Production hikes ahead for these two

Article Excerpt

AURICO GOLD $5.05 (Toronto symbol AUQ; TSINetwork Rating: Speculative) (604-681-2802; www.auricogold.com; Shares outstanding: 247.1 million; Market cap: $1.3 billion; Dividend yield: 3.3%) operates the El Chanate gold mine in Mexico, which produced 71,864 ounces in 2013. The company’s Young-Davidson gold mine in Northern Ontario reached full production in 2013, with total output of 120,738 ounces. The mine’s output should rise to over 152,000 ounces this year. AuRico hasn’t yet released its financial results for 2013, but in the three months ended September 30, its revenue rose 36.5%, to $54.3 million from $39.8 million a year earlier. Cash flow jumped to $0.09 a share from nil. Higher gold production offset lower prices. The company’s balance sheet is strong, with cash of $140.1 million, or $0.57 a share. The stock yields a high 3.3%. Rising output from AuRico’s two mines, plus its cash balance and high yield, give it a lot of appeal. AuRico is a buy for aggressive investors. AMERIGO RESOURCES…