Over the past few weeks the stocks in the Gold mining sector have fallen dramatically. This has provided an excellent opportunity to investigate companies in this sector for investment purposes. One company worth considering is AuRico Gold Incorporated (AUQ). While there are many different factors to look at and consider when investing, in the article below I will look at the debt side of the company. I will analyze AuRico Gold’s total debt, total liabilities, debt ratios and WACC. From this analysis we should get an idea if the company is highly leveraged, how much it is paying for its debt, what it’s paying in taxes and how much to expect in return for investing in this company over the long term.
On February 21, 2013 AuRico Gold announced its inaugural dividend. The dividend will pay $0.16 per common share annually. The company announced the dividend based on “growing production at the Young-Davidson mine, expanding margins, declining capital requirements and a strong balance sheet.” One aspect of a strong balance sheet is the debt side of a company.
To read more: AuRico Gold: Buy A Low-Debt Producer With A Dividend