share value?

  1. 2,126 Posts.
    The sale of Mt Muro to Archipelago must lead to some re-rating of AUG shares; but the question is - to what?
    If all goes well, they get US$1 million in Archipelago shares, plus US$0.75 million in cash nwithin three months of the start of production, plus 2% gross on all gold and silver from the "Western Areas".
    Mt Muro averaged 0.2 million oz gold per year over the last few years.
    The best possible result would be if this were maintained or exceeded (unlikely in my view); this would give Aurora a return of about A2c per share on hte sale, plus A1.3c annually per share on the royalties.
    But then they have their other areas - the PNG area up for sale; interests in Australia which they intend to make their core business in future. Anyone got a valuation on those?
    Oh well - the market will answer that question in the next few days ...
    I'm too busy to dig deep into AUG, even though I hold some (at a loss) - I'm trying to analyse SBM (also held) and DIO (considering).
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.