Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Is it normal for a company to dilution its shares the change its name?
I think it's meant to be voted on the 29/11/16?
Is it true that AUE will be changing its name soon to Avesoro Resources? Can somebody tell me if this is so?
We need to wait for the year-end production update for a price increase. The market will believe in the production and cost planning of MNG. (or not) They f.. up in share issue. I could not buy 1.5p shares either. Thats an awful statr for MNG...
is now over 1300 and aue sp is still under 2p and mng is buying another 5 billion shares at 1.5p what a rip off by the conniving b'stards, and my broker will not allow me to buy aue at offer price of 1.5p because they don't know about it, its a lot of hassle too and the date has expired to buy more shares, so the sp better be 1.5p or lower later this month so i can average down from 13p and i don't care if pog is nearer to 1400 or 2000
Look at AAZ's cash flow table 2015. Even taking into account D and A and "investments" they produce negative cash flow. This anual "CAPEX" is how they make up their financials and create a "good looking" cash cost figure. These companies hide some costs in D and A also...
Actually, I think they are very easy to compare, especially since you suggested considering EBITDA rather than profitability. This is one of the reasons why I have followed miners and specifically gold miners for many years. The reason for AAZ's loss in 2015 was due to depreciation and amortisation charges (the 'D' and 'A' in EBITDA) so cannot be compared with what is effectively the cash generation that you were considering. My comparison was not based on a projected price (for example, I have no doubt that AUE could possibly make 5p in a year given a very bullish gold price) as there is little doubt if AUE goes to 5p then AAZ will likely be over 60p and SHG likely over 30p. All of these are possible. I was merely considering the current situation where the market does not value these companies at 10x cash generation. If it did then SHG, for example, would have an enterprise value of 10x the current price based on the annualised rate of Q3 production numbers whereas they are actually valued at 2x. As for AUE being over 10p a share a year ago, it is worth considering the change in the number of shares in issue after the deal to get a current equivalent to that 10p
Daisan, I was trying to make a simple calculation and show what the figures will look like. When we are talking about gold mining companies, it is almost impossible to make generalisations. Reserves/resources, grades cash costs, all matter. AAZ for example looks like a similiar company but they have lost in their financials last year. Impossible to compare. Lower cash cost? But loss in the financial... Almost a year ago, AUE was trading over 10 p a share. I think 5p a share is not impossible within a year...
Oky_3, A couple of points on this. Firstly, I think that it would be worthwhile considering enterprise value rather than market capitalisation as there is a significant debt dimension here. Secondly, there are some similar companies trading on AIM and they are not on the valuations you suggest. Take a look at AAZ and SHG. Production numbers slightly lower at 70k - 85k but lower costs and similar cash generation to your example. In each case both the market capitalisation and enterprise value are less than the current AUE value if we assume MNG's deal goes through. On that basis I would suggest that the market is not currently valuing gold miners at anything like the multiple you suggest.
Some insight for whats the pink scenario. They announce that their plan is to produce 100 koz annually with the cash cost of 743 USD. That means an EBITDA of 53,7 m USD. If we use a 10X EBITDA multiple and 100 m USD stock value after the share issue, this will yield a market price of app 5 p per share. 3 times the current value...
Everyone is so negative and sure that MNG have a sinister plan to scoop up this company on the cheap...some have bailed and some are too deep to even consider that. So we all wait for the vote at the end of this month. What will it be, how will it all end? I think I'll be a little bit better off, but that's just me...this horse has the potential to flip over and die but if it lives on, it will be a great golden horse to behold.
Feel so liberated now that I don't have to dread that ping on my mobile at 7am in the morning - the dreaded RNS - and have thrown off the shackles of being an extremely dispirited AUE investor.
Feel you are being very negative and you are resigned to accept your losses - but you don't have to be. Sell your AUE holding and invest in a share that is going to recoup your losses and more. HNR is looking very good to multibag very quickly. Wishing you good luck.
will take a look at hnr,thanks but feel i've got very little option but to see this through to the bitter end.down around 75% atm and this debacle with aue has wrecked my confidence in trading.it had so much promise but mismanaged to such a degree by our dear chum dr that we are where we are now,up the creek,no paddle,hole in the boat and piranhas in the water.
I don't know about the vote either , I only have a small holding here and have 'in my mind' written this money off. We live and learn every day and this little gem looks like it will not pay off after all the potential that I thought it had.
I dont know about which way to vote. I also lost out in the BHR scandal and it seems I am making a habit of it now. If we vote no here is this situation not slightly different ? I mean MNG have more to lose in this than anyone if it went into administration ? Surely they wouldn't want that ? Would they really be able to buy back the very same Company that they have been in charge of in a fire sale ? I dont remember the board at BHR having so much skin in the game, so perhaps we PI's here for once have a bit of control over the Co if we hang on until we are given some kind of guarantee that we wont be swept aside in the BODs future plan to go private
Have to disagree - there is alot we can do to recover our losses here. Need to focus and find the multibagger to put the AUE catastrophe behind us. Thanks to noodle_26's suggestion of HNR - Highlands Natural Resources, my optimism is restored. Take a look at this company - so much going for it - please don't see AUE through to the bitter end.
noodle_26 - thank you thank you thank you for suggesting HNR. I have spent last few days doing my own research into Highlands Natural Resources - you have restored my optimism, HNR is looking to be the potential multibagger we are all seeking to find.
i'm averaging 13p here and hope they make an offer to buy the company at 13p a share then they can do whatever they want with aue the conniving b'stards
does that mean they will fall short of around £6 million. What will that mean ... I hope it doesnt stop the exploration part because that could be the game changer.
I tried to buy, but my broker advised they were not participating. It was vague whether that was because they hadn't been given the option, or whether it was too difficult and outside the usual channels so they couldn't be bothered.
Less than half of the Broker Option shares have been applied for. Details also confirmed in RNS last evening. http://www.iii.co.uk/alliance-news/1477673033446284800-3/aureus-mining-exercises-broker-option-for-210-million-shares-alliss- "LONDON (Alliance News) - Aureus Mining Inc on Friday said it has received a letter of notice to exercise a broker option in respect of 210 million shares. Earlier this month, the miner said it had raised USD72 million in order to finance its transition to an owner-operator mining model, repay amounts due to its lenders, and strengthen its balance sheet. It raised USD60 million through a subscription from MNG Gold Jersey Ltd of 3.3 billion shares at 1.5 pence each, and USD12 million from institutional investors of 650 million shares at the same price. Shares in Aureus closed up 5.1% at 1.97p on Friday. MNG Gold is Aureus's majority shareholder, with a 77% stake in the company following its latest subscription. Aureus also granted an option to Numis Securities Ltd which enabled it to increase the size of the placing by up to 450 million shares at the same price, amounting to USD10 million. On Friday, it said it received a letter of notice to exercise 210 million of those shares." By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
to vote NO. Admin will be THE END and you will never see your money again.
16000 from me if that helps
2.9m shares are with the no's from me......hope this helps? We need folk to come out and reveal their hands here. So far I make it 3.2m.Anyone else taking it up