productivity rates.

Development advance was excellent. We average throughout 42 meters per day, which was higher than plan. It was higher than budget. Again, the guys are showing solid performance there. We continue to focus on our lower margin vertical development. We are currently sinking the MCM shaft to the ultimate depth of the ore body. This will be a program that will be taking place over the next 2.5 years and once that program is complete, we will have full access to the strategic mine life of 20 years or more. And then just the last bullet point, as we announced earlier in the quarter, we have received a new permit. It’s a permit increase of an incremental 2,000 tonnes per day. Previously we were permitted up to 8,000, so now we’ve allowable operating capacity of up to 10,000 tonnes per day. This really does give the operations lot of optionality in terms of their ability to scale up to higher throughput rates and therein they can -- an advantageous manner, draw down on some of the stock pile inventory, which should be cash flow accretive.

Just moving on to the next slide, Slide 7, just on El Chanate, our Mexican operation. El Chanate really continues to be our poster child for just reliable, consistent, sustainable production. The operation continues to run like clockwork really. Be at the open pit operations or the heat leach operations, productivities, unit operating costs, everything is coming right in line with plan. So it’s very pleased to see that as I mentioned earlier, I think Rob will touch on the financial highlights. We saw good operating cost performance at El Chanate. The cash costs per ounce result was around $586 per ounce, so actually well under the lower end of guidance. So they’re well positioned there in terms of our side moving forward.

And then just lastly, again a subset of our Board was down at El Chanate two weeks ago. One of the key things we were focusing on was our exploration program down there. A lot of you will be aware that last year we did identified three new areas of mineralization outside the existing open pit. We continue to follow-up on these mineralized areas and hopefully we will be reporting our increasing new slope from the drill bit as we make our way through this year.

With that, I’ll now pass the call over to Rob Chausse, our Chief Financial Officer, and Rob can walk us through some of the financial highlights.

Robert Chausse

Thanks, Scott. Good morning. Before we get started, I’d like to note that for comparative purposes, I'll be speaking to the Q1 ’13 results that were comprised of a full quarter of Chanate and the Young-Davidson open pit, whereas ’14 includes the results of -- from the Young-Davidson underground.

Turning to Slide 9, first quarter revenue from continuing operations was $71 million, driven by sales of approximately 54,000 gold ounces at an average realized price of $1,297 per ounce. Revenue was 9% higher than the prior year quarter due to a 37% increase in ounce sold offset by a 20% decline in the realized gold price. Sales and production were higher than Q1 of ’13 largely due to the inclusion of the YD underground.

First quarter adjusted operating cash flow was approximately $13.5 million or $0.05 per share, compared to $0.08 per share in Q1 of ’13. The Company recorded a net loss of approximately $29 million or $0.12 a share during the quarter, compared to net income of $0.07 per share in Q1 of ’13. After adjusting for the one-time charges that I'll review in more detail shortly, the net loss was $7.6 million or $0.03 per share for the quarter, compared to net income of $11.6 million or $0.04 per share for the first quarter of ‘13. When compared to the prior year, the Company's first quarter adjusted operating cash flow and adjusted net earnings were impacted by the lower gold price and higher costs related to the Young-Davidson open pit.

Moving to Slide 10, with our operating results. Young-Davidson produced 35,100 gold ounces in the first quarter. This represents 24% increase over Q1 ’13 and as a result of higher grades and increased melt throughput. Young-Davidson open pit realized cash costs of $1,350 per ounce, and the underground realized cash costs of $808 per ounce. Overall costs were $1,009 per gold ounce for the first quarter.

We are on track to meet the full-year guidance with Q1 cash costs coming in as for our plan. Our expectation is to see cash costs decline during the second half of 2014 with the closure of the YD open pit. In April, the strip ratio has decreased and grades have improved resulting in a substantial improvement in the open pit cost per ounce starting off for our second quarter.

El Chanate produced 19,100 gold ounces or 7% more than Q1 ’13. The increase is primarily due to unscheduled ADR plant maintenance during the prior-year quarter. Total cash costs at El Chanate were $586 per gold ounce in Q1, a 4% increase over Q1 last year. This increase is primarily due to the application in higher quantities of solution to accelerate gold recoveries and a reduction in capitalized stripping costs. Combined, our operations achieved cast costs of $870 per gold ounce in the first quarter of 2014, and as noted, we maintain our full-year guidance with an expectation of lowering cash costs during the second half of 2014.

Slide 11, capital expenditures. We provide a breakdown of our 2014 numbers. Our site capital for Chanate and Young-Davidson was approximately $51.9 million and exploration, which includes land acquisitions at our Chanate mine amounted to $1.8 million. The majority of the CapEx is expected to occur in the first half of ’14 as we increased underground productivity to 4,000 tonnes per day by the end of 2014.

