Aurora Acquisition Corp (AURC)

[WhiteSahara]

Swanky, on valuation of AURC I have spreadsheet in continued updating. This is all my very humble opinion and is very open to critique:

Current Share Structure Thanks to Rigatoni Updated 1/27/06
Authorized 500,000,000
Outstanding 109,000,000
Restricted 91,000,000 One year restriction from Dec 2005
Cur Float 18,700,000
No preferred shares outstanding

Reserves as Stated by TOP AUDIT

Gold Spot Price 5,200,000 ozs $525.00 $2,730,000,000.00
Silver Spot Price 30,000,000 ozs $9.00 $270,000,000.00
Tin 65,400 Tons $6,000.00 $392,400,000.00
Lead 79,203 Tons $1,040.00 $82,371,120.00
Copper 17,730 Tons $4,240.00 $75,175,200.00
Zinc 336,965 Tons $1,860.00 $626,754,900.00

January 2006 Metals valuation $4,176,701,220.00

Production Value per ton
Value Value
Quantity Metal per OZ per LB
0.8 Ounces per ton Gold $525.00 $420.00
4.7 Ounces per ton Silver $9.00 $42.30
25 Pounds per ton of Tin $3.00 $75.00
128 Pounds per ton Lead $0.52 $66.56
7 Ibs per ton of Copper $2.13 $14.91
129 lbs per ton of Zinc $0.93 $119.97

Metal value per ton $738.74

Production Estimate per Year and Value
Value Value
Quantity Metal per OZ per LB Annual Value
384000 oz of Gold $525.00 $201,600,000.00
2256000 oz of Silver $9.00 $20,304,000.00
12000000 lbs of Tin $3.00
60000000 lbs of Lead $0.50
3360000 Ibs of Copper $2.13
92640000 lbs of Zinc $0.93

Annual Gross Income *$525 * 384000 $221,904,000.00
$9.00* 2256000
Annual Expense Estimate ?$380 384000 $145,920,000.00
$75,984,000.00
*Based on conversation with Mr. Parkin the sale
value of brick gold is slightly less than spot price

?Based on conversation with Mr. Parkin the cost
to produce 1 oz of gold is less than $400 per oz
Cost figure used is $380 per ounce

Annual Loan Service
$100,000,000.00 in financing for equipment Annual Expense $15,000,000.00
Based on conversation some have had with Mr.
Parkin, he plans to finance and not dilute the
existing share structure past the 110 million.

Estimated Annual Income at full production and Financing $60,984,000.00



Miscellaneous
480000 Tons to be processed annually
1600 Tons per day on a 300 day work year

Labor expense per man hrs per wk 50
wks per yr 52
Average per hour $4.00 Annual Income 2600 $10,400.00
Men required 500 $5,200,000.00

2002 Labor statistics yielded Russian Labor at 1/11th of US per capita income.
Basing this on a $20.00 per hour of US labor yields a rate of about $1.80 per hour
Round upt to 1/7th of US income ration yields the $3.00 per hour income. I used $4.00 per.
For competitive comparison, Mr. Parkin stated that labor costs are 25% below South Africa
the country with which all compete for sales.

Gold has been processed very profitably in the US at $400.00 per ounce since 2004, the estimate for income
is at least $150 per ton of ore. Note, this does not include any other metal income, simply income from Gold.

Per conversation with Mr. Parkin, Gold and silver are the only two metals being processed at
the site. I will ask if they have plans of subcontracting copper, zinc, lead etc producton.

Note: The $380.00 per ounce figure was based on US production with over 10 times greater earnings
per man. Also note lower yields per ton of Gold in the US mining ores.
Gold prices have few reasons to drop and many to rise, industiralization of Brazil, India, China, and East Europe,
increase of high end electronics will continue to place upward pressure on the baseline need for Gold.
Also, the DD done by Ninjaturtle, China's immediate goal to obtain 1900 tonnes short term will provide upward
presure on the price of AU.

VALUATION
Using the outstanding shares of 110,000,000 as a factor, the est income per share is at least 0.55
Using the available shares of 423,000,000 as a dilutive factor the income per share is .at least .15 per share.
Using the available shares of 500,000,000 as a dilutive factor the income per share is .at least .13 per share.
Using a PE of 10 AURC values at around $5.50 per share when financing is utilized
Using a PE of 10 AURC values at around $1.30 to $1.50 when full production is achieved.


http://www.infomine.com/investment/metalschart.asp
http://www.worldbank.org/annualreport/2002/box/table6_1.pdf#search='russian%20per%20capita%20income'....
Sample of a firm and it income going vertical as gold prices have risen

Compania de Minas Buenaventura SA (BVN)
View: Annual Data |
Quarterly Data
PERIOD ENDING 31-Dec-04 31-Dec-03
Total Revenue 336,828   241,189   31-Dec-02
Cost of Revenue 159,776   123,799   194,231  
109,035  
Gross Profit 177,052   117,390  
Operating Expenses 85,195  
Research Development -   -  
Selling General and Administrative 63,295   66,041   -  
Non Recurring 2,901   1,328   43,832  
Others 4,231   -257 2,118  
Total Operating Expenses 70,427   67,111   -436
45,513  
Operating Income or Loss 106,625   50,278  
Income from Continuing Operations 39,682  
Total Other Income/Expenses Net -30,179 -18,695
Earnings Before Interest And Taxes 409,886   2,728   -32,288
Interest Expense 2,288   2,459   -5,527
Income Before Tax 407,598   269   4,616  
Income Tax Expense 31,135   -56,437 -10,143
Minority Interest -8,602 -14,428 -13,940
Net Income From Continuing Ops 209,769   71,134   -6,460
Non-recurring Events 10,257  
Discontinued Operations -   -  
Extraordinary Items -   -   -  
Effect Of Accounting Changes -   -20,462 -  
Other Items -   -   -  
-  
Net Income 209,769   50,673  
Preferred Stock And Other Adjustments -   -   10,257  
-  
Net Income Applicable To Common Shares $209,769   $50,673  
$10,257