Scotiabank Latin American Mining Conference 2013

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Scotiabank Latin American Mining Conference 2013


<ul><li> 1. Committed to ShareholderValue CreationScotiabank Latin American Mining ConferenceJune 3, 2013 TSX: AUQ / NYSE: </li> <li> 2. FORWARD LOOKING STATEMENTSThis presentation contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements,other than statements of historical fact, are forward-looking statements. The words "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast","budget" and similar expressions identify forward-looking statements. Forward-looking statements include information as to strategy, plans or future financial oroperating performance, such as the Companys expansion plans, project timelines, production plans, projected cash flows or capital expenditures, costestimates, projected exploration results, reserve and resource estimates and other statements that express managements expectations or estimates of futureperformance.Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, areinherently subject to significant uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from thoseprojected in the forward-looking statements. Such factors include: uncertainty of production and cost estimates; fluctuations in the price of gold and foreignexchange rates; the uncertainty of replacing depleted reserves; the risk that the Young-Davidson and El Chanate mine may not perform as planned; changesin laws or regulations in Canada, Mexico and other jurisdictions in which the Company may carry on business; risks of obtaining necessary licenses, permits,authorizations or approvals for operations or projects such as Kemess; contests over title to properties; the speculative nature of mineral exploration anddevelopment; risks related to aboriginal title claims; compliance risks with respect to current and future environmental regulations; disruptions affectingoperations; opportunities that may be pursued by the Company; employee relations; availability and costs of mining inputs and labor; the ability to securecapital to execute business plans; volatility of the Companys share price; any decision to declare dividends; the effect of future financings; litigation; risk ofloss due to sabotage and civil disturbances; the values of assets and liabilities based on projected future cash flows; risks arising from holding derivativeinstruments; risks arising from the absence of hedging; adequacy of internal control over financial reporting; changes in our credit rating; and the impact ofinflation.Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements containedherein. Such statements are based on a number of assumptions which may prove to be incorrect, including assumptions about: business and economicconditions; commodity prices and the price of key inputs such as labour, fuel and electricity; credit market conditions and conditions in financial marketsgenerally; revenue and cash flow estimates, production levels, development rates and the costs for each; our ability to procure equipment and supplies insufficient quantities and on a timely basis; the timing of the receipt of permits and other approvals for our projects and operations; our ability to attract andretain skilled employees and contractors for our operations; the accuracy of our reserve and resource estimates; the impact of changes in currency exchangerates on our costs and results; interest rates; taxation; and our ongoing relations with our employees and business partners.The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events orotherwise, except as required by applicable law.Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred ResourcesThis presentation uses the terms "measured," "indicated" and "inferred resources. We advise investors that while those terms are recognized and required byCanadian regulations, the United States Securities and Exchange Commission does not recognize them. Under Canadian rules, estimates of inferred mineralresources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measuredor indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of aninferred mineral resource exists, or is economically or legally mineable.2 </li> <li> 3. KemessYoung-DavidsonEl ChanateOrionHigh Quality Asset BaseYoung-Davidson, Canada 2012A 2013E(5)Production Au oz.