Here is a quick review of Aurcana (AUNFF) from yesterday's Euro-Pac meeting in NYC
Aurcana story was the same as we heard on the CC. Catalin (IR) gave the presentation. He did pretty good. I cornered him afterward and grilled him for about 10-15 minutes.
The $50M finance deal is still not fully completed – it is with the lawyers according to him. He liked the deal if they could get it closed. It includes a 3yr paid back with interest and Red Kite gets some sort of purchase arrangement based on spot for some period.
It sounded good because it was not a streaming deal per se. Red Kite will get to pick their purchase price every month calculated over a brief pricing window – something like this.
They still have $13M of capex to buy for Shafter using the money the rest of the money will be for ramp and a to reestablish a cash cushion for the company.
Grades are great at Shafter. They are getting 600 t/d and processing 600 t/p but without the additional press and fully upgraded mill their recovery is only ~50%. They expect to reprocess the tailings later once the mill is fully complete.
He said Lenic made the mistake of trusting his people on the design. They have all been fired and a new more seasoned vet is in. I said why didn't Lenic get reamed? He said Lenic got his – apparently Lenic bought $50m (I think that is what I heard) at what is now $10 per share basis (or something like this) - the long and the short, Lenic has big money is in the game and he is way underwater so he is bound and determined to get this fixed - on top of the fact that it is his job. Pain in the wallet never hurts as a motivator.