RE:RE:QUESTION for our more experienced AGG Shareholders.I don't think there is any one single answer as to why AGG is perpetually undervalued. I've been here from the start and initially made great money on AGG buying a big position between 5 and 20 cents during the financial crisis and riding it up to over a $1 in 2010/11, sold out completely and then got back in as it was going back down in 2012. In hindsight that was a mistake but I have always believed in Kobada the asset.
In my opinion some of the reasons this is undervalued are:
- Even though gold sector is enjoying a lift in the last year there is still not much interest in the juniors but this is starting to change. The juniors are always last to get a lift.
- AGG is still perceived by many as an explorer as opposed to the advanced stage developer it is.
- Bharti discount. A lot of investors won't touch anything Bharti is involved with as he is perceived to be a greedy SOB who gorges at the trough. With that said his AGG pay isn't overly excessive at least last time I looked.
- Mali geopoltically became a big problem in 2014. AGG never really did recover from that coup and when the jihadists over ran the north and were threatening Bamoko.
- Problems with illegal miners over the years.
- Kobada is a low grade deposit. There's a real misperception on this point. Yes Kobada is relatively low grade but it's also going to be extraordinarily low cost to put into production as well as low cost to mine. IMO Kobada will be extremely profitable to mine but it may be a show me story. In other words the market is still skeptical. Hopefully the new DFS changes some of that perception.
Take your pick or choose all of the above in answer to your question Goldfinger. GLTA and stay safe!