Post by
oldethanwiser on Jul 15, 2015 3:07pm
A Case for AKG - strong near term profit
A recent case was made on Seeking Alpha that current investment in AKG was nothing more than a call on the price of gold. I would beg to differ.
I think it is a call on HOW profitable the company will be, and yes, gold price is a factor. This stock will continue to advance towards a time of market re-evaluation that is given when a company moves from clearly identified categories of mining stages. First it was valued as a spec, now it is being valued as in the last stages of its actual construction phase which is on time, on budget and fully funded. The management of this company has a solid track record of delivery on plan, under budget and before time. IF they deliver again you will see a large bump towards the production phase.
During its construction phase this company will be profitable no matter how close the POG comes to $950.00/oz. The only question is what factor does one place on the profitability itself? 1x.5x, 20x? A single political event can result in a short squeeze that could propel this profitable mine into exponential profits, at least until the crisis is over. The world IS NOT getting any safer. Place this stock into a chart of the last 4 months against any of your favorite gold stocks and you will find that it has climbed or retained value against some higher esteemed stocks . . .even as all others have taken a nose dive. At the minimum this is a safer place to park a portion of your portfolio as it—minimally—retains your capital, while giving you some exposure to gold.