RE:Publication on Seekingalpha Taylor Dart sees the rock movement in the #2 Alimak Raise and consequent temporary suspension of activities in the raise as being “a short-term issue and not a deal-breaker.” He clearly perceives share dilution as the more pressing and troubling matter.
Dart likens the situation with Aurcana to that of Pure Gold Mining (a company I also watch closely) which has similarly experienced problems with ramp-up to commercial production and share dilution. Like Pure Gold, Aurcana is “a Tier-1 jurisdiction producer with a high-grade mine, and its costs are in the lower end of the cost curve.” But these two ingredients do not always guarantee success, “especially when ramp-up towards commercial production is not as smooth as planned.”
Dart sees better investment opportunities elsewhere at this time. This assessment appears to be based upon, more than anything, Dart’s tendency to avoid precious metals producers with a more than 60% likelihood of share dilution over the coming 12 months. Dart feels this possibility cannot be ruled out.
https://seekingalpha.com/article/4472119-aurcana-more-share-dilution-to-finish-the-year