It took the last ~7 months to drop from $10 to $1.10 (a decline of over 80%), on nearly no volume, while one mine was being expanded/improved and the 2nd mine was being commissioned.
In that time, only 4 days had vol over 500,000, and only 10 days (inc those other 4 big ones) had vol over 250,000 shares.
It will now rise, as silver now begins to recover and move back into the $30/oz area, and will go up on small volumes, with a periodic big buy (like when it dropped) jumping it up periodically.
so today, silver spot is up 5% and AUNFF is up 16%...ok, reasonable ratio of movement.
Still doing what I mentioned a couple of weeks ago...big up movement on essentially no volume (one-third avg volume).
When the big fish move in to buy a chunk (after silver spot moves decisively up), this stock will move huge over a few weeks time, imo.
Today is a small tasteof that eventual movement, yet again on small volume.
Initial target should be at or around the 2.90 book value.
If silver remains basing through the year end then the warrants for .41 cents should be exercised for 3.24 and bring in 16 million cash.
[ Note that the currently anti dilutive warrants and options will become dilutive in the future assuming that Aurcana's share price rises through exercise prices.]
The 3 million $1 warrants ($8) will be extended.
Aurcana is all about output leverage.
At $16 realized price for silver Aurcana is marginally unprofitable at a 6 million ozs output level.... as Aurcana moves up above 7 and then up to 10 million ozs output it becomes very profitable. Its all about getting the output level up....... even at these silver prices.
Looks like we will break through the head and shoulders bottom neckline as the next move. ( before or after earnings ???) Probably depends on commentary on progress at La Negra's move to higher grades in the lower levels. Also Shafter's progress in silver output during July and August. Target area 4.50.
Achieving milestones will control the rate the stock progresses.
Firming up silver prices will also help.
Correction, there is over 72 mil. Warrants out there – that’s a #$%$ dilution, and let’s not forget that $50 mil loan includes Silver output as repayment at very low spot price (around $15 bucks) so even if Silver goes up, AUNFF must sell Silver at pre-arranged loan term pricing. That’s a bad deal