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Jbay76 (< 20)

Aurcanna's 3Q report shines again



November 07, 2011 – Comments (9) | RELATED TICKERS: AUNFF , SIL

Aurcana released their 3Q report today, and it verifies that this mining company is on a tear with HUGE upside potential!

Highlights include:

* 224% increase in earnings from mining operations in Q3, 2011, $6.8 million compared to $2.1 million in Q3, 2010. 415% increase in YTD earnings from mining operations of $17.5 million in 2011 compared to $3.4 million in 2010.

* 217% increase in net income, $3.8 million in Q3, 2011 compared to $1.2 million in Q3, 2010. YTD net income up $6.8 million, to $6.1 million in 2011 compared to a loss of $0.7 million in 2010.

* Revenues increased 68% to $12.1 million in Q3, 2011 from $7.2 million in Q3, 2010. YTD revenues increased 114%, to $35.3 million in 2011 from $16.5 million in 2010.

* Operating cash flow before movements in working capital items, to $6.2 million in Q3 (2010 loss of 0.2 million).

*Silver production of 244,243 ounces (235,981 ounces sold), based on just 80 days of mill production; year-to-date silver production increased 26% to 742,026 ounces compared to 587,057 ounces in 2010.

(Emphasis mine, to demonstrate how productive this company is injust 80 days of mill production)

* Shafter Silver Mine in Texas continues to be on schedule for completion in May, 2012 with production commencing immediately thereafter.

The Shafter mine will pay itself off in approx 1yr of operating due to silver prices, afterwhich time it will be an ATM machine for the company.

When you read the highlyghts for the La vena mine project and the Shafter mine project, you can't help but wonder how such a company has stayed under the radar.  I myself owe Speedybure for the find, and havebeen very happy since.  This is the type of report that makes me want to double down if possioble, and if not content to already have shares.  Its just a matter of time before this company really breaks out of the gate.


9 Comments – Post Your Own

#1) On November 07, 2011 at 4:26 PM, Jbay76 (< 20) wrote:

Woops, La Vena mine should be La Negra mine...sorry for that typo, and the few floating around.  Good thing I don't get paid to do this :)

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#2) On November 07, 2011 at 4:52 PM, SN3165 (< 20) wrote:

I'm trying to write up a post on Sandstorm's what to expect from  3Q,  but this site is giving me trouble (as always!) Expect revenue of $11+ million and net income of 5+ million...

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#3) On November 07, 2011 at 4:53 PM, SN3165 (< 20) wrote:

The Santa Elena Mine – Produced 8,805 ounces of gold in 3aq. Sandstorm entitled to 20 percent, or 1,761 ounces.  Cost per ounce: $350. Est. Revenue - $2,993,700. (Using $1,700 gold)

Black Fox Mine – Provided a production update on Oct. 13 – 16838 ounces in 3q. Cost per ounce of $500. Sandstorm entitled to 12 percent – or 2,020.56.  Est. Revenue -  $3,434,952.

Aurizona – 13,474 ounces produced in 3Q – sandstorm gets 17 percent or 2,290.

Cost: per ounce -$400.  Est. Revenue -  $3,893,000.




$10,321,655 total est. revenue. 

Santa Elena Cost per ounce: 350 times 1761 = $616,350.

Black fox cost – 500 times 2020.56 = $1,010,280.

Aurizona  - 400 times 2290 = $916,000.

Total cost - $2,542,630.

SECOND QUARTER – The company recorded revenue of $5.58 million on gold sales average price of $1500. Net incom of 2.2 million, or .01 eps.

Expect this quarter - $10+million in revenue, net income around $5-7 million. 

 *NOTE: This DOESNT include the summit mine, owned by Sante Fe Gold corp. I could not find the production numbers on their site. Sandstorm has agreed to purchase 50% of the first 10,000 ounces of gold from them. Also note that this post doesnt take into account other costs like administrative fees.


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#4) On November 07, 2011 at 5:10 PM, silverminer (29.70) wrote:

Yeah, I picked up some extra Aurcana shares into the recent market selloff, and plan to hold them for the inevitable breakout.

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#5) On November 07, 2011 at 5:32 PM, Jbay76 (< 20) wrote:


" this site is giving me trouble (as always!)"

Am I making things hard for you?  I take it I was, but in a good sense.  I look forward to your write up of Sandstorm :)

Chris, I think that by this time next year, we'll begin to see that breakout.  And once Shafter mine is all paid off,  its full steam ahead!  I am going to use this time to get more shares.  It will be interesting when and if they get listed on an exchange.....

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#6) On November 07, 2011 at 6:36 PM, SN3165 (< 20) wrote:

@Jbay,  the above post was basically it.

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#7) On November 08, 2011 at 10:06 AM, Jbay76 (< 20) wrote:

That's what I thought after I submitted my last message...yesterday was a rough one for me.

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#8) On November 09, 2011 at 11:06 AM, Chrisynd (49.13) wrote:

Great report but getting destroyed today.

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#9) On November 10, 2011 at 8:59 AM, Jbay76 (< 20) wrote:

@#8 That equals a buying moment

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