Post by
Toasted2 on Aug 23, 2011 1:59pm
If want a decent junior gold company...
Cottager....
If you want to buy a decent gold company with solid upside and very little downside, I cant see you doing much better than African Gold Group (agg-v). Check it out.
They have over 1 million ozs in the ground already (43-101 compliant) at their one property, located in one of two of the better areas of Africa- Ghana and Mali. At present prices that's a $1.8 billion resource! Management has a big stake in the company as do a few institutions. The company is presently trading at around 55 cents which gives it a market cap of under $60 million...
Think about it.... a company trading for less than $60 million with a gross metal value in excess of $1.8 billion. The 43-101 resource does NOT include much of the drilling for 2010 and the strike is still open in a number of directions.
A recent economic assessment was just done on the property and returned a Net Present Value of $216 million or about 4 times higher than what the share price presently trades...That assessment was done using $1100/oz for gold and a discount rate of 5%...both of which are extremely conservative...
It's also a near surface oxide deposit so the economics of extracting the gold are very favorable with conventional techniques...
IMO AGG-v is as much of a no brainer as your ever going to find...Pretty solid for a junior...
T2
P.S. Whisper numbers for the number of ozs in ground sounds like its quite a bit higher than what has been reported...that having been said, whats already been shown to be in the ground justifies a price at least 4 times higher than where we are at...When the senior gold start to snap up these little companies to replenish their reserves with record cash flow these little junior gold companies with ozs in the ground are going to jump...You can count on it!