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Evolve Canadian Aggregate Bond Enhanced Yld Fd ETF V.AGG


Primary Symbol: T.AGG



TSX:AGG - Post by User

Post by goldencraneon Jul 31, 2014 6:27pm
181 Views
Post# 22800432

AGG INVESTMENT SWOT

AGG INVESTMENT SWOTA quick and dirty strengths, weaknesses, opportunities, threats STRENGTHS Large Resource ****Gravity recovery characteristics ****Saprolite clays allows for slimes disposal and cheap ore upgrade ****Potential for bulk tonnage gravity upgrade (nugget effect) ****Low plant capex initially ****Low cash costs ****Very strong project returns ****Long mine life ****Resource growth upside ****Low market cap ****New management that look promising ****Mali government is very supportive of the project ****Gold price is low and sentiment terrible offering potential for improvement ****Company is a clear acquisition target WEAKNESESSES ****nugget effect creates scepticism around the resource and management ****gravity approach is seen as higher risk by the market ****historical work has been low quality in terms of 43-101 reports. Is the resource up to scratch? ****previous management have not delivered results in some time, can the company execute? ****Numbers uncertain until new feasibility delivered ****Mali is seen as relatively high risk ****Project unfinanced (financing risk) and low share price means there is a risk of substantial dilution ****Gold price may fall even further OPPORTUNITIES ****Delivery of feasibility proving the positive economics without any nugget effect confusion and demonstrating gravity based flow sheet potential ****Delivery of feasibility proves new management are capable and removes history of mis-execution ****New 43-101 resource provides increased confidence in the resource ****Higher share price reduces funding uncertainty ****Introduction of strategic investor to remove need for equity market to fund the project ****Gold price bounce THREATS ****Resource recalculation disappoints ****Economics prove less favourable than expectations through feasibility ****Feasibility delayed ****Illegal miners problem recurs ****Mali has another political issue ****Gold price falls further
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