Aura Energy Share Discussion Threads

[city analyst1] 13/2/2021 14:40

Yes, you're absolutely right; an out of court settlement is the most likely outcome.

The Swedish Government's case is pretty weak to say the least.

[danmart2] 13/2/2021 12:42

Swedish govt is not confident of victory if the case ends up at the European court of justice, reported in the SvD newspaper.
Out of court Settlement likely?

[city analyst1] 13/2/2021 11:13

Danmart, Aura’s fair value (employing a DCF valuation model) sits at around 1.56pence per share or £40m market cap. However, when you set this fair value against the current peer valuations (following the recent mini rally in uranium stocks), the company is materially mispriced.

By way of background, the company’s shares have been in a state of paralysis since the May 2020 trading halt on the ASX. The emergence of the heavyweight activists (Axel Sartingen, Asean Deep Value, Florian Hoertlehner, and John Bennett) triggered the action under Listing Rule 17.1. Thus, since then, the share price has stagnated and not mirrored the wider movements in the uranium and vanadium space.

However, on January 29, 2021, and after 9 torturous months, things took a massive turn for the upside with this announcement from the company:

“With the assistance of a major shareholder (Lind Global), Aura Energy commenced settlement negotiations on the outstanding legal disputes with the shareholder activists and this has been largely successful.”

That announcement, which went largely unnoticed by the wider market, was a real ‘game changer’ for Aura shareholders. The activists’ demands, once revealed, will be highly bullish as they will be predominantly focussed on expediting delivery of shareholder value after almost five years of perennial underperformance.

So, against the backdrop of a highly valuable asset base, a highly aligned management team, a highly sophisticated institutional share base (see the links below), a bullish uranium, vanadium, and gold sector, and a spectacularly low market capitalisation, the Aura share price is now starting to play catch-up. And catch-up it will.

[danmart2] 12/2/2021 20:42

Still arguably under valued at 0.0052 , 0.0081 is more realistic.

[city analyst1] 12/2/2021 15:34

Mark, the Aura stock is simply re-rating as the market finally comes to terms with the company's intrinsic value ahead of the upcoming value triggers.

Remember, and even at today's prices, the stock is still profoundly undervalued.

And if you want to know how long a stock re-rate can last, take a look at EUA.

Mark, as I indicated in my previous post, Aura boasts exceptional assets at firesale prices. In today's market, that is an absolute rarity and, therefore, simply unsustainable.

[mark0419] 12/2/2021 14:19

2 days and 2 big rises in share price something stiring.................

[danmart2] 11/2/2021 16:30

Mark0429

It’s was slightly under valued and not a lot of sellers around at 0.0038

Until it reopens on the Australian markets (currently suspended), I don’t expect huge movement in SP

[richie32] 11/2/2021 16:27

I reckon that rise was overdue

[mark0419] 11/2/2021 14:42

What's happening with the share price.... Have they sold one of their prospects?

[city analyst1] 11/2/2021 07:28

Danmart, shareholder activists, the likes of Mr DP O'Neil and Mr DE Roes (Asean Deep Value), are interested in one thing and one thing alone – extracting value.

And they sure know value when they see it...

TIRIS URANIUM ASSET

• Has a Global Resource of 52 million lbs of contained U3O8 at a grade of 334 ppm.
• Has a potential mine life of 17 years and is shovel ready.
• DFS completed.
• Mining licence approved.
• AISC is under $30/lb whilst capital cost is a paltry £45m.
• Uranium is found in nine mineralised zones.
• In addition, the 2018 DFS indicated the potential for the recovery of vanadium.
• The asset produced its first samples of yellowcake product in 2019 which was regarded as 'saleable'.

THE TASIAST SOUTH GOLD ASSET

• Tenements of 435 km2 lie along strike from Kinross’ giant +20 Moz Tasiast Mine.
• Kinross to expand gold production at Tasiast to 530,000 ounces per year.
• $3m already expended by previous explorer on asset.
• Broad zones of gold mineralisation already identified.
• Gold intersections on the Ghassariat prospect indicate large gold system.
• High grade cobalt, nickel, and copper intersections obtained on Taet permits.
• Strong similarities with the great gold provinces in Australia and Canada.
• Has attracted the attention of gold supremo Terry Lynch of Chilean Metals.