(7) 56,138 120-140kCash Costs per Au oz.(3)(4) $708 $575-$675All-in Cash Costs per Au oz.(3)(15) - $1,250-$1,3502012 Reserves and Resources (000s oz. Au)Proven and Probable Reserves(6) 3,804 2.60 Au g/tMeasured and IndicatedResources(6) 855 2.71 Au g/tInferred Resources(6) 1,260 2.80 Au g/tEl Chanate, Mexico 2012A 2013E(5)Production Au oz.(7) 71,145 70-80kCash Costs per Au oz.(3)(4) $434 $550-$600All-in Cash Costs per Au oz.(3)(15) - $900-$1,0002012 Reserves and Resources (000s oz. Au)Proven and Probable Reserves(6) 1,204 0.67 Au g/tMeasured and IndicatedResources(6) 41 0.37 Au g/tInferred Resources(6) 6 0.48 Au g/tA Pure Gold Producer Focused on Quality Assets in North America3(3) Refer to endnote #3. (5) Refer to endnote #5. (7) Refer to endnote #7.(4) Refer to endnote #4. (6) Refer to endnote #6. (15) Refer to endnote #15.Exploration &amp; Development ProjectsOperating Gold Mines </li> <li> 4. Capital Markets ProfileAnalyst Coverage1. BMO Nesbitt Burns2. Canaccord Genuity3. CIBC4. Credit Suisse5. Cowen Securities6. Desjardins Securities7. Dundee Securities8. GMP Securities9. Mackie Research10. Macquarie Securities11. Merrill Lynch12. National Bank13. Raymond James14. RBC Capital Markets15. Scotia Capital16. TD Securities17. UBSCapital StructureCash on hand(1) $269MAvailable Credit Facility $150MFully diluted sharesoutstanding(1) 257.7MMarket Capitalization $1.2BNYSE &amp; TSX 3-month avg.daily trading volume4M3(1) Refer to endnote #1. </li> <li> 5. The Transformed AuRico High quality operations located in North America Divested non-core assets ($1.0B+)(2) Low-cost, quality production ounces Long mine lives &amp; growing reserves per shareQuality Assets Strong organic production growth profile Focused on quality, low-cost ounces Growing production per shareOrganic Growth Profile Cash balance of $269M(1) Undrawn debt facility of $150M Growing profitability and cash flow per sharePeer-Leading BalanceSheet Completed $300M substantial issuer bid Peer-leading dividend policy Growing dividend per share Insider buyingShareholder FriendlyInitiativesDelivering Reliable, Consistent, Sustainable Performance(1) Refer to endnote #1. (2) Refer to endnote #2. 5 </li> <li> 6. A High Quality Asset BaseStawellFosterville El Cubo$1,319$1,8952011 gold pricerangeEl ChanateYoung-Davidson OcampoWe have significantly traded up on the overall quality of the asset base which positionsAuRico well for reliable, consistent, and sustainable performance.6Streamlined Asset Base on the Lower End of the 2011 Industry Cost CurveSource: 2011 Brook Hunt DataCashcostcurve(US$/oz)Percentile of total paid goldCurrent AssetsDivested Assets </li> <li> 7. Continuing Operations Performance(in thousands, except ounces, per share amounts, and totalcash costs)FY 2012 Q4 2012 Q1 2013Total gold ounces produced(7) 127,283 41,145 46,170Total cash costs per gold ounce(3)(4) $516 $628 $635Revenue from mining operations $163,622 $63,119 $64,885Adjusted net earnings(3)(13) $34,729 $13,681 $10,897Adjusted net earnings per share, basic(3)(13) $0.12 $0.05 $0.04Continuing operations include the Young-Davidson and El Chanate mine operations.7Second Consecutive Quarter of Solid Results in Line with Guidance Levels(3) Refer to endnote #3. (7) Refer to endnote #7.(4) Refer to endnote #4. (13) Refer to endnote #13. </li> <li> 8. YD HistoricMine WorkingsOpen PitRamp Portal10350LNG Shaft MCM Shaft9890L9590L9400L9200L8900LMCM HistoricMine WorkingsYoung-Davidson Mine Low cost producer &amp; strongproduction growth profile Long mine life: Opportunity forexpansion as reserves increase Underground productioncommenced Oct./12 Hoisting ore targeted during Q32013 Exploration focus on YD WestZone; orebody open at depthUBZ ZoneMid-ShaftLoadingPocketYD WestZone2012A 2013E(5)Production (gold ounces)(7) 56,138 120,000-140,000Cash Costs (per gold ounce)(3)(4) $708 $575-$675All-in Cash Costs (per gold ounce)(3)(15) - $1,250-$1,350P&amp;P Reserves (oz.)(6) 3.8 millionResources (oz.)(6) 855,0008(3) Refer to endnote #3. (6) Refer to endnote #6.(4) Refer to endnote #4. (7) Refer to endnote #7.