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Aureus Mining battles mechanical issues and needs further funding

Mon, 08th Aug 2016 11:58

(ShareCast News) - Gold production at Aureus Mining has continued to be hindered by breakdowns, mechanical issues and low equipment availability at the processing plant at its New Liberty mine in Liberia and with just $4.2m cash left at the end of the second quarter new management admitted the company "remains undercapitalised".Aureus produced 8,274 ounces of gold in the second quarter from processing of 99,438 tonnes of ore at an average grade of 2.54 grammes per tonne (g/t).The gold was produced at a cash cost of $1,253 per ounce prior to the plant shutdown, though with costs added on from the safety-related shut-down overseen by Lineria's Ministry of Lands, Mines and Energy, the mechanical issue and testing have taken operating costs during the period of process plant suspension operating to $1,660 and all-in sustaining cash costs to $1,894 per ounce.Dwindling cash levels, which are backed up by inventory of $19.9m, the company drummed up a $30m investment by MNG Gold last month to boost funds, though analysts see further fundraisings as likely to be necessary.Mining operations continued during the period when processing was suspended, with Aureus unearthing a total of 201,774 tonnes of ore at an average grade of 3.58 g/t gold produced at an average waste:ore ratio of 12.6:1.Current ore stockpiles of over 200,000 tonnes of fresh ore at an average grade of 3.24 g/t gold with an additional stockpile of oxide and transitional ore amounting to over 90,000 tonnes at a grade of 1.46 g/t.The company said it remained committed to maintaining its listing on both London's AIM and Canada's TSX, however, management, which includes a new chief executive and chief financial officer from MNG Gold, were said to be primarily focused on looking to "stabilise and then improve both operational and financial performance at the New Liberty Mine."The incoming management team from MNG Gold were said to be "currently undertaking a comprehensive review of the company's cost base with a view to improving cash costs and operating margins. Following the completion of the operational and financial performance reviews and the achievement of steady state operations at New Liberty, management intends to produce a new life of mine plan for the project."Broker Shore Capital noted that liabilities amounted to US$58.7m - albeit US$12m of this comprised promissory notes to MNG, which were converted to shares post-period end."Adjusting for these post-period events implies a working capital deficiency of circa US$7m. However, we expect this position to worsen given ongoing operational issues. We believe that another significant slug of equity will be required (both for working capital and investment activities, not to mention debt servicing), implying significant dilution for any shareholders who are unable to participate."Shares in Aureus were down 13.5% to 3.57p, though still above the all-time lows below 2.5p struck early in the year.
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15 Apr 2014 08:08

Tuesday broker round-up UPDATE

APR Energy: Goldman Sachs reduces target price from 1165p to 1039p, while upgrading to buy. Aureus Mining: FinnCap places its target price (prev.: 175p) under review and keeps its buy recommendation . Al Noor Hospitals: Jefferies increases target price from 1065p to 1155p and maintains a buy recom

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15 Apr 2014 08:06

Aureus Mining Enters Agreements To Raise GBP15.6 Million

LONDON (Alliance News) - Aureus Mining Inc Tuesday said it has entered into an underwriting agreement with GMP Securities LP, Clarus Securities Inc and Numis Securities Ltd to raise gross proceeds of GBP9 million while International Finance Corp is planning a separate investment of GBP6.6 million

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15 Apr 2014 07:50

UK MORNING BRIEFING: Aggreko Leads After Mixed Results

LONDON (Alliance News) - Aggreko is leading the FTSE 100 in early trading Tuesday after the temporary power company said it has seen mixed results in its first quarter, with strong underlying revenue growth in two of its three regions being impacted by adverse currency movements as previously exp

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7 Apr 2014 10:19

Monday broker round-up UPDATE

Abcam: Canaccord Genuity lowers target price from 386p to 375p, while upgrading from sell to hold. Aberbdeen Asset Management: Credit Suisse ups target price from 415p to 440p and stays with its neutral rating. AO World: Jefferies initiates with a target price of 410p and a buy recommendation. JP

