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Jbay76 (< 20)

Aurcanna continues impressing



May 25, 2012 – Comments (3) | RELATED TICKERS: AUNFF , SIL

In their Q1 release for 2012, Aurcanna continues to impress me with their growth and earnings.  In short, Q1 highlights are:

 *Revenues increased 6% to 11.6 million in Q1, 2012 from 10.9 million in Q1, 2011.

* 186% increase in net income, $2.0 million in Q1, 2012 compared to $0.7 million in Q1, 2011.

* 21% increase in operating cash flow before movements in working capital, to $5.7 million in Q1, 2012 compared to $4.7 million in Q1, 2011.

* Earnings from mining operations increased 2% in Q1, 2012, $5.5 million compared to $5.4 million in Q1, 2011.

*20% increase in silver production of 287,486 ounces (258,767 ounces sold) in Q1 2012 compared to 240,275 ounces in Q1, 2011 (218,701 ounces sold).

*The upgrade of the La Negra mill was completed on March 31, 2012, increasing production from 1,500 tpd to 2,000 tpd, a 33% increase in production capacity.

Their production is growing fast and efficiently now that the Shafter mine in Texas was completed 2 months early.  They have no debt!  And I would think/hope that they will have a listing in the U.S. Exchange in the next year or so, though I am no expert so I won't hold my breath.  

So, if they are not a screaming buy right now...when would they be?

Disclaimer: I am long AUNFF and have been for some time now

3 Comments – Post Your Own

#1) On May 25, 2012 at 12:20 PM, getrichslowfool (< 20) wrote:

To be honest, right now they really aren't a screaming buy.  I think that it was within the last week that they traded as low as something like $0.72.

This is my largest position, and I started buying it in January at $0.72.  It jumped up above $1.00 for a while, and I bought on any pullback that got below $0.90.  Now, i'm buying on pullbacks below $0.80, and I think we will have at least one more pullback to that range before it finally takes off and heads higher.

Great stock, but can definitely be had for better prices than it is today.  Good luck!

 I am long AUNFF.

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#2) On May 25, 2012 at 1:26 PM, Jbay76 (< 20) wrote:

@ getrichslowfool

We both scored AUNFF for lower share prices than what it is trading for today, and by that metric you could argue that those purchases were a deal.  And they were.  But that was when they weren't producing at the levels they are now.  Those were prices when Shaftner wasn't operational.  Now there is action, occuring faster than planned.  Silver cash costs will be going farther down, profits will go farther up.  And, I think the days of AUNFF tading at >0.80 USD are gone.  Its only one way up from here and I still think its a great buy now!  Maybe its not a screamign buy right now, maybe I used the wrong terminology?  I think it still is, even given my previous share purchases.

Atleast we both agree this is a company to be apart of and hold onto.




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#3) On May 25, 2012 at 2:33 PM, getrichslowfool (< 20) wrote:


Yes, sorry if I came off too negative.  I do think great days are on the horizon, which is why I continue to buy this on the drops.  I certainly hope that the $0.80 days are over, because it was discouraging to watch this stock plummet last week when it usually holds up quite well.

I just like to remind others that may read this thread that this stock does and has moved quickly, and very recently.  Also, things to consider with this stock is the large number of shares.  While the dilution was necessary and was accretive, the result is still a lot of shares under a dollar for a market cap of 400M.

At some point, this company will want to get off the pink sheet, and I am fully expecting them to do a reverse split to achieve that.  Obviously, I'd prefer they didn't, but if they do, let's hope it holds up as well as Sandstorm did.  My opinion is that you will see some cheaper shares in the near future.  Only time will tell.

Good luck Jbay, and great company choice (my other two PM's are sandstorm and brigus)

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