(5) Refer to endnote #5. (15) Refer to endnote #15. </li> <li> 9. 99590 Level Ore Rockbreaker Completed9590 Level Waste Rockbreaker Completed2nd Leg of Shaft Reaming Completed9500 Level Conveyor9530 Level Crusher RoomMid Shaft Loading Pocket CommissioningYoung-Davidson Production ShaftNorthgate Mid-shaft Loading Pocket Milestones: Commissioning the mid-shaft crushing and hoistingsystem during Q3 Key catalyst for further increases in U/G production Completed raise boring of the second leg of productionshaft mid-April Vertical access to 1.8M ounces, or 8 years ofproduction Vertical depth of ~900m Loading pocket and crusher installation ongoing </li> <li> 10. Young-Davidson Life of Mine10Significant Mine Life: Opportunity for Expansion as Reserves IncreaseLife of Mine profile depicts Proven &amp; Probable Reserves only </li> <li> 11. El Chanate Mine Target mining rates of ~100k tpd Accelerated pre-development program High exploration potential for expansion ofexisting reserves Northwest extension targets Southeast extension targetsDelivering Consistent, Stable Results; High Margin Ounces2012A 2013E(5)Production (gold ounces)(7) 71,145 70,000-80,000Cash Costs (per gold ounce)(3)(4) $434 $550-$600All-in Cash Costs (per gold ounce)(3)(15) - $900-$1,000P&amp;P Reserves (oz.)(6) 1.2 million1124,61037,62564,78195,8562009 2010 2011 2012Open Pit Tonnes Per Day(3) Refer to endnote #3. (5) Refer to endnote #5. (7) Refer to endnote #7(4) Refer to endnote #4. (6) Refer to endnote #6. (15) Refer to endnote #15.47,82361,550 67,092 71,1452009 2010 2011 2012Annual Production </li> <li> 12. New Mineralization at El Chanate(6)Hole 741(view looking south)El Chanate Mine (looking south)North West ZoneHole ID From (m) To (m) Length (m) Au g/tCHCI-731183.0 192.0 9.0 0.31210.0 217.5 7.5 0.26CHCI-732 55.5 82.5 27.0 0.45CHCI-733 24.0 34.5 10.5 0.91CHCI-734 133.5 141.0 7.5 1.51CHCI-735 97.5 103.5 6.0 2.07CHCI-749 7.5 21.0 13.5 0.19RonoHole ID From (m) To (m) Length (m) Au g/tCHCI-740 76.5 135.0 58.5 0.27CHCI-741 114.0 166.5 52.5 0.34Loma PrietaHole ID From (m) To (m) Length (m) Au g/tCHCI-705 46.5 54.0 7.5 0.92CHCI-716 52.5 64.5 12.0 8.35CHCI-71758.5 66.0 7.5 3.6088.5 93.0 4.5 6.52CHCI-725 61.5 75.0 13.5 1.70CHCI-727 48.0 54.0 6.0 4.52CHCI-747 64.5 70.5 6.0 2.1012(6) Refer to endnote #6. </li> <li> 13. Kemess UndergroundKemess, Canada - Gold2012 Reserves and Resources (000s oz Au)Proven and Probable Reserves(6) 1,805 0.56 Au g/tMeasured and Indicated Resources(6) 854 0.41 Au g/tInferred Resources(6) 125 0.39 Au g/tKemess, Canada - Copper2012 Reserves and Resources (000s lbs Cu)Probable Reserves(6) 619,151 0.28%Indicated Resources(6) 346,546 0.24%Inferred Resources(6) 46,101 0.21% Copper/gold porphyry deposit Located in British Columbia, Canada Feasibility study completed Underground block cave operation 105k oz Au and 44M lbs Cu annually Cash costs of $213 per gold ounce (net ofby-product credits) Approx. 12 year mine life Significant leverage to higher metal prices Existing infrastructure: Mill facilities and previously permittedtailings storage Value surfacing opportunity13(6) Refer to endnote #6. </li> <li> 14. Orion Joint Venture Joint Venture partnership AuRico and Minera Frisco $2.0M (10,000m) combinedexploration program (2013) 110,000 hectare land package (NayaritState, Mexico) Historic mining district Low sulfidation, high-grade, epithermalvein system mapped over 12km Less than 3% of property has been drilltested Minimal exploration near surface anduntested at depth Value surfacing opportunityOrion, Mexico - Gold (50%)2012 Resources (000s oz. Au)Measured and Indicated Resources(6) 65 3.36 Au g/tInferred Resources(6) 10 3.33 Au g/t14(6) Refer to endnote #6.Orion, Mexico Silver (50%)2012 Resources (000s oz. Ag)Indicated Resources(6) 5,503 309 Ag g/tInferred Resources(6) 275 95 Ag g/t </li> <li> 15. Production Growth15Increasing production profile(3)(4)(5)(9)$300$400$500$600$70001002003004002012A 2013E 2014E 2015ECashcostsperounceOunces(000s)Production Cash CostsDecreasing capital expenditures(5)(9)$0$100$200$300$4002012A 2013E 2014E 2015EUS$(millions)Capex(3) Refer to endnote #3. (5) Refer to endnote #5.(4) Refer to endnote #4. (9) Refer to endnote #9....</li></ul>