A bright future

Mining company Auriant Mining has increased its gold stock by 79 percent since the turn of the year, which can be realised if necessary or during higher gold prices. Gold production amounted to 455 kilos during the first half of the year, of which 8.6 kilos were found via the recently started alluvial production in the Staroverinskaya license area. Auriant is well on its way to achieving its target of 900 to 930 kilos in 2021. Loan terms have also improved significantly. Loan repayments amounted to USD 4.7 million, with interest expenses decreasing by 44 percent compared with the same period last year. Auriant has therefore increased its liquidity and is well positioned for growth.

Exploration operations have increased in Tardan and Staroverinskaya, where the company has carried out test drilling. The processing of waste rock has increased by 80 percent compared with the same period last year. The costs per ounce of gold produced have increased as a result of costs related to waste rock processing, exploration, indexation of salaries, lower average content and maintenance of the CIL facility. 

Mangold presumes that Auriant will gear up its production in the coming years. It could enable a substantial leverage effect for the company's profit if the gold price increases. However, there are risks related to exploration and the gold price, which are taken into account in a sensitivity analysis. In a base scenario, Mangold values the share at SEK 16,00 per share, which indicates a large upside.