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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Aurum Min | AUR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
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|---|---|---|---|---|
| 0.00 | 0.00% | 7.625 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 7.625 | 7.625 |
| Top Posts |
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Posted at 05/1/2017 12:36 by butler4 Yes, the rise is good but I cannot really understand why - there is no substance to the rise other than wishful thinking - I've been in aur sometime, the team is good and they have good ideas and plans but thats bout it- the company's net value at the moment is 1p - so there has to be a retraction soon - does one sell or hold? |
Posted at 01/1/2017 23:48 by geoff80 In October the Company completed a fundraise of GBP1.195 million pounds (before expenses) through the issue of 119.5 million new Ordinary shares of 1 pence. Also in October 2016, two of the new Directors subscribed for 10 million new ordinary shares of 1 pence per share, Total proceeds for the Company as a result of these subscriptions was GBP300,000 (before expenses).On 25 November 2016, the Company announced that a GBP50,000 tranche of the convertible loan issued earlier in the year had been converted into Ordinary shares of the Company, and that the Company has raised GBP25,000 though the issue of 2.5 million Ordinary shares of 1 pence. Not inclined to rush into these since so many shares have been bought at 1p. ie. apparently AUR is already a five bagger for some. |
Posted at 24/10/2016 14:05 by cufes2 Another significant appointment . . .24 October 2016 AURUM MINING PLC ("Aurum" or the "Company") Directorate Change Aurum Mining plc (AIM: AUR), the Spanish focused gold and tungsten explorer, is pleased to announce the appointment of Stephen Robert Ball as Non-executive Director with immediate effect. Mr Ball, aged 63, has over 35 years' experience of working in senior roles in the Technology, Defence, Information Security and Communications industries. Mr Ball was appointed Chief Executive of Lockheed Martin UK in March 2009 until his retirement in 2016. Before that he was Managing Director of the company's operations in Ampthill, Bedfordshire. Before joining Lockheed Martin, Stephen spent 21 years with HM Government Communications Centre (HMGCC), latterly as Chief Executive, working on specialist development and the manufacture of security and communications equipment. He started out his career as an engineering apprentice. David Williams, Chairman, commented: "I am extremely happy that we are able to welcome Stephen onto our board. His breadth of experience in both the public and private sector will be invaluable as we move forward. His appointment completes the board changes that I had planned and means that we now have some of the most senior people in this country in the Digital and Cybersecurity services industry to assist with the transformation of our company. "To date our company has maintained its focus on the mining sector. We recently commissioned a report on our gold exploration prospects in northern Spain, which showed some very encouraging prospects. I invited Chris Eadie to re-join our board and he, along with Sean Finlay, will spearhead our continued interest in that sector. "In my Chairman's statement in our Annual Report I commented that it was hard to see substantial upside from the junior mining sector given the current climate and that my focus would now be on seeking a transformational deal to provide loyal shareholders with a more exciting future. The Digital and Cybersecurity services sector offers that exciting future. Businesses are changing from traditional to digital interactions and are often ill prepared for the hacking, data security, cybercrime and cyberterrorism threats that they face. The Digital environment is so vast and the threats so varied, that many large and small enterprises are not able to deal with these issues. "By securing the services of such an outstanding trio of talent in this sector, I am planning to move our company into this high growth area and to build with them, a group of significant scale providing digital resilience solutions to capitalise on this market opportunity and deliver enhanced value to our shareholders." |
Posted at 10/10/2016 07:10 by cufes2 10 October 2016AURUM MINING PLC ("Aurum" or the "Company") Directorate Change Aurum Mining plc (AIM: AUR), the Spanish focused gold and tungsten explorer, is pleased to announce the appointment of Robin Simon Southwell OBE as Non-executive Director with immediate effect. Mr Southwell, aged 56, has over 35 years' experience of working in the Aerospace & Defence industry, including roles as Chief Executive of Airbus UK and Airtanker Ltd, as well as senior positions at BAE Systems, which included running their operations in Australasia and establishing the company's asset management organisation. Mr Southwell is a Fellow of the Royal Aeronautical Society and has been appointed as a UK Business Ambassador. David Williams, Chairman, commented: "It is great that we have been able to attract Robin onto our board. His broad range of skills and contact base, both nationally and internationally will compliment those of Mo Stevens, who joined our board last week. I have promised our shareholders that we will be looking for a transformational deal and having access to the contact base these gentlemen have, will make my task that much easier." |
