FN Media Group Presents OilPrice.com Market Commentary
London – August 23, 2019 – What’s it like to strike it rich? It’s probably like finding gold in the middle of nowhere. Well, that’s exactly what happened…in a corner of a West African country, where miners uncovered a nugget weighing 1 kilogram worth $45,400. Mentioned in today’s commentary includes Eldorado Gold Corporation (NYSE:EGO), Yamana Gold Inc. (NYSE:AUY), Agnico Eagle Mines Limited (NYSE:AEM), Kinross Gold Corporation (NYSE:KGC).
Then, it happened again: a second nugget, weighing 2.7 kilograms, worth $122,500…And what’s still underground could change everything we know about the gold market.
It’s all happened at the Kobada mine in southern Mali, owned and operated by African Gold Group Inc. (AGG.V, AGGFF). It’s a project that sits amidst one of the biggest mineral belts on earth, in a part of West Africa that has just become the capital of the global gold industry.
It’s a place where mining firms are spending hundreds of millions on new acquisitions. And AGG hopes to use Kobada to strike it rich in the next big gold boom.
The company has everything going for it:
A project that is planned to come on-line soon, with a total resource base of 2.2 million ounces of gold worth billions of dollars. A management team of dedicated professionals …led by a titan of the mining world who has turned tiny firms into multi-hundred million dollar powerhouses. All this, at a time when gold prices look sure to hold steady, and maybe even increase. So there’s every reason to bet that this tiny $12 million firm could realize a huge valuation or even potentially get gobbled up …delivering a massive upside to investors who get in on the ground floor.
##1 The Kobada Find…a $140 Million per Year Gold Mine in West Africa
The Kobada Gold Project is in southern Mali—which is important to note. While Northern Mali has had some trouble, southern Mali is stable, safe, and extremely favorable to extractive operations.
The belt stretches over 4 km within a larger 12 km strike length and is entirely owned by AGG. Studies have suggested a total resource base of 2.2 million ounces. The company believes it can hit 50,000 ounces a year and build upwards to 100,000 ounces a year in a short time frame, judging by initial technical and economic studies.
At current prices, that would be $140 million in gross revenue a year… for a $12 million firm. And the company estimates the resource where these gold nuggets were just unearthed at 2.2 million ounces. And there could even be more, depending on what new tests may reveal.
Mineralization is evident at shallow depths, which means miners won’t have to sink big pits or blast away too much rock to get at the ore deposits. That means lower cost—and less time to market.
It used to be South Africa that got all the mining attention. But increasingly, investors are shifting their focus West… where the geology is just being discovered.
In Mali alone, there are at least twenty different mining companies setting up shop. And the regulatory environment couldn’t be more ideal—the Malian government has embraced mining, Mali’s biggest GDP contributor, and has streamlined the permit process.
For Kobada, licenses acquired from the Malian government expire in 2045 and cover an area of 135.7 square km
The area around AGG’s (AGG.V, AGGFF) operation at Kobada is turning into a gold-mining hotspot. According to Mining Intelligence, 61 new assets are in production or construction stages, with 24 assets undergoing economic assessments…and a colossal 367 assets in exploration.
#2 AGG is Inside The Multi-Billion Dollar Birimian Belt
Kobada is part of a massive belt running across a huge swath of West Africa. Mining here has been particularly lucrative, with Resolute and Barrick hitting it big. It’s called the Birimian Belt. And it’s paid out big time for companies who have gotten in on the action.
Take the Morila mine, in southern Mali, just east of Kobada. Operated by gold giant Barrick, the mine has been in operation since 2000. Or what about Tongon in Cote d’Ivoire, also run by Barrick, where 230,000 oz was dug up…worth $322 million. Or consider the Syama Mine, in Mali, operated by Resolute, which estimates it will produce 300,000 oz of gold per year. At current prices, that’s $420 million.
Kobada sits squarely in a belt of mines that have paid out to investors. Better yet, West Africa is only now growing into a new global gold hub…which means things will hopefully only get better from here.
There are potentially hundreds of new assets that lie untapped. That means AGG (AGG.V, AGGFF) could be even bigger than investors realize.
#3 A $4 Billion Find
The discovery of 1kg gold nuggets could be just the tip of the iceberg at Kobada…a hint of what’s to come. Combined with the earlier discovery of a 2.7kg nugget in 2008, this discovery indicates the potential of the find…and it’s bigger than you could imagine.
First, take the company’s projected haul—50,000 oz a year. Valued at the current rate of $1400 per oz, that’s revenue of $70 million. Not bad.
Plus, consider the current outlook for gold. Despite recent news, including the decision by the Fed to cut interest rates, consolidation in the gold market means we can expect the $1400/oz rate to hold steady, or to trend upwards.
With China`s gold buying spree ramping up and increasing international trade tensions, industry experts expect the prices to go up to $2000. And AGG (AGG.V, AGGFF) has a team that knows what it’s doing. They know how to execute on big projects.
