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Aureus Mining continues to rebuild

Published: 07:59 14 Nov 2016 GMT

Gold-plus-dollars
New money has now come in to finance a transition to owner-operated mining

Shares in Aureus Mining Inc (LON:AUE) ticked up by more than 11% in early trade to 2.12p after third quarter results showed revenues of US$18.8 mln on sales of more than 14,000 ounces of gold.

Aureus’ operations in Liberia had a troubled start, but following an injection of new funds and a change in management, efforts are well underway to steady the ship. Debt repayments have been deferred and major modifications to the plant have begun. The aim is to try to improve recoveries and to get costs down.

At the moment, cash costs are running at nearly US$2,000, which is unsustainable in the long-term.

But there was US$5.9 mln in the bank at the end of the quarter and another US$16.7 mln in inventory. If that seems tight, it’s probably all that’s needed to give the company a little wriggle room while shareholders approve a US$76 mln fundraise that was completed post the period end.

 

 

 

 

 

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