Posted at 31/8/2013 20:20 by fillipe www.Shareprophets.cof |
Posted at 30/8/2013 11:54 by sportsauto Article below on share prophets:MiningMaven: Aurum Mining Sometimes you have to go off-radar find the opportunities. Aurum Mining (AUR) is, right now, pretty much off-radar. Few investors realise the potential this tiny £3 million cap Gold Company holds. The company is now solely focused on Spain, with three highly prospective gold projects (in joint Ventures with Ormonde Mining (ORM) (which helps defray the cash burn), and a clutch of equally prospective 100% owned Tungsten permits. Most of the focus to date has been on the company's Pino, Cabeza and Peralonso gold projects, but the company is also eager to progress the Morille Tungsten permit area and investors will probably be aware of the recent excitement generated by other Tungsten plays on the market. You won't find the management team at Aurum jumping up and down like excited bunnies, they seem to be more focused on building a technically strong portfolio of assets and driving forward operations within the usual financial limitations of small caps. Right now the market value reflects very little value or potential, but we have started to notice some early signs of investor interest coming in this week. |
Posted at 29/8/2013 15:12 by selfservice Just for you, but you can see it on twitter via mobile @theminingmavenMiningMaven - #AurumMining (LON:AUR) Sometimes you have to go off-radar to find the opportunities. Aurum Mining (LON:AUR) is, right now, pretty much off-radar. Few investors realise the potential this tiny £3mn cap Gold company holds. The company is now solely focused on Spain, with three highly prospective gold projects (in joint Ventures with Ormonde Mining (LON:ORM) (which helps defray the cash burn), and a clutch of equally prospective 100% owned Tungsten permits. Most of the focus to date has been on the company's Pino, Cabeza and Peralonso gold projects, but the company is also eager to progress the Morille Tungsten permit area and investors will probably be aware of the recent excitement generated by other Tungsten plays on the market. You won't find the management team at AUR jumping up and down like excited bunnies, they seem to be more focused on building a technically strong portfolio of assets and driving forward operations within the usual financial limitations of small caps. Right now the market reflects very little value or potential, but we have started to notice some early signs of investor interest coming in this week. |
Posted at 29/8/2013 14:53 by sportsauto AUR hotting up volume, chart, trending up...big rise sooncheapest TUNGSTEN play on AIM also the best in Europe |
Posted at 19/10/2011 08:25 by tomboyb TIDMAURRNS Number : 4197Q Aurum Mining PLC 19 October 2011 19 October 2011 AURUM MINING PLC ("Aurum" or "the Company") Drilling success for Aurum's Spanish gold joint venture Aurum Mining plc (AIM: AUR) is pleased to announce some excellent assay results from the first two holes drilled on the "El Facho" structure of its Zamora gold project through its Spanish joint venture with Ormonde Mining plc ("Ormonde") (AIM: ORM). Highlights - High grade intersection of 12 metres grading 3.4 grammes per tonne ("g/t") gold within an overall interval of 30 metres grading 1.6g/t gold from first hole (ORMP 10). - 10 metre intersection grading 2.1g/t gold and a 5 metre intersection grading 1.9 g/t gold from second hole (ORMP 11). - These assay results provide further strong evidence of a significant gold structure at the El Facho prospect. - Of the nine holes drilled by Ormonde at El Facho to date, including ORMP 10 and ORMP 11, eight have encountered gold mineralisation grading in excess of 1 g/t across multiple intersections. Prior to the recent drilling programme, historic drilling by Ormonde included an interval of 23 metres grading 1.1g/t gold (including a high-grade interval of one metre grading 16.6g/t gold), though recent results are clearly the best to date. - Further work will now be carried out at El Facho, and a short-hole drilling programme will also shortly commence at the highly prospective Peralonso permit area in Salamanca Province where previous trenching returned some interesting results including an interval of 5 metres grading 5.4g/t gold. - Aurum has fulfilled the terms of its initial commitments under the joint venture agreement and will now be progressing