i concur with the other guys regarding equipment value although it depends on the independent valuer what figure they put on it, conservative or not? I agree replacement value is the best indicator as long as its fit for purpose and in fair working condition ie. preserved correctly. I would have thought during the due diligence process some sort of valuation would have been performed. Most likely conservative.
As far as profitability is concerned I’m not informed enough to pass judgement in any sort of reasonable detail. Gold mining in Africa in general has always been very profitable for many decades. In fact it was a powerhouse industry. So a good size resource with typical African world class grades is sure to deliver great value for investment.
Which leads me to the post on the new takeover target thread, completely concur with that. I believe the serious rerate will come from the resource upgrade as that makes A-K attractive so a new market, the biggest of players and shareholders sitting quietly know that. Those guys value companies on its resource regardless of the SP playing and trading at this level, those bigger companies take a position run over anyone and offer a takeover price near enough to genuine value. Which imo is miles above current SP. With the company well funded all the way to DFS I’m confident parties far more informed than us little fish know what A-K is truly worth.
@apkjm posted history of the main man at Furmosa if I remember correctly. He knows what’s in A-K and I’m of the opinion he’s carefully positioned Furmosa for a generous stake and a free ride letting VEC team do the work, which is fine by me. Complimented by Furmosa taking shares in escrow for 9 and 12 months. Big give away sign that one, really really big sign.
Gold price going up, US-China relations a bit wobbly. Russian and Chinese anti-USD manoeuvring. 1620 taking up big chunks of stock.
All makes this little ol’ $30M MC company a pretty good place to be, with many bags imo to come in 2019. I do share the frustration of many, maybe a good time to remember Warren Buffet’s famous words of transferring wealth from the impatient to the patient.
That’s my view at the moment. All in my opinion of course.
GLTAH
