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Auriant Mining

OMX: AUR

Market CapSEK375.3m

Last Close SEK3.81

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

Auriant’s Q221 financial results were released in the context of known operational data that had already demonstrated material outperformance relative to Edison’s prior expectations. The mill at Tardan, in particular, operated above nameplate capacity during the three-month period to result in the production of 7,606oz gold (13.7% above our prior forecast). At first glance, Auriant’s commendable operating performance failed to translate into its financial results. However, this was only on account of a 13.6% (1,072oz) under-sale of gold relative to production, which was consistent with the company’s new policy of selling gold on an ‘as needed’ basis. In the absence of this factor, we estimate that Auriant’s results would have been 3% above our prior forecast at the pre-tax level.

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 4.7
2020A 53.4 31.2 16.6 13.7 3.2 1.6
2021E 50.4 24.2 12.4 10.3 4.3 1.9
2022E 55.6 34.9 22.5 11.7 3.7 1.9
Industry outlook

Q121 pre-tax profit was 3.5% above our prior forecast and Auriant has now repaid all of its high cost debt. Assuming that it raises US$20m in equity (NB Subject to the gold price, cash flows etc and could be less) at SEK4.70/share, we value the company at US$1.72/share. In the meantime, plant throughput and grade were ahead of our forecasts in Q2 with financial results scheduled to be released on 30 August.

Last updated on 15/09/2021
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 (8.9) (15.6) (42.4)
Relative* (7.7) (20.0) (57.4)
52-week high/low SEK6.5/SEK3.8
*% relative to local index
Key management
Peter Daresbury Chairman
Danilo Lange CEO
Katerina Popova Head of PR&IR