$3.73=$3.80/pound=$4.24/sh earningsAs I look now spot copper is $3.73/pound which means that should that be the average for 2006 AUR's average selling price would be at least $3.80/pound because of its LME registered premium to spot for their Grade A production. Should $3.80 be its average selling price, the chart posted at the AGM (go to aurresources.com) tells us that AUR would be on track for earnings of at least $4.24/share as each 5 cents over $2.50 that it sells its copper for adds about 7 cents/share to earnings of $2.42. If that is the case, cashflow would also be near $6/share and NET CASH already at over $3.50/share would end the year over $6/share even after paying out our expected 30 cent dividend (15 cents next week and I bet higher than that at end of year (I did call the dividend increase to 15)). What is amazing is that a stock with over $6/share in NET CASH that will be adding Duck Pond production into 2007 that alone at these prices will add over $1.50/share or more to these 2006 earnings could trade for $16. More amazing is that if these prices for copper holds, the end of 2007 could see earnings near $6/share and NET CASH over $10/share and yet it is still trading for $16... wow. More likely, AUR will move to the sector average multiple of cashflow/share price of about 8 which at today's projected cashflow puts it over $40/share and that is without consideration to its NET CASH.
I am off for the weekend. Good luck today. You will find support at $15.86 again should you need it as I have been parked there all week in the hopes of making the most obscenely large position in AUR even larger. Cheers.