Aurcana Silver Corp V.AUN.H

Good value.

[JonEcash]

"At 1,000 tonnes per day, the ores are sufficient for a three- to four-year mine life. However, AUN believes the reserves have significant upside and recently started a 15,000-meter drilling program to expand the reserve in all of its 23 deposits. Using historical data, AUN gave guidance of $20 million cash of operating flow in 2008, or about US$0.22 per share. If the company is successful in generating that level of cash flow, it would mean Aurcana is selling at approximately 4 times cash flow." This is quoted from Jay Taylor's buy recommendation on November 9, 2007. At that time the share price was $0.93, it closed today at $0.64. Also, since then management reduced it's guidance to a more conservative $17M from $20M. This still works out to about $0.19 per share; so we are now trading even CHEAPER at 3.4 times cash flow. Remember that on average, base metals producers typtically trade at 6+ times cash flow and PM producers are 10+ times cash flow. Looking to free up more cash if just in case we drop further from here. GLTA. J$