towards spending a minimum of EUR500,000 over the initial eighteen months of the joint venture to earn its majority interest in the permits that are the subject of the agreement with Ormonde. Sean Finlay, Aurum's Chairman, said: "These are excellent drilling results from the initial two holes drilled by the Joint Venture and represent the best mineralised intervals to date on the El Facho structure. The Joint Venture is now planning a more expansive work programme at El Facho and I look forward to reporting on progress from this programme, and the initial work on the highly prospective Peralonso permit area, in due course". Background On 11 March 2011, Aurum entered into a joint venture with Ormonde whereby Aurum can earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (one of which is still under application), by spending EUR500,000 on exploration activities over an 18 month period. Initial work of the joint venture has focused on following up on previous drilling carried out by Ormonde at El Facho. Known gold mineralisation at El Facho is hosted in multiple steeply dipping structures characterised by quartz veining, silicification and alteration within granites. The joint--venture drilling programme was designed to test for extensions to the known mineralisation and in particular to ascertain whether broader mineralised intervals could be discovered. The joint-venture's first two holes, ORMP 10 and ORMP 11, were drilled on two sections to test the down-dip extension of previously discovered mineralisation. Both of these holes have intersected significant gold mineralisation in veined and altered granites. The interval in ORMP 10, in particular, is wider than in previous intersections identified at El Facho, and this is a very positive development. The joint venture is now planning to build on this success with a more extensive drilling campaign aimed at identifying the extent of the thicker gold mineralisation seen in these two recent holes. Including the two recent holes (ORMP 10 and ORMP 11), a total of nine holes have now been drilled by Ormonde at El Facho and eight have intersected gold mineralisation grading in excess of 1 g/t and several of these holes have shown more than one intersection in excess of 1 g/t. The key intersections from the holes drilled by Ormonde at El Facho are highlighted in the table below. El Facho Drilling Results -------------------- From Thickness Gold Hole Reference (m) (m) (g/t) ---------------- ----- ---------- ------- ORMP 1 51 23 1.1 ---------------- ----- ---------- ------- ORMP 3 131 3 3.6 ---------------- ----- ---------- ------- ORMP 4 40 6 3.7 ---------------- ----- ---------- ------- ORMP 5 56 9 1.5 ---------------- ----- ---------- ------- ORMP 6 104 7 1.1 ---------------- ----- ---------- ------- ORMP 7 38 7 1.2 ---------------- ----- ---------- ------- ORMP 10 89 12 3.4 ---------------- ----- ---------- ------- ORMP 11 102 10 2.1 ---------------- ----- ---------- ------- ORMP 11 275 5 1.9 ---------------- ----- ---------- ------- The initial joint venture drilling programme has been focused on the two permits in Zamora Province and comprised a three-hole programme totalling 672m with two holes drilled on the El Facho structure and a further hole on the "LLago" structure. Results from the hole on the Llago structure are awaited. As well as undertaking further work at El Facho, a short-hole drilling programme will also now commence on the Peralonso permit in Salamanca to test the shallow depth extent of gold mineralisation located in previous trenching. Gold mineralisation is hosted within Fe-oxide-bearing breccias within altered granites, with previous trenching of an extensive soil geochemical anomaly (400 x 400m) returning a best interval of 5 metres grading 5.4g/t gold. The Company will keep the market updated on the progress of the exploration programme. Notes: Sampling, Assaying and Quality Control Measures All drill core has been routinely logged by an experienced geologist. Relevant core intervals were split in half by diamond saw, with half being sent for assay and the other half being retained in the core boxes for reference. Sampling is mainly carried out over one metre intervals. Sample preparation and analyses were performed at ALS Chemex (Spain). Assays are reported using the fire assay (FA) method with an atomic absorption (AA) finish. Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures. Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement. For further information: Aurum Mining plc Tel: 020 7499 4000 Chris Eadie, Chief Executive Officer Fairfax I.S. plc Tel: 020 7598 5368 Ewan Leggat / Laura Littley This information is provided by RNS The company news service from the London Stock Exchange END |
