Aurelia Investors - Further Upside

Here’s why another top fund manager thinks there’s further upside for junior gold miner Aurelia Metals (ASX:AMI) shares
By Bruce Jackson
https://thecapitalclub.com.au/2018/...nior-gold-miner-aurelia-metals-asxami-shares/
June 27, 2018


The Eley Griffiths Emerging Companies Fund has joined the ranks of other leading small cap fund managers in owning Aurelia Metals Ltd (ASX:AMI).

In its May report, the fund said its monthly performance was boosted by some of the newer names to the portfolio, including the gain of 55.8 per cent in the Aurelia Metals share price.

The fund said the ~200,000 ounce per annum gold producer has a strong board — with ties to Evolution Mining Ltd (ASX:EVN) — has made a timely acquisition by buying the neighbouring Peak mine, an acquisition that is tracking ahead of expectations, and Aurelia shares are trading on an attractive valuation of around three times EBITDA.

The Aurelia Metals share price has been one of the top performers over the last 12 months, rising around 220 per cent.

Aurelia’s focus is the development and ongoing exploration of the Hera-Nymagee Project in Western NSW, which includes the high grade gold and base metal Hera deposit and the emerging high-grade copper discovery at the nearby Nymagee copper deposit.

Eley Griffiths think that based on peer production comparables, Aurelia Metals shares can trade at ~A$3,500/oz, something implying further upside from here, despite the good run in the share price.

Ely Griffiths join a number of leading fund mangers who have declared positions in the company, including the Ausbil MicroCap Fund naming it as one of their top 10 stocks. Pie Funds and QVG Capital have previously named the company as one of their holdings

At 57.5 cents, Aurelia shares are already 16 per cent higher from when we said it was one of the cheapest stocks trading on the ASX.