TSXV:AUN.H - Post by User
Post by
JonEcashon May 03, 2007 2:43pm
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Post# 12720665
Cash flow.
Cash flow.This company doesn't need any hype. It just needs to follow through on its business plan of producing at low cost and high profit. I love these quotes from their lates f/s:
"In relation to this contract, Minera La Negra signed a purchase contract with Trafigura whereby Trafigura agreed to purchase 100% of zinc concentrate to be produced during the year 2007 by the La Negra Mine BASED ON THE PUBLISHED PRICES in the Metal Bulletin in London in US dollars."
and
"Minera La Negra signed a purchase contract with Trafigura Beheer B.V. (“Trafigura”) whereby Trafigura agreed to purchase 100%, evenly spread from January to December, of copper concentrate to be produced during the years 2007, 2008 and 2009 by the La Negra Mine. Production is estimated to be 8,000 to 10,000 tons per year for prices BASED ON THE PUBLISHED PRICES in the Metal Bulletin in London in US dollars"
Correct me if I'm wrong, but it doesn't look like any forward price hedging contract by Trafigura to me. As the price of these base metals climb, so too does AUN's profit.
J$