TSXV:AUN.H - Post by User
Comment by
art27on Mar 22, 2009 7:15am
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Post# 15861242
How Art sees it
How Art sees it
I believe the quarterly results will stink but it is already priced in at $0.11 SP
This stock on infrastructure alone should be trading at least $0.20 ignoring the 75mil oz silver reserves.
$13mil market cap is ridiculous. If you look at some juniors with little reserves and NO INFRASTRUCTURE in some cases they have higher SP than AUN. I think somebody is keeping a lid on AUN and the stock is gonna pop big at some time.
AUN is in difficult cash situation ($150k burn rate / month maybe less now) and maybe "neutral" or cash flow negative at La Negra ? On top of that the SP is very low and any financing at 11 cents means big dilution. Other bad thing is they plan to start Shafter in 18 or so months but I think it will take them about two years. So the big issue here is it takes too long to start Shafter and soon they will run out of money.
If they can get financing by silver stream deal great. The only hope is copper goes over $2, silver over $15 and La Negra becomes cash flow positive again. Otherwise they will keep burning out. Lets hope for the good.
Art27