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Auriant Mining

OMX: AUR

Market CapSEK392.1m

Last Close SEK3.97

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 by c 25% (to c US$700/oz) to result in a c 4x increase in EBITDA and a c 3x increase in operational cash flows in FY20 cf FY19. Currently, it is in the process of completing a definitive feasibility study on Kara-Beldyr and, combined, the two mines are expected to achieve management’s goal of 3t (96.5koz) of gold output pa in c FY25. 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 (c)
P/E (x)
P/CF (x)
2019A 29.8 7.2 (2.2) (1.3) N/A 4.9
2020A 53.4 31.2 16.6 13.7 3.3 1.7
2021E 50.4 24.2 12.4 10.3 4.4 2.0
2022E 55.6 34.9 22.5 11.7 3.9 2.0
Industry outlook

After adjusting for an under-sale of gold relative to production during the period, we estimate that underlying pre-tax profits were 3% above our prior forecast in Q221. Auriant has now repaid all of its high cost debt and, assuming that it raises US$20m in equity (NB Subject to the gold price, cash flows etc and could be less) at SEK3.84/share within the next year, we value the company at US$1.59/share (SEK13.61/share).

Last updated on 14/10/2021
Content on Auriant Mining
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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Auriant Mining – Making a virtue of dependability
Metals & mining | Update | 17 March 2021
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Sector
Metals & mining
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Share price graph
Balance sheet
Forecast net debt (US$m) 65.1
Forecast gearing ratio (%) 2068
Price performance
%
1m
3m
12m
Actual 4.5 (13.7) (29.4)
Relative* 7.5 (12.5) (45.3)
52-week high/low SEK6.3/SEK3.7
*% relative to local index
Key management
Peter Daresbury Chairman
Danilo Lange CEO
Katerina Popova Head of PR&IR