Stocktube video
19/03/2012

Afferro Mining CEO says company is fully-financed for development beyond 2013

View full size
Additional Information
Market: AIM
Sector: General Mining - Iron Ore and Bauxite
EPIC: AFF
Latest Price: 46.25p  (-0.54% Descending)
52-week High: 121.50p
52-week Low: 39.00p
Market Cap: 48.57M
1 year chart
1 day chart
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Afferro Mining
www.afferro-mining.com

 

Afferro Mining Inc. is an established TSX and AIM listed iron ore development company with projects in west Africa.

The Company is managed by a team with strong track records in the discovery and development of new commercial deposits.

 

Pdf

Company split should help market recognise African Aura’s ‘substantial value’, says Evolution

3rd Sep 2010, 1:50 pm Kernot said he was bemused by the recent share price response

The only area of African Aura Mining (LON:AAAM) operations that has not moved ahead is the share price, according to Evolution Securities mining analyst Charles Kernot.

In a note to investors, Kernot examined this 'anomaly of the market’, highlighting that the company’s proposal to split into two entities - to focus on its gold and iron assets separately - “should help the market to recognise the substantial value” inherent in both sides of the business.

However, Kernot said he was bemused by the recent share price response and emphasised that Evolution is strongly reiterating a ‘Buy’ recommendation for African Aura, targeting 210p per share.

“Clearly we see that there is additional upside potential beyond this level but await the results of the scoping study at New Liberty, which is expected in October”.

Kernot emphasised that African Aura has been busy over the past three months, as it pushes forward with exploration on its key projects. The analyst expects the subsequent drilling results to lead upcoming news-flow.

The analyst also looked at the company’s valuation compared to its immediate peers, specifically Mauritania-focused Sphere Minerals (ASX:SPH) - who are currently the subject of a A$428m (US$376m) takeover bid from Xstrata (LON:XTA).

Kernot suggests that the valuation of Xstrata’s bid for Sphere, which priced in a A$1.00 premium, would bode well for the value of African Aura’s resource.

Evolution estimates that the bid values Spheres’ 986Mt attributable resource at US$0.38 per tonne, and values the 710Mt adjusted resource, which takes into account geological confidence, at US$0.53/t.

“Allowing for an expected doubling of resources at Putu ... and assuming an inferred resource at Nkout, yields gross and adjusted resource valuations for African Aura of US$0.12/t and US$0.24/t, respectively”.

“This valuation confirms that African Aura’s current market capitalisation only reflects a part of the worth of its iron exposure ... An increase in geological confidence would enhance that valuation further”.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.