AKG mentioned in The Gold ReportTGR: ......and Asanko Gold Inc.'s (AKG:TSX; AKG:NYSE.MKT) takeover of PMI Gold Corp. has just closed. What do you think of Asanko?
GM: With Asanko's acquisition of PMI Gold, the company gained around 4.5 Moz gold in resources, bringing its total to just over 10 Moz. Asanko is a re-invigorated company now with significant potential and financial flexibility having over US$270 million (US$270M) in cash and up to US$150M in undrawn debt. All of Asanko's assets are in Ghana and we're looking at the company heading down the development road later this quarter, targeting initial production by 2016 and growing from there. We see the company's plan of initiating production from the higher-grade deposits at Obotan as a prudent, lower-risk strategy that facilitates organic growth funded from operating cash flow.
TGR: What's your rating for Asanko?
GM: We've given it a Buy rating and a target price of $3.75.
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