Auriant Mining

OMX: AUR

SEK225.9m market cap

SEK2.29 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 five years of gold production via gravitational and heap leach recovery methods, Auriant’s Tardan plant is now being remodelled to a single carbon-in-leach (CIL) process flow route, which is anticipated to improve metallurgical recoveries by c 31% and halve total cash costs to c US$523/oz from July 2019. Simulataneously, Auriant is completing a DFS on Kara-Beldyr. Combined, the two are expected to achieve management’s goal of 3t (or 96,453oz) of gold output per year from FY22 (cf 809.5kg in FY17 and 423.4kg in FY18).

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 33.5 8.8 (3.1) (5.7) N/A 0.9
2018A 17.4 (1.6) (10.2) (10.8) N/A 5.7
2019E 45.1 19.7 9.7 7.6 3.2 1.8
2020E 45.1 21.2 12.9 8.2 3.0 1.8
Last updated on 17/04/2019
Industry outlook

Auriant raised US$7.1m via the exercise of warrants in March. On the basis that management raises an additional US$13.8m in cash via equity at a price of SEK2.14/share, we estimate that Auriant is capable of generating average cash flows of US$37.3m pa, average earnings of US$31.2m and average EPS of 20.0 cents in the period FY25–33. Discounted at 10% pa, we value the resulting stream of dividends to shareholders at US$0.82/share. FY19 forecasts remain under review.

Last updated on 17/04/2019
Share price graph
Balance sheet
Forecast net debt (US$m) 71.8
Forecast gearing ratio (%) 312
Price performance
%
1m
3m
12m
Actual (6.5) (14.6) (3.8)
Relative* (9.8) (23.5) (11.3)
52-week high/low SEK3.0/SEK2.0
*% relative to local index
Key management
Peter Daresbury Chairman
Sergey Ustimenko CEO
Katerina Popova Head of PR&IR