Aurelian Resources – Sector
Outperformer – Speculative
Aurelian Resources (ARU–SO–S) remains our top pick for a takeout
candidate in the gold sector. The company owns the large Fruta del Norte deposit in
Ecuador, which holds the key to growth for many of the major gold producers in the
world. The deposit has an identified resource of 13.7 million oz. of gold
and could be mined at a rate of about one million oz. per year.
We are not changing any of our numbers for Aurelian at this time. The
company’s share price is being driven off of political events in Ecuador
more so than gold price movements. We are expecting that we will see some progress
in the first half of the year towards mining law resolution in the country and
with that certainty established, we could see corporate activity escalate as the
ground rules for mining become established.
document.getElementById("MsgContainer").innerHTML='\x3cpre\x3eWayne, \x3cbr\x3e \x3cbr\x3eCIBC World Markets wrote this on ARU as part of a larger note this weekend \x3cbr\x3eon the gold sector. FWIW CIBC has \x26\x2334\x3bspec buy\x26\x2334\x3b and a C\x26\x2336\x3b20 target on ARU \x3cbr\x3e \x3cbr\x3em \x3cbr\x3e \x3cbr\x3eAurelian Resources \x26\x238211\x3b Sector\x3cbr\x3eOutperformer \x26\x238211\x3b Speculative\x3cbr\x3eAurelian Resources \x26\x2340\x3bARU\x26\x238211\x3bSO\x26\x238211\x3bS\x26\x2341\x3b remains our top pick for a takeout \x3cbr\x3ecandidate in\x3cbr\x3ethe gold sector. The company owns the large Fruta del Norte deposit in \x3cbr\x3eEcuador,\x3cbr\x3ewhich holds the key to growth for many of the major gold producers in the\x3cbr\x3eworld. The deposit has an identified resource of 13.7 million oz. of gold \x3cbr\x3eand\x3cbr\x3ecould be mined at a rate of about one million oz. per year.\x3cbr\x3eWe are not changing any of our numbers for Aurelian at this time. The\x3cbr\x3ecompany\x26\x238217\x3bs share price is being driven off of political events in Ecuador \x3cbr\x3emore so\x3cbr\x3ethan gold price movements. We are expecting that we will see some progress \x3cbr\x3ein\x3cbr\x3ethe first half of the year towards mining law resolution in the country and \x3cbr\x3ewith\x3cbr\x3ethat certainty established, we could see corporate activity escalate as the \x3cbr\x3eground\x3cbr\x3erules for mining become established.\x3cbr\x3e\x3c\x2fpre\x3e';