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Evolve Canadian Aggregate Bond Enhanced Yld Fd ETF V.AGG


Primary Symbol: T.AGG



TSX:AGG - Post by User

Comment by ABDPhilon Jan 16, 2022 9:45pm
141 Views
Post# 34323219

RE:Just for Phil

RE:Just for Phil

First of all, I thank you for this message that you sent to me and I respect the efforts that you have devoted to it.

Considering the mineral resources already identified and compiled in a 43-101 technical report, the adequate geology for low-cost mining and based on Danny Callow's comments about the additional potential, the Kobada project is very interesting. Considering only these aspects, Kobada presents moderate financial risks and the projection of its production costs gives it a good level of resilience in the face of a drop in POG. Therefore, this project actually has an intrinsic value greater than its market capitalization.

Despite all these positive elements, I believe it is important to dwell on anything that I might call undesirable. In particular, the security and political issues in Mali, the quality of the various projects available throughout the world and all those which continue to develop in parallel and which constitute a kind of competition for the title of best project, the misunderstandings of the market with regard to the low gold content and compensated by an inexpensive ore to process, …

Like you, I believe that AGG's market capitalization is a negative element. Nevertheless, I believe that this negative element is also a measure of the level of investor optimism. Kobada's recent developments make me agree that more time needs to be allowed before concluding that the project is doomed. Finding a financial partner is a long, arduous task that rarely ends well because few projects make it to the operational stage. I do not pretend to know the approach that could allow AGG to reach a suitable agreement. Nevertheless, I believe that the passage of time is a negative element and that it is important to ensure that shareholders can count on the determination of the management team to take the next step.

Regarding the various technical presentations of AGG, I must admit that this is not what influences my investment choices. My approach is definitely based on fundamental elements in sectors of activity that I know well. Despite everything, I can understand the interest that can be devoted to these techniques, especially when actions are taken with regard to the results obtained by the analysis of these graphs. Therefore, I find it hard to understand the excitement surrounding the current charts as a good number of investors have watched the SP drop by about 50% over the past 2 years, all combined 100% increase in the quantity of outstanding shares. For me, technical analysis is like letting the market decide what is good or bad and that does not sit well with me.

Sincerely, I wish that 2022 will put an end to your sufferings and that you can finally enjoy positive developments.
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