#4 World Class — Billion-Dollar — Management Team
The team at AGG is an all-star group of mining industry professionals and financial whizzes who have spun iron ore into gold for decades…and are ready to do it again at Kobada.
Two directors, Sir Sam Jonah and Bruce Humphrey, have a hundred years of combined experience working the finances for mining operations. Jonah served as CEO of Ashanti Goldfields Company Ltd in the mid-1980s, while Humphrey was CEO and President of Desert Sun Mining and COO of Goldcorp, one of the world’s largest gold mining firms. But the real shocker here is Stan Bharti, the company’s new CEO. With thirty years of experience and a jaw-dropping resume, Bharti could lead AGG into a golden age.
His accomplishments include:
- Started and founded Desert Sun in 2002 at $0.40 a share sold 2006 $750 million or $7.50 a share
- Started and founded Consolidated Thompson 2004 at $0.25 a share sold in 2011 for $4.9 billion or $17.50 a share
- Started Avion Gold 2008 at $0.40 a share and sold in 2012 for $400 million or $0.88 a share
- Started Sulliden 2009 at $0.40 a share and sold in 2014 for merged value of $464 million or $ 1.47
He’s amassed more than $3 billion in investment capital for his companies and released countless billions to his shareholders.
His prior experience in Mali was with Avion, acquired for $20 million in 2008. In the middle of the biggest financial crisis in history, Bharti turned Avion around and sold it off for $500 million in 2012.
That’s a 20x growth rate. And Bharti’s ready to do it again.
“It feels like we are in 2003 again,” Bharti said, “at the cusp of a great run in gold and gold stocks.”
With Bharti and his friends injecting $3 million into the Kobada mine project, construction could start soon.
#5 Invest Now, Before it’s Too Late
Gold mining stocks are soaring, and while gold majors are taking center stage, it’s the junior miners are really moving the needle.
Take Eldorado (NYSE:EGO), for instance. In 2018, it’s like the company foresaw the gold rush, ramping up production to net over 349,000 ounces of gold, well above its previous expectations, and boosted production even further this year Additionally, Eldorado is planning increased cash flow and revenue growth this year.
Eldorado’s President and CEO, George Burns, stated: “We expect this will allow us to generate significant free cash flow and provide us with the opportunity to consider debt retirement later this year. “
As a result of its efforts, Eldorado has jumped from $4 in early June to over $8.50 today.
Or Yamana (NYSE:AUY), who has just finished its Cerro Moro project in Argentina, giving its investors something major to look out for. The company plans to ramp up its gold production by 20% through 2019 and its silver production by a whopping 200%.
Recently, Yamana signed an agreement with Glencore and Goldcorp to develop and operate another Argentinian project, the Agua Rica. Initial analysis suggests the potential for a mine life in excess of 25 years at average annual production of approximately 236,000 tonnes (520 million pounds) of copper-equivalent metal, including the contributions of gold, molybdenum, and silver, for the first 10 years of operation.
Canadian based gold producer, Agnico Eagle Mines (NYSE:AEM) is an especially noteworthy company for investors. Why? Between 1991-2010, the company paid out dividends every year. With operations in Quebec, Mexico, and Finland, the company also is taking place in exploration activities in Europe, Latin America, and the United States.
Though the company joins a long list of gold majors that reported losses in 2018, its cash flow deficit is largely attributed to its growth in production and new projects coming online.
Kinross (NYSE:KGC) is another company which has posted a stellar year. While Kinross posted a significant loss in the fourth quarter of 2018, the company has making strong moves to turn around its earnings, including the hiring of a new CFO, Andrea S. Freeborough.
“Andrea’s successful track record at Kinross and throughout her career, including accounting, international finance, M&A, and deep management experience, will be an excellent addition to our leadership team,” said Mr. Rollinson
Like the rest of the industry, the VanEck Vectors Junior Gold Miners ETF, one of the most popular small-cap mining ETF’s, has gone up 50% in the last 2 months.
By. Ian Jenkins
IMPORTANT NOTICE AND DISCLAIMER
PAID ADVERTISEMENT. This communication is a paid advertisement. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by2227929 Ontario Inc. to conduct investor awareness advertising and marketing concerning African Gold Group. Inc.2227929 Ontario Inc. paid the Publisher fifty thousand US dollars to produce and disseminate this and other similar articles and certain banner ads. This compensation should be viewed as a major conflict with our ability to be unbiased.
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of the featured companies and therefore has an additional incentive to see the featured companies’ stock perform well. The owner of Oilprice.com has no present intention to sell any of the issuer’s securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.
FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies, the success of the company’s gold exploration and extraction activities, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.
INTELLECTUAL PROPERTY. Oilprice.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders. The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.
party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with OilPrice.com or any company mentioned herein. The commentary, views and opinions expressed in this release by OilPrice.com are solely those of OilPrice.com and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact e-mail: email@example.com U.S. Phone: +1(954)345-0611