start here

start here

The Daily IKN email digest, get all daily posts sent to you next day (& no ads)

7/19/17

Asanko (AKG) 2q17 production

Due to Muddy Waters and K2 this stock is now BigShort material and to be honest, I wouldn't have bothered with a post on its 2q17 production numbers this morning if it weren't for the blatant corporate BS stuck as the last bullet point. What you need to know about its Q2 is...


...AKG needs to move an awful lot of dirt around to produce an ounce of gold these days, that's exactly what K2 predicted a year ago, too. But the thing that got me riled was this bullet point in the NR:

  • Strong balance sheet with unaudited cash and immediately convertible working capital balances of approximately US$59.2 million (June 30, 2017)

Strong balance sheet? STRONG BALANCE SHEEEEEEEET? From which alternate universe did this message arrive? I mean...




...that U$155m pile of fun in the red circle starts moving over to the current liabilities at the speed of around U$16/qtr as from next month. As from July 2018 AKG needs to pay it all back in 10 equal chunks per quarter, from 2q18 through the end of 2020. That's not going to be easy when you consider the mine makes no money. 

For some unknown reason, AKG rallied this morning by a point or two on the back of its news. More proof (if you needed it) that gringos will buy anything.