Good evening group I've been watching AGG for a few weeks now and this is my first post about this company.
If on the one hand Danny Callow and the team in place inspire me confidence, I admit that the elements that justify this long-term investment are the geology of the Kobada project, the calculation of mineral resources presented in the last technical report 43 -101 and finally, the potential for expansion of the various mineralized zones. The few drilling results obtained since then seem very promising and the next technical report is a document that I am impatiently awaiting.
I am also aware that the financing for the construction of the plant is not closed and that in the best case scenario AGG could start generating operating income in 24 months. Consequently, my assessment of the current value of AGG is essentially based on the quantity of category mineral resources indicated and measured, for which I assign a value of CAD $25 for each of the ounces of gold included in the ground. Considering that the last 43-101 featured 1,191,000 ounces of gold in these categories and there are 149,000,000 shares outstanding, I consider the value of AGG's share to be 20 cents. This value is the most conservative there is and below that threshold, it's ridiculous. Obviously, a value of 20 cents takes into consideration only facts and therefore does not consider any forward-looking element as an increase in mineral resources or the possible conclusion of the financial package for the construction of the plant. Obviously, the valuation of AGG will need to be adjusted as developments take place.
Such an assessment assigns a market value of CAD $29,800,000 for mineral resources that could generate a total income of CAD $2,382,000,000, for an average price of CAD $ 2,000 per ounce of gold sold. You understand, the financial risk is almost nonexistent. In fact, the only risk is that your ability to wait is insufficient, the time required to generate that income. So that's it for tonight. See you soon.