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Aurcana Silver Corp V.AUN.H

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

Bullboard Posts
Post by Bentonstockson Oct 25, 2007 9:11pm
268 Views
Post# 13692635

One or two other things...

One or two other things...I have used 'profit' and 'cash flow' in my previous post although they are not exactly the same thing. The importat thing to understand is that the cash flow figures AUN are projecting are the NET revenues from their operations, but not earnings, because they this exclude things such as acquistions, writedowns, etc. Therefore, if we assume $20,000,0000/year cash flow, if they spend $10,000,000 one year to upgrade the La Negra plant to 2000tpd, their cash flow for that year is till $20,000,000 but their reported EARNINGS will be cut in half, excluding other things, because they are essentially making a $10,000,000 acquistion... The 300 days per year thing was just a guess, and I could be wrong, but I think Ken said that they were only operating 12hrs/day. I need to confirm this, but if that's the case, going to a 24 hour production schedule, like most mines, would change things dramatically. If they can sustantially increase reserves BEYOND the 2.4 million tonnes they are expecting, sufficient to preserve at least 5 years of mine life, then we might see some 24hour production, i.e., 4000tpd. Regards, B.
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