Check out this tiny Silver Miner

[Arklatex]

http://www.aurcana.com/s/Home.asp

You're Welcome

 

[Arklatex]

they have a market cap of 74.05M - are you kiddin!

With a producing silver mine in Mexico with Silver Wheaton!

They have bought the historic silver mine in South Texas and are putting it back into production next year. this is one brilliant opportunity I think to own some shares at 58 cents.

Donate $2300 to Ron Paul next year with the money you make from buying this!

 

[Seraphim]

they have a market cap of 74.05M - are you kiddin!

With a producing silver mine in Mexico with Silver Wheaton!

They have bought the historic silver mine in South Texas and are putting it back into production next year. this is one brilliant opportunity I think to own some shares at 58 cents.

Donate $2300 to Ron Paul next year with the money you make from buying this!

Really wish I had disposable income.

It's not too bad though. I just moved into my new home I bought- I'm using it as a savings account with the equity. In about 5 months I'll have disposable income to invest into aggressive ventures.

Thanks

 

[Mike4Freedom]

Why not, I looked at there financials. This is a solid minig stock. I picked up a thousand shares. Thanks for the lookout.

 

[Mike4Freedom]

actually I went and bought 2000 shares, its cheap.

 

[Arklatex]

Remember Mike4Freedom 100% of the profit up to $2300 is contract to Ron Paul for President since I gave you the pick free.

 

[Jordan]

I always wonder why the big guys goof around with JVs with tiny firms like this when they could just buy their whole operation outright.

SLW is worth 200x AUN :o

 

[jake]

1500 shares purchased

 

[GunnyFreedom]

what does everybody recommend for a trading account? I have heretofore managed to avoid the stock markets, but I can see that ScottTrade and AmeriTrade both access this venture. E*Trade probably does too, but their website played loud music which annoyed me so I left.

 

[Chester Copperpot]

this stock is at a 52 week high from 19.83 cents

 

[pa33]

Hmm, the message boards on yahoo paint a different picture, saying the management is completely incompetent.

Looking at their annual and quarterly reports, it doesn't look like that great of a company to me. They had a huge loss for 2008, a modest profit for 2009, and a loss so far this year.

Why exactly is this company so great?

 

[Jordan]

"the contract the Company has with Silver Wheaton (Caymans) Ltd. ("Silver Wheaton") whereby the Company is contracted to sell to Silver Wheaton the equivalent of 50% of the silver metal produced from ore extracted during the mine-life at La Negra at a price of $3.90 per ounce."

:o

ROFL

http://www.aurcana.com/s/NewsReleas...tion-Revenues-Silver-Sales-and-Earnings-From-...

That answers my questions why SLW isn't buying them, they already practically own it.

 

[Jordan]

(I love digging through finance stuff.)

http://www.aurcana.com/s/NewsReleas...es-85-Million-in-EquityDebt-FinancingsAurcana

Corporation ("Aurcana" or the "Company") is pleased to announce that it has entered into an agreement (the "Engagement Letter") with Sunel Securities Inc. (the "Agent"), who has agreed to act as Agent for and on behalf of the Company, on a "best efforts" agency basis, in connection with a private placement of equity units (the "Units") at a purchase price of $0.31 per Unit for minimum gross proceeds of CDN$50,000,000 and maximum gross proceeds of CDN$60,000,000 (the "Offering"). Each Unit will consist of one common share (a "Share") of the Company and one half of one common share purchase warrant. Each whole common share purchase warrant (a "Warrant") will permit the holder to purchase a further common share (a "Warrant Share") of the Company for a period of 36 months from the closing of the Offering at a purchase price of $0.41 per Warrant Share.

The Company plans to use the net proceeds from the Offering to fund capital expenditures on its Shafter project in Texas, for general corporate purposes and the buy-back of the silver purchase agreement with a wholly-owned subsidiary of Silver Wheaton Corp. (the "Agreement") for US$25,000,000 plus the outstanding silver balance owing, which will release Aurcana from all future obligations under the Agreement.

In short, this company is trying to dilute hardcore to pay off a $25M+ obligation that is draining every ounce of profitability. Starting to look like a blackhole of earnings....

