AuRico re-evaluates inventory value

AuRico will re-evaluate value of inventory because of lower gold prices

Associated Press

Canadian mining company AuRico Gold Inc. said Tuesday that lower prices for gold and other metals mean it is re-evaluating the value of its inventories.

AuRico said the review may mean it needs to adjust the value it assigned to those inventories as of June 30. It's also evaluating whether its long-term gold price assumptions need to be lowered.

AuRico said it will finish a final assessment by the time second-quarter results are released next month.

On Tuesday it said production and cash costs are in line with its plans. It said production at its Young-Davidson mine is meeting or exceeding targets, with the shaft crushing and hoisting system on track to be commissioned in September. The system will enhance underground productivity and cost efficiency for the rest of the year, the company said.

AuRico shares rose 12 cents, or 2.6 percent, to close at $4.81.

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