Aurcana Silver Corp V.AUN.H

Metals & Mining Silver

Aurcana Silver Corporation is a Canada-based company, which is engaged in the exploration, development, and operation of natural resource properties. The Company’s development properties are the Revenue-Virginius mine (the Revenue-Virginius mine or Ouray), located in Ouray Colorado and held through the Company’s 100% owned United States subsidiary, Ouray Silver Mines, Inc. (OSMI) and the Shafter silver property (the Shafter Silver Project or Shafter), located in Presidio County, Texas and held Aurcana Silver Corporation. The Revenue-Virginius mine is located in southwestern Colorado about 5.5 miles southwest of the town of Ouray. Access to the mine site is via County Road 361. The Shafter Silver Project, which is 375 miles southeast of El Paso, in Presidio County, southwest Texas, within a historic mining district.

TSXV:AUN.H - Post by User

Aurcana Silver Corp

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Comment by JonEcashon Mar 05, 2007 6:31pm

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Post# 12359581

AUN valuation.

The article on SPM provides yet another rough way to value AUN once production starts: The article claims that SPM's full capacity of 2500 tpd will cashflow $1 per fully diluted share. AUN's 1000 tpd is 40% of SPM's total capacity so we can expect at least $0.40 per share (assuming they have similar mineralization and production costs). However, AUN has the tighter share structure (89M vs 112M fully diluted) so there is a cash flow per fully diluted share premium of 125%. So AUN's fully diluted cash flow is $0.40 x 1.25 = $0.50. The SPM article says that such a producer should be 6-8x cashflow. Which once again shows the $3-$4 some of us have in a relatively short term.

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