Aurcana Silver Corp V.AUN.H

RE: One or two other things... otcmoon

[Bentonstocks]

Thanks for your post... I think we actually saying the same things... I admitted that there as probably some erroneous semantics in my post, and I did say that I understood cash flow and profit ar not the same thing, but that I was using them synonomously to get a point across, as some were thinking that $20 million cash flow did meant that the compan is necessarily making money... However, that cash flow is essentially profit on mining operations, but not EBITDA. Obviously, the $20 miilon operating cash flow is lower than we hoped. If you read my "questions and answers", I was explicit about it being disappointing. I mentioned in that post, we have ALL got it wrong has been on the hit AUN takes on the all cost associated with smelting - we wre way off on that, as it looks to be about %50 of rock value based on current prices. Where were we getting our numbers from??? Ken and Ron were quite clear that they never expressed such projections - that was our mistake. However, I am trying to point out, as was stressed to me during my discussions with Ron and Ken, is that things will look a whole lot brighter in the future. This thing is just getting started, which is why I said be patient. The 7.5 x cashflow is not appropriate for current cashflow, and nowhere did I say that it is. My valuation is based on $65-70 million a year once La Negra and Rosario are running full stream... No doubt the market is punishing us now, but there is no use crying in beers and dwelling on the negatives. We got a little ahead of ourselves with our projections, and now we have to take responsibility for that. To clarify something somebody mentioned a few posts back, the drilling program announced is EXPLORATION drilling that is not part of 43-101 reserve calculations. Ken had explained that they held off on all exploration work during prodution start-up because they wanted to remain focussed on getting the mining right, since it is wherethey will be getting their money. Now that mining and porcessing are underway, they are proceeding with exploration... Anywy, thanks again for your post... Regards, B.