Would like to start a dedicated Aurcana thread.
Some good discussion has been had over on "The next great silver junior?" which can be read here: https://www.tfmetalsreport.com/forum/next-great-silver-junior/137
Here are som good info about it!
Thanks for linking to my short analysis of the company!:)
This one should probably interest you as well: https://www.economicfreefall.com/2011/06/silver-lining.html
It's about silver...
I must say, it looks like Aurcana could be one of the biggest winners the coming year. Great production outlook and a decent amount of ounces in the ground as well! I really think the current drill programs will prove up a lot of new reserves and resources.
Been doing some research.. Aurcana looks good if you think silver prices are headed north. They are looking at going to 4 to 5 million ozs per yr over the next 2 years .. that's coming from about 1 million ozs current.. they are expecting it from the new Shafter mine just across the border of the Rio Grande in Tx. Nice story. I mayyyyy buy, but hmmm... 2 yrs of production then what?? They don't say. The indicated is 22 MM or thera bout and infered at 24 or there about inferred and maybe more yet to be found. They did have a 25MM$ financing dispute with Sprott but not sure if the way that settled has been all resolved yet. My feeling is it's a ball still in the air. I'll probably buy a little on a dip, but it's not feeling as clean cut as an XG, or AXU kind of play, and where is their water coming from?? Tx is way dry.. They say they =have it, but their website and investor education really leaves you hanging. Anybody out their able to relieve any of my misgivings? Or why do you see things differently?
I think this company is selling for what 2015's earnings will be. I don't think people understand how quickly this thing can start earning some serious change. I met with the CEO a few months back, he was chilling like Charlie Sheen. As far as I know, the law suit has not been settled, but I don't think Sprott has much grounds to stand on, as there was nothing official drafted or signed. Mr. Rodriguez (the ceo) was saying he had just met with Sprott personally the previous day. "It's nothing personal it's business. Sprott wants our silver and he knows we have a lot of it." was what he said. I believe Sprott also owns a decent amount of the stock himself which should tell you something. He seemed unconcerned as I was, and certain they are sitting on a money machine as I was (and still am) as well. 3.8 million this year, 5 million for 2012, and 6 million for 2013 all at around 8/oz. It's not even so much about the size but how QUICKLY it can occur.
I post up on the stockhouse.com site and a lot of info can be garnered/asked there but I will try to answer your questions you have here .
The Shafter /Presidio mine sits partially over Cibolo Creek.
Water is an issue and it is from the townsfolk that want it .
AUN are obliging them by providing any excess to them.Check out the size of the water piping here:
Present measured and Indicated resource at Shafter is 12 years production at 1,500 tpd or 3.9 million oz per year.
La Negra,which is ramping up for a second upgrade to 2,100 tpd(2.8 M oz Ag Eq) has 15-20 years of mine life at the present 2 million Eq production rate.
Dr. Peter MeGaw states that both CRD deposits have the potential to be much larger.
Any other questions?
I just checked to see which miners were on the NAS Reg sho list , which shows failures to deliver shares that were shorted.
AUNFF is a recent addition. GGCRF, ( Silvermex ) has been naked shorted for over 2 months running as of this last report.
ORVMF , ( Orvana) the only other miner i see on the list.
Hi Mouser - this list is pretty interesting, can you explain more clearly what it's all about? Thanks a lot!
Which is basically when you sell shares you dont own. That is actually shortselling if you can find some shares to borrow from a slippery broker. When you cant find shares to borrow, the trade still goes thru and its called naked shorting (* creating phantom shares)
After so many days after shorting a stock and not finding shares to borrow , that is a failure to deliver. Once you exceed the timeline for finding some, you go onto the NAS Reg SHO list.
For some inane reason , this fraud is allowed to continue for weeks, and sometimes months.... Silvermex has been naked shorted now for over 2 and half months!
Instead of hangin these fraudsters by their nether regions and throwing rocks at them, they are actually rewarded as they force the stock price down and make money covering ( or in some cases forcing the co.into bankruptcy and never have to cover the shortsale). Basically thievery allowed in the stock markets , where in the rest of the society you would be jailed for the same type of fraudulent activity.
I look at this list every once in a while to see where the crooks ( banksters) are pointing their attacks.
AUN has been short sold before -coinciding with the timing of the Sprott lawsuit.
