AUIAF - Aurania Resources (AUIAF)(ARU:CA) - Focused on Discovery Highlights from Aurania Resources Investor Webinar
Investor webinar. Aurania recently hosted a webinar for investors and discussed its current drill program and exploration strategy. The company completed Hole 4 at the Tsenken N1 copper-silver target and is awaiting drill results in December before deciding whether to drill a fifth hole. Another rig at the Tiria-Shimpia silver-zinc target just started on Hole 9. While sequencing is fluid, it appears the intrusive-related Awacha and Tatasham copper-gold porphyry targets are next in line, respectively, followed by the Latorre C epithermal gold-silver target.Updating estimates. Aurania does not generate revenue as an exploration company and incurs expenses to advance its projects. Third quarter expenses were higher than our estimate, largely due to greater exploration expense. While we have increased our 2021 loss per share estimate to $(0.53) from $(0.47), we are reducing our 2022 loss per share estimate to $(0.25) from $(0.47) due, in part, to lower exploration expense as a result of a more focused drilling program.Concession obligations. It appears Aurania is beginning to focus on the targets it intends to move forward. In the company’s third quarter filings, Aurania indicated that it expects to reduce the number of concessions in Ecuador by March 2022. Additionally, the company is considering alternatives to advance its project in Peru, including the exploration of potential joint venture opportunities. We might expect this to happen before mid-year 2022 before concession payments in Peru are due.Rating is Outperform. Aurania’s exploration activities at both Tiria-Shimpia and Tsenken N1 are progressing well. While the stock has been weak since around the end of August due, in part, to financing activities and the lack of significant catalysts, we anticipate greater momentum moving into 2022 as Aurania's exploration activities are affirmed with positive drill results and discoveries, potential joint venture announcements, and progress at new targets. Read More >>