Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Aura Minerals: High Risk, Higher Reward

Executive summary:

  • Aura Minerals shares have collapsed due to weak metal prices and the risky nature of its mining assets.
  • The value of the company's assets far exceeds its current valuation.
  • If management can bring this value out in a timely fashion the shares can generate triple digit returns in a short period of time.
  • Investors who are looking for investments in high risk/high reward mining companies should consider taking a small position in Aura Minerals.

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Aura Minerals (OTCPK:ARMZF) has been a disastrous investment. Since peaking in 2008 the shares are down 99%.

(click to enlarge)

(Source: Google Finance)

Undoubtedly Aura Minerals is in a dark place right now. We see this by looking at both...

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