How Wall Street Buys Gold at a Discount - Seite 3

The AGG (AGG; AGGFF) 2016 feasibility study put average LOM cash operating costs at $557/Oz Au, exclusive of royalties, and all-in LOM sustaining cash operating costs at $788/Oz Au. The economics are just what large-cap miners, and investors, are looking for: high early cash flows from starter pits and a post-tax IRR of 43%, based on $1200 gold, or 55% based on $1400 gold. But we've already got $1,500 gold—and it's still climbing.

With the 2016 study showing a $45.4-million pre-production capital cost, African Gold Group is targeting a 1.5-year payback from the start of commercial production, and full payback in only 2.5 years.

The 2016 feasibility study showed that AGG can produce 50,000 ounces of gold a year and could potentially build that to as much as 100,000 ounces a year. All for under $50 million.

There are a lot of great projects out there, but many of them don't see the light of day because they need billions in funding to get them off the ground. That's not the case with Kobada.

#4 The Key to This Junior Stock Spike: 'The Bharti Premium'—Again

The team at African Gold Group (AGG.V; AGGFF)  is an all-star group of mining industry professionals and financial whizzes who have spun iron ore into gold for decades…and are ready to do it again at Kobada.

Working the heavy machinery is miner engineer Danny Callow, the former mining head for giant Glencore's Copper Africa division, where he built and operated huge copper / cobalt operations in Africa including one green fields to a 210,000 ton copper producer and the largest cobalt mine in the world. But the real shocker here is Stan Bharti, the company's new CEO. With thirty years of experience and a jaw-dropping resume, Bharti could lead AGG into a golden age.

Companies under Stan's leadership have uncovered 20 million ounces of gold, more than 3 billion ounces of iron ore and 1.5 billion ounces of potash. He's amassed more than $3 billion in investment capital for his companies and released countless billions to his shareholders.

"It feels like we are in 2003 again," Bharti said, "at the cusp of a great run in gold and gold stocks."

"I have always bought or acquired undervalued assets in emerging markets. This gives our shareholders the best potential for HUGE returns. African Gold Group (AGG.V; AGGFF) fits in that category very well."