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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 jdn55on Sep 03, 2015 10:43am
116 Views
Post# 24075097

New PP

New PPAnother 10% dilution but not unexpected to anyone whose looked at the financials recently. I personally can accept this extra dilution but am now pretty much at my threshold. The AGG projected numbers as I know them from the PEA still work out to a decent return at Stage 2 production. Assuming debt financing is available, if both the Stage 1 plant and Stage 2 plant are operating I could see cash flowing minimum 7 - 8 cents per share based on $1100 POG and that's not including any bump for coarse gold effect. The final FS study should be completed within a few weeks and the whispers I'm hearing is IRR will be extremely robust at $1100 POG. The make or break critical issue hasn't changed and that's production financing. If they can finance without diluting themselves into oblivion that hopefully would be a catalyst to move the SP. The only good news re: this most recent PP is they still can raise money. I also note 51% of the PP was subscribed to by management. There are 2 ways to look at that. The AGG detractors, of which there are a few on this BB, will say the pigs are gorging on cheap shares at the expense of existing shareholders. The other way to look at it is management and the BOD are very confident in what they have and their ability to bring it into profitable production. Cohen must own north of 15% of AGG now which makes me a bit nervous like when Pinetree owned a huge block but the rest of AGG management and BOD's and a close group of core private investor's still control well north of 30% so I'm told. That's a decent counter weight to Cohen. One way or another the tale of AGG is going to be know before the end of this year IMO. GLTA
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