This company produces as much gold (50 million oz per annum) as...

This company produces as much gold (50 million oz per annum) as Kingsrose mining (KRM) has targeted but come no where to achieving yet. Kingsrose has a mine in Indonesia that is low cost but more expensive to mine than AGD and also has debt and does not yet make a cash profit. AGD with the recent issue of shares to the majority shareholder now has no debt and makes a healthy cash profit as noted above. The majority shareholder has funded AGD for many years till now, but this funding support is no longer needed. AGD has a growth strategy to double production, KRM does not. But KRM does have twice the resource of gold. 2 million oz vs 1 million oz for AGD (still 20 years of current production)

The Friday close market cap of the two companies is KRM $97 million and AGD $62 million. The main problem with AGD is the 96% shareholding of one individual, again as noted above. But the majority shareholder has indicated that he will increase the percentage of shares available for others at some stage. When that happens we should see a re rating of the share price. In the mean time it is worth accumulating at these prices.