Posted at 17/7/2007 19:08 by jimbob >>>For anybody interested and for what its worth a recommendation on UK-AnaIyst.com todaySubject: Tuesday's recommendation on UK-AnaIyst.com comes from GE&CR and is to buy Aurum Mining at 101p with a 192p target 17th July 2007 Contact: Robert Tyson robert@t1ps.com 0207 562 3370 Aurum Mining Plc - Speculative Buy at 101p Target 192p Key Data EPIC AUR Share Price 101p Spread 100p 102p NMS 3,000 Number of shares in issue 47.99 million Market cap. £48.47 million 12 month range 84.5p 134.5p Market AIM Website www.aurummining.net Sector Mining Exploration Contact Mark Jones (CEO) 0207 478 9050 Shares in Aurum Mining were marked sharply lower in late May on rumours that it was facing political difficulties in the Kyrgyz Republic. These rumours were false but they have presented investors with a significant buying opportunity. Aurum is an AIM listed mining exploration company which is fully funded to take its significant gold and copper resource in the Kyrgyz Republic into production by next year. In the future, the company aims to expand its core project at Andash and is also planning to acquire other gold and minerals projects in the Former Soviet Union (FSU). Having completed a bankable feasibility study at the end of last year on Andash, it aims to bring the first part of the mine (Zone1) into production in the second half of 2008 and following the successful placing of £30 million shares at 100 pence in February this year and the subsequent appointment of an experienced operational management team to lead the construction and commissioning of the mine, it is on the verge of a major step-change as a company. On a pre-close update announced yesterday, Aurum Mining reported significant progress on preparatory work on the construction of the Andash Zone 1 open cast mine. Over the last number of weeks, Aurum has made significant progress on detailed design work that meets the Licence's specifications, which will enable the physical construction of the mine. Road-building equipment and contractors have already been sourced, in preparation for the construction of the access road to the mine, with the company currently finalising the sourcing of the ball mills for grinding ore when Zone 1 enters into production. It is expected that construction work will start imminently with production anticipated in second half of 2008. We have valued Zone 1 on a range of gold price scenarios and arrive at a range of valuations of between 149p a share and 246p and based on current gold prices ($650 oz) we value it at 192p per Aurum share. Zones 2 and 3 at Andash also have clear exploration potential and in addition there are two other very exciting exploration areas - each of these have the potential to increase our valuation significantly. The company's flagship Andash project in the Tallas valley, in the North West of the Kyrgyz Republic, has a confirmed proven and probable reserve of 19.2 million tonnes at 1.09 grams per tonne of gold and 0.39% copper, which equates to 1.2 million oz of gold and gold equivalent. The bankable feasibility study completed in late 2006 by Wardell Armstrong International states that an open-cast Andash operation will combine low costs with high production rates and having now gained a permit to mine on Zone 1. The equity finance raised in February 2007 is earmarked to fund the construction and commissioning of the open-cast mine at Zone1 and develop JORC compliant resources in Zones 2 and 3 as well as to conduct preliminary exploration work on two other sites, Tokhtonysay and Nakhodka. The company's balance sheet remains strong with £28.3 million of net cash at year end, with the company incurring some expenditure based on design and other requirements and taking into account the lead times involved in sourcing heavy equipment and plant. The feasibility study anticipates a mining rate of 2 million tonnes per annum with a pit life of 8.5 years and an average cash operating cost of US$223 per ounce. An open-cast operation will combine low costs with high production rates resulting in a payback period of 3.5 years and an NPV of 36.9% based on Wardell Armstrong's price assumptions. Our valuation models assume a 1.2 million ounce of Au and Au equivalent resource extracted over 8.5 years, the life of the pit, with initial production of 75,000 oz of gold equivalent, rising to 125,000 plus per annum thereafter. Our models use a range of gold price forecasts, from $550 oz to $750 oz and even at $550 we view Zone 1 as being worth 149p to Aurum. At $650 oz it is worth 192p and that is our target for the shares. However since we take a modestly bullish view on the gold price and given the real scope to increase output and mine life as Zones 2 and 3 and the other exploration areas are brought into production, we see significant scope to increase that target price in due course. We initiated our coverage of Aurum on 6th October 2005 with a stance of speculative buy at 45.5p. The company has delivered on its promises and we believe that it will continue to do so and thus at 101p the stance remains speculative buy. Background Aurum Mining floated on AIM in May 2004 as a cash shell with the aim of