THE HAGGAN POLYMETALLIC ASSET

• Has a Global Resource of 15.3 billion lbs of contained V2O5.
• Includes a significant high grade, near-surface vanadium zone of 320 million lbs.
• Has the potential to be one of the world's largest sources of high grade vanadium
• In addition to vanadium, the asset boasts molybdenum, cobalt, and nickel.
• House broker WH Ireland believes the asset now sports the potential to be one of the world’s largest sources of battery metals.

And thrown in for free is the....

THE SWEDISH COMPENSATION CLAIM

• Company filed a $1.8bn claim against the Swedish government.
• This is the first, ever, investor-state arbitration in Sweden’s entire history!
• The Häggån uranium asset boasted estimated resources of 800 million pounds U3O8.
• Claim recently listed as an agenda item in the Swedish Parliamentary Cabinet.
• Swedish Chancellor of Justice handling the case.
• Update from the Chancellor expected anytime from now

So, there you have it - exceptional value at firesale prices; an absolute rarity on AIM.

Remember, any agreement with the activists will be extremely bullish as board involvement will, most definitely, be an option. To this end, the interests of the retail investor and the activists (44.6%) will be thoroughly aligned.

Danmart, the company is GROSSLY UNDERVALUED and that’s why the shrewd, uber-savvy, battle-hardened activists are here in their droves.

Also worth bearing in mind, any shares issued in a Rights Issue (not a Share Placement...) will go into the activists’ ‘sticky hands’, who will want to protect their stakes from dilution. To this end, we will be, very quickly, in a position where we are fully cashed-up and where liquidity is unchanged for the retail investor. So no stock overhang. This is extremely positive.

And yes, the Tiris Uranium Project is the big prize here – worth several multiples of the company’s current share price. France’s Orano Group, who have uranium mines in neighbouring Niger (Orano’s subsidiary, Somaïr, produces uranium from the Arlit deposit), are rumoured to have approached the company regarding Tiris.

Remember, in their 2019 RIU Conference presentation (below), the company revealed house broker WH Ireland’s preliminary target value of A$72m (£40m or 1.56pence per share) ahead of any divestment (IPO or asset sale) or settlement (Swedish Claim) news.

That's only 15 months ago! And other than the long-awaited, fast-approaching, uranium bull market, nothing has changed in terms of fundamentals.

The Sage of Omaha once opined, "The stock market is a mechanism for transferring money from the impatient to the patient."











.

[danmart2] 07/2/2021 00:30

When are they expected to start trading again on ASX?

The board want a further share issue, surely that will not be entertained or permitted?

Any truth in the rumour they have had numerous enquiries regarding the Tiris uranium fields in Mauritania?
A few of the mine forums have suggested this is a much sought after area.

[kingston78] 20/1/2021 11:34

City Analyst1: Thanks for your valuable contribution to this board. Will the company have sufficient funds to survive if it does not raise money by placing more shares?

[danmart2] 31/12/2020 13:32

The Mauritania fields are the key to the company’s fortunes, I have no doubt from other uranium, sources they have had interest from a variety of groups regarding their rights.

Do we expect the share price to boom on a sale or partnership?
Or the company to finally fold in 2021 with further share issues and diluting of voter rights from a leadership team with no ability to get prospective sites into production?

[city analyst1] 22/12/2020 22:09

For all its blue-sky potential, vanadium’s principal application is decidedly low-tech. More than 80 percent of the metal is used in steel manufacturing, where the addition of two pounds of vanadium will double the strength of a tonne of product.

However, as the world’s economies start to pick-up, following the impacts from the pandemic, vanadium suppliers are eyeing new emerging sources of demand.

Specifically, the metal is attracting new purchasers for its use in vanadium redox flow batteries (VRFBs). Battery demand is rising as the EU’s focus remains on “green-ifying” the bloc’s incumbent energy system and as its focus on battery, materials intensifies.

