Avesoro Res. Share Discussion Threads

[deltrotter] 30/11/2015 16:15

Looks that way UH... a lesson to be learned for us all....

[unionhall] 30/11/2015 16:11

“a US$6.6 million debt repayment due in January 2017, which, should the gold price remain at current levels, the Company may be unable to meet, and may therefore require the continued support of its stakeholders."



A further year of uncertainty - investors will steer well clear I imagine and the share price will continue to drift until 2017 loan payment is guaranteed.

They may put production on ice (once proven to work) until the gold price improves.

Shareholders have been royally stuffed....

[deltrotter] 30/11/2015 15:46

Well, at least they have told ISIS where they can intercept the explosives.....

[ukgeorge] 30/11/2015 15:44

Company News
Aureus Mining (LON:AUE) 7 pence, Mkt Cap £25.8m – Raising $21.5m debt and equity
Aureus Mining reports that it has raised $11.5m in new equity at 5p/share plus negotiated an additional $10m loan facility from Rand Merchant Bank and Nedbank to strengthen its balance sheet as it brings the New Liberty gold mine to commercial production early next year.
The loan facility attracts interest at US LIBOR plus 5% and is repayable in a single bullet payment on 31st December 2017.
The operation has suffered from a shortage of explosives, mainly due, we believe, to movement constraints during the recent Ebola outbreak. These issues appear to have been addressed, with the arrival of a 100 tonne shipment of explosives in mid November and a further 330 tonne consignment (equiValent tom one month’s supply) currently in transit.
As a result of these delays, although the company has been able to produce and ship 13,500 ounces of gold during the commissioning and ramp up and expects to produce a similar quantity of gold during the rest of 2015, waste removal required to expose additional ore feed, has fallen behind schedule by approximately 9.5m tonnes.
The company expects to use $15m of the new funds to reduce its accounts payable to “normal operating levels” and of these, approximately $9m is due to the supplier of the mining fleet and “once this creditor position has been cleared, the fleet supplier has been cleared, the fleet supplier has agreed to bring additional mining equipment to site”
The company notes that it has “a US$6.6 million debt repayment due in January 2017, which, should the gold price remain at current levels, the Company may be unable to meet, and may therefore require the continued support of its stakeholders.”
At this stage, the company is maintaining its production guidance for 2016 of approximately 125,000 oz of gold at an all in sustaining cost of $959/oz.
Conclusion: Aureus Mining has overcome great challenges to deliver the New Liberty mine against a background of economic turbulence and the impact of the Ebola epidemic in West Africa. The company’s shareholders and debt providers look to have stepped up to support the company through this latest setback. Given the comments from the company about the likely impact of a prolonged period of gold price weakness, we would imagine that Aureus may have a contingency plan to address this eventuality - perhaps to produce higher grade ore at a lower rate.

[...]

[ukgeorge] 30/11/2015 15:29

I think this highlights why especially when investing in mining companies it is important that the management own a decent junk of the company. Reading, owns about 500k shares which is f all.

They are totally unaligned to share holders and that's why they don't care about deeply discounted rights issues.

As long as they have money to pay there fat salaries they are happy.

They are likely at mines and money this week in London. No doubt saying how wonderful they are having single handedly beating ebola and building a mine in west africa........

[bsg] 30/11/2015 12:22

I would of preferred all equity, but now they have possibly more debt. My 8.27p shares from Mano split are under water now. Who would of believed that!

[bsg] 30/11/2015 12:20

They're just doing what's best for themselves, as we would probably do in their position.

[horneblower] 30/11/2015 12:17

willo,
That may indeed be true but does not exonerate the corrupt action of the board, none of whom will ever be trusted again.

[beeezzz] 30/11/2015 12:17

To be honest AIM market is doomed unless we get far more regulation and redress from all the bloody crooks running these companies it makes me sick.

Still they do say only invest what you a are willing to loose, on AIM that is sure fire bet.

[willo] 30/11/2015 12:11

Zangdook - I would just be glad that you got cash when you did for your Afferro shareholding. Would be worthless today.

[zangdook] 30/11/2015 11:55

He's buying nearly 40 million new shares...imagine being rich enough to throw 2 million quid at a company like this!

[woodcutter] 30/11/2015 11:47

I can imagine Richard Griffiths, the activist investor, will be absolutely fuming!

He holds over 15%.

wc

[effortless cool] 30/11/2015 11:46

zangdook,

Agreed on Netherway. His presence on a Board would make a business uninvestable for me.

[valentine] 30/11/2015 11:38

A major fund near St Paul's will be hurting today. They wanted me to put money in with many other clients at abt 42p three years or so ago. phew! The share price always goes lower post placing as they dump the overhang.. 5p eh or 8 times cheaper? Maybe. Maybe?

[zangdook] 30/11/2015 11:34

I see Netherway is still on the board here, though da Silva seems to have left. I also notice that the corrupt behaviour of those two when they were at AFF, in recommending and accepting a deal which gave them cash and required other shareholders to accept loan notes, seems to be finally playing out at IMIC; as far as I can make out only vigorous shareholder activism will give any hope of recovering even a fraction of the face value of those notes.

I don't mean to gloat over the fact that the presence of those crooks prevented me from buying back in here, but if anyone is coming along thinking this is worth a punt at these levels, please look into the behaviour of this man Netherway before you gamble on his company. He does not have shareholders' interests at heart.

[effortless cool] 30/11/2015 11:25

I sold 80% of my remaining holding around 18p a month or so ago. Sold the balance this morning, and want nothing else to do with this company.

[woodcutter] 30/11/2015 11:20

Very disappointed and much sympathy for all holders another AIM small mining stock that hasn't delivered. I held myself from the beginning of the revised story at around 19p and rode the trend but once the trend broke around 25p i sold my entire holding.

Can't see a recovery in the short term but at some point an entry is worth considering given the scope of the mine potential. The issue is it's just potential and you have to question the quality of the project management and in particular the equipment purchased. To have a major piece of the production kit fail within months of comissioning is unforgivable imv. That was the last clear indicator that more funding was likely.

I'm afraid the chart will always out shine fundamentals. Lesson learned over many years of investing.

good luck to those who are prepared to ride things out.

woody

[diesel] 30/11/2015 11:16

The next move will be to issue Options at a lower price, unless of course the BOD were involved in the placing and that might explain the huge discount.

[dogwalker] 30/11/2015 11:12

Let's look at the bright side too ......

[arf dysg] 30/11/2015 10:47

tsmith2 (6341):

"Is that a certainty? Doubt it.."


tsmith2, if you're going to quote someone, please can you put quotes around it or somehow let us know it's a quote, and say where it comes from, otherwise we spend a few seconds wondering what the FWOOOK you're on about.

[beeezzz] 30/11/2015 10:37

A typical AIM mining company....overpaid BOD never deliver only into their own bank accounts....shareholder are shafted again and again.

I'm getting out of all AIM stocks in the NY wish I'd done that earlier here rather than averaging down....bummer.