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Aura Minerals Inc T.ORA

Alternate Symbol(s):  ORAAF

Aura Minerals Inc. is a mid-tier gold and copper production company. The Company is focused on operating and developing gold and base metal projects in the Americas. It has four operating mines, including the Aranzazu copper-gold-silver mine in Mexico, the Ernesto/Pau-a-Pique Project (EPP) and Almas gold mines in Brazil, and the San Andres gold mine in Honduras. The Company’s development projects include Borborema and Matupa, both in Brazil. It has unmatched exploration potential, owning over 650,000 hectares of mineral rights and focuses on advancing multiple near-mine and regional targets along with the Serra da Estrela copper project in the prolific Carajas region of Brazil. The Company has the right to explore the Pe Quente and Pezao Projects in the State of Mato Grosso, Brazil. The Aranzazu Mine is an underground copper mine that is located within the Municipality of Concepcion del Oro in the State of Zacatecas, Mexico. The San Andres Mine is an open-pit heap leach gold mine.


TSX:ORA - Post by User

Bullboard Posts
Comment by sesses3on Apr 01, 2012 7:25am
270 Views
Post# 19744546

RE: RE: RE: RE: something interesting

RE: RE: RE: RE: something interesting

If Yamana wanted to run these mines, they wouldn't have sold them to Aura in the first place. Quite clearly they we're also right to sell, given that problems that all three mines have run into ever since Aura bought them. Yamana's only error was not to insist on getting the entire purchase price upfront in cash (ie. they had to accept shares instead of cash when Aura couldn't come up with the final payment).

 

The NAV for San Andres is shrinking steadily. The resource base is getting smaller, production is down and costs are climbing dramatically. Having listened to the latest conference call, it sounds like getting the cost per oz below $1000 will be a real struggle (and since Aura usually never delivers on anything, I'm guessing that means $1100 or higher per oz  is likely going forward). Aranzazu might become interesting at some point in the future, but right now production is too small and costly for it to be worth getting excited about (plus there's the usual Aura tendency for new "unexpected" problems to pop up every quarter).

 

That leaves Serrote as the only major reason for optimism, and probably also as the lone asset that might be of interest to potential buyers. Who knows, Aura are strangely silent about it, given how important it is to the company. There's also the issue of whether you can trust Aura to execute on their feasibility study -- look at the projections they made for their other mines and then compare to how things have actually turned out. 

Bullboard Posts