SEK609.7m market cap
SEK6.18 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 | 16.5 |
| 2019A | 29.8 | 7.2 | (2.2) | (1.2) | N/A | 7.6 |
| 2020E | 57.4 | 32.9 | 19.0 | 15.3 | 4.6 | 2.6 |
| 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$0.83/share previously).
Last updated on 26/11/2020
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 58.6 |
| Forecast gearing ratio (%) | 495 |
Price performance
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Key management |
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| Peter Daresbury | Chairman |
| Danilo Lange | CEO |
| Katerina Popova | Head of PR&IR |
