Auriant Mining

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.