Analysts following Asanko Gold came away from a recent site visit with positive expectations for the company’s Asanko Gold Mine in Ghana.
Asanko Gold Inc. (AKG:NYSE.MKT; AKG:TSX) hosted the site visit on Nov. 18, and also provided analysts and shareholders with an update on its Phase 2 definitive feasibility study and the outlook for 2017. The company’s technical presentation can be viewed on its website.
In a Nov. 21 research report, analyst Jeff Killeen of CIBC wrote, “We were impressed by the regional exploration potential beyond current outlined targets based on artisanal workings.”
Killeen also noted that CIBC believes “AKG has done a good job reaching commercial production and LOM (life-of-mine) reserve grades within the first year of initiating Phase 1. We also see year-over-year growth as another positive sign that AKG is meeting development expectations at Phase 1.”
Nana Sangmuah, writing in a Nov. 24 research report for Clarus Securities, said, “We return highly encouraged from our AKG site visit. We were impressed by the team on the ground that has successfully delivered Phase 1 ahead of schedule and within budget.”
Sangmuah also commented that, “the better-than-expected ramp-up for Phase 1 has positioned the company well to deliver compelling production growth through Phase 2 that would boost production to 470 koz/year by 2020. Given the production growth profile, we believe AKG would be a coveted asset in any of the major’s asset portfolios.”
Chris Thompson, writing in a Nov. 24 research report, commented that the “site visit takeaway” for Raymond James was that Asanko’s operating performance “affirm[s] the potential we see in [its] operation.”
Looking forward, Thompson noted, “We continue to anticipate a mine plan that delivers production and cash-flow growth with an increase in processed tonnes and a drop in head grade as Esaase ore is processed (1.4 g/t …read more