John Meyer of SP Angel this morning comments on Anglo American (AAL), Aureus Mining (AUE), International Ferro Metals (IFL) Metminco (MMC) and Rio Tinto (RIO) as well as offering a detailed macro view on the news that is shaping global mining and the AIM mining pond
David Reading, chief executive officer of West Africa focused gold play Aureus Mining (AUE), is celebrating the first gold pour from its flagship New Liberty project in Liberia not only with the receipt of narrowly in-the-money share options but by charting a production ramp up which he hopes will take production from an initial 50,000 to 60,000 oz. this year to a targeted 112,000 oz. in 2016. According to Reading, likely capital spending is ‘on track for $172 million (£115.2 million)’, while ‘recent estimates suggested cash costs could be just under $800 an ounce,’ against a present gold price of $1,192.75c an ounce.
If you want me to analyse a stock for you just drop me a line at firstname.lastname@example.org - Today I look at Aureus Mining, Eleco Holdings, Low & Bonar.
David Reading, chief executive officer of West Africa-focused gold play Aureus Mining (AUE), describes as ‘very significant’ the award by the Liberian authorities of a 21-km. extension to the company’s Bea Mountain mining licence to include the promising Leopard Rock target. With its flagship New Liberty gold project set to start producing by the end of May or the beginning of June, the mining licence extension, which brings in Leopard Rock along a 13-km. gold-bearing corridor, comes hard on the heels of a pronouncement from the World Health Organisation that Liberia is now free from the deadly ebola virus.
West Africa-focused Aureus Mining (AUE) says it is on track to start producing gold from its one million-plus-oz. New Liberty project in Liberia by the end of next month. The company, steered by well-regarded chief executive officer and former European Goldfields boss David Reading, declares it expects first gold from New Liberty, which will be previously strife-torn Liberia’s first gold mine, by the end of May and anticipates delivering 119,000 oz. of gold a year for six out of New Liberty’s eight years of expected production.
West African gold play Aureus Mining (AUE) reckons the latest fall in oil prices could shave some $30 (£20) off estimated all-in cash costs at its flagship New Liberty gold project in Liberia, where the AIM-quoted company expects the first gold pour in May, with fill capacity to be reached in July. That would take costs to $820 an ounce for New Liberty, if oil’s present weakness persists, against a current gold price of $1,276.95c an ounce and would provide a helpful boost to returns from the project, which Aureus expects to produce at a rate of 119,000 oz. a year by open pit mining for the first six years of an anticipated mine life of eight years.
West African gold hopeful Aureus Mining (AUE) expects to have its flagship 900,000-oz. New Liberty project in Liberia producing gold in or shortly after March next year and is confident of announcing a new resource next month for Ndablama, 40 km away, its second project in the country’s Bea Mountain licence area. Liberia is at the centre of the deadly ebola epidemic, gold at $1,248.80c an ounce remains at present stubbornly out of investment fashion and Aureus’s shares have virtually halved from their 41.25p 12-month peak to 21.25p now, but David Reading, the company’s chief executive officer, strikes a determinedly upbeat note.
Swimming against the tide could pay off for West Africa-focused Aureus Mining (AUE), as it prepares to take its one million oz.-plus New Liberty gold project in Liberia’s Bea Mountain area into production early next year. It will also test likely prospects elsewhere in the country, such as nearby Ndablama, which chief executive officer David Reading hints could be in the same league. The AIM-quoted company claims New Liberty will be virtually the only new mine to open in West Africa at that time and should be able to produce 100,000 oz. of gold in its first year, rising to an annual 120,000oz. for at least six years, with foreshadowed all-in cash costs of $850/oz, against a current price of $1,315.80/oz.
Aureus Mining (AUE) is heading for a lively 2014. First, the AIM-quoted company plans bring New Liberty, the West African state of Liberia’s first gold mine of modern times, to full production next year. Second, it has scored some decidedly pleasing drilling results at Ndablama, a gold project only 40 km. away. Chief executive officer David Reading suggests Ndablama could ‘potentially be a lot bigger than New Liberty.’