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7 Apr 2014 09:59

Aureus Mining Says Ndablama Drilling Has Further Extended Mineralisation

LONDON (Alliance News) - Aureus Mining Inc Monday said further drilling at its Ndablama gold project had expanded the mineralised system at the site. In a statement, the company said it now has an additional eleven diamond drill hole results from the phase four drilling programme at the sit

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18 Mar 2014 12:22

Aureus Mining On Track With New Liberty Ball Mill Construction

LONDON (Alliance News) - Aureus Mining Inc Tuesday said it had completed pouring the concrete for the ball mill foundations at the process plant at its New Liberty gold project in Liberia and that the overall construction schedule remains on track to deliver the first gold pour in the first quart

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7 Mar 2014 09:39

Friday broker round-up UPDATE

AGA Rangemaster: N+1 Singer ups target price from 175p to 192p and maintains a buy recommendation. Aggreko: JP Morgan lowers target price from 1542p to 1536p and maintains a neutral rating. Goldman Sachs increases target price from 1876p to 1950p and keeps a buy recommendation. Numis upgrades to re

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6 Mar 2014 13:10

Aureus Mining Net Loss Widens In 2013 On Costs, Impairment

LONDON (Alliance News) - Aureus Mining Inc Thursday said its net loss widened in its full year as legal fees, expenses and a large impairment hit the company. The gold-mining company, with operations in Liberia and Cameroon, said its pretax loss widened to USD7.4 million in 2013 from USD5.9

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31 Jan 2014 16:34

DIRECTOR DEALINGS: Aureus Mining Non-Executive Exercises Options

LONDON (Alliance News) - Aureus Mining Inc Friday said non-executive director Luis Da Silva exercised options over 187,500 shares at an exercise price of 17 pence per share. Following this transaction, Da Silva holds 288,326 shares, which represents 0.11% stake in the firm. Shares in

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27 Jan 2014 11:50

Aureus Mining Confirms Extension Of Mineralisation At Ndablama

LONDON (Alliance News) - Aureus Mining Inc Monday said it has found mineralisation following ten drill tests at the Ndablama Gold Project in Liberia. The gold-mining company, with operations in Liberia and Cameroon, said the first ten drill holes from phase four drilling at the site include

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17 Dec 2013 18:32

First gold from Aureus Liberia pushed back to 2015

MONROVIA, Dec 17 (Reuters) - London-listed gold firm Aureus Mining will pour first gold at its Liberia project in the first quarter of 2015, the company said on Tuesday, slightly later than previously forecast. Once operational, the New Liberty gold project is set to produce 120,000 ounces

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17 Dec 2013 10:59

STOCKS NEWS EUROPE-FTSE AIM index weak, Angle outperforms

Junior-listed AIM shares fall 0.4 percent, lagging the FTSE Small Cap index and the midcaps, up 0.2 percent and 0.1 percent respectively. Specialist medtech company Angle climbs 4.5 percent after receiving CE Mark authorisation - an indication of a product's compliance with European Union l

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10 Dec 2013 11:41

STOCKS NEWS EUROPE-UK small caps up 0.3 pct into mid-session

The FTSE small cap index is up 0.3 percent into mid-session, outperforming the slightly weaker junior-listed AIM shares and the 0.2 percent gain on the blue chips. PeerTV drops 26.7 percent after the provider of technology solutions for the TV over the internet market says that the repaymen

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2 Dec 2013 16:02

Aureus Mining's New Liberty on track for first gold in 2015

Aureus Mining said it was on track to produce its first gold from a scheme in Liberia in the first three months of 2015. Aureus said it had made significant progress this year in developing its New Liberty gold project in the company's wholly owned Bea Mountain mining licence. Building and infrast

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26 Nov 2013 12:42

Aureus Mining Awards DRA Mineral Projects Key Contract In Liberia

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