RE: RBC Analysis AUN 1.25$ Target I read the report.
I like this:
"Our upside scenario assumes the underground operation at Shafter is able to support a 2,500 ton/day
operation as well as successful delineation of higher grade resources from within the northwest mineralized trend at La Negra. Assuming both scenarios play out as expected and maintaining the same target multiples, we estimate an upside scenario value of C$1.45."
Amazing that they wrote this:
"Reserve/resource replenishment risk: As both Shafter and La Negra have minimal mine lives based
on current reserves, it is imperative, in our view, that Aurcana be successful in replenishing mined
reserves and resources."
What a huge error! They obviously missed that a NR came out in October with the new resource numbers from La Negra of 115Moz Ag M&I. They only give it a mine life of 20 years, when it is more like 60 years. 40 years of resources are missing in their company valuation & price target!
Based on this and other factors they did not include the target price should be closer to $2.00 per share IMO.