SEK313.7m market cap
SEK3.18 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, which is forecast to improve metallurgical recoveries and reduce total cash costs by approximately a third each from 18 November when it was commissioned. At the same time, it is 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. Production guidance of 900–940kg Au for FY20 compares with production of 689kg in FY19, 115kg in January 2020 alone (1,380kg annualised) and our forecast of 953kg.
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 | 7.6 |
| 2019A | 29.8 | 7.2 | (2.2) | (1.2) | N/A | 3.5 |
| 2020E | 51.3 | 26.8 | 16.3 | 6.0 | 5.4 | 2.0 |
| 2021E | 43.0 | 19.9 | 12.5 | 5.0 | 6.5 | 3.0 |
Industry outlook
On the basis that Auriant raises US$40m in equity at a price of SEK3.69/share, we estimate that it is capable of generating average cash flows of US$49.2m and EPS of 21.0c pa in the period FY25–33. Discounted at 10% pa, we value the resulting (maximum potential) stream of dividends to shareholders at US$0.72/share. In the meantime, the company is actively managing its dispute with Rosprirodnadzor (reported 20 August).
Last updated on 03/04/2020
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 47.9 |
| Forecast gearing ratio (%) | 194 |
Price performance
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Key management |
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| Peter Daresbury | Chairman |
| Sergey Ustimenko | CEO |
| Katerina Popova | Head of PR&IR |
