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EDISON INVESTMENT RESEARCH LIMITED Edison Investment Research Limited: Edison issues outlook on Auriant Mining (AUR)

Directive transparence : information réglementée

17/01/2020 13:07

Edison Investment Research Limited
Edison Investment Research Limited: Edison issues outlook on Auriant Mining (AUR)

17-Jan-2020 / 12:07 GMT/BST


 

London, UK, 17 January 2020

Edison issues outlook on Auriant Mining (AUR)

After a few months of delays, Auriant Mining's Tardan CIL project has now been operating since mid-November. Production guidance for FY19 is 550kg from the Tardan heap leach operation and 150kg from the CIL operation plus c 64.2kg from alluvial operations at Solcocon (total 764.2kg, or 24,570oz). With the CIL plant at full capacity, however, this is expected to increase sharply, to c 29,272oz per year (average) at steady-state, before being supplemented by production of another c 64,041oz per year (average) from Kara-Beldyr from FY24.

 

On the basis that management executes the Tardan CIL project and the Kara-Beldyr project according to the operational and financial parameters expected, we estimate that Auriant is capable of generating average cash flows of US$48.5m, average earnings of US$41.5m and average EPS of US$0.187 in the nine-year period from FY25-33 (inclusive), thus allowing it to pay maximum potential dividends to shareholders in the order of 21.7c per share in the period FY26-33 (inclusive). Discounted at Edison's customary 10% discount rate, such a stream of dividends has a value of US$0.68 per share (SEK6.56/share), rising to US$1.20/share on the cusp of the company's maiden dividend in FY26. Stated alternatively, investors buying Auriant shares at the current share price of SEK3.15, or US$0.326, may look forward to an internal rate of return of 18.4% pa (fully diluted) over 16 years to FY35 in US dollar terms.

 
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About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

Edison is authorised and regulated by the Financial Conduct Authority.

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact Edison:

Charles Gibson, +44 (0)20 3077 5724

mining@edisongroup.com

 

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956247  17-Jan-2020 

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