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"Atlantic Gold Corp is engaged in the acquisition, exploration, and development of mineral properties. The company explores for gold. It holds interests in the Moose River Consolidated Project comprising the Touquoy and the Beaver Dam gold deposits; the Cochrane Hill gold deposit; and the Fifteen Mile Stream deposit. All the business activity is primarily functioned through the region of Canada... see more

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Spur Ventures Inc > Gold producers....AGB or DNG?

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Post by George98 on Mar 10, 2018 8:48am

Gold producers....AGB or DNG?

New to the mining sector, I have only few shares from debt-free Gogold Resources (GGD) which I think is absurdly cheap trading just 0.4 its Book Value but I want to diversify my mining portfolio.
So I'm checking Atlantic Gold (AGB) and Dynacor Gold (DNG), they will have the same annual production this year but AGB has debt while DNG is debt free. I m always concerned with the debt, I lost a lot from indebted plays and AGB doesn't seem to generate free cash flow to eliminate its debt soon. Also AGB's total value is 450 million while DNG's total value is only 70 million. Ideas? Has AGB still significant upside after the recent rise? Has the best scenario already been priced in? Will the big boys lock in profits from AGB and buy something cheaper? Thanx.

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Comment by Sandman852 on Mar 10, 2018 9:29am

I own both and believe they both have value. Edge in management to agb having built a real mine under budget and on schedule. Dng is potentially the quicker return imo especially if they move towards a dividend payment and / or develop their property into a low cost production asset. In the meantime they have strong income from their artisan mining deal and that's good free cash ...more

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Comment by grindel on Mar 10, 2018 10:47pm

Thanks Sandman, sound statement.

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Comment by George98 on Mar 30, 2018 2:29am

Thanks sandman852. I think that AGB is a sell the news case and it has run ahead of itself. This is typical with explorers who bcome producers. The best time to buy them is when they are close to production and the best time to sell them is when they bcome producers. Now it will take more than 2 years for AGB to increase its production assuming that all goes well without cost overruns ...more

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Comment by 2bewild on Mar 30, 2018 4:33pm

George98, I hear what your saying on sell on news case,but I wouldn't be selling AGB on tidbit news as you may miss the bigger move/gap up on any day. The market will pay a higher forward multiple to companies that deliver on current results. AGB is delivering on all fronts. gltal I will be adding when I can. cheers

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