UPDATE: National Bank Financial Initiates Coverage on AuRico Gold

According to a research report published this morning, National Bank Financial has initiated AuRico Gold

with a Sector Perform rating and $9.50 PT. In the report, National Bank Financial said, "AuRico Gold is a new mid-tier gold producer with a strong balance sheet and notable growth. AUQ is expected to grow production from 313k GEO from core assets in 2012 to ~476k GEO in 2014 (vs. company's guidance for 323k-363k GEO in 2012 and 450k-530k GEO in 2014). With US$113 mln in cash, we believe the company should generate sufficient cash flow to fund ~US$700 mln in planned capital costs over the next three years." AuRico Gold closed yesterday at $7.79.