In order for this to work shareholders have to sell which enables the naked shorts to cover.
In Aurcana's case the company is funded with cash flow from what will be 2.8 million oz Ag eq production at La Negra and the financing of Shafter will enable the company to produce a further 3.9 million oz Ag per year.
My guess would be that pressure is being put on AUN until the lawsuit is settled.
Sprott does want that silver,after all and it is just a game billionaires can play.
With about 354 million currently OS shares and fully diluted another 123 million added to that ( 477 million or so) , AUN managed net earnings of just under $1.6 million in the Q . That is about a 1/3 of a penny a share in earnings. I guess their promotion is good tho and that is why they are valued as high as they are.
Shafter is the big hope for the company and warrant exercise should help finance the rest of the construction there. We know current earnings from operations wont go far.
At June 30, 2011 the Company had working capital of $7.1 million (Dec 2010 – working capital of $14.1 million),
which consisted of $19.5 million held in cash and short term deposits; account receivables of $3.5 million (trade
& others); prepaid expenses of $0.1 million; inventory of $1.9 million. These amounts are offset by accounts
payable of $7.3 million; the current portion of the Company’s notes payable of $1.0 million in relation to
equipment purchases at the La Negra & Shafter Silver Mines; and the current portion of the Convertible
Debenture with Silver Standard of $9.4 million.
Still a lot of cheap shares to hit the markets , as of this August 12 /2011 , 94.9 million warrants remained not exercised, (all of these warrants way in the money) 28.5 million options were still outstanding ( not vested ) I highly doubt SPROTT will contribute any more $$ to the company until they have settled the lawsuit.
Aurcana playing a bit of that game called , bite the hand that feeds. Be interesting to see how that strategy works out.
Sprott wants the 800,000 oz. of silver and with 40 million + shares of AUN they will pump it into the stratosphere.
AUN are in construction at La Negra and at Shafter.
La Negra is to be a 2,10o tpd producer or 2.8 million oz.
Shafter to produce 3.8 or 3.9 million oz-14th largest PURE silver mine in the world.
$8 per oz cash cost to produce between the two mines.
La Negra's second upgrade is on schedule and as the first construction upgrade was completed on budget and on schedule I anticipate that this second upgrade will be perfromed as before.
AUN have stated -twice-that Shafter is on budget and on schedule.
There was a 5-10 million dollar shortfall on the original financing as Sprott was cut out from their silver windfall.
20 million warrants were exercised recently (Wellington) so the full amount of capital required to construct Shafter is now realised-without Sprott.
Great release by Aurcana today: https://www.economicfreefall.com/2011/08/aurcana-reports.html
Shafter also on track as expected. 2012 will be a fun year for every Aurcana share owner!
These are my notes.
Go to the website for the full deal as it will be up on site in entirety in a couple of days.
TSX listing by end of 2011.
American Exchange listing to follow.
Reverse split-no decision made.
Sprott lawsuit-Sept 09 application for dismissal befored judges.Hopeful.
Shafter Cap ex is $45 million as per the feasibility.
Fully funded.If there is a slight shortfall the cash flow from LN will assist-one million dollars per month cash flow.
Permitted for 900 tpd -1,500 tpd permits on hand shortly.
Shafter on budget and on schedule.
Accelerated start up being explored and considered.
Under one year packback.
Exploration at Shafter under Dr. MeGaw now underway.All AUN geologists to meet on the subject at month's end.
The question of Shafter mineralization to depth being sought out.
Largest holdings of shares out of every silver company imaginable? AUN
mgb please let us know when/if you hear news on the Sprott lawsuit.
Sprott is now put off until Oct 19th.
No judge available,apparently.
Sprott is the keynote speaker at the Silver Summit in Spokane on the 20th and 21st of October.
He has to walk by the AUN booth,situated directly outside the speaker hall main entrance.
AUN's third quarter will be in the books and NR'd in mid-Oct..
Lenic gives a Shafter Update this Thursday at the Precious Metals Summit.
I really like the action in Aurcana. It has been building a solid base here and seems willing to challenge the old highs in the coming months. The chart pattern going back almost three years has been following a steady uptrend with regular testing of both support and resistance. The big trigger is certainly Shafter coming into production Spring 2012. It will be a major event pushing Aurcana over the threshold and into mid-tier status. https://www.economicfreefall.com/2011/09/italy-down-gold-up.html