Avesoro Res. Share Discussion Threads

[stompy jones] 13/12/2015 09:41

David Reading nominated for CEO of the Year at Mines & Mining:

london.minesandmoney.com/awards-nominations/

Does this merit some serious discussion? Genuine question.

[ukgeorge] 11/12/2015 09:05

Hope she goes... bloody thing

[sleveen] 11/12/2015 08:01

First year AISC around $950/oz not a huge margin of safety should the POG continue to fall further.

The delays have also added to costs hence the additional placing.

[htrocka2] 10/12/2015 21:29

Aureus Mining Inc.
Exchange: TSX Exchange | Dec 10, 2015, 4:10 PM EST
logo

AUE

$ 0.13 Change Up

Change:
0.03 (30.00%)

Volume:
20,000

[chipperfrd] 10/12/2015 12:49

UKGeorge,

All good points. But one of the principal conditions of the new loan was a minimum equity raise of US$10m - which they have exceeded by achieving US$12.7m.

The lenders also need to be satisfied by the technical documentation - which should be a reasonable assumption. And they need final approval from ECIC - which I would have thought should be straight forward.

As for the debt repayment of US$6.6m due in 13 months time - a lot could happen over 2016 and the probability of the gold price remaining at current levels would appear (to me) to be unlikely given the sharp reductions in vaulted gold in both the UK and the USA. Although, given what we have seen - nothing can be guaranteed of course!

I took the view that a price of 4.5p offered a really good risk/reward and took the opportunity whilst it was available. No complaints if it does not work out!

As for their current performance, recovery, production, et al, it is hardly unusual for a new mine/plant during commissioning, so I am not particularly concerned by that as it does take quite a while to bed everything in and fine tune processing etc.

Just my take on things.
Chip

[ukgeorge] 10/12/2015 10:41

yes, I dodged a bullet on the way down with these, did loose a few k but had 125k at 30p and sold out around 15p average. So could have been a lot worse.

Not in a rush to get back in, just re read all the latest rns' it's not clear to me at least if they have got the $10M debt agreed.

They raised the $12.7M through equity but no confirmation on the debt.

Also " The Company 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."

This is a big alarm bell.

The mine is also behind schedule on stripping, and problems with sourcing explosives amazing that this wasn't sorted months in advance.


Current mkt cap is $43M, but the threat of returning to investors is looming.

I am a bit puzzled on how they are going to produce 13.5koz in the last month when it has taken them 6 months to do the same figure.

Recovery rates are also just 58% when they should be near 95% another major problem that needs resolving.

All in all they still have a lot to sort out. If they do it may double but I don't think there is a lot more upside.

[stevie blunder] 10/12/2015 10:13

Not as much as I am for doubling up at 18p!

[ukgeorge] 10/12/2015 08:52

Kicking myself a little

[diesel] 09/12/2015 17:49

Uk G. You may be right at these prices, I'm feeling reasonably confident that they will announce commercial production early Jan, but POG is key at these levels they may be able to keep operating but they're not making any money.

[ukgeorge] 09/12/2015 16:36

the BOD total holdings are worth less than £100k so hardly a massive vote of confidence.

Having said that I think at these prices the risk reward is quite good.

[beeezzz] 09/12/2015 16:23

More shares issued.....BOD making sure they get there fill, so they must think there is a future.

[valentine] 08/12/2015 17:05

To think I was considering buying @42p. I did but sold quite quickly, for me, at about 38p. Sub-4p tomorrow I think. What has changed? Have the major names disposed or are they stuck with shares like a lot of unfortunate s/h's? All that glitters. I must speak to that broker sometime and see what he thinks at less than minus 10x. A bit like tullow eh? Brokers are there to help you make money until it all runs out. They still take their % tho. Whew! Nothing much good anywhere but the glitter has been well tarnished here.

[danielmiller1] 08/12/2015 10:44

Yep as I said a free fall, pity though as its hurting many. I recommend, not that I should as I know FA(that's my disclaimer), maybe around 3 p to consider this a. High risk potential buy.

[bsg] 08/12/2015 08:27

Do we really ever have faith in the management, I don't and never have. They're there to make themselves money, that's all. If they have skin in the game then there probably is more chance, if not ... it's down to luck IMO.

[tsmith2] 08/12/2015 08:22

complete loss of faith in management

[ukgeorge] 07/12/2015 15:45

another 10% down and might get tempted to buy, but if they are not in commercial production they are still leaking money.

[luminoso] 07/12/2015 10:56

Does this look like a walk down to be taken private to anyone else ? Or is it simply priced by the market as a badly run company in danger of going bust ?

[htrocka2] 04/12/2015 13:23

gold bouncing around.

[bsg] 03/12/2015 13:22

They must just see it now as keeping themselves in a job until they retire. Instead of retiring early with a big wedge! 40p seems impossible now.

[ukgeorge] 03/12/2015 12:28

Mkt cap at 6p will be £32M or about $50M

The company also has $100M of debt

if they produce 120koz per annum, with AISC of $900/oz the current free cash is just $18M per annum.

hardly sounds compelling.

[valentine] 03/12/2015 12:21

Falling faster than I thought. 5p and less here we come.always same with placing and surplus shares left over.

[ukgeorge] 03/12/2015 11:57

yes 5p looks inevitable, the problem is even after the placing they aren't out of the woods.

still need to prove that they can actually produce 10koz a month and at a reasonable cost.

They better not be planning any exploration spending this year.

Clearly still issues with 1 sourcing explosives 2 mining enough waste 3 likely finding enough ore.

Also being very high grade is likely causing problems with recoveries as it needs to then be blended with lower grade ore, and as they likely haven't got stockpiles this could be another problem.