· Auriant Mining successfully raised 178 MSEK in a Rights Issue in September (the 'Offering'). Subscriptions of shares with and without subscription rights amounted to 142.4 MSEK, corresponding to 80 per cent of the Offering.
· In August 2017, the Company commenced the design of the CIL plant at Tardan. On commissioning, the plant is expected to achieve recovery rates of 90-92%. The Company plans to commission the CIL plant in January 2019, with ore supplied by the Pravoberezhny deposit within greater Tardan.
· Auriant Mining has successfully refinanced its US$ 37.5 mln loans with VTB. The Company's previous loan provider, PSB, has been repaid in full. The new loan is for 5 years with a reduced principal repayment schedule in the first 2 years. The interest rate is 8.32% which is a reduction of 1.7 % ; this will produce an annual saving of US$ 0.6 mln. VTB is the third largest bank in the Russian Federation, operating nationwide in both retail and corporate sectors.
· In Q3 2017, mining operations were interrupted and volumes were lower than envisaged. This was as a result of unseasonally high rainfall, lower grade ore and reduced throughput of the gravitational plant as well as problems with equipment. Total gold production for the 9 months therefore decreased by 21% to 620.4 kg (19,948 oz), compared to 786.5 kg (25,285 oz) in 2016.
· Alluvial production at Solcocon was recommenced in 2017. Production for the 9m has been 41.2 kg (1,324 oz) and the forecast for the year is 48 kg (1,543 oz) of gold.
· Gold grade at Tardan in the 9m 2017 was 2.61 g/t, which is in line with the previously forecasted gold grade in the 2017 mine plan (as compared to 4.17 g/t in 2016).
· In August 2017, exploration at Solcocon was recommenced, aiming to increase hard rock gold resources suitable for CIL processing. Exploration will cover 5,000 meters of core drilling and 64,000 cubic meters of trenches. The Company expects to add up to 2 tonnes of gold to the Solcocon reserves as a result of 2017 exploration efforts.
· Consolidated revenue was MSEK 223.3 (US$ 25.9 mln) in the 9 months 2017 (9 months 2016 – MSEK 284.9 (US$ 33.8 mln)).
· Operating profit was MSEK 10.6 (US$ 1.2 mln) in the 9 months 2017 compared to MSEK 106.9 (US$ 12.6 mln) in 9 months 2016.
· EBITDA was reduced to MSEK 49.8 (US$ 5.8 mln) compared to MSEK 147.3 (US$ 17.4 mln) in 9 months 2016.
· Net loss after tax in 9 months 2017 was MSEK -17.6 (US$ -2.0 mln) compared to net income of MSEK 29.7 (US$ 3.5 mln) in 9 months 2016.
Full report is available
The report will be followed by an interactive webcast for analysts and investors with the CEO, Sergey Ustimenko and CFO, Alexander Buchnev who will be presenting Auriant Mining's Q3 2017 results as well as hosting a Q & A session.
The event will begin at 11:00 CET (11:00 Stockholm, 13:00 Moscow, 10:00 London).
Those wishing to participate will need to pre-register for this event by clicking or opening the following link
For more information, please contact:
tel: +7495109 02 82
Company name: Auriant Mining AB
Short name: AUR
Auriant Mining AB (AUR) is a Swedish junior mining company focused on gold exploration and production in Russia, primarily in Zabaikalye and the Republics of Khakassia and Tyva. The company has currently four assets, including two operating mines (Tardan and Solcocon), one early stage exploration asset and one development asset.
Since July 19, 2010, Auriant Mining´s shares are traded on First North Premier at the NASDAQ OMX Nordic Exchange under the short name AUR. For more information please visit www.auriant.com. Mangold Fondkommission is Certified Adviser to Auriant, for more information please call +46 8503015 50 or visit .
This information is information that Auriant Mining AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 09:00 CET on November 30th , 2017
Cautionary Statement: Statements and assumptions made in this report with respect to Auriant Mining AB's ('AUR') current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of AUR. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where AUR operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) AUR's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. In the light of the many risks and uncertainties surrounding any gold production and exploration company at an early stage of its development, the actual results could differ materially from those presented and forecast in this report. AUR assumes no unconditional obligation to immediately update any such statements and/or forecasts
This press release shall not, directly or indirectly, be released, published or distributed in or to the United States, Australia Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action as a whole or in part is subject to legal restrictions. Nothing in this press release should be considered as an offer to invest or otherwise trade in shares of Auriant Mining AB (publ). The proposed issue will not be directed at residents or those living in the United States, Australia, Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action would require further prospectus, other offering documentation, registration or other measures beyond those required by Swedish law. No securities will be registered under the United States Securities Act of 1933, a similar law in any state in the United States, or under any provincial law in Canada, nor under the applicable law of another country.
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