gold flake

Auriant Mining


SEK458.7m market cap

SEK4.65 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 vs 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$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 29.8 7.2 (2.2) (1.3) N/A 5.9
2020A 53.4 31.2 17.5 13.9 3.9 2.1
2021E 51.5 25.9 12.4 9.0 6.1 2.5
2022E 55.6 35.2 22.0 12.3 4.5 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 SEK4.62/share, we value Auriant at US$1.72/share. In the meantime, it is trading on a multiple of only c 6x FY21 earnings.

Last updated on 13/04/2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 42.4
Forecast gearing ratio (%) 237
Price performance
Actual 7.9 (16.1) 45.3
Relative* 2.9 (26.4) (8.0)
52-week high/low SEK7.2/SEK3.4
*% relative to local index
Key management
Peter Daresbury Chairman
Danilo Lange CEO
Katerina Popova Head of PR&IR