SEK345.3m market cap
SEK3.5 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 other methods, Auriant’s Tardan plant has been remodelled to a single carbon-in-leach process, which is forecast to improve metallurgical recoveries by c 31% and halve total cash costs to c US$523/oz from October (subject to final tests). Simultaneously, it is completing a DFS on Kara-Beldyr. Combined, the two are expected to achieve management’s goal of 3t (96.5koz) of gold output pa from FY22 (cf guidance of 0.94t in FY19e).
Y/E Dec |
Revenue (US$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 | 1.3 |
| 2018A | 17.4 | (1.6) | (10.2) | (10.8) | N/A | 8.4 |
| 2019E | 45.1 | 19.7 | 9.7 | 7.6 | 4.8 | 2.6 |
| 2020E | 45.1 | 21.2 | 12.9 | 8.2 | 4.4 | 2.7 |
Industry outlook
Auriant raised US$7.1m via the exercise of warrants in 2018. On the basis that it raises an additional US$13.8m in equity at a price of SEK2.14/share, we estimate that it is capable of generating average cash flows of US$37.3m and EPS of 20.0c pa in the period FY25–33. Discounted at 10% pa, we value the resulting (maximum potential) stream of dividends to shareholders at US$0.82/share. FY19 forecasts remain under review. In the meantime, Auriant is disputing the findings of Rosprirodnadzor’s inspection (reported 20 August).
Last updated on 04/12/2019
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 71.8 |
| Forecast gearing ratio (%) | 312 |
Price performance
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Key management |
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| Peter Daresbury | Chairman |
| Sergey Ustimenko | CEO |
| Katerina Popova | Head of PR&IR |
