it is disappointing to see the dispute in Court. One must question whether AGS's new man caused this. ie, did hiring him further sour the relationship with Quasar?
Also. While recognising the dispute is not good, you need to recognise that Heathgate have substantial commercial incentive to resolve the diospute, which is over risk, not dollars.
Sales contracts for Four Mile are likely already locked in, as is the nature of contracting uranium sales in the industry.
There is also a chance that Four Mile will be selling into Beverly sales contracts. There is a chance that Heathgate don't have much room to move with respect to time on Four Mile commissioning and fulfilling sales obligations.
FYI I have good knowledge of the FOur Mile project and value. I recently sold at $0.85 and have just re-entered at $0.52. I have run a DCF on AGS and arrive at $0.70 per share (using 59 mlb of reserves). This is coincidentally the same as a broker note that is published, though I use different assumtpions.
There is an excellent chance that 100mlb of reserves will eventually be announced to market, based on already available information.
AGS Price at posting:
55.0¢ Sentiment: LT Buy Disclosure: Held
