Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I'm starting to think that the only thing Aura will ever mine is shares, putting the Uranium project to one side for the moment can't they at least get something moving with the gold ?
It does seem strange it’s still not listed on ASX after it was widely expected to be back on AXS after the April AGM
I would recommend scouring the AEE forum on Hotcopper, there are some knowledgable posters on there that have been in the stock a long time and have a good understanding of the current situation. My understanding is that the company will have to satisfy all requirements set out by the ASX before it is allowed to trade again, so dotting the i's and crossing the t's. My bet would be on July.
link: https://hotcopper.com.au/asx/aee/?keywords=AEE
Is there a date for ASX re listing?
I am not currently long here any more, but for those that are interested in this stock. Forsys, which is Aura's closest comparison is trading at CAD$200m, double from when I last posted, so Aura's Tiris deposit should be valued at £65.6m on it's 49m lb uranium alone. I did underestimate the number of shares being issued here, but there is definitely upside to be had here and if they can get it into production, it could be quite considerable.
Another thing Aura has going for it is that the UK has very few Uranium listings, most uranium juniors and majors are listed in the USA, TSX or ASX exchanges. The only UK listings I am aware of are:
- Yellow Cake | YCA (physical uranium fund)
- Geiger Counter | GCL (Uranium fund)
- Berkeley Energia | BKY (Binary play, if the Spanish gov allow uranium mining, heads or tails?)
- Kazatomprom | KAP (Kazakhstan 75% state owned uranium major - £4.5bn mcap)
When the uranium price rises and uranium stocks become more mainstream, Uk investors have limited places to go unless they want to deal overseas. If Aura sorts out management/shareholder issues, it will be the most leveraged uranium play in the LSE by a huge margin and I can foresee a lot of money coming this way.
Everything has to fall into place here first, but big payoff if the board can resolve issues.
Taken a modest position here of 500k shares at 0.54p, not willing to take a larger position here because there is significant risk here. However risk to reward is very interesting…
The mispricing here by the market is obscene, if this company comes out of the ASX halt and raises a good amount of cash, this company is going to re-rate significantly.
The company has a good portfolio of assets, but for simplicity sake lets only concentrate on one of their three assets; the Tris uranium asset and see what this company could be worth, on this asset alone.
The most comparable peer I could find would be Forsys, which has the Norasa deposit in Namibia with 91mlbs of uranium and has a completed Feasibility study for its deposit. It has a capex of US$400m and opex at US$30/lb to produce 5mlb/year U3O8 and no current management. Namibia is a better uranium mining jurisdiction, but the substantially lower Tris capex of US$45m, more than makes up for this.
The market is valuing Forsys currently at CAD$100m (£57.6m) or £0.67 / lb in the ground. Aura’s Tris deposit contains 49mlbs U3O8, valued at the same price would be worth £32.8m.
With current shares in issue of 2,557m and conservatively assuming a 33% dilution to raise capital, the company would have 3,400m shares in issue. With Tris valued at £32.8m, this should justify a share price of 0.96p, a 97% upside from the current price of 0.49p. With the uranium price likely to move up very soon, the value of this asset is likely to go much higher.
This valuation is from 1 of 3 resource assets the company has, there is exploration potential to increase the Tris U3O8 resource up to 100mlbs and there is potential compensation from the Swedish government for the companies uranium deposit there.
Management and shareholders need to resolve their difference, but with the uranium market booming, I have no doubt these issues will be resolved a lot quicker, because of the upside to all parties. Really interested to watch this unfold over the next few years.