Then the company is seeking another $25 million in cash. Giving 12 million warrants at $.50 plus:

Pursuant to the Note Offering, Aurcana will deliver the cash equivalent of a total of 830,000 ounces to SAM priced at the prior day 4 pm Bloomberg composite closing value of silver (ticker: SILV), over the term of the Notes. Pursuant to the Debt Financing, Aurcana will deliver the cash equivalent of 830,000 ounces to SRLP priced at the prior day 4 pm Bloomberg composite closing value of silver (ticker: SILV), over the term of the Debt Financing multiplied by the lesser of (a) the prior day closing spot rate; or (b) US$19.00 per ounce. Plus if the prior day's closing spot price is greater than US$23.00, SRLP will also receive 50% of the amount over US$23.00 multiplied by the number of ounces. Aurcana has guaranteed a minimum rate of return of 5% per annum on both the Note Offering and the Debt Financing.

So, for the $25 million, this company is guaranteed to pay back roughly $27.5 million. BUT! If the price of silver stays where it is at $27, it will pay $33M.

These funds will be used for:

. The proceeds from the Note Offering and the Debt Financing will be used to fund the development of Aurcana's wholly-owned Shafter silver project in Texas through production. The Company will grant security over substantially all of its properties and assets in favour of both SAM and SRLP, whose security interests will rank equally as between them.

If anyone was wondering, Aurcana gave up 50% of the La Negra mine for $25M in cash to develop the new Shafter Mine, which it owns 100%.

 

[Seraphim]

Up 11.5% today

 

[Jordan]

Shafter projected annual haul of 2.6 million ounces at $8.27 per ounce. Current prices allow for roughly $50M in annual income from that mine.

-- Still need permits. -- Production starts 18 months after permits.

If they get their $85M in financing at a cost of 200 million in new shares (issuance of common stock, redeemed warrants) there are now 320 million shares of common, up from 120 million. Then 12 million more, so 332 million.

Output at La Negra generates $14M a year in profit at current prices. PE of 8, $112M/332= .33cents per share. :-/ (that was really basic).

Best case scenario: Funds are raised, stock drops like a rock to avoid warrant redemptions of up to 52 million shares, new mine comes on line at anticipated costs/levels of production, silver prices remain above $25/oz.

Too many variables.

 

[Bruno]

Shafter projected annual haul of 2.6 million ounces at $8.27 per ounce. Current prices allow for roughly $50M in annual income from that mine.

-- Still need permits. -- Production starts 18 months after permits.

If they get their $85M in financing at a cost of 200 million in new shares (issuance of common stock, redeemed warrants) there are now 320 million shares of common, up from 120 million. Then 12 million more, so 332 million.

Output at La Negra generates $14M a year in profit at current prices. PE of 8, $112M/332= .33cents per share. :-/ (that was really basic).

Best case scenario: Funds are raised, stock drops like a rock to avoid warrant redemptions of up to 52 million shares, new mine comes on line at anticipated costs/levels of production, silver prices remain above $25/oz.

Too many variables.

Thanks for the summary, Jordan!

 

[Jordan]

Last comment:

Deferred taxes of $40M still on the books.

$27.5-Unlimited (currently $33 million) will have to be paid back by 2013.

All figures above based on $28 average silver.

 

[Arklatex]

haha Jordan what do you expect Exxon? This is an 80m market cap!

Compare with other miners of similar size and you'll see a hugely undervalued company.

 

[Dforkus]

Penny stocks are usually penny stocks for a reason...

Hate to be the killjoy, but I'm just sayin...

 

[Jordan]

haha Jordan what do you expect Exxon? This is an 80m market cap!

Compare with other miners of similar size and you'll see a hugely undervalued company.

I just want people to realize that not everything is as it seems at first sight, especially not in commodities.

Commodities companies are some of the most complex business operations in the world, even though their products are, by definition, the most simple. They're usually hedged to upside/downside through a series of derivatives bets and contractual agreements, have funds tied up in any number of new developments, etc. Luckily for this company, it has only two operations worth mentioning, though it is contractually obligated to SLW, and has been all over the place in finding financing.

I agree with you, though. If that mine comes on in 18 months, silver averages around $28oz or more, and predicted production materializes, you'll hit an absolute homerun.