Hi, people. I still have some AUG shares, simply because the upside looked to potentially be several multiples of the downside. It's good to see a thread with a balance of pros and cons presented in this thread. As time goes by, the full story will out and a resolution will be reached.
What's frustrating is how hard it is to find out exactly what's going on, without significant effort. For instance, I contacted the company and was simply referred to the chairman's recent address and I contacted Margin Call from the "Australian" (because he had previously done a special on the attempted takeover of AUG some months ago) and got no further feed back than he would look into it.
It's well understood that PNG is hardly flavour of the month as far as sovereign risk is concerned and that much of what AUG has is in the ground, but that hasn't stopped gold bugs getting excited about LHG (PNG) and OXR (world class deposit of largely copper in Asia and way short of earnings from full scale production), in what is supposed to be a bull market in gold, if the gold bugs are right. AUG's unusually good cash position certainly helps and the Indonesian pull out is all but finalised as they move to concentrate on their Australian operations.