Slide 12 provides a detailed reconciliation of our adjusted earnings for the fourth quarter of 2014. As noted earlier, the reported loss from continuing operations for Q1 was $28 million or $0.12 a share. The adjusted result adds $12.7 million in deferred tax expense related to foreign exchange and $15.6 million related to the convertible tender offer completed during the quarter. Other adjustments deducted include $5.9 million of unrealized gains on foreign exchange, $5.8 million of realized and unrealized gains on investments, and $4.7 million of other adjustments which includes tax -- tax related to the majority of the reconciling items noted above.

After taking into account all the items noted on schedule, the adjusted net loss of Q1 is $7.6 million or $0.03 a share. All-in sustaining cost -- we reported consolidated all-in sustaining cost of $1,390 per ounce for the first quarter. Young-David and Chanate’s all-in sustaining cost were $1,315 and $1,038 per ounce respectively. And again we maintain our full-year all-in sustaining cost guidance of between $1,100 and $1,200 per ounce with an expectation of lower cost during the second half of ’14 as the YD it ceases operation. Please refer to our non-GAAP measure section in the MD&A for details on our all-in sustaining cost. Liquidity at the end of March 2014 was approximately $315 million. And with that, I’ll turn the call back to Scott.

Scott Perry

Okay, thank you Rob. Just transitioning to Slide 5, it's been titled April in the Q2 outlook. You may have noticed in our press release that we also incorporated a bit of an update just in terms of how operations are performing in the month of April. And I think one of the key things you’ll note there is we continue to -- really go from strength-to-strength that solid operating momentum that you saw in Q1, it's certainly carried into Q2 and actually continues to augment. So, in terms of Young-Davidson we feel very confident that Young-Davidson is well positioned May, 2014 guidance. Focusing on the key unit operation which is the underground operation and in the month of April we averaged around 3200 tonnes per day in terms of an underground unit mining rate. In terms of the grades that we’re seeing, they continue to be in line of reserves in the key takeaway as we’re very well positioned and on track to achieve the year end exit rate of 4000 tonnes per day.

Our mill facility continues to operate at fine levels with that permitted increase. We continue to focus on a potential scale up to higher productivity levels, so we’ve got good optionality there as well as we move forward. We got key takeaway from a gold production point of view. Q2 is very well positioned to deliver our eighth consecutive quarter. Our production growth, we saw a record gold production in the month of April that positions us well and we’re actually providing a forward looking quarter guidance and that we expect Young-Davidson gold production in Q2 to come in at 36,000 to 38,000 ounces which would obviously be a new record level of gold output.

Down in Mexico, El Chanate continues to deliver consistent and reliable performance operating inline with guidance, well positioned to meet full-year guidance. For the second quarter we’re estimating gold output of some 18,000 to 19,000 ounces. As you saw in Q1, the operating cost is performing really well there and we do see good upside in terms of achieving potentially the lower end of guidance as we make our way throughout the calendar year.

Just transitioning on to the next slide, Slide 16, which is our last slide. As for our past presentations just the key attributes that we put forward that really do distinguish AuRico, especially in the context of comparative peer group. First and foremost is jurisdiction, the entire asset base we’re entirely domiciled in North America, a very non-problematic region in terms of operating and delivering, makes for high quality asset base. You’ve got the natural organic year-over-year production growth. You have seen this for the last three years. You should see this in the next three years moving forward. We’re seeing on a quarter-over-quarter basis that a natural scale up it always ensures at least from a revenue basis we should be growing year-over-year.

Assets are well positioned against industry cost curve, and one of the key attributes that I quite like is the mine longevity particularly at Young-Davidson we’re seeing a strategic asset life that of some 20 years or more which positions us well in terms of optionality, as Rob and myself touched on, it secured the balance sheet even further with the high yield refinancing. I think that positions us well from a liquidity profile and we don’t see any issues in terms of managing to our business plan and our strategy even in a variable gold price environment.

I guess just lastly, as our shareholders would know pure gold leverage we’re unhedged so we fully participate in the current gold price environment and we continue to be focused on shareholder value creation and I guess that point to the most recent declaration of our quarterly dividend and look forward to carrying these moving forward.

With that operator, I’d like to pass proceedings back to yourself and if we could open up the call for any Q&A.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions) Your first question comes from the line of Cosmos Chiu from CIBC. Your line is now open.

Cosmos Chiu - CIBC World Markets

Good morning, Scott and team and thanks for hosting the call. Maybe first off on Young-Davidson here, certainly April throughput looks like it's tracking quite well and I know Scott you’ve kind of mentioned that you want to target a throughput of 4000 tonnes per day by the end of the year. But could you actually get there quicker or earlier? Is it as simple as opening up more working phases given that certainly your hoisting and your shaft have a capacity that’s beyond that?