acquiring FSU gold & mineral projects and raised £1.5 million at a placing of 47p. Its early promoter Haresh Kanebar was well known for floating shells into which projects could be reversed and had already established a successful track record in this area ahead of the Aurum flotation. Source: Aurum Mining Plc The company acquired, Kaldora Company, the owner of Andash in January 2005 for $1.5 million with all bar $300,000 payable in shares. Kaldora brought with it three known ore bodies and five exploration targets. Subsequent financings have raised £34 million at between 90p and 100p to advance exploration work on the ground and resource updates. Since taking control of Andash, Aurum has undertaken sufficient drilling in Zone 1 to show a Proven and Probable reserve of 1.2 million ozs of gold and gold equivalent in copper. The licence area, which extends to 53 square kilometres, includes a further two ore bodies and five exploration zones, offering a substantial opportunity to increase the Andash's Project's resource base and to maximise the mine life and cost efficiency of the proposed mine at Andash Zone 1. During the fiscal year ended 31 March 2006, Aurum embarked on an exploration program to test the extent of Zones 2 and 3, which lie to the west of Zone 1. Source: Aurum Mining Plc Kyrgyzstan In financial terms, gold is the most important metal mined in the Kyrgyz Republic but it also produces uranium, mercury, antimony, tin and tungsten. There has been a dramatic increase in mining activity since the break up of the Former Soviet Union (FSU). The country currently produces twenty tonnes of gold a year, compared to three tonnes a year during the FSU era, so making the country the biggest gold miner among the CIS countries after Russia and Uzbekistan, and the seventh largest producer in the world. Historically gold production has accounted for between 6% and 18% of the country's GDP. There is strong local mining infrastructure and skilled labour force available near to the company's operations in Talas Valley, and recent political changes within the Republic have taken place without creating any noticeable unrest. Source: Aurum Mining Plc Aurum has continually endeavoured to research and accumulate management information and political knowledge, whilst avoiding political allegiances. The company has sought acceptance from the Kyrgyz authorities, by following procedure and protocol, respecting and adhering to cultural norms and ensuring that the company adheres to the acceptable business processes and practices. In addition, the company has sought guidance from Dr Shirin Akiner, an associate fellow of the Royal Institute of International Affairs, who has strong experience on cultural and political transformations in the former Soviet Union over the past number of decades. Assets - Operational Overview Andash has three known mineralised zones and five additional exploration opportunities located within the 53 square kilometre exploration licence area. The Andash Zone 1 is the company's most developed asset and is set to go into production in 2008. Aurum has made further progress with other exploration zones within the Andash licence area. Five further targets have been identified by mineralogical analysis and geophysical exploration, including Tokhtonysay and Nahodka. At Nakhodka, recent geological mapping suggests a possible faulted extension of Zone 1, and at Tokhtonysay, a recent geophysical study backed up by sampling and trenching, revealed highly promising results. Andash Zone 1 In their feasibility study for an open-cast mine and processing facility at Zone 1, Wardell Armstrong International forecast that costs to bring the mine into production would be ca. $55.5 million. However on the 27th June 2007, the company announced that it has identified significant potential values from the Wardell Armstrong design and that the costs are now expected to be in the region of $48.5 million. This significant reduction in the capital expenditure on the mine is due to a combination of identifying local equipment, both new and second hand as well as managing the build of the operation internally. This has caused us to revise upwards the estimated project value for the Andash Zone 1 mine by approximately 7.5p per Aurum share. Source: Aurum Mining Plc That significant capital cost can now be funded entirely from equity as a result of the successful £30 million placing at 100p completed in February 2007. The fact that Aurum needs to raise no debt for Andash means that it will not be forced into entering the hedging programmes which lenders demand. The funds from the placing are also being used to support Aurum's exploration programme within other areas in the Andash licence Zones 2 and 3. Initial production from Zone 1 is expected in 2008 with output rates reaching 2 million tonnes per annum by 2009, so establishing Aurum as a low-cost producer with significant additional exploration opportunities within the