Honestly... The conclusion of a financing or a buyout of the Kobada project, in the short and medium term, is something that I no longer envisage. I believe that if a buyout could have happened, it would have already been concluded. In consideration of the health issues in Mali; political issues; from the latest equity financing and the amount of call options not improving, I believe Mr. Callow has burned any chance of transforming this company. Faced with this impasse, I also believe that this is what justified the departure of the 2 members of the board of directors.
I reiterate my favorable opinion with regard to the Kobada deposit. Considering the quality of the ore, the gold grade and the level of mineral reserves, I know that the value of this permit greatly exceeds the market capitalization of AGG. Nonetheless, I believe that the management team, like the board of directors, has failed and will continue to do so. The participation of these members in the share capital, paired with call options and salaries, I believe that the final objective now is to recover the stake. Therefore, a big cleaning is necessary.
Inevitably, shareholders' frustration will continue as there are only 2 options left. The first is to do nothing to save time and protect cash flow, until the next financing. The second is to spend on drilling with the objective of increasing mineral reserves, until the next funding. In both cases, there is the dilution of the shareholders.
Months will pass, reserves will occasionally increase, and dilution will systematically destroy added value. The little effect that the sharp increase in mineral reserves has had is enough to understand what will happen. The massive retroactive integration of the transition zone into mineral reserves is an opportunity that will not present itself a second time. Consequently, the next drilling campaigns will not give such spectacular results. The many steps to be taken to demonstrate new reserves, through extensions or satellite areas, will also be very expensive.
Since the wait always ends up wearing down shareholders, the pressure on the SP is likely to be strong. I wouldn't be surprised to see a consolidation of equities soon followed by another long slide. In short, nothing very encouraging on the horizon.
This is frankly a shame because I believed for a long time that Kobada would be the next factory in operation in Mali. This is unfortunately no longer the case.