Thus, as a result, vanadium prices are currently on an upward trajectory.

And what about gold?

Well, gold producers are facing an existential crisis without massive investments in exploration. It takes a good decade on average of further drilling and development to get a new gold mine up and running, and that average is only increasing.

Knowing that, take a look at where we were 10 years ago and what comes next. We’re poised to enter a multiyear period where gold producers will continue to deplete resources at an alarming rate without mergers or acquisitions. This will create a squeeze on supply as demand is increasing while also increasing the premium the major gold producers will have to pay to acquire smaller companies. It's a one-two punch.

We're already seeing a rise in M&A activity in the sector with large premiums. We're about to see a whole lot more.

2020 has been a volatile year. Economic data are mixed. Stocks are expensive. The Fed, alongside 80 percent of world’s central banks, is taking on trillions of dollars of liabilities, and the government's debt and yearly deficit are spiraling out of control.

That makes gold a strong candidate as both a safe haven and as an investment with a lot of catalysts and factors that will push prices higher in 2021.

Finally, uranium.

The spot price of uranium has risen by 36% since the start of 2020. There are currently 55 reactors under construction, and the World Nuclear Association’s Nuclear Fuel Report shows a 26% increase in uranium demand over the next ten years.

Kazatomprom has curtailed production by 20% until 2021. Another major uranium producer, Cameco of Canada, has closed its flagship McArthur River operation until market conditions improve. Meanwhile, Rio Tinto is expected to exit the market following the sale of its Rössing operation in Namibia and the slow wind-down of its Ranger operation in Australia, and in Niger the Cominak mine will cease operation in March 2021 due to depletion of ore.

So, what does all this mean?

It means the amount of uranium available in the spot market will not be adequate to satisfy the growing backlog of long-term demand. As a result, prices will continue edging upwards over the next 6-12 months.

And how does one ride the vanadium, uranium, and gold boom?

Answer – Aura Energy.

Putting to one side its 'internal politics' and its 'temporary ASX censure' for over-issuing stock, Aura is about to spin-off its gold assets in Mauritania through the Archean Gold Inc. IPO (on the TSX-V); currently on track to complete in Q1 2021.

The transaction with Archean effectively values the company’s gold assets at £5.3m (C$9 million). Mining magnate, and head honcho of Chilean Metals, Terry Lynch, has confirmed his role as Chairman Archean Gold.

Now, with regards to vanadium and uranium, Aura boasts the construction-ready Tiris Uranium Project in Mauritania and the Häggån Vanadium Project in Sweden. Activities at both assets remain on care and maintenance as the company awaits the imminent results of the Swedish compensation claim which looks promising.

The claim, under the Energy Charter Treaty (ECT), is for the financial loss resulting from a ban on uranium exploration and mining, introduced in August 2018. The company had planned to extract uranium as a by-product from its 100%-owned Häggån polymetallic project in Sweden. Figures released in mid-2012 estimated resources of 800 million pounds U3O8 (307,718 tU) at Häggån, making the Swedish project the second largest undeveloped uranium resource in the world.

So, with the company’s gold assets valued at £6.15m, and with a current market cap of £8.25m (0.0035pence per share), means the market is valuing Aura’s uranium and vanadium assets at a measly £2.1m.

Considering the bullish price outlook for both commodities, the in situ value of the assets, and the imminent announcement of the Swedish compensation claim, the £2.1m valuation is nothing short of a material mispricing of the stock.

Buy

AIMHO
.

[newtoaim] 10/8/2020 14:28

Dnt be spiked

[tomboyb] 10/8/2020 14:07

Aura Energy Limited Update on gold funding transaction
10/08/2020 2:00pm
UK Regulatory (RNS & others)

Aura Energy (LSE:AURA)
Intraday Stock Chart

Monday 10 August 2020

Click Here for more Aura Energy Charts.
TIDMAURA

RNS Number : 6828V

Aura Energy Limited

10 August 2020

10 August 2020

AURA ENERGY LIMITED

("Aura" or the "Company")

Update on gold funding transaction

Aura Energy Limited (AEE:ASX, AURA: AIM) is pleased to advise that it has moved to the final documentation stage of the C$4.5 million (A$4.8 million) gold funding deal it signed recently.

