- African Gold Group has raised more cash to advance the Kobada gold project in Mali and to remove the working capital deficit (for now).
- As the working capital was negative, this placement shouldn’t have come as a surprise, it’s just a shame to see the market still isn’t properly valuing the project.
- The investment thesis will change, as with every additional share added to the share count, the fair value per share decreases.
African Gold Group: Realistic Updated PEA Aims At Improving Financing Possibilities, But The Magic Seems To Be Gone
- African Gold Group is a West African junior gold developer, with the profitable Kobada gold project in Mali.
- The updated Preliminary Economic Assessment presented viable economics, although no longer outstanding but average, for a smaller project with a smaller economic resource and less potential.
- The earlier anticipated lowered initial capex aims at improving financing possibilities in this harsh economic environment, but I consider project economics no longer robust enough considering country risk for Mali.
- Besides the ongoing "African Discount" for Mali, I consider management's surprising operational forecasts and presentation tactics to be an increased investment risk as well.
- Therefore, my investment thesis changes considerably, but I still see African Gold Group as a little junior with upside potential.
- African Gold Group releases a pretty decent PEA on a smaller Kobada gold project.
- The downsizing was expected, but without much warning the company has only completed a study on the PEA-level and not on the Feasibility level as originally promised.
- The much lower capex should be easily financeable and the payback will occur within two years.
- The investment thesis will have to be updated to take the new lower production scenario into account.
African Gold Group: Recent Dumping Of Junior Mining Shares By Pinetree Capital Provides A Unique Opportunity
- African Gold Group is a West African junior gold developer, with the very profitable Kobada gold project in Mali.
- The company continues to improve the Kobada project by increasing metallurgic recoveries, and the upcoming updated Preliminary Economic Assessment is expected to confirm excellent economics.
- The share price was already suffering from low gold, Ebola and slow progress.
- A fourth downside catalyst emerged as Pinetree Capital dumped a large stake in African Gold Group and other juniors because of funding needs elsewhere.
- As I see African Gold Group as a little junior with tremendous upside potential, this sell-off could provide an excellent entry opportunity.
Update: African Gold Group Reveals Excellent Recovery Rates At Kobada
- African Gold Group’s gold recovery rates are higher than anticipated.
- This is a positive surprise as my original thesis was based on the base case assumptions.
- I will wait for the next economic study before writing an in-depth update on African Gold Group.
African Gold Group: When Mali Cools Down, This Could Be A Big Winner
- African Gold Group is a West African junior gold developer, with the potentially very profitable Kobada gold project in Mali.
- The recently announced intended take over of nearby Papillon Resources by B2Gold indicates a positive outlook on Mali developments.
- The Kobada project is advancing very well since resources were increased considerably last year.
- The company continues to improve the Kobada project, and the upcoming NI43-101 resource estimate update (August 2014) and Feasibility Study (November 2014) are expected to confirm excellent economics.
- When the Mali conflict would be over, and the company reaches production, investors could be in for a serious re-rating.
African Gold Group - How Big Will Kobada Turn Out To Be?
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