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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 May 17, 2012 8:15am
307 Views
Post# 19919397

RE: RE: Q1 results are out...

RE: RE: Q1 results are out...

I don't see anybody buying Aura (at least not a valuation that will make Aura shareholders happy). Look at their assets:

 

Sao Francisco and Sao Vicente: Both have been money pits for several years now, and you'd frankly have to be nuts to want to buy either of them. Unless Aura can turn them around quickly, I wouldn't be surprised to see them shut both down before the end of this year to preserve cash.

 

Aranzazu: March was the first month where they had to pay penalty rates for the elevated arsenic levels, which added 1.08 in costs per lb cu produced! That gives a total cash cost of 3+ per lb cu, which  makes it questionable if the mine is viable (given that there are also indirect costs to take into account). Going by the conference call, they still haven't got a solution for the arsenic issue -- they seem to be optimistic, but that doesn't mean much given their track record.

 

San Andres: Currently the only mine producing some real value, but a ~60.000 oz au mine in Honduras with rapidly rising costs isn't the kind of asset other companies are likely to place high on their shopping lists.

 

Serrote: The last remaining hope of redemption for the company, but given the delayed feasibility study and how little they talk about it, I have a bad feeling. There's also the issue of how they're going to finance it.

 

More broadly, the entire mining sector is on sale at the moment. Why bother with a proven failure like Aura when you can get discounted prices for even producers with proven management teams?

Bullboard Posts