"AURORA GOLD seems to have "Capital Return" written all over it. This was the writing on the wall when the GUINNESS PEAT GROUP acquired RIO's 35 per cent share some twelve months ago - making a 10c per share offer for AUG when its cash backing was some 17c - and now has some 40 per cent of the miner. GSP is sitting in the box seat, with its representative Michael Jefferies seconded to be managing director and CEO of AUG. Aurora at March 31 had 12.5c a share in cash. Its principal asset, 50 per cent of the 6.3 million Morobe gold resource is up for sale and could be worth an extra $3 a share. Shares of Aurora yesterday sold at 17.5c.
Disclaimer: I don't own any AUG shares. The company repeatedly claimed in announcements and on the phone that things were improving in Indonesia. I lost interest when they sold out of Indonesia and we gradually learnt from various sources what the truth was about their Indonesian and PNG "plans" ... have little faith in the $3 comment above.
