SEK330.5m market cap
SEK3.35 last close
Auriant is a Swedish gold company, focusing on exploration and production in Russia. It has two producing mines (Tardan in Tyva and Solcocon in Zabaikalsky), one advanced exploration property (Kara-Beldyr in Tyva) and one early-stage exploration property (Uzhunzhul in Khakassia).
Investment summary
After seven years of gold production via other methods, Auriant’s Tardan plant has been remodelled to a single carbon-in-leach process, which is forecast to improve metallurgical recoveries and reduce total cash costs by approximately a third each from 18 November when it was commissioned. At the same time, it is completing a DFS on Kara-Beldyr and, combined, the two are expected to achieve management’s goal of c 3t (96.5koz) of gold output pa from FY24 (cf guidance of 700–750kg in FY19e and 900–940kg in FY20e).
Y/E Dec |
Revenue (US$m) |
EBITDA (US$m) |
PBT (US$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 33.5 | 8.8 | (3.1) | (5.8) | N/A | 1.3 |
| 2018A | 17.4 | (1.7) | (10.2) | (10.9) | N/A | 8.2 |
| 2019E | 33.2 | 8.8 | (0.1) | 1.8 | 19.6 | 2.8 |
| 2020E | 56.2 | 31.2 | 21.3 | 9.7 | 3.6 | 2.1 |
Industry outlook
On the basis that Auriant raises US$40m in equity at a price of SEK3.50/share, we estimate that it is capable of generating average cash flows of US$48.5m and EPS of 19.8c pa in the period FY25–33. Discounted at 10% pa, we value the resulting (maximum potential) stream of dividends to shareholders at US$0.72/share. In the meantime, Auriant is actively managing its dispute with Rosprirodnadzor (reported on 20 August).
Last updated on 19/02/2020
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 75.2 |
| Forecast gearing ratio (%) | 352 |
Price performance
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Key management |
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| Peter Daresbury | Chairman |
| Sergey Ustimenko | CEO |
| Katerina Popova | Head of PR&IR |