Peter MacPhail

Yes, good morning Cosmos. Yes, I think you really highlight that with your question, our number one focus is lateral development advance as it were the same in our previous communications in the most recent analyst site, because even in terms of our compensation practices at sites, in terms of the top tier of management, the majority of what influences their compensation is whether or not they are achieving development in terms of compliance throughout development budget. As you saw in Q1, guys are doing very well. They actually outperform the plan. They outperform budget. And as they continue to do that, they continue to drive higher and higher flexibility in terms of sequencing and saving the operation. So we’re very well positioned to achieve our year end guidance which again is exiting the year at 4000 tonnes per day. As they have shown in the month of April they’re already operating close to 75% of that that exit rate. So, I think they’re well positioned. But so now I’ve continued to maintain our current guidance that we will exit the year at 4,000 tonnes per day and we’ll see and we will leave it at that Cosmos.

Cosmos Chiu - CIBC World Markets

Yes. And then maybe if I can turn to CapEx quickly at Young-Davidson; Scott and maybe Rob, you have given us guidance of about $105 million, $110 million for the year. You spent about $45 million in Q1. You haven't told us if there is any change’s so I would assume that there is no changes to guidance. And has it always been front end loaded and maybe you can talk quickly about that as well.

Scott Perry

Yes, I mean as you’re seeing with our press release in our guidance it always has been front end loaded. I think we did communicate that last year, and I think maybe just one thing to note Q1 was also going to be additionally a little bit front end loaded just because in terms of the accounts payables and what have you that relates to the prior-year. You do see us paying some of those as we move forward here into Q1, that’s all behind us now, that’s reflected in the guidance. So I may -- I’ll have to look to Rob from a percentage basis. Rob, do you know up hand what percentage was assigned to the first half as opposed to the second half.

Robert Chausse

In and around the 60% to the 40% range.

Scott Perry

Yes, so as you see Cosmos, the majority of the CapEx was always scheduled for the first half. But increasingly if you move forward now, all the infrastructure is in place and it's really just the development spend profile and just the ongoing development or syncing of the MCM shaft.

Cosmos Chiu - CIBC World Markets

Great. And then maybe turning to the open pit, certainly Q1 cost for the open pit were a bit higher given that you had to expense, all your expenses that you spent in Q1 into calculating that cash cost. And then Rob I think you mentioned that, that’s going to come down in the second half. Do you expect any kind of decrease in Q2 given that you’re still; the mining activity is still going in Q2. Is Q2 going to be more so comparable to Q1 versus some of the drop that we’re going to see in the second half?

Robert Chausse

No, we’re expecting a decrease in Q2 primarily based on much lower strip ratio, and pushing through some higher grade material because we’re -- that’s what's done. Q1 was all about getting to the high grade material for Q2 and we’re there and we’re seeing that.

Cosmos Chiu - CIBC World Markets

Okay. So, Rob the grade in Q2 is going to be even higher than what we saw in Q1 because Q1 wasn’t that bad. Q1, I guess you -- the open pit grade was 1.02 so you expect it to be even higher in Q2?

Robert Chausse

Yes, coming into April has been higher and we expect it to continue for the next -- the pit is going to be shut by end of May, early June.

Scott Perry

And Cosmos maybe just the other thing to highlight, you’ve probably seen it in the press release that in terms of the stripping ratio it's certainly going to decrease here in Q2. Obviously we had visibility on the month of April and it definitely decreased materially.

Cosmos Chiu - CIBC World Markets

Great. That’s all I have. Thank you.

Operator

Your next question comes from the line of Nick Jarmoszuk from RBC. Your line is open.

Nicholas Jarmoszuk - RBC Capital Markets

Hi, good morning thanks for taking the question. I had a question on the expanded mill permit. Could you talk about the above ground infrastructure necessary to expand the milling capacity from 8000 to 10,000, the timing and then also should we just think about that expanded capacity utilizing the open pit stockpile or is this part of a larger plan to increase the underground throughput as well. Thanks.

Scott Perry

Nicholas, in terms of the permits, if you look at our guidance for the full-year we’re sort of guiding that out. Our throughput will be demonstrating a productivity rate at the mill facility of 7000 tonnes to 75000 tonnes per day. I think the operations team they continue to demonstrate that they are having no issues whatsoever in terms of operating at that level of performance. Now that we do have this permit increase, we are seeing opportunities to potentially try and increase that further. I mean we might look at doing that as we make our way into the second half of the year and in terms of it being opportunistic we think the mill can run at that high level of throughput with no need for any incremental capital. And really what drives that is, as you have higher and higher presence of underground production in the mill, we find that the underground ore is softer if you will, it doesn’t require as much time in the grinding circuit, and we tend to get a natural faster throughput rate. But as for now, we are maintaining our existing guidance that will be operating at sort of 7000 tonnes to 7500 tonnes. But as we move forward with this asset it could be optionally to target 8000 tonnes per day, it's in the future. If we do achieve these high throughput rates we do have 3 million tonnes of the stockpile inventory. The average grade of that stockpile inventory is up to 0.8 grams per tonne and that’s what we’d be drawing down on to take advantage of any incremental increases in throughput.

