Minesite article - A GREAT READ.4 Aug 2010 21:05
Great article posted on the reputable minesite website. Front page news, and confirms broker's views that we're in for a serious rerating. Current SP = 80p. Target = 210p
http://www.minesite.com/nc/minews/singlenews/article/african-aura-sets-the-drills-going-at-nkout-and-the-interest-levels-running-high-in-london/1.html
www.minesite.com
August 04, 2010
African Aura Sets The Drills Going At Nkout, And The Interest Levels Running High In London
By Alastair Ford
All of a sudden lots of analysts are interested in African Aura. Why isthis? Perhaps because the company has come on leaps and bounds in themonths and years since Luis da Silva has been at the helm. Quality willout, as they say - in the last couple of years Severstal has beensigned up as a joint venture partner on the Sierra Leone iron oreassets, nearly 1.4 million ounces of gold has been proven up at thecompany’s New Liberty project in north-west Liberia, and now the paceis now picking up on its Nkout iron ore property in Cameroon.
The perception is that African Aura is no longer fumbling around inWest Africa, as it did for so many years under a former name, ManoRiver Resources,but is now getting down to some serious work. The latest news from thecompany, that it has started drilling at Nkout, is a case in point.Ambrian, Fairfax, Evolution and GMP were among the more respectablenames that rushed into print to advise clients of this latestdevelopment, a level of coverage that African Aura chief executive Luis da Silva concedes the old Mano River would have struggled to get as recently as three years ago.
Three years ago, though, the chief executive of African Aura wouldn’thave been knocking on the doors of New York institutions and finding,not only a friendly reception, but also a prior awareness of AfricanAura’s activities. That being the case, one question that frequentlydid greet Luis on his most recent North American marketing trip relatedto valuation. With its unique mix of gold and iron ore, African Aura iswithout immediate peers, but totting up the iron ore and the gold andlooking around for comparisons, the query that came over and again was“What’s the catch?” No catch, responded Luis. “It’s just the stagewe’re at.”
For an insightinto what the underlying context behind these exchanges, we need lookno further than the research notes of the eminent London analystCharles Kernot, perhaps the most consistent of those following AfricanAura, given that he’s on the staff of the company’s house broker,Evolution. Over the previous 12 months African Aura’s shares have risenby almost precisely a third, from 60p to just over 80p. But CharlesKernot reckons they’re going a lot higher than that. Specifically hereckons they’ll hit 210p, although he’s a bit vague about when. Strongnewsflow, he says, will lead to a large increase in the share price andmove the shares “in the d
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