Aurum Mining Share Discussion Threads

[euclid5] 27/12/2009 12:40

Does anyone have a holding in Chaarat Gold Holdings also as they are based in the same region & have gold reserves of 3.34 mill - resource upgrade expected in Feb 2010 could push this up & NPV study completed in 2008 havd a value of $158 mill based on gold being $750 up to $640 mill with gold at $1250

Best to read co's Nov 2009 presentation report especially page 17 & 18 Unlocking value - they base 4 diff potrential valu's on their co. & the average price is around £2.46

Cazenove Invt Mngt hold 15% along with 2 other Inst shareholders

[catandcrow] 23/12/2009 11:09

The risk is now that the directors spend it on something silly.. and £3m of teh cash will be kept as a warranty. Still tempting to buy.

[davius] 23/12/2009 10:29

It's a pity that the RNS didn't make a bit more info available regarding the payment from Kentor. I suspect that with the subdued share price the directors don't want to attact attention to their 'investing company' being valued at around 55% of net cash.

I think this is now perhaps one to sit on, the spike didn't happen (though the cash came in rather sooner than I expected), but now this really is a case of buying £1 coins for 55p. And with the cash from Kentor in the bank this is completely derisked.

(FQR714, current cash will be around 20p per share).

[fqr714bhp] 23/12/2009 07:56

Money Received? should the share price not be adjusted to account for the cash
Should the share price not be @ 15p?

[davius] 22/12/2009 17:20

True, that's about half a penny per share equivalent. Hasn't stopped someone dumping 100K shares today though. These margin trader eh? Lol.

(And cash already received apparently)

[flinnyourin] 22/12/2009 17:13

As we are soon to recieve our money from Kentor it is nice to see that the £ has started to weaken against the $ 1.66 - 1.59 lets hope it keeps going.

[gluefactory] 21/12/2009 14:13

Hi Davius.Got your note on the BRM board.My problem is I dont have T20 as I settle trades after three days and no funds either to keep for a couple of weeks.Thanks for the heads up though

[davius] 21/12/2009 11:39

At the end of September I took a punt on Aurum at 11.2p when Kentor extended their option on Andash. I sold out within a T20 at 15.7p when Kentor decided to excise the option to buy the stake for $15m. It was a gamble of couse, Kentor may have pulled out of the deal.

When Aurum released their results a fortnight ago they revealed net cash of £1.2m and $13.6m net proceeds from Andash expected by the end of the calendar year. And they retain a 10% interest in Andash. So within the next week or so we can expect and RNS stating that the payment has been made and Aurum should be have net cash of around £9.5m, almost 20p per share.

The market appears to have this one very wrong. Or for some reason feels that the deal may flounder. To me they appear to be a very low risk gamble and I expect another spike up as and when they announce receipt of the payment.

Provided the deal is complete, this company will have cash of £9.5m and a 10% interest in Andash, against a market cap of £5m. That's bonkers.

I'm back in today on a T20.

[flinnyourin] 18/12/2009 18:12

That would be nice if that happened FQR714BHP, as i have said before if the share price stays too low what could stop an investment company buying us out at or around the cash price of 19p and getting 10% of a gold mine for free with no development costs (which could end up a very good earner for them) the average price of Aurum before the court case was £1.10 so 10% = 11p and gold has shot up sinse then so lets say 15p and when this goes into production it will be worth alot more than 15p, so the bid price of 10.5p looks excepionally cheep and i cannot see it being around for long.

[fqr714bhp] 18/12/2009 15:07

So when they get the money at the end of 2009 the Sp should reflect the cash holding here.
So we can expect a re-rate to 17-27p?

[hoveite] 14/12/2009 09:23

Positive ASX announcement from Kentor today - they've raised the funds to pay for and start progressing Andash subject to their shareholders approval tomorrow.


