TSXV:AUN.H - Post by User
Post by
bryancjon Dec 07, 2010 8:28am
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Post# 17810824
Cash Impact of ridding SLW speaks for itself
Cash Impact of ridding SLW speaks for itself
Look at the Q3 figures for the SWL deal (see note 17 in the financials):
AUN sold about 124,017 ounces of silver to SWL in Q3 for cash of $3.9/oz = $484k cash (derived by comparing Q2 and Q3)
IF AUN sell this at market price of $30 this equates to US $ 3.72MILLION in additional cash for 1 Quarter (straight to EBITDA) !! and that is soley on La Negra.
This is purely a cash metric, clearly the P&L impact is not as great because AUN recognises a non cash deferred revenue in its P&L. But cash is what matters and this why the share price is rocketting.
Unfortunately it is the analysts in the institutions that have the expertise and time to wade through the financial data for value and smaller investors seem to sell out earlier as they fail to spot the long term value. Hope this helps.