Leveraged gold play, page-31

I would have been happy to be wrong either way, a 2000 000 oz resource is still substantial for a company with a market cap of under $30 mill.
Having 624 000 oz's proved is also note worthy, it costs a lot of money to convert resources into the proven and probable category, having also completed the feasibility study is huge as well, another costly undertaking.
There are lot of gold companies out there with large resources, but until they can convert a large part of that resource into the proven category it doesn't count for much, feasibility studies can only be based on the measured, proven and probable part of the resource.
As it stands AZM either have to increase their ore reserve (which is their current strategy) or the gold price needs to go north to improve the overall economic viability of the project.
I personally believe the gold price is going to go higher over the longer term, that's why I'm not overly concerned with short term SP movements.
Its safe to say that if the US gold price gets up to the $1400-$1500 level AZM will be worth multiples of the current price.
If the gold price really takes off in the next few years, the companies that will be most leveraged to the rise, will be companies with large gold reserves and resources, not necessarily companies with the lowest cash cost and high production, that's why I believe AZM has a lot of potential going forward over the next 5 years.
With the tenements they have and also the tenements of castle minerals ( who AZM basically control) they could be sitting on potentially a huge resource of gold.
Ghana relies heavily on the income provided by the gold industry, so they will be supportive of AZM moving forward and expanding operations as it is mutually beneficial.