AGY are there own worst enemy. They have a problem communicating to the market the position of the Musongati resource.
Main Area of conjecture:
Do they own the rights to the Musongati mine? They put out that they have an existing convention. They fail to address what that actually means. It is confusing that they don't address the existing mining convention & the issue of needing a continuation of that convention to continue with the mine.
They could clear this issue up easily with an announcement to the market which would result in a reduction in the volatility of the SP.
If positive would bring in a lot of investors or conversely lose investors if negative.
No one doubts they had an existing mining convention, it had a time frame though & a list of requirements which had to be met, which hasn't happened yet, also they wrere reinbursed there Bond.
One of the condidtions was to bring in a major jv partner. They have quoted that they have been in discussion with a number of majors. With the talks having been in process since 2005 you would have thought they might have been able to put out details which were less ambiguous.
OPening the office in the capital and reestablishing Andovers presence has to be a positive, It would be hard to imagine that they would spend the money, time, effort of reopening the office without a good indication that they will be involved in the development of the Musongati mine. However that is speculation
They will need a major to be involved as the nearest port is 2000km away & development costs will be over 500 million, singlehandedly the project is to big for a minnow like AGY. However they have done drilling on the site & have the convention which are rare to get in Burrundi. They also have a relationship with the Governement which would be a great positive for a major asmost of the legwork will have been done & they could come in and get on with the job of developing the mine.
AGY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
