African Aura Share Discussion Threads

[deltrotter] 10/4/2011 08:57

Thanks j1nxed

[j1nxed] 09/4/2011 23:34

DSO vs High grade Concentrate

I have done an updated margin comparison since we now have the results from Sundance DFS



This is sundance DSO product but i have used a lower price than their long term price. People say they are using a long term iron ore price of $65/t, this is somewhat true but i assume this is FOB which means you have to add the freight in order to calculate the spot price so using a long term freight rate of $30/t the spotprice for would be $95/t.




This is the potential margin afferro could get using the same input variables for freight and PPFE* ($4) but i added a VIU of $4/t for low levels of Al2O3 and SiO2. I have added $5/t over sundance Stage 2 opex because i assume Afferro will not have to build their own railway but in return have to pay a higher cost to use the infrastructure i have also not used the 70% that their davis tube tests indicated (i used a 69& concentrate)

i think we could get away with a very cheap CAPEX/ton ($90-110 or perhaps lower) magnetite mine with a long lifetime and at least >30Mtpa


*PPFE is dollar value for each percentage point between 58-62. So if the spot price for 62% is $100/t and the spot price for 58% is $80/t the PPFE value would be $5 ($20/4%) for each percentage point over and under the benchmark.

[mr.oz] 09/4/2011 22:12

presume this was posted, but just incase, whilst catchin up after a week offline walkin in the sun

[mustau] 09/4/2011 19:33

Master White look close to home. Ask those companies exploring in the North Sea?

...and if you so much want stability stick to Tesco's or even better Ryanair!!

AAAM the next FQM.

[soulsauce] 09/4/2011 18:08

G78 it's a good sign that waster White has turned up. I have been in a few companies that the nutter has talked down only for them to be multiples of where they were now.

Can't be certain but I am sure it was he (it) bad mouthing RRL at 6p - lol

[parthus] 09/4/2011 17:59

I have pondered and cogitated as to why trading was halted !

If it is news about the company's holdings.. then surely they would have announced it without a suspension ?

Could it be a regulatory hitch, after all perhaps something was amiss and only discovered after trading began or....an approach by a company that wanted to determine the value of each company as they may have had an interest in just one ?

As regards the buffoon White.. derampers thrive on response.. the antidote is ...leave him to splutter in a corner and never respond.

Just found this :



VANCOUVER, Apr 8, 2011 (Canada NewsWire via COMTEX) -- TSX VENTURE COMPANIES:

AFRICAN AURA MINING INC. ("AUR") BULLETIN TYPE:Â Halt BULLETIN DATE:Â April 8, 2011 TSX Venture Tier 1 Company

Effective at 12:42 p.m. PST, April 8, 2011, trading in the shares of the Company was halted pending an announcement; this regulatory halt is imposed by Investment Industry Regulatory Organization of Canada, the Market Regulator of the Exchange pursuant to the provisions of Section 10.9(1) of the Universal Market Integrity Rules.

And this : refers to Section 10.9(1) which is as clear as mud ....

[dandick] 09/4/2011 17:45

I wouldn't bother talking to idiots j1nxed

[greenroom78] 09/4/2011 17:18

Do we have our first de-ramper? I am surprised it has taken as long as it has. I have this one filtered already so has obviously tried to cause trouble with one of my other investments - Can't remember which one though.

Given that I have built a portfolio of mining and O&G explorers (most non producing) that has served me very well and most of which are African based I am guessing any argument he has is ill founded. Also given the amount of equity I see raised by African based explorers I would also expect that the large institutions are happy to place value on inground resources and the licences they hold.

[j1nxed] 09/4/2011 16:52

actually ore is not worthless while it is in the ground IF they can show that it is economic to extract. I guess this is where you little problem lies, you assume that all ore is of no value unless the company is operating. I am pretty sure you already know this but spewing out nonsense and throwing down straw men is a much more "fun" way of trolling internet forums

In your binary world a company who sits on 5 billion tonnes is worthless even when they have issued a DFS simply because it doesn't make any profit TODAY! did you know that there is a time value of money and you can discount future cash flow back to today? did you also know that you can use risk multiples on projects?