Aura's Tasiast South tenements over 435 km(2) are in a highly prospective area lying on two lightly explored mineralised greenstone belts in Mauritania. The areas lie along strike from Kinross' giant +20 Moz Tasiast Gold Mine, where Kinross has recently announced that it will expand gold production to 530,000 ounces per year.

As part of the initial termsheet the creation of a joint venture vehicle (PubCo) was required and was to be sponsored by TSX-listed Chilean Metals. Further to the announcement of 7 July 2020 and in order to improve timing and simplify regulatory requirements, the transaction will now be executed directly between Aura and PubCo, now named Achean Gold Inc.

The transaction, which is subject to due diligence, remains the same in all aspects as outlined in the 7 July 2020 announcement and will see Aura progressively vend its Mauritanian gold and base metal licences into Achean Gold Inc. Achean Gold will receive the four scheduled payments totalling C$4.5 million before October 2021 and following which Aura Energy will own 50% of Achean Gold.

Given the non-binding nature of this agreement, there can be no assurance at this stage that the transaction will proceed.

[1] +20 M.ozs refers Tasiast's gold "endowment", i.e. current reserves + resources (9.8 M.0z - refer Kinross 2019 Annual Report) plus gold previously mined. In confirmation Kinross's published Tasiast resource at December 2011 was 20.5 million ounces at 1.2 g/t gold based on cut-off grades of 0.6 g/t gold for CIL ore, 0.25 g/t Au for heap leach ore and 0.1 g/t Au for dump leach ore.

For further information please contact:

[tomboyb] 10/8/2020 14:06

Aura Energy Limited Update on gold funding transaction
10/08/2020 2:00pm
UK Regulatory (RNS & others)

Aura Energy (LSE:AURA)
Intraday Stock Chart

Monday 10 August 2020

Click Here for more Aura Energy Charts.
TIDMAURA

RNS Number : 6828V

Aura Energy Limited

10 August 2020

10 August 2020

AURA ENERGY LIMITED

("Aura" or the "Company")

Update on gold funding transaction

Aura Energy Limited (AEE:ASX, AURA: AIM) is pleased to advise that it has moved to the final documentation stage of the C$4.5 million (A$4.8 million) gold funding deal it signed recently.

Aura's Tasiast South tenements over 435 km(2) are in a highly prospective area lying on two lightly explored mineralised greenstone belts in Mauritania. The areas lie along strike from Kinross' giant +20 Moz Tasiast Gold Mine, where Kinross has recently announced that it will expand gold production to 530,000 ounces per year.

As part of the initial termsheet the creation of a joint venture vehicle (PubCo) was required and was to be sponsored by TSX-listed Chilean Metals. Further to the announcement of 7 July 2020 and in order to improve timing and simplify regulatory requirements, the transaction will now be executed directly between Aura and PubCo, now named Achean Gold Inc.

The transaction, which is subject to due diligence, remains the same in all aspects as outlined in the 7 July 2020 announcement and will see Aura progressively vend its Mauritanian gold and base metal licences into Achean Gold Inc. Achean Gold will receive the four scheduled payments totalling C$4.5 million before October 2021 and following which Aura Energy will own 50% of Achean Gold.

Given the non-binding nature of this agreement, there can be no assurance at this stage that the transaction will proceed.

[1] +20 M.ozs refers Tasiast's gold "endowment", i.e. current reserves + resources (9.8 M.0z - refer Kinross 2019 Annual Report) plus gold previously mined. In confirmation Kinross's published Tasiast resource at December 2011 was 20.5 million ounces at 1.2 g/t gold based on cut-off grades of 0.6 g/t gold for CIL ore, 0.25 g/t Au for heap leach ore and 0.1 g/t Au for dump leach ore.

For further information please contact:

[richie32] 28/7/2020 12:54

...yeah, but why? I know we've had good news but what changed today?

[tomboyb] 28/7/2020 11:48

bit perky today -

[tomboyb] 08/7/2020 08:30

Up 35% -

Someone like's em -