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Aura Minerals Inc T.ORA

Alternate Symbol(s):  ORAAF

Aura Minerals Inc. is a mid-tier gold and copper production company. The Company is focused on operating and developing gold and base metal projects in the Americas. It has four operating mines, including the Aranzazu copper-gold-silver mine in Mexico, the Ernesto/Pau-a-Pique Project (EPP) and Almas gold mines in Brazil, and the San Andres gold mine in Honduras. The Company’s development projects include Borborema and Matupa, both in Brazil. It has unmatched exploration potential, owning over 650,000 hectares of mineral rights and focuses on advancing multiple near-mine and regional targets along with the Serra da Estrela copper project in the prolific Carajas region of Brazil. The Company has the right to explore the Pe Quente and Pezao Projects in the State of Mato Grosso, Brazil. The Aranzazu Mine is an underground copper mine that is located within the Municipality of Concepcion del Oro in the State of Zacatecas, Mexico. The San Andres Mine is an open-pit heap leach gold mine.


TSX:ORA - Post by User

Bullboard Posts
Comment by ganndolphon Sep 29, 2017 1:47am
89 Views
Post# 26757150

RE:ORA VS GCM

RE:ORA VS GCMbaystock1,
I see you moved your GCM position into MUX.  MUX is at a minimum in its stock valuation so that move is probably a very wise one.  As far as the valuation of ORA, I don't think that the two stocks can be fairly compared.

Exactly what is the share float of Gran Columbia? If you take the total $150 million in debt and assume that the holders convert their debt into shares, and all of a sudden your 20 million post reverse split shares balloon back up to 150 million shares.  That is problem 1.  

Problem 2 is exactly how much are the miners getting paid for producing the high grade gold.  My understanding is that the miner's union gets a substantial cut of the gold price.  So exactly what is the realized gold price?

Problem 3 is Columbia--high geopolitical risk in my book.  Contrast those 3 factors against Aura Minerals 30 million share float with little or no debt.  San Andres is a heap leach low gold grade mine, but in terms of mine life, safety, and low operating cost it compares well against Gran Columbia's high grade mines.  And the EPP project is a $130 million dollar MRP that was gifted to Aura Minerals by Yamana Gold.  That project will produce the same amount of gold as San Andres.  What Aura Minerals has is two additional mines that can be brought into production.
  
Aranzazu is a copper mine with gold and silver by product that is economic at $3 USD plus copper.  The mine is currently under care and maintenance, but I expect it to come back into production in the next 3 to 6 months.  And then there is the huge copper deposit in Brazil with a gold by product.

So Aura Minerals is a miner that can go from 3 existing gold mines to a total of 5 operating mines in very short order.  So for this reason, and the stock's low current valuation make it a must own stock.







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