I see what you are saying, it was the cryptic manner of the...

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danis1977

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11/02/19

16:57

Post #: 37401266
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Originally posted by doubledeckerdog: ↑

Hey Dan,

I think that the point being made is that AZM is 13% holder in Castle and its only asset is a large holding of exploration acreage in Ghana.

There has been lots of gold mined by locals in small surface deposits all over the country.

Castle have very little money and yet hold a large acreage.

WIll Azumah buy it for cash or will there be a takeover of Castle by Azumah?

All interesting stuff but its really just a side show compared with the valuation metrics for the Wa Gold Project.

On the Pre-Feasibility Study numbers, it looks primed for a development decision later in the year.

Can it be funded?

The metrics suggest that it should be fundable with a modest equity component.

Will Ibaera fund and manage the mine?

I doubt it.

The reason is that they are Private Equity guys and they generally get in, do the job and then get out.

PE guys usually want to double or triple their money in 1-3 years.

On that basis Azuma shares could be valued at 5.5c up to 8.5c

If you dissect the valuation per reserve oz the stock also seems very cheap.

Same result if you look at the valuation per resource oz.

Sadly management have really not been able to sell the story.

It seems very obvious that this stock is undervalued if the published numbers are accurate.

It seems pretty obvious that the Ibaera team have spent real money on the ground to earn a meaningful stake.

Are they complete idiots?

One assumes that they are the smart guys in the room.

So it currently seems that we have to wait until all of the stale bulls are gone and someone decides that they are running out of reserves and need a new project.

At that time the likes or Resolute or someone else will come knocking on Ibaera and Azuma's door.

How soon will that be?

It's anyone's guess, but in the meantime, the drilling goes on the reserves will keep increasing along with the NPV.

......but I do have to admit that I am getting a tad frustrated.

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I see what you are saying, it was the cryptic manner of the posts I was referring to.
AZM manage castle directly as well as being the majority holder, Steven Stone and Michael Atkins call the shots on both AZM and CDT.
I wouldn't imagine there is any rush to make a move given the management situation.

AZM Price at posting: 2.6¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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I see what you are saying, it was the cryptic manner of the...

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