As a holder of African Aura for well over a year, I can provide...

As a holder of African Aura for well over a year, I can provide a bit of background here.

Comparisons are often drawn by shareholders of African Aura between our Cameroon licenses and Sundance's projects.

I think the point of the article that sparked this thread is that if you look at the relative market capitalisations then the upside for African Aura looks very compelling indeed. African Aura are targeting 4 billion tonnes of iron ore in Cameroon, with an aggressive drill programme for 25,000 metres underway and a 1 billion tonne inferred resource achieved from drilling 3km of a total 20km strike length.There's also the Ngoa prospect in Cameroon, 70% owned by African Aura. It's closer still to the proposed rail line, and 11 shallow drill holes have been completed and results expected.

In terms of infrastructure, the fact that Sundance's proposed rail line passes straight through the license that holds the Nkout and Ngoa is seen as a massive positive. It should also be seen as a positive for Sundance, as the development of a number of prospects in the region should be of mutual benefit.

Back to comparisons, African Aura have a market capitalisation of about A$318m (?200m). African Aura is listed in the UK (AAAM.L) and Canada (AUR.V)
It's projects are at an earlier stage compared to Sundance's, but the current valuation looks cheap to me. I've no doubt that African Aura will reach their 4 billion tonne target in Cameroon at some stage, unless they get bought out first - but rather than a threat it should be seen as a positive. If anything, think of it as an opportunity.

In addition to its Cameroon prospects, African Aura hold a 38.5% interest in the Putu project (JV with Severstal) where a resource upgrade is expected soon. This JV is for Putu only, and does not include Cameroon.

Lastly, African Aura are soon to demerge their gold division into a new company called Aureus. Their assets include the 1.5 million ounce New Liberty Gold project in Liberia, plus a host of very promising satellite deposits in the same license.

I keep a close eye on developments here, and the progess since the tragic events of last year has been incredible.

All the best