This doesn't surprise me one bit. After visiting onsite 15 months ago, the final head grade/solution grade is apparently very low. This is why they are so keen to get Four Mile into production ASAP. And I expect that the production will once gain decrease until they get Four Mile going, so I think we are in a fantastic position albeit for the market malaise. With patience we will get a result share appreciation wise within the the next 12 months.
I assume a lower cutoff for the reource grades is plausible for the awaited AGS calculations, increasing the in ground resource based on what I have seen at Beverly and what grades they are getting out now.
I couldn't be happier that AGS are conducting thier own calcs, because If I were Heathgate I would be doing the same to keep the acquistion cost at a minimum if that is their ultimate strategy to get 100%, and be 100% private with no more asx disclosures.
However AGS Board are not silly either and are playing the courting game and ensuring a fair value at least as they know the real potential of the Four Mile Project, as most of us who beleive in their judgement to date, and the project potential based on published results/resources.
I believe that P Mutz was an exceptional strategic move and will give AGS a strong edge in negotiations with Heathgate.
I am happy to sit and be patient, and take any more offerrings from those who I believe are giving away their shares sub 40c either by choice or forced liquidations. This is one winner for the patient based on what I have seen first hand and evaluated myself.
As a long term investor I often read but rarely feel the need to comment here, but seeing the production fall fits in with what I have seen myself, and all bodes well for the future for AGS and its holders.
Mino
AGS Price at posting:
37.7¢ Sentiment: Hold Disclosure: Held