A$28M Placement to Acquire and Commence Development of the Andash Gold
Project

Kentor Gold Limited (Kentor Gold or the Company) (ASX:KGL) is pleased to announce a successful capital raising to acquire the advanced, high grade Andash Gold-Copper Project in the Kyrgyz Republic and commence its development.
The capital raising comprised a placement of 215 million new shares at $0.13 per share to raise gross proceeds of AUD$28 million.
The placement was keenly sought and oversubscribed by both professional and
sophisticated investors in Australia, Asia and Europe.
The funds raised from the placement will allow Kentor Gold to:
- Acquire 80% of the Andash project;
- Acquire a mining and construction fleet of equipment that is already assembled for the project in the country;
- Update the project's Bankable Feasibility Study; and
- Commence the early stage of development of the project.
Helmsec Global Capital Limited acted as Lead Manager for the placement. Bell Potter
Securities and Patersons Securities Limited acted as Co-Managers.
The issue of shares raising $25 million is subject to approval from Kentor Gold's shareholders at its General Meeting on Tuesday 15 December 2009. The additional shares raising $3 million will be issued using the Company's 15% placement capacity.
Kentor Gold advises that, once the Placement is completed, the Company will have no need to draw down on the Macquarie Bank debt facility which was announced on 27
November 2009.
Kentor Gold Managing Director Simon Milroy said:
"We are delighted to welcome to our share register several respected institutional investors in gold. Their decision to join us in developing Andash is testament to the quality of the
project.
We look forward to proceeding with the development of Andash in 2010 and commencing production in 2011.
The additional funds will provide the company with the ability to secure long lead time items such as mills and crushers.
In the light of this commitment to the Andash project, the Board of KGL is considering a range of options for the Savoyardy project.

[staddles] 08/12/2009 13:28

This is not big brother it i smore of a lottery!

[scotswhaehae] 08/12/2009 09:30

..then sell ...or hold...or buy...go on...you decide!

[staddles] 08/12/2009 09:24

Both good points, but todays share price drop of 6% doesn't help my confidence

[flinnyourin] 07/12/2009 18:01

Heres a couple of good reason to hold Staddles -

`The Board is currently evaluating a number of exciting acquisition opportunities and hopes to make a recommendation to Shareholders by the end of the Company's financial year.`


Sean Finlay, Aurum's Chairman, said: "The Board looks forward to the next phase of Aurum's transformation with great confidence, a situation that would have been unthinkable only six months ago. This not only highlights the great
progress made over this period, but also demonstrates the confidence that the
Board has in delivering strong returns to all the Company's stakeholders in the
near future."

[staddles] 27/11/2009 14:19

Cab anyone suggest a reason why I should continue to hold whild the share price keeps getting knocked?

[flinnyourin] 24/11/2009 10:31

I think all the selling is over at this price so if there is a large order waiting the mm will have to bump up the price.

[oilyrag] 24/11/2009 07:28

Flinnyourin, cffer remained constant only the bid dropped, either mm's don't want the stock or they are trying to get it cheaply by scaring peeps into thinking the price is dropping, when its not.

[staddles] 23/11/2009 18:52

Bear with it surely this can't last, I am glat I sold 50% of my holding, but live in hope I will regret that at some point in the near future!

[flinnyourin] 23/11/2009 17:20

Totally confussed 2 x 100000 buys today and share price not move then 1 x 10000 sell and the share price falls 4%.

[ajbird] 15/11/2009 09:25

The latest announcement regarding the result of the meeting states that the path is clear for the receipt of the disposal funds in December. US 15 million, I hope the dollar will have strengthened by then! The question is, what will the co do with the money? Anway,compare that amount with the cap of the company.

[flinnyourin] 09/11/2009 18:43

Yes looks like Kentor Gold got a bargain now buying our gold at $10 once, i wonder if the large share holders might block the sale, but i suppose we still have 10% in the Andash mine which isnt price in yet and the way things are going it could be worth quite a lot. Kentors price goes up everyday and ours goes down even though we hold 1/8 of what kentor does and we will have approx 19p in cash on the 22nd December.

[staddles] 09/11/2009 12:26

Gold looks to be infavour again, but any comments on the board would be welcome in light of today's rise in SP

[scotswhaehae] 27/10/2009 16:31

volume extremely low and general market for small stocks dull
the only company specific point is the £3m provision which is necessary but a bit of a bore...one assumes it will eventually be added back

funily enough if mining stocks are slightly dull at the moment that is actually better for AUR when its cash actually arrives!

[stuart14] 27/10/2009 12:31

Still holding. Not a lot to discuss though. Will see what they can do with the cash.