Auriant Mining

OMX: AUR

SEK601.8m market cap

SEK6.1 last close

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).

Investment summary

Auriant’s Tardan plant has been remodelled to a single carbon-in-leach process. Relative to its earlier heap leach operation, metallurgical recoveries have increased by c 40pp to over 90%, driving an approximate doubling in production and an approximate halving in cash costs (to US$577/oz), which has resulted in a c 10x increase in EBITDA and a 545% increase in cash flows from operations in H120 cf H119. Currently, Auriant is in the process of 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.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 17.4 (1.7) (10.2) (10.8) N/A 16.3
2019A 29.8 7.2 (2.2) (1.2) N/A 7.5
2020E 57.4 32.9 19.0 15.3 4.6 2.5
2021E 53.9 32.9 24.6 15.6 4.5 2.6
Industry outlook

In the event that Auriant raises US$20m in equity (NB This is subject to the gold price and cash-flow and could be less) at SEK6.40/share, we estimate that it is capable of generating average cash flows of US$63.4m and EPS of 44.6c pa in the period FY25–33. Discounted at 10% pa, we value the resulting (maximum potential) stream of dividends to shareholders at US$1.76/share (cf US$0.83/share previously).

Last updated on 27/11/2020
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Share price graph
Balance sheet
Forecast net debt (US$m) 58.6
Forecast gearing ratio (%) 495
Price performance
%
1m
3m
12m
Actual 7.8 (11.6) 69.4
Relative* (1.1) (18.3) 46.3
52-week high/low SEK7.2/SEK3.0
*% relative to local index
Key management
Peter Daresbury Chairman
Danilo Lange CEO
Katerina Popova Head of PR&IR