Andash licence area. Source: Aurum Mining Plc The Wardell Armstrong International (WAI) bankable feasibility study completed in December 2006 confirmed a Proven and Probable reserve at Andash Zone 1 of more than 1.2 million ozs of Gold and Gold equivalent in copper giving an in-ground value of over $750 million. The feasibility study stated that an open-cast operation would combine low costs with high production rates: a measured and indicated resource based increased to 19.2 million tons (12.5% increase) at 1.09 g/t gold and 0.39% copper, a mining rate of 2 million tonnes per annum with a pit life of 8.5 years, a stripping ratio of 0.8 tonnes of waste to 1 tonne of ore, a payback period of 3.5 years and an NPV of 36.9%. These assertions are based on WAI's conservative mineral price assumptions. In June 2005 Wardell Armstrong International generated a digital Resource estimated for zone 1 Source: Aurum Mining Plc With the award of the mining licence, completion of the bankable feasibility study, and finance now in place, Aurum has moved swiftly to secure the services of an experienced operational management team, augmenting the existing management team, to lead the construction and commissioning of the open cast mine and bring Zone 1 into production in the second half of 2008. The cashflows generated from Zone 1 will support aggressive exploration of Zones 2 and 3 at Andash and the other prospects. The operational management team put together in the spring of 2007, consists of Operations Director, Jeff Geissman, Financial Controller Andrew Howson, and Project Manager Norman Livingston. This team has significant international experience in mining and other projects delivery, including projects in the FSU. Exploration of Zones 2 and 3 Aurum has already undertaken material exploration work to test the extent of Zones 2 and 3, which lie to the west of zone 1 and has also embarked on a preliminary exploratory programme to intersect the large IP anomaly identified to the north of zones 2 and 3. The drilling results have improved the company's understanding of the structural and morphological characteristics of these zones. Further drilling activity is expected during 2007 with updated results expected to be announced by late summer. Nakhodka Prospect Aurum announced on 7th December 2006 details of the discovery of a new exploration zone, Nakhodka, within the Andash Licence area. The new zone shares the geological, mineralogical and structural features of Andash Zone 1, as it has the same host rocks and similar chemical elements both in type and grade. The new zone has a strike length of approximately 1000 metres and is represented by strongly altered breccia with intensive sulphide mineralisation (pyrite/chalcopyrite Grab and chip samples identified gold and copper values up to 124 grammes per tonne of gold and 1.05% of copper. Trenching results also showed strong mineralisation running 9.9 metres at 7.89 grammes per tonne gold, and 9 metres at 5.04 grammes per tonne of gold. The company considers Nakhondka as another opportunity to expand its resource base at Andash. The company expects to begin a drilling programme during the summer of 2007 to assess resource levels. Tokhtonysay Exploration Target During the summer of 2006, a comprehensive programme of geophysical exploration, including dipole-dipole IP and a magnetic survey, was undertaken at Aurum's Tokhtonysay exploration target, which also lies within the Andash exploration licence area. Tokhtonysay contains seven outcropping mineralised zones, four of them are situated within the Andash exploration licence area, with the other three within the adjacent Korgontash licence area. The central body of this body is characterised by a very strong magnetic anomaly, similar to Zone 1's orebody content of significant amounts of magnetite. This indicates that Tokhtonysay may have similar mineralisation to the structure within Zone 1. Earlier investigation work to determine the extent and grade of surface mineralisation, has shown gold grades up to 12.8 grammes per tonne and copper grades of 7%. The company will commence a drilling programme during 2007 to further assess the area and work with mining consultants to establish a resource base. Strategy and Growth outlook The short-term focus of Aurum Mining is to bring the Andash project Zone One into production at 2 million tonnes per annum. At the same time, the company will look to increase the resource base and the level of exploration within the licence areas. In time, the company will be seeking to acquire other gold and mineral projects in the FSU, capitalising on the company's significant regional strength. The cash that Zone 1 will generate means that with no debt on the balance sheet, Aurum can work quickly to expand its resource base at Zones 2 and 3 and at the adjacent properties to increase both the minelife and the annual output at Andash significantly which will have a material impact on the Net