AIM and Canada-listed Aureus Mining (AUE) earlier this week announced “significant new results”, mainly from shallow intercepts, from a drilling programme at the Weaju gold target, approximately 30 kilometres north-east of its flagship New Liberty gold project in Liberia.
Aureus Mining (AUE) was a poorly timed recommendation from my 12 years at t1ps.com and I recommended selling and reinvesting in more attractive gold plays at the start of this month with the shares at 57.25p. Following results for the company’s third quarter (to 30th September) released today, the shares now trade at 50p. Does this change my view?
Yesterday I warned here that AIM listed gold mine developer Aureus Mining (AUE) was going to have to raise stacks of cash. The deluge of upbeat RNS announcements told you as much. And I advised selling at 57.5p. This was met with stacks of Bulletin Board abuse from folks insistent that I did not know what I was talking about. I suggest scores on doors after 24 hours: TW 1 BB Morons Nil. As today the company has ‘fessed up saying it plans to raise $80 million via issuing new shares. For a company capitalised at £60 million ($95 million) that is a huge ask and there seem to be all sorts of risks here. I would almost be tempted to go short here. If I own the stock I would sell. Here is why.
AIM listed Aureus Mining (AUE) is a gold development and exploration company, currently mainly focused on progressing its New Liberty project – which it is targeting to become the first commercial gold mine in Liberia. I apologise for having timed my recommendation poorly here – recommending the shares at 84.5p in August 2011 on t1ps.com, during my 12 year stint there. Now trading at 57.25p, I review the investment case based on the informed view of where the best place to currently be in the gold sector is…
Late November and early December is always a busy time for the brokerage industry to forge, write and publish its investment thoughts for next year. Of course many of such thoughts end up as deeply embarrassing, even before you reach Easter, but – like most of the sales industry – what you said a few months ago was the ancient past, and what matters is your thinking today.
No! It is not snot gobbler Dan McCrum of the FT who tipped off the CEO allowing him to sell millions of shares in the days before the balloon went up at the Globo (GBO) fraud. McCrum still insists that he is the journalist responsible for Globo’s downfall whatever Gabriel Grego says. But it is another unsung hero who brought Globo to book. You may have thought that he was a supportive shareholder in the fraud, dissing we bears as not knowing what we were talking about. However…
Okay, it’s the final day of the weekend. Grab a cup of tea, sit back, and test your knowledge against the other ShareProphets members. Write your score in the comments, there are no prizes, and most important of all – no Googling!
It was announced on Wednesday at no-one-is-watching o’clock (5.17pm) that trading in Edge Performance I-shares (EDGI) was to be halted the following morning. The disenfranchisement of the I-shares is almost complete.
Here are five long reads that have nothing to do with shares. Put the kettle on, find a comfy chair. You have the time, don’t you?
Me and my big mouth! Last week it was all positive: Gold had been moving higher, seemed to be out of the downtrend of lower highs and Gold shares were riding high. Then wallop! All of a sudden Gold is back below $1800 at $1792, having been $1845 the previous week. But is this sell-off really serious?
The top non-Tom article this week is The View From The Montana Log-Cabin as Gold Consolidates Above Former $1835 Resistance so when will we see $4080 Jordan? by Nigel Somerville at number four or number 11 if you include the Bearcasts.
I deal with the specifics of ADM Energy (ADME) shares in which must surely be suspended after my second bombshell in 24 hours, another fake sheikh exposed, but this is the AIM sewerr somaybe not.I deal with individuals who enabled this and name them and say why they should not have been in a position to enable this and have some ideas for the FCA, after its recent statement, on Quindell and other frauds.
Horizonte Minerals (HZM) has announced it has raised £147.4 million (approx. $197 million) at 7p per share and an open offer for up to $8 million as part of a $633 million funding package which is expected to complete the funding required for the construction of the Araguaia nickel project in Brazil.
AEX Gold (AEXG) has announced third quarter results and an update including that a Nalunaq project engineering study is on track to be completed by the end of the year and that it is extremely excited by the wider exploration potential of its assets and looks forward to also being able to demonstrate the potential value of its non-gold, strategic mineral assets in due course.