TORONTO (miningweekly.com) – For North American miner AuRico Gold, 2012 was a transformational year, as the company repositioned its asset portfolio for improved performance, CEO Scott Perry said on Friday.

The company reported 2012 full-year production of 127 283 oz of gold, just over its minimum guidance of 125 000 oz and full-year cash costs per ounce were between $545/oz and $565/oz, which was at the high end of its guidance of $483/oz to $548/oz.

Following the sale of its Ocampo gold mine, in Mexico in December for $750-million, the company said it was in a strong cash position with more than $600-million in the bank, having fully retired the drawn balance on its corporate loan facility of $128-million, and paid the $87-million tax expense incurred as part of the transaction.

AuRico said it expected to produce significantly more gold from its Young-Davidson mine, in Ontario, and the El Chanate mine, in Mexico, and lifted its guidance by 57% for this year to between 190 000 oz and 220 000 oz of gold.

The expected increased production is from the Young-Davidson mine as underground production ramps up and as improved productivity is achieved through the commissioning of the shaft infrastructure during the third quarter. As a result, the company expects to produce more gold in the second half of the year.

Cash costs are expected to be in the range of $540/oz to $620/oz and according to the newly adopted ‘all-in’ costs declaration, 'all-in' costs are expected to be between $1 100/oz and $1 200/oz.

"The commissioning of Young-Davidson has been one of the most successful in recent years with the mill facility operating consistently at, or above, nameplate. As we gain more experience with operating Young-Davidson, we become more confident in its potential. In 2013 and the coming years we will continue to focus significant efforts on realizing that potential,” Perry said.

On December 17, 2012, the company launched a $300-million modified Dutch-auction substantial issuer bid, which is expected to close on January 23.

Further, on December 13, the company appointed Robert Chausse as executive VP and CFO.

The company’s TSX-listed stock traded down 3.22% at C$8.81 apiece on Friday morning, but had risen by nearly 30% in the past six months.