Present Value of the project. Results, Balance sheet and Cash The results for the six months to 30 September 2006 showed another period of significant progress for Aurum, particularly in terms of the development of Andash Zone1. The financial metrics is of no great relevance. However, for the record, during the six months period ended September 30th 2006, on nil revenues, Aurum made a net loss of £0.7 million, up from £0.4 million in the six months to 30th September 2006. The increased losses were due to significant additional expenditure incurred in completing the bankable feasibility study for Zone1. Administrative expenses were £0.65 million and net cash at the period end was £1 million, up from £300,000 six months earlier At present, we believe that the company has a monthly cash-burn without drilling and acquisition costs of around £60,000. In our view, the company needs around 2 million pounds in order to cover its monthly operating costs until Andash is generating cash and to complete a drilling programme at Andash. On February 26th 2007 the company raised £30 million through an equity placing at 100p a share to construct an open pit mine and processing plant at Andash, which means that Aurum is now able to bring the mine into production by the second half of 2008 without having to see any additional funding. The Zone 1 mine will generate sufficient cashflow to fund both the corporate overhead and further exploration activities to expand the resource in the Andash region. All costs associated with mining development and investment are capitalised on a project-by-project basis pending determination of the feasibility of the project. Costs incurred include technical and administrative expenses. If a mining development project is successful, the related expenditures will be amortised over the estimated life of the commercial ore reserves on a unit of production basis. The intangible fixed assets on Aurum's balance sheet as at 30 September 2006 amounted to approximately £2 million , up from £1 million a year earlier. The value of the convertible debt at the end of the interim period was £0.64 million pounds, net current assets were £1 million and that meant that Aurum ended its half year with net assets of £2.63 million. The loan notes were issued for cash at par on 15 February 2006 with a value of 1 million pounds. The Loan notes can be redeemed at par at any time after the first anniversary of the commencement date, and prior to the third anniversary and are convertible at the lesser of 35 pence per ordinary share and the price at which any future fundraising takes place. Risk Factors and Upside Possibilities As with most mining stocks, the regular risks of exploration, mining, processing, commodity price and exchange rate volatility are all potential risks that the company faces. In addition, the specific risks associated with operating in the Former Soviet Union (FSU) were brought into sharp focus by the events of late May 2007 when press rumours of political disruption to the Andash project circulated. The company is constantly endeavouring to identify and managing all the risks it faces and is looking at ways of mitigating potential risks. Some of these risks have clearly been reduced since the company commenced operation in Kyrgyzstan. For example, the Kyrgyz Republic has implemented a western style approach to commercial law, banking reform, mining JORC related standards code and currency regulations. The country is increasingly stable politically with its tried and tested legal and fiscal regime. Gold production accounts for 6% of the country's gross domestic product (GDP), with gold seen as an important contributor to the economy. In addition, Aurum has sought to reduce political risk by investing in local pool of workforce, hiring local mining teams, regularly seeking guidance from regional experts and by abstaining from supporting any particular political party. The company will continue to invest in local infrastructure and human capital, will build a strong local team and provided opportunities at local level, in order to build solid foundations and strong relationships with local stakeholders. The company values the importance of building trust and strong relationships with local government, the mining community, NGO's and other related parties, and as a result it has invested considerable time, effort and resources to solidify its position, reputation and build trust in the region. Management Mark Jones- Chief Executive Officer- was appointed in June 2005 having previously spent five years as a senior professional manager with the diversified industrials firm Ingersoll Rand. A graduate of the Camborne School of Mines, Jones started his mining career in Zimbabwe and South Africa before moving into the mining related explosives industry. Haresh Kanabar- Executive Director- has a reputation as one of the more successful floaters of cash shells on the London market. Kanabar has been