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

Asanko Gold: Shares Trade At Cash And Have Multi-Bagger Potential After The PMI Gold Deal

Since announcing its intent to acquire PMI Gold (OTC:PMVGF) nearly a month ago, Asanko Gold (NYSEMKT:AKG) shares are down roughly 20%. On the one hand this isn't surprising given that the deal nearly doubles the number of Asanko shares outstanding. However the stock's weakness in the face of the prospect of an increased share supply runs counter to the fundamental observation that the impending deal is accretive to Asanko on a per-share basis. There are two reasons for this.

    As Asanko points out in its PMI acquisition presentation the relative proximity of the companies' flagship mines--Esaase and Obotan--allows for shared infrastructure that will lower overall capex costs. The company now has a cash hoard sufficiently large ...
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