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Auriant Mining

OMX: AUR

Market CapSEK144m

Last Close SEK1.45

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

Relative to its earlier heap leach operation, Auriant’s new Tardan CIL plant has increased metallurgical recoveries by c 40pp and reduced cash costs to c US$806/oz in FY21 to result in an approximate 3x increase in EBITDA and a c 2x increase in operational cash flows. It has now repaid all of its high cost debt and is in the process of completing a definitive feasibility study on Kara-Beldyr. Combined, the two mines are expected to achieve management’s goal of c 3t (96.5koz) of gold output per annum from FY26. Confirmatory drilling is also underway with a view to accelerating the development of Solcocon.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2020A 53.4 31.2 16.6 13.7 1.0 0.5
2021A 47.7 23.1 11.6 10.2 1.3 0.7
2022E 55.6 35.2 23.8 11.4 1.2 0.6
2023E 51.5 32.6 28.4 14.6 0.9 0.6
Industry outlook

Operating in the former Soviet Union, Auriant is not without risk. Aside from inflationary forces and a strong rouble, however, Q222 and H122 results suggest that operations to date have been largely unaffected by the international situation. Assuming that it raises US$20m in equity in the near future, in December 2021 we valued Auriant at a fully diluted US$1.45/share (SEK13.27/share).

Last updated on 03/10/2022
Content on Auriant Mining
Auriant Mining – More than meets the eye
Metals & mining | research Update | 16 December 2021
gold water
Auriant Mining – Sales policy disguises extent of improvements
Metals & mining | research Update | 14 September 2021
gold water
Auriant Mining – Fifth successive quarter of success
Metals & mining | research 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 (8.2) (9.9) (60.7)
Relative* (1.7) (6.4) (48.5)
52-week high/low SEK4.0/SEK1.4
*% relative to local index
Key management
Peter Daresbury Chairman
Danilo Lange CEO
Katerina Popova Head of PR&IR