SEK530.7m market cap
SEK5.38 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. In Q120 (the first full quarter of CIL operations) this change resulted in an increase in metallurgical recoveries of c 40pp to 91.7% and an approximate halving in cash costs to US$476/oz sold. At the same time, Auriant is completing a DFS on Kara-Beldyr and, combined, the two are expected to achieve management’s goal of c 3t (96.5koz) of gold output pa from FY24. Official production guidance of 900–940kg Au for FY20 compares with our updated full-year forecast of 960kg (cf 953kg previously).
Y/E Dec |
Revenue (US$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 | 13.4 |
| 2019A | 29.8 | 7.2 | (2.2) | (1.2) | N/A | 6.2 |
| 2020E | 57.0 | 29.3 | 15.8 | 9.9 | 5.8 | 3.2 |
| 2021E | 43.0 | 19.9 | 13.1 | 5.8 | 10.0 | 4.6 |
Industry outlook
On the basis that Auriant raises US$40m in equity at SEK4.40/share, we estimate that it is capable of generating average cash flows of US$49.4m and EPS of 23.0c pa in the period FY25–33. Discounted at 10% pa, we value the resulting (maximum potential) stream of dividends to shareholders at US$0.83/share. This almost doubles to US$1.45/share in the event the gold price remains at c US$1,705/oz.
Last updated on 15/07/2020
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (US$m) | 40.8 |
| Forecast gearing ratio (%) | 137 |
Price performance
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Key management |
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| Peter Daresbury | Chairman |
| Sergey Ustimenko | CEO |
| Katerina Popova | Head of PR&IR |
