In 2014, revenues increased by 28% to $291 million underpinned by the significant 16% increase in production from our cornerstone Young-Davidson mine as it transitioned to free cash flow status, reporting $9 million in net free cash flow in the fourth quarter.

AuRico begins 2015 uniquely positioned among our peer group with an organic production growth profile, declining costs and lower capital investment requirements.

The Young-Davidson operation begins 2015 at the mid-point of its planned ramp-up, positioning the operation for growing profitability and a growing net free cash flow stream going forward.

At the end of 2014 our cornerstone Young-Davidson mine had delivered its eleventh consecutive quarter of production growth and transitioned to free cash flow status.

In 2015, the Young-Davidson mine is expected to deliver another year of production growth along with declining costs as the underground mine continues to ramp-up to planned levels. The declining capital investment requirements and growing production will underpin the operation’s net free cash flow stream going forward.

Capital investment requirements decreased significantly in 2014 and are expected to further decline by up to 36% in 2015. Capital investment requirements will continue to decline as growth capital programs related to development of the lower mine at Young-Davidson are completed.

AuRico has remained focused on driving operational and cost efficiencies throughout our business that underpin growing margins and cash flow streams.

Underground unit mining costs at Young-Davidson are expected to decrease by up to 20% in 2015 as underground productivity ramps-up to targeted levels of 6,000 tonnes per day by the end of 2015.

Endnotes