Replies to post #39253 on Aurora Acquisition Corp (AURC)

[michael_a_berenis]

Reply to mfbeale


1. I think the current OS represents the value after the dividends were disbursed. Our dividends are held up in some paper transit traffic at the brokerages possibly; the only reason I can logically think of why we haven't gotten them yet, but the OS increased


2. I agree completely, its anyones guess as to the price. I think that three to four dollars is a good buyout thats relevent to the current price; but the current price is a manipulated FALSE price due to illegal shorting. Therefore, it seems illogical to base a buyout price from the current price. Also, I do think your twenty six dollar per share buyout is minimal, you need to figure in the rise of metal prices for the duration it takes to produce the materials.

3. I think its ok for them to sell the total OS as stated; the total OS of aurc.pk. Aurc owns the land, therefore they aren't technically selling the land, they are selling the company that owns rights to the land.

[bikerider99]

to answer your question two, is all about return on assets.
to dig the gold out of the ground there are some production costs. is like you wanna buy an empty lot put a house on it and then sell it knowing it will be valued around 1mil. now if you know the house + the lot together are worth 1mil, you wouldn't pay 1mil for the lot alone. pay 1/2mil for the lot spend 300k to build the house ans sell the whole thing for 1mil, and there you go 200k profit for you.
now to go back to the mine, unless the gold is already in bar form and the only cost is to transport it to the bank, even then the buyer would only pay less than the actual value as you would think they want to make a buck too.

[Lochan]

I agree that with an inventory of precious metals valued
at $8.5 billion, an offer in the $3-4 range would not be sufficient to induce the Board of Directors to attend a special meeting. My belief is that the buyout offer is in the
vicinity of $7/share which the officers would find attractive enough to seriously consider and which would allow the buyer to make a great enough profit on the sale of the minerals.

Reading between the lines of the PR, I would say that the deal is practically a lock, and that the Board
of Directors is being convened to vote for and sign the final draft on Tuesday. Just my opinion though.

[snow]

mf

You cannot have read my posts. You have completely misunderstood what is meant by assets. There could be assets worth 10 billion and no real value. The reason is that the assets are the gross value of the metals. It costs money to extract the metals. The real value is after those costs have been paid. We don't know how much that will cost. There are various metals and the cost of extract them presumably varies from metal til metal.

[specbidder]

mfbeal,that third point you made was very interesting:-

" 3. Wasn't the consensus of opinion or Russian law that the assets could not be totally sold out of the state itself ie the majority of the shares had to stay in the ownership of the country? "

Would like to have other knowledgable posters address this question. Obviously BGO with the Kupol mine has to solve this problem,so that would be a good point to start some DD.

[Dennisb68]

Because 8.5B is assets if they were on the market. First you have to mine them and get them to open market and that takes a lot of money. Woud you pay $30,000 for a car valued at $30,000 if you knew it was going to cost you anouther $15,000 to have it delivered? NO, but you might pay $10,000 for the car if you had to pay another $15,000 to have it delivered.
Obviously, anyone interested in buying the company wants to show a profit for their work and investment so they aren't going to pay 8.5B or anything close to that.