Aurora Acquisition Corp (AURC)

[ekythump]

Even if they paid the full price for the value of the gold in the ground, they wouldn't have paid $4 billion for it. My guess (I think this has substance to it) is that since Aurus is working with the Russian Gov't to bring these mines to fruition, they don't permanently own them. They likely have to give up the rights to some of them after 10-15 years and since they are worth $4 billion now, they have to return an asset valued at $4 billion. The salvage is not discounted until the mining is done.

I also think that any cash they paid for these mines is going to be accounted for over time. In the same way you break up big capital gains over a period of time, you would break up any big purchase over a period of time. This is an EXTREMELY common and well accept accounting method. Therefore it is my guess that if these purchases were discounted over, say, 10 years, then it looks like $80-$150 million was paid for them.

Those who sold the propert are STILL benefitting from further production--this is KEY. They are NOT done being rewarded and the $4 billion is not what they paid for the mines, it is what they owe back based on today's valuation.

I'm not an accounting expert, but I am well read and this is my conclusion. Hopefully whoever said Parkin will clear this up soon wasn't BSing.

-Chris