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4/13/17

The Asanko (AKG) rumour

It's been doing the rounds this morning, it's probably why the stock is off in early trading, your humble scribe passes it on. We already know that K2 Associates were mocked by the Canadian sellside dumbass brigade for their short call on the stock in mid-2016, but we now know K2 called things well and AKG has been a serious underperformer and for all the reasons pointed out by K2. But now it seems AKG may be in more trouble more quickly than even K2 expected, according to today's buzz at least.

The rumoured reason AKG has been so keen on building a stockpile at Nkran in recent quarters is that at some point in 2017 they're going to fake a geotechnical safety issue, say "sorry guys, this has only been discovered and for the good of our employees we must halt normal production", then move production over to the stockpiled material, which will allow them to try (and probably fail) to remedy the fakey high-grading they've done in the last year in order to pretend their mine is so much better than it really is, all under the cover of "unforeseen" circumstances. They will, of course, pat themselves on the back for their foresight in building up the stockpile and being all clever and that.

For an early signal that this is the plan, watch the Q1 and Q2 strip rates as well as any minority use of the stockpile.