If you actually compare the valuations among juniors you see that the juniors in canada/northern europe/australia have a MUCH higher valuation based on their contained iron so you could say that the political risk is somewhat discounted. Again what would be the fun in trolling if you actually proposed a series of arguments?

The government retains no free carried interest in putu, but you better call severstal and let them know that their target for 5Bt is worthless since the mine is not operating

i give you an A for effort and an F for content

[dreggspicker] 09/4/2011 16:09

most people have no guts, that's why we are priced soooooooo cheap .... ;@~

[j1nxed] 09/4/2011 15:47

@PWhite73

i see, so if i owned x amount of gold it would be worthless until i sold it? if i owned 2 claims that consisted of 2 billion tonnes of iron ore and with a potential to host 6 billion tonne, would you consider this worthless?

i also see that you are not familiar with discounted cash flow models either

you're welcome back in x amount of years when african aura is a producer that satisfy your binary investment mind based on profit and losses, but don't complain if you have to buy it for 10x the price

No Guts, No Glory

[soulsauce] 09/4/2011 15:30

PWhite73 - 9 Apr'11 - 15:17 - 8936 of 8936 (Filtered)

Waster alert!!

[nickdr99] 09/4/2011 11:10

Thanks Enami. Makes sense.

[cupra kid] 09/4/2011 11:03

Good point Woody. I assume I'll get the combined average price for both seing as my pick was AAAM the gold and iron ore company. I'll wait until both are listed and then pop the question in. Thanks for the heads up.

[enami] 09/4/2011 10:05

Re CGT - you must apportion the base cost of your AAAM shares to AFF and AUE for CGT purposes.

The base cost split is I believe calculated by taking the ratio of the closing prices at the end of the first day of trading for both companies - 13th April.

Look at the SPs then and calculate the ratio and then apportion this ratio to your base cost of original AAAM shares.

Say for example at the close on 13 April the AFF = 200 and AUE = 100 then 66.6% of your base cost is allocated to AFF and the rest to AUE .

A similar situation at the PFC/ENQ demerger. I think it would be good for the company to issue something similar

[blah blah] 09/4/2011 09:59

It says trade halt pending news, as per the earlier link:

[horneblower] 09/4/2011 09:51

Was it halted or did trades just cease.

[blah blah] 09/4/2011 09:45

So, no other ideas for why there was a trading halt in Toronto? Feels a bit early after the split for a bid approach for either. Certainly wasn't halted because the price was spiking and therefore news had leaked!

[nickdr99] 09/4/2011 09:40

Thanks g78 - that's what I was hoping but looks like they want the Market to decide.

[horneblower] 09/4/2011 09:38

It's a very important question and will probably only be resolved by a ruling from HMTI

[nickdr99] 09/4/2011 09:36

Ok I think I have answered my question re cgt and how the value will be apportioned between AFF and AUE. Page 54/55 from the circular IMO states this will be apportioned on the basis of relative Market value at the time of the exchange. I assume they will take this as some form of average daily value across the two companies in the days after the 13th. Would be interesting if there was a bid for one co. which spikes the price as this would skew the base cost too. Not sure that would be a fair reflection of value for cgt base cost and might act to reduce post tax gains. Irrelevant if you hold all in ISA but I am sure many like me have holdings outside (I have some in too). Anybody have any thoughts on this. Have I got this right. Thanks

[greenroom78] 09/4/2011 09:31

This is a really good question, I am lucky that mine are all ISAble but this would give an idea as to how management see the split in current valuation.

nickdr99 - 8 Apr'11 - 19:25 - 8909 of 8925

I have to admit to not having read the documentation, but in a split like does there not need to be split for CGT treatment, ie for every share X% of the cost if attributable to AFF and y% to AUE. Have i missed this. Many moons ago I held shares in Hanson when that was split several ways and the company provided this breakdown. If this is not provided, how do we treat AAAM purchases from a CGT perspective...?

apologies if this has been addressed already, but have not seen it mentioned.