Asanko Gold Inc. (AKG:NYSE.MKT; AKG:TSX) hosted the site visit on Nov. 18, and also provided analysts and shareholders with an update on its Phase 2 definitive feasibility study and the outlook for 2017. The company's technical presentation can be viewed on its website.
In a Nov. 21 research report, analyst Jeff Killeen of CIBC wrote, "We were impressed by the regional exploration potential beyond current outlined targets based on artisanal workings."
Killeen also noted that CIBC believes "AKG has done a good job reaching commercial production and LOM (life-of-mine) reserve grades within the first year of initiating Phase 1. We also see year-over-year growth as another positive sign that AKG is meeting development expectations at Phase 1."
Nana Sangmuah, writing in a Nov. 24 research report for Clarus Securities, said, "We return highly encouraged from our AKG site visit. We were impressed by the team on the ground that has successfully delivered Phase 1 ahead of schