Aurcana Silver Corp V.AUN.H

RE: Reason for jump?

[JonEcash]

The biggest question mark hanging over AUN for the past several months was CASH.  They were strapped with debt, had spent a bunch of money to acquire Shafter (without having the necessary funds to bring it online), and their one producing mine was losing money due to the low metals prices.  So unless things turned around, it was possible that the company would NOT SURVIVE as a going concern.  Who would want to invest in a company like that, where the risk of dilutive financings or bankruptcy were present?  Only some brave longs and risk takers, that's who!

Well all of these concerns were addressed in their last few NR's that showed management was in control and working to improve their cash flow situation.  The market is now showing renewed faith in management and the company's potential.  The fact that it was down for so long technically only added to the jump experienced today.  Will be interesting to see what happens the rest of the week if no news is imminent, and a pullback in metals occurs....

J$