The shares of Aurcana Corporation (CVE:AUN, AUN message board), (PINK:AUNFF) have made an impression on the markets again. This time with the trading volume by setting new records. Perhaps, it is time for the price now to follow suit. Will it happen?
Yesterday’s session on the TSX Venture Exchange (CVE) will surely be remembered with the large turnover of 7.36M shares. It exceeds 6.5 times the average and is a record in company’s trading history. At the same time, the price went slightly up by 8.5%; in the end of the day, AUN closed the trading at $0.89.
It is not very easy to define the exact reasons for the current volume spike. It could be a speculative interest towards the company’s shares. Maybe, it has also something to do with yesterday’s announcement by Aurcana. The company informed that the Canadian Exchange approved the amended terms of the $10M convertible debenture, which Aurcana issued to Silver Standard Resources Inc. in July 2008.
![Aurcana_-_Chart_-_6_Apr_2011.png]( "Aurcana_-_Chart_-_6_Apr_2011.png")
The debentures were a part of the payment terms for the Shafter silver mine acquired by the company from Silver Standard. According to an earlier release by Aurcana, the maturity date of the debenture will be extended to July 15, 2012.
The news from yesterday might have stirred investors positively, but could it explain the record turnover? Not easy to say. It is interesting to see if the price will follow the volume and if there will be a price spike too.
Aurcana certainly holds potential. The company looks financially stable, having completed a $60M equity offering last December. As mentioned in an earlier article, it reported a 72% increase in silver production and in gross profit, and a 43% rise in net revenue in comparison with the third quarter of 2009. The quickly rising silver price could also aid the shares’ efforts to rise.
On the other hand, not everything is so bright for Aurcana. The mentioned Shafter mine is expected to start production not earlier than mid-2012 and till then it will not bring any revenue. The latest financials showed some negative trends as well, such as a 42% decline in the net income. The public still awaits the new financial reports for the last quarter of 2010. They have not appeared yet and seem to be a bit late, which is hardly appreciated by investors.
![1Aurcana_-_Logo_2.png]( "1Aurcana_-_Logo_2.png")
Finally, in its March 2011 presentation Aurcana promises the public to reach an annualized pure silver production of more than five million ounces by 2012. Only the future will show if this will turn into reality, or the company’s directors have been a little bit too optimistic.
Yesterday’s session on the TSX Venture Exchange (CVE) will surely be remembered with the large turnover of 7.36M shares. It exceeds 6.5 times the average and is a record in company’s trading history. At the same time, the price went slightly up by 8.5%; in the end of the day, AUN closed the trading at $0.89.
It is not very easy to define the exact reasons for the current volume spike. It could be a speculative interest towards the company’s shares. Maybe, it has also something to do with yesterday’s announcement by Aurcana. The company informed that the Canadian Exchange approved the amended terms of the $10M convertible debenture, which Aurcana issued to Silver Standard Resources Inc. in July 2008.
The debentures were a part of the payment terms for the Shafter silver mine acquired by the company from Silver Standard. According to an earlier release by Aurcana, the maturity date of the debenture will be extended to July 15, 2012.The news from yesterday might have stirred investors positively, but could it explain the record turnover? Not easy to say. It is interesting to see if the price will follow the volume and if there will be a price spike too.
Aurcana certainly holds potential. The company looks financially stable, having completed a $60M equity offering last December. As mentioned in an earlier article, it reported a 72% increase in silver production and in gross profit, and a 43% rise in net revenue in comparison with the third quarter of 2009. The quickly rising silver price could also aid the shares’ efforts to rise.
On the other hand, not everything is so bright for Aurcana. The mentioned Shafter mine is expected to start production not earlier than mid-2012 and till then it will not bring any revenue. The latest financials showed some negative trends as well, such as a 42% decline in the net income. The public still awaits the new financial reports for the last quarter of 2010. They have not appeared yet and seem to be a bit late, which is hardly appreciated by investors.
Finally, in its March 2011 presentation Aurcana promises the public to reach an annualized pure silver production of more than five million ounces by 2012. Only the future will show if this will turn into reality, or the company’s directors have been a little bit too optimistic.
