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11/10/17

Auryn Resources (AUG.v): A cash thing

EDIT: I got Goldcorpse mixed up with Kinross. Brainfart, the rest stands.

The 3q17 financials out of Auryn Resources (AUG.v) last night made for interesting reading, with the statement of cash flows really catching the eye of your humble scribe:


 
Back in January 2017, AUG raised a cool C$41.172m gross proceeds (C$38.911m net...gotta pay the middleman) at C$3.67 for the normal shares and C$5.01 for the flow thru shares (Kinross Goldcorp, hold that bag) and as that highlighted item shows, C$24.714m has been spent on exploration and evaluation already, so where has the money gone?

A bit of extra digging shows that in January AUG had the intention of spending C$15.5m on its flagship Committee Bay project in Canada, as well as C$7.5m at its Homestake project and then other stuff. Up to date they've kept the Homestake project under budget ($5.638m), but the C$22.53m dumped into Committee Bay is an eye-watering overspend. The company's cash pile is now down to C$15.357m and with C$9.3m of that already committed in Q4, the conclusion is obvious even before the drills start turning on the Peru gig.

Hey Kinross Goldcorpse! If you liked buying into this at $3.67, you're gonna love the chance to repeat at $2.00, right? Right?