PatienceI seem to recall a similar hand-wringing the last time the company cashed-up.
Obviously the FS for Esaase requires cash, and that will firm-up 5 million or more mineable ounces IMO.
The market is just not giving juniors much more than $175/ounce in most cases, and given the take-out on mining is in the $800-$1000/ounce range including capex and present-value discounts .... (interest rates being so low) ... couldn't agree more with a view that says "we can build value here".
AGG flew an extensive grid survey last year on their adjoining ground. They have their hands full in Mali, and what price they would be given for their property is something the geologists are no doubt being asked - and not the market, as, with all due respect to we punters, the market usually mis-price's exploration properties to perfection - as in way too high or way too low. Example - KGN at $9 at their present stage?
Asumura - discovery hole followed by a big drilling expenditure?
I'm not troubled by the dilution if the object is to build value. KGN management has acted with great prudence and built substantial value for their shareholders throughout - why so quick to question their motives?
And finally, if value gets built up to a level where you want to distribute, liquidity was an issue.
Growing pains, amigoes - yes, the ounces/share have been shot down 30% or so, but there is a big lump of cash to add back per share now. Trading opportunity missed, or buying opportunity now ripening?
I just do not understand how often on the BB's in general people seem to be heavily invested in companies where they don't express confidence in management. I can understand cheering for the Cubs out of sentiment, but no matter how much you like a property, why would you get into bed with managers you don't trust?
This is good news. But you have to take the long view.
CG