SEK446.9m market cap
SEK4.53 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 re-modelled to a single carbon-in-leach process, which has resulted in a c 40pp increase in metallurgical recoveries and a c 25% reduction in cash costs to c US$676/oz (FY20 versus FY19) compared with its previous heap leach operation. In FY20, this resulted in a c 4x increase in EBITDA and a c 3x increase in operational cash flows. Currently, Auriant is completing a definitive feasibility study on Kara-Beldyr and, combined, the two mines are expected to achieve management’s goal of 3t (96.5koz) of gold output pa in c FY25. Simultaneously, confirmatory drilling is underway with a view to accelerating the development of Solcocon.
Y/E Dec |
Revenue (US$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 | 5.7 |
| 2020A | 53.4 | 31.2 | 17.5 | 13.9 | 3.8 | 2.0 |
| 2021E | 51.5 | 25.9 | 12.4 | 9.0 | 5.9 | 2.5 |
| 2022E | 55.6 | 35.2 | 22.0 | 12.3 | 4.3 | 2.1 |
Industry outlook
In the event that it raises US$20m in equity (NB Subject to the gold price and cash flows and could be less) at a share price of SEK5.08/share, we value Auriant at US$1.76/share. In the meantime, it is trading on a multiple of only c 6x FY21 earnings. Q121 results are scheduled for 31 May.
Last updated on 05/05/2021
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 42.4 |
| Forecast gearing ratio (%) | 237 |
Price performance
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Key management |
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| Peter Daresbury | Chairman |
| Danilo Lange | CEO |
| Katerina Popova | Head of PR&IR |
