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30/07/2014

Aureus Mining CEO on IFC funding and future growth

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Additional Information
Market: AIM
Sector: General Mining - Gold
EPIC: AUE
Latest Price: 22.50p  (8.43% Ascending)
52-week High: 45.38p
52-week Low: 15.50p
Market Cap: 69.90M
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Aureus Mining
aureus-mining.com
Deal Aureus Mining Tax Free* Losses can exceed
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*subject to change and depends on individual circumstances.

Aureus Mining Inc. is a gold exploration and development company listed on TSX and AIM (AUE). It is focussed in highly prospective and under-explored areas of Liberia and Cameroon. The Company’s principal strategic objectives are to be a gold producer in 2013, expand the resource base through high-impact exploration and develop...

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Gold miners face another round of cost cuts suggests Goldman

November 25 2013, 11:21am Goldman expects the spot price in 2014 to fall to $1,144/oz.

Gold miners have worked hard to cut costs to offset a falling gold price, but Goldman Sachs expects the price to fall again in 2014 leaving them with limited options.

According to the US broker, cost cutting initiatives undertaken by the gold companies it covers have led to many mines with cash costs now below the spot gold price.

Goldman, though, expects the spot price in 2014 to fall to $1,144/oz, at which level more than 50% of these miners would burn cash.

There is little more they can do to reduce costs further given that most restructuring has been completed and further reduction in sustaining capex would reduce the face availability for mining in the future.

“Miners can deal with c.$1,300/oz but a sustained lower level would need another round of restructuring, in our view – most likely mine closures and more severe cost reduction.”

As a result, Goldman only has two buy recommendations and none among the London listed companies.

RandGold Resources (LON:RRS neutral) remains one of the best-positioned names with low total costs, strong near-term growth and a strong balance sheet, but on its price outlook Goldman Sachs does not see any strong catalyst for the shares that is not already priced other than a higher gold price and that would benefit higher cost miners more.

Goldman has neutral recommendations for juniors Aureus (LON:AUE Liberia with a 42p price target) and Centamin (LON:CEY Egypt 55p).

However, higher cost, more highly geared and negative free cash flow such as African Barrick (LON:ABG) are sells, according to Goldman.

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