Nicholas Jarmoszuk - RBC Capital Markets

So, in all likelihood it sounds like it would be more of a 2015 event?

Scott Perry

Yes it could be as early as second half of this year, but probably more likely 2015 and I think the other key thing that Robert had me highlight is, as and when we do draw down the stockpile inventory it will be cash flow accretive, just given that all the past mining cost associated with the status from that stockpile has sunk cost.

Nicholas Jarmoszuk - RBC Capital Markets

And then, is there any incremental cost to taking it up, the extra 2000 tonnes or is it just improving your throughput rates?

Scott Perry

There’s no incremental cost and just to clarify, right now we are operating at 7000 tonnes to 7500 tonnes per day and we might be looking to increase it to around 8000 tonnes per day in average. We’re not actually targeting the permit rate of 10000 tonnes per day that is not on the card.

Nicholas Jarmoszuk - RBC Capital Markets

Okay. Thank you.

Operator

Your next question comes from the line of Rahul Paul from Canaccord Genuity. Your line is open.

Rahul Paul - Canaccord Genuity

Hi, guys. In terms of Q1 cost at Young-Davidson you indicated that the costs were pretty much in line with budget. I’m just wondering going from Q4 to Q1, if you could maybe talk a little bit about – little bit and maybe quantify some of the reasons for the increase in underground cost from $663 an ounce in Q4 to $808 in Q1?

Robert Chausse

Sure. For the underground the lower grades represented a large portion of that compared to the previous quarter. Higher mining costs as we brought on pace backfill. And then we also as a result of sequencing had more operating development than the prior quarter. And so we expect that to level out through the year. So, you take into account those three items and not mix up the majority of the underground impact.

Scott Perry

And just to add to that Rahul and I know you’d appreciate this. Again just to reiterate, underground mining costs were $45 per tonne which was inline with guidance. And again as you would appreciate, as we move forward over the remainder of this year and underground productivity continues to scale up, gold output continues to scale up. We would see those unit cost per tonne or operating costs for underground ounce production continuing to decrease.

Rahul Paul - Canaccord Genuity

Thanks. Should we expect a more gradual decline then from $808 an ounce to something lower than Q4, or is it going to be -- is there going to be a sharp decline in sort of Q3, Q4?

Scott Perry

I think, like a linear decline or a sequential -- yeah a linear decline, a gradual decline to be more appropriate in terms of your modeling.

Rahul Paul - Canaccord Genuity

And in terms of the grades from the underground, do you expect it to be somewhat constant in line with reserve grades through the year?

Scott Perry

Yes, I think definitely, I think from memory Q1 was 2.81 in terms of the mine grades the month of April seeing similar level of mine grade, and yes as we walked you through before it's one of the key advantages to this ore body, it's very consistent in terms of the grade profile, the grade dissemination. We don’t see a lot of variability, so I would be forecasting a consistent grade quarter-over-quarter.

Rahul Paul - Canaccord Genuity

Okay. Thanks, Scott. Thanks, Rob.

Robert Chausse

Thanks.

Operator

(Operator Instructions) And we have another question from the line of Bruce Klein from Credit Suisse. Your line is open.

Bruce Klein - Credit Suisse

Hi, good morning. I was just wanting to -- I didn’t catch the beginning, but did your CapEx change -- is there any change in the CapEx thoughts for ’14 and what's your latest thought’s on maintenance for ’14?

Scott Perry

There is no change to the capital guidance for 2014.

Bruce Klein - Credit Suisse

And what are you guys guidance toward for sort of maintenance type level?

Scott Perry

Maintenance capital or what we call sustaining capital?

Bruce Klein - Credit Suisse

Yes.

Scott Perry

Yes, at Young-Davidson as per the guidance I think the midpoint of the guidance was around $55 million for the full calendar year.

Bruce Klein - Credit Suisse

Okay. Thanks guys.

Operator

There are no further questions at this time. I’ll turn it back for any closing comments.

Scott Perry

Thank you operator, and again thank you everyone for participating in the call and we look forward to speaking with you shortly. Thank you.

Operator

Ladies and gentlemen this concludes today's conference call. You may now disconnect.

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AuRico Gold (AUQ): Q1 EPS of -$0.03 misses by $0.01. Revenue of $70.95M (+9.3% Y/Y) beats by $4.43M.