Sept 5 AuRico Gold Inc cut its
full-year production forecast for the second time in as many
months as the gold miner focuses on developing its Ocampo mine
AuRico now expects to produce 115,000 to 125,000 gold
equivalent ounces at the mine in 2012, down from earlier
estimates of 155,000 to 170,000 ounces.
The company raised its cash cost forecast as it steps up
more expensive open-pit production during the development of its
It now expects cash costs of $775 to $875 per gold
equivalent ounce, up from $540 to $570 per gold equivalent
Development of the northeast underground mine at Ocampo was
delayed by labor problems, reducing production in the second
AuRico cut its overall output forecast to 248,000 to 278,000
gold equivalent ounces from 298,000 to 333,000 gold equivalent
AuRico said production at its Young-Davidson project in
Ontario was affected by a 10-day power outage due to forest
fires in the Kirkland Lake area and said it now expects
production of 55,000 to 65,000 ounces from the mine.
The Young-Davidson mine was earlier expected to produce
65,000 to 75,000 ounces.
The company's El Chanate mine in Mexico is on track to
achieve its 2012 production targets.
Shares of AuRico closed at C$6.90 on Tuesday on the Toronto