RE: question for the massesAUR is paying a NSR of 3% to Falconbridge for Duck Pond. Current reserve life is a little over 8 1/2 years but that is based on $1.20/pound copper. And, I suspect, that AUR is being its traditional conservative self in that estimate as I know they have done some more exploratory drilling of late that will see an increase in that figure. As an example, its Louvincourt mine that came to its natural end last year ended up with a return on equity of about 50% year over year over as estimates for that mine and its life also proved too conservative.
As discussed before, 100% owned Duck Pond will be a less than zero cents/pound producer of copper and will also benefit from an additional cashflow stream from processing the ore of much smaller mines in that part of Newfoundland. At current prices, a full-year of Duck Pond by my calculations (see earlier post near a couple of months ago) would add over $1.25/share to 2006 earnings in 2007. Should copper average $3/pound in 2007 I predict that AUR will have earnings near $5/share and NET CASH in the bank at the end of that year over $10/share. It's a cash cow.