In the present state of the world economy, there’s more risk not to be invested in commodity markets than to be invested, which makes Sponsor Auryn Resources (ticker AUG on the TSX and NYSE) the right stock at the right time.
Ivan Bebek and his management team have taken the enforced Covid 19 break to become better organized, more focused and more efficient. Instead of spending time traveling the globe, they have gotten back to basics. “Sometimes you’re so busy drilling that you don’t have enough time to fully analyse the data, and this pause has allowed Auryn’s highly skilled geological team to go in depth.” Ivan believes the results will be apparent for the next drill program. New targets in each of Auryn’s potential Tier 1 swings have been identified and will be explored.
Work on Sombrero and Curibaya will recommence in June. Peru locked down early and as a result will quickly reopen. Sombrero fundamentals continue to improve. During the shutdown, Auryn shipped a large quantity of supplies to the nearby Sombrero communities they’ve been working with. Keeping their communities healthy and positive was extremely important to Ivan and Auryn.
The company’s Canada projects are coming along as well. The team worked hard to prepare a highly positive PEA on the Homestake Ridge project in Canada in hopes of an eventual sale. Ivan’s optimistic that Committee Bay will start showing its true potential shortly as well.
And of course there’s the potential to split the company into three seperate entities. The spin co will enable each outstanding project to command its own market valuation, which will be a major plus for Auryn’s shareholders. As Ivan says, “The timing is more than worth the wait.”
Finally we discussed the recent price decline in Copper. Of course the increase in gold prices has more than offset copper’s lower price. But Ivan is unconcered, as he should be. The uses of copper keep expanding. It held $2 per pound and has gone up substantially since then. Many major mines have been shutdown and there will be a steep startup curve to reopen them. So the future looks bright.
As Ivan said, “Auryn was built for this market and it’s not going to disappoint.” All of the needed catalysts are lining for Auryn to be an extremely profitable investment. Which is why I personally own shares in the Company.
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