involved in the listing of Blue Star Capital, India Outsourcing and Greenfield Construction. Chris Eadie- appointed Chief Financial Officer in November 2006. Eadie is the newest addition to the company's Board. Eadie is a Chartered Accountant who qualified with PricewaterhouseCoope Sean Finlay- Non Executive Chairman- has over thirty years experience of the mining industry, including a spell as Chief Executive of Celtic Resources. Dr Colin Knight- Non Executive Director- joined Aurum in September 2005 and has almost 5 decades of mining experience in academia, in industry- including a spell with Rio Tinto- and as a consultant working for, amongst others, the World Bank. Knight has in-depth experience of assessing and advising on gold projects in the FSU. David Bryans- Consultant- provides his services to Aurum via his company Tyry Services, with the purpose of bringing new property opportunities to Aurum. Bryans is a former director of Celtic Resources - one of London listed FSU mining resources stories - and has 15 years experience of assessing resource projects in the FSU. John Webster, who had served as Non-Executive Director stepped down in April 2007 after agreeing to provide consulting and engineering services in relation to the construction and commissioning of the Andash mine. Webster has 20 years mining experience including 10 years in the FSU. Webster was the owner of 20% of the Kaldora Company and has also held executive positions with Far East Gold, Nelson Gold and JD Welsh and Associates. Webster acted as managing director between the signing of the Andash deal and the arrival of Mark Jones. Shareholders with over 3% holdings There are 47.99 million shares in issue. The parties directly or indirectly interested in 3 % or more of the nominal value of the company's share capital are as follows: Holder Shares Altima Central Asia Master Fund 10.72% F&C Asset Management 10.09% David Bryans 6.29% Tau Capital 6.04% Gartmore Investment Ltd 6.02% Talyn International Ltd 4.69% Halcyon Enterprises Plc 3.83% The Equity Partnership Investment Company Plc 3.42% Kantanna Company Ltd 3.12% Forecasts, valuation and conclusion Our valuation of Aurum is based solely on the deposit already identified in Zone 1 of Andash. Clearly there is therefore considerable upside if, as we expect, exploration work undertaken by Aurum expands this resource and firms up commercial resources in Zones 2 and 3 as well as the other exploration targets. This however must be treated, at this stage, as additional potential upside and not the basis of a core valuation. In valuing the Zone 1 deposit we assume relatively low recovery rates of ca70%, current forward metal rates and minimal exploration upside in neighbouring and other prospects. Our valuation model uses WAI's assumed cash operating cost per ounce of gold (Au) and gold equivalent (Au ev) an average cost of $223 oz. Given that copper, approximately accounting for 0.59 million ounces of gold equivalent, takes a different and costlier recovery process, we have allowed an additional copper processing cost of $50 per ounce of gold equivalent. Our valuation models assume a 1.2 million of gold and gold equivalent production over 8.5 years, the life of the pit, with initial production of 75,000 oz of gold and gold equivalent, rising to 125,000 oz per annum thereafter. The two big variables for the valuation are the size of the resource and the prevailing metals prices when it goes into production. In order to provide a wider perspective and balance on the value of Zone 1, we have made use of three different gold prices as well as the current forward gold prices. The four gold prices range from an achievable gold price of $750 per oz, a current level of $650 per oz, and a modest price of $550 per oz. Our valuation model uses a discount rate of 12.5%, a royalty rate of 3% on net revenue paid in 1 year arrears, a taxation rate of 30% and a Sterling/dollar exchange rate of 1.95. We arrive at a best case valuation for Aurum Zone1 of 246p (£118.45 million) based on current forward gold prices and worst case valuation of 149p (£70.46 million) based on a low gold price of $550. Our middle price model valuations of $750 and $650 value Zone 1 at 236p and 192p respectively. We consider the 192p price for Andash Zone 1 as our base for our valuation purposes. At the moment, we attach no value to Zones 2 and 3 in our valuation, as we take a conservative approach at this stage of the company's development. We expect that as the Zone1 construction of the open cast mine begins and with more drilling results from Zones 2 and 3 during this year, we expect to reduce our heavily risk weightings on Zone 1 and consider attaching some value to Zones 2 and 3. At 101p, and given the upside potential for enlarging the JORC compliant resource in Andash as well as further development of Aurum's other identified targets, our stance is speculative buy. |
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