Gediminas Jasionis
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Aura Minerals Inc. (TSE:ORA) (PINK:ARMZF) Stock Refuses To Advance

by Gediminas Jasionis Nov 23, 2011
ora_chart.pngAura Minerals Inc. (TSE:ORA) (PINK:ARMZF) stock price struggles to pass above a short term resistance even as the company's market value has become ridiculously low.  

On Tuesday ORA recorded a trading volume of 9.6 million, more than ten times the average of 926 thousand. Despite this heavy activity the stock price didn't manage to break the short term resistance at $1.25 per share.

Aura had no important news recently but reported third quarter results last week which might still have effect on the behavior of their stock price.

During the quarter Aura produced over 44 thousand ounces of gold. The on-site average cash cost to produce it was rather high - $1,181 per ounce, while the average realized gold price was $1,683 per ounce. Still, Aura ended up with solid $80.1 million in sales.

aura_minerals_logo.jpgThe company recorded $37.3 million net loss for the period but had a $5.1 million profit after adjusting for inventory write-offs, impairment and other expenditures. They ended the period with $20.6 million cash on hand and another $5 million remaining under a credit facility and are well funded for future operations.

Moreover, the company had management changes. Effective October 18 the company had Mr. James M. Bannantine to take the positions of president and CEO replacing a previous interim CEO Mr. Tom Ogryzlo.

Currently Aura Minerals holds a market cap of $262.2 million versus 344.6 in book value thus the their situation favors bulls slightly more than bears.

Comments (1)

1. Guest
December 08, 2011, 05:14AM

Quotes The post is amazing, lots of great information keep up the good work.
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