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Auriant Mining

OMX: AUR

Market CapSEK305.2m

Last Close SEK3.09

Auriant Mining is a Swedish junior gold mining company focused on Russia. It has two producing mines (Tardan and Solcocon), one advanced exploration property (Kara-Beldyr) and one early stage exploration property (Uzhunzhul).

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Investment summary

As in previous quarters, Auriant’s new policy of selling gold on an ‘as needed’ (rather than maximised) basis has resulted in the full benefits of its new processing plant at Tardan being disguised. Allowing for a 7.5% under-sale of gold relative to production as well as a $2.2m waste rock disposal provision, actual Q321 results were within 5.2% (or $0.2m) of our prior expectations before tax (see Exhibit 2). Having produced 680kg gold so far in FY21 and with the mining of ore and waste at, or near, record levels in Q3, with a further quarter’s worth of ore in stockpile, barring the unexpected, we believe that Auriant will comfortably achieve its FY21 production guidance for Tardan of 860–910kg.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 29.8 7.2 (2.2) (1.2) N/A 3.6
2020A 53.4 31.2 16.6 13.7 2.5 1.3
2021E 49.0 23.8 12.4 10.5 3.2 1.5
2022E 55.6 35.2 23.8 11.4 3.0 1.6
Industry outlook

We estimate that pre-tax profits were 3% above our prior forecast in Q221 on an underlying basis and Q321 financial results are scheduled for 29 November. Auriant has now repaid all of its high cost debt and, assuming that it raises US$20m in equity at SEK3.84/share within the next year (NB Subject to the gold price, cash flows etc and could be less), we value the company at US$1.59/share (SEK13.61/share).

Last updated on 20/01/2022
Content on Auriant Mining
Auriant Mining – More than meets the eye
Metals & mining | Update | 16 December 2021
gold water
Auriant Mining – Sales policy disguises extent of improvements
Metals & mining | Update | 14 September 2021
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Auriant Mining – Fifth successive quarter of success
Metals & mining | Update | 11 June 2021
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net debt (US$m) 54.8
Forecast gearing ratio (%) 947
Price performance
%
1m
3m
12m
Actual (3.3) (19.6) (40.6)
Relative* (2.3) (19.8) (51.1)
52-week high/low SEK5.4/SEK3.1
*% relative to local index
Key management
Peter Daresbury Chairman
Danilo Lange CEO
Katerina Popova Head of PR&IR