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Thanks 2C,by the way is the there anyway to find out who Kartrix's client is,from your sources.
I came to the same conclusion regarding the 70% production costs,it doesn't make sense. Didn't post anything didn't want to rock the boat.
Simple maths they make 30% profit on a 8 billion dollar asset.
Assume the mine is live for 20 years,thats 120 million a year in profits. That gives an eps of around 38 cents with a P/E ratio of even 2 that 76 cents.
They said they were ramping up to 10000 ounces a month and more with new equipment. So the 120 million a year is more then feasible. This reccomendation of 68 cents does not make sense when within 2 years the profits would be greater then the current sale price. Thats what it is a fire sale. WHY?
The current 55 cents does not reward long time holders at all.
Please 2C could you find out what their rationale is on all this.
Katrix to AURC management,we want to pay you 38 cents per share you want $1 per share,lets split the difference and call it a friendly takeover at 68 cents.
Yes Jim what makes you think the amount of shares has spiralled? If they shorting on the basis of covering with their own stock at some point,that would not cause the amount of stock to spriral. The only way i can see the shares in the float exceeding the float would be if naked shorting was going on.
Looks like the shorts are willing to take an risk here regarding whether the deal goes thru or not. Their betting that the deal doesn't get done. Only 3 trading days left before we know.
In fact i would not be surprised if the offeror was Barrick. They have over 10 million ounce hedge position at a very low price which will threaten to over run them if the price of gold contineous to rise.
With this buyout they can cover a substantial portion of their hedge at an extraction price below their current hedge price. With the price of gold expected to rise this is a win win situation for them.
With a $200 million buyout they extricate themselves out of a position that could cost them billions.
Barrick offered Novagold $40 an ounce for their reserves. Even though Novagold refused its seems like a good enough benchmark figure for gold mining startups. Kinross bought Bema for over £200 an ounce,but Bema was really about to ramp up production and there Kupol find was considered extraordinary. So the $40 an ounce counteroffered by Aurus is more then fair price for their assets.
But the asset is. Where do you guys come from? Don't they provide some workshop so you can learn to bash better.
Katrix is not the buyer,we don't know who the buyer is. Katrix represents the buyer. The real buyer could be a miner or even a hedge fund.
JLP,they are just representing the offerer per PR.
"announces that its Board has been in constant communication with the representative of the Offeror, Finance Company Kartix, which has made an offer to purchase all of the outstanding shares of the Company at $.38 per share."
The timeframe of the counter offer doesn't give the shorts much time to cover. Tomorrow will be an interesting day.
Margin calls for shorts down the road. I think Aurus management are telling us that the deal is pratically done.
Thanks 2C,seems like the bashers don't realise that this company has been given the go ahead to negotiate with Aurus and have indicated that the deal is acceptable to their clients. We could get a PR any day or moment to say that the deal is done.
Kartrix doesn't have to take all the 6 or seven days to decide to take the offer. Aurc could PR tomorrow the deal has been done.
invenstor,that is a very distict possibility,otherwise the shorts will lose alot of money.
Excellent find on Kartrix,sounds like the Russians want the company out of the American stock exchange.
Fantastic news. I think as someone has already said kartrix is a front for another buyer. This will go thru now. Only a week before the expiry of the offer. The stock price will slowly creep up over the next few days. I always thought this stock should have been valued around $2-$7,however quite happy with this buyout if it burns the shorts.
Management buyouts
What is a Management Buy Out (MBO)? An MBO takes place when a group of managers buys the business they work in from its existing owners.
This will usually require financial support from outside the business, such as from bankers or venture capitalists.
Buy-outs can vary enormously in their size and some can be straightforward transactions while others can be more complex.
The key feature of all MBOs is that the members of the team put in some of their own personal money in return for an equity interest (a stake) in the business.
What the team puts in varies from deal to deal. Bankers expect that it is ‘meaningful’, which means that it represents a considerable commitment by the management team concerned but need not be a vast sum.
For example, a four-strong team buying a publishing company may be able to scrape together £20,000 each – this £80,000 total may not seem much when set against the, say, £1m put up by bankers, but could be a lot for them individually and means the banks feel assured that the directors are committed to making it work.
MBOs normally see the existing owners sell all or most of their stakes in the business to the new managers and their fellow investors.
Why mount an MBO?
The reason many managers take the plunge and mount an MBO is because the existing owners see the particular part of the business they work in as no longer core to the whole company. They could be planning to sell it or even close it. Some companies that are in financial difficulties decide that they want to sell off assets and get some cash in to stave off financial ruin. They may be much more open to MBO offers than they would normally be.
Family-run businesses are frequently taken over through MBOs because the existing directors may not have any children interested or capable in running the business. In these circumstances, they may be keen to ensure the business and its workforce continue to work successfully.
Many MBOs follow acquisitions – a company may buy another business and then find that not all of what it has acquired is needed. In this case it may offer the managers of that particular unit the opportunity to buy the business from them.
Managers frequently say that the reason they launched a MBO is because it offered them the chance to make a real impact on the business, to be able to direct strategy and decide what the business was going to do.
If the MBO goes well, they stand to make money out of it too.
What do I need to succeed?
A successful management buy out (MBO) needs a combination of factors in place to ensure its success:
1. The team of managers needs to have a spread of skills and talents. It needs someone who understand the ins and outs of a balance sheet (a financial manager or qualified accountant). It needs someone with vision to see what the business could become, given time and investment.
2. The business must be viable. It does not necessarily have to be profitable but it does have to be capable of achieving profit. Often, MBOs take place because managers feel they could do a better job than the existing management.
3. The existing owner of the business must be willing to sell. If he or she won’t sell, there’s no way of taking it over unless the financial backers and shareholders in the business give their approval.
4. At the end of the whole process, an MBO has to achieve a realistic price for the business. If the existing owners are selling because they want to retire, they’ll hold out for the best possible price. So too will most owners – except those who are desperate to get some cash in. But bankers and other financial supporters will not pay just any price – the agreed valuation has to reflect the potential of the busines
So be it,i am ready for more cheap shares.
If they accept the offer i will use the funds for a direct investment into AURC. No more bloody brokerages and MMs. I will get the certs.
Lets have the acceptance PR now please. Time to move on.
38 cents is fine for me,i shall buy some more for the hell of it.
No point in fighting the system within,time to move on from the US markets. They don't need them anymore.
I would rather trust these Russians then the crooked wall street brokers. At least the Russians are producing value,wall st just steals it.
Your right heartbeat,its been proven time and time again that short selling cannot be defeated unless the SEC and government actually want it gone. I would be happy with the cash and silver would also be a great investment also. I've had my fill fighting short sellers.
Show me a company that has successfully defeated illegel shortselling without being bought out?
Thanks S-T,i had no idea i could make direct investments to AURC. If they accept the deal and the direct investments is still available i certianly will more then consider it.
I think at 38 cents most of the long term longs will get away with even more then a 2 bagger. I will be even more careful about the American stock market from now on. I think i will switch most of my funds away from stocks and into physical gold. The markets have become a license to steal for hedge funds and Market Makers. I now hope they accept the offer.
MrQuietstorm or anybody, could you please tell me what symbol the SOMA shares are showing up as in your brokerage accounts. I am with TDA and i still only have two sets of markers. I'am going to talk to them about them so i need to to know what share symbol the markers correspond too. Thankyou.
Its going to be an interesting day,acceptance or rejection,which ever way it goes the longs will win in the end. This is a real company with real assets.
We were getting robbed by the hedge funds and MMs anyway. This way most of the longs who averaged down will win,but not as much as some of us hoped for. Also those who were due dividends may also benifit in other ways. I'am all for a buyout at 38 cents if this is their plan. Don't forget they already probably have a list of all long shareholders. If there exist more shares out there then issued then the shorts will have to come up with the rest of the cash.
Very possible scenerio. Which company whether it be a pink or big board isn't happy with the American market,with its loopholes for illegel shorting. The American stock market has become a joke. More and more companies are looking for a way out.
If this is what the company has in mind the shorts will find it very hard to cover their naked position. Also there is only around 120 million shares that are unrestricted out there. Thats only a payout of $46 million,the restricted shareholders would go along with it if in the future they see greater returns. They are now a producing company and as they ramp up as a private company they will be able to IPO on a different exchange in the future.
Also the only reason companies want to become listed companies is access to capital from banks and lending institutions. In Aurus case they have already acheived this and have more then enough to self finance their ventures going forward.
If this does take place i will miss being a part of their story. Who can blame them with the naked shorting currently taking place. Being on the SHO list for months on end,being called a scam at every turn,i wish them the best if this is their plan.
I don't need to respond,i just put them on ignore. Amazing how the noise seems to disappear when a few are eradicated from ones stream of consciousness.
I don't have tradable shares from Aturd yet either. I requested the certs weeks ago.
To right JLP,they know not what they have. The best opportunity they probably will ever get in their lives and they are talking about share dumping and touts.
Yea yea yea i've heard all this nonsense before. My success rate in gold stocks over time has been 100%,this is the best one i have ever held. Theirs gold in them hills......and thats a fact!!!!
Sub,they won't accept the offer. Would you be willing to sell your gold for $20 per ounce when you will be able to sell it for $1000 per ounce within 6 months. They have started production,how many other companies can say that.
So many bashers and so many desparate for the company to take the puny 38 cents per share offer.
In 6 months time gold will be over $1000 per ounce and Aurus will be at $5 a share.
The facts:-
1) Kinross payed Bema about $220 per ounce of their gold reserves.
2) Barrick tried to steal Novagold for $40 per ounce of proven gold reserves.
3) Somebody wants Aurus to sell their gold for around $20 per ounce.
Aurc is in an unique position they have started production on their gold reserves. No need for prefeasibility studies,no more need for financing etc etc.
They should be on target to produce 10000 ozs of gold per month very soon.
Give them another 6 months and who knows what the monthly rate of production will be. The following was an excerpt from a previous PR.
"The Company reports that it expects annual revenues of USD 300 million from its three properties by end of fiscal 2007"
Personally i cannot see them ever taking the current offer. The current $112 million offer seems puny to me.
Take it down to 2 cents if you can,i assure you i will be buying.
You really are clueless.Please ARUC manabement reject this offer and give us the latest production numbers.