Stephen and others.
Here is a report that I picked off of the web. It was published about 6 months ago but I did not save all the details and so am not sure who posted it (Ted Slanker?) At any rate I wonder if anyone following this stock has any more up to date information?
cheers, roy
Akiko Gold Resources Ltd. (AKI/VSE) is a solid meat and potatoes kind of
junior resource company. Last September, when I reintroduced AKI with a
strong endorsement of its new management team that was formerly with
Goldfields Mining, I said they were real professionals who were interested
in substance, not hype. All along I have emphasized AKIs fundamentals and
have meticulously outlined the reasons why I thought AKI should be at least
$2 (C$2.75) per share based solely on its 25% interest in the New Burgin
silver/lead/zinc mine. I still believe that is the case, but AKIs other
assets may--I say may--just start to outshine its interest in the New
Burgin.
For a cursory review, here is an updated list of AKIs fundamentals that
justify my enthusiasm for the company. They are:
1. its management;
2. its 25% interest in the silver/lead/zinc New Burgin mine expected to
commence production by the end of 1998 at the rate of 900 tons per
day;
3. its 25% interest in the highly prospective silver and gold targets
near the New Burgin mine;
4. its relationship with Korea Zinc, which has a 25% interest in the New
Burgin mine and the potential mining camp surrounding it, 2.7 million
units of AKI, a smelter it recently purchased in the United States for
$50 million, and an interest in pursuing additional projects with AKI;
5. AKIs gold exploration project in Ghana, West Africa upon which it is
now conducting further reconnaissance in anticipation of a drilling
program late this year to upgrade the property;
6. its Colorback gold prospect located in the Pipeline district of Nevada
that it expects to have drilled this year;
7. its 50% interest in a gold property in Bolivia that surrounds a gold
discovery made by Eaglecrest Explorations Ltd. (EEL/VSE) (A year ago
EEL was C$0.35. Now, based on its discovery in Bolivia, its shares
trade for C$4.10. Barrick Gold Corp. (ABX/NYSE) is currently
conducting a preliminary reconnaissance program on AKIs Bolivian
property with an eye toward making a joint venture offer.);
8. its US$750,000 free working capital position;
9. its 250,000 shares of Chief Consolidated Mining Co. (CFCM/NASDAQ)
trading at $9.63;
10. its C$1.6 million deal to sell Gold Canyon Resources Inc. (GCU/VSE)
its right to buy into 20% of the Springpole Lake gold prospect; and
11. its $2 per ounce royalty on any gold produced at Springpole in excess
of 1.5 million ounces, subject to a $2.1 million buyout.
Yes, AKI sold its position in Springpole. After reviewing the published
drill results to date and the potential project costs, AKIs geologists,
engineers, and other managerial members preferred the cash and a royalty
instead of AKI's interest in the project. Time will tell if they are right.
As for the Springpole sales impact on my evaluation of AKI, I see it as
positive because I have never factored Springpole into my evaluation and
because the $0.06 (C$0.08) per share receivable from GCU is of material
value to AKI at its current low price of $0.62 (C$0.85).
In the weeks and months ahead, look forward to possible news from AKI on
the following: (1) drill results and funding at the New Burgin mine; (2)
possible joint ventures for the Colorback claims in Nevada, the West
African property, and the Bolivian property; and (3) maybe a new property
acquisition initially funded by a third party.
At $0.62 (C$0.85) AKI is an underpriced low-cap resource stock that has a
lot going for it before a hot market is considered. In my opinion, since
AKI does not need a hot market or rising commodity prices to be a
successful investment, it is the kind of solid stock investors should be
buying. It has tremendous speculative appeal, yet it is fundamentally
sound.
Akiko Gold Resources Ltd. trades on the Vancouver Stock Exchange, symbol
AKI. It has 19,809,812 shares outstanding (25,553,462 shares fully
diluted). Akiko Gold's address is 1800 Glenarm Place, Suite 210, Denver, CO
80202. The telephone number is 303-298-1663, and the fax number is
303-293-2235. Akikos corporate secretary/investor relations contact in
Canada is Christine Reynolds at 709-700 West Pender Street, Vancouver, BC
Canada V6C 1G8. The telephone number is 604-689-0988, and the fax number is
604-687-3797. Akiko Gold will forward additional information upon request. |
