RE:RE:RE:Resumption of Operations at San Andres MineAlfTanner,
Aura Minerals has held up better than many other stocks, in spite of gold going briefly below $1200 USD per ounce and San Andres shutting down for part of the quarter. Aura Minerals actually made a small profit of $843,000 USD or 2 cents a share in spite of having operating income of negative $4.226 million dollars. So how did they pull that off? By having fixed price hedges on gold sales and call options with Goldman Sachs for sales of 26,000 ounces at a minimum price of $1230 USD. So the gain from the derivative contracts was $3.115 million USD, and Aura Minerals also recorded a currency gain of $1.26 million USD.
With Aranzazu coming back on line in Q4, the question is whether management will declare commercial production during Q4 or keep Aranzazu off the books for another quarter? The insiders are buying this stock aggressively, so whatever is happening with Aranzazu and San Andres, it must be good.