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Evolve Canadian Aggregate Bond Enhanced Yld Fd ETF V.AGG


Primary Symbol: T.AGG



TSX:AGG - Post by User

Comment by jdn55on Feb 12, 2014 11:38am
244 Views
Post# 22200137

RE:RE:RE:RE:RE:let the hype begin

RE:RE:RE:RE:RE:let the hype beginWell BP we do agree on one thing and that is that yes this can be a very dirty game. With that said, and it has been stated many times, there is a pretty solid core shareholding group that controls 45 - 50% of AGG shares. They're all long term shareholders and they are all fully well aware of just how significant and valuable an asset like Kobada is and these people are not stupid.....well maybe the Sprott people are. It would be difficult for someone to go hostile on AGG at $0.30 or $0.40. At $0.60+ a share I MIGHT even reluctantly consider tendering my shares IF IT'S THE RIGHT DANCE PARTNER AND THE DEAL IS ACCRETIVE TO BOTH PARTIES but I'd sooner see management get this into production as an independent and I can tell you categorically so would management. I know Management and internally they believe that Kobada is worth a lot more than a $1 per share so they'll go down fighting if someone tries a lowball hostile bid. With a property as valuable as Kobada you may actually be able to get an auction process going even in these dismal market conditions. You can't even compare AGG to VTR as VTR's Kiaka was at best a marginal deposit at $1400 gold where as Kobada will be one of the most valuable mines in WA based on $1200 gold. As far as dilution goes if AGG could raise $10MM - $12MM at $0.30 - $0.40, sells some of their Ghana land and maybe raises a $5MM credit facility or some other debt instrument and this gets into production I'll live with that dilution. Won't say I'm happy with it but I can live with it. We'll still have a lot less shares issued than AKG, EDV, SMF or may others and will have enough cash flow to eventually increase production to 200,000 - 300,000 oz per year, probably at a total capex of $100MM - $120MM and they'll be extraordinarily profitable even if POG went to $900 oz. There are other avenues to raise money as well including a JV, royalty streaming deals, debt deals etc. I do know everything and anything is being explored and management will act in the best interests of shareholders as management still owns a big chunk of the company themselves unlike the VTR's and AKG's of the world. They ultimately may not be able to control their destiny but they have a better chance than most others. The bottom line is, despite the market valuation being attached, AGG is the best junior play in West Africa right now IMO and I've followed quite a few of them. The market can be irrational but sooner or later it corrects itself and I'm betting that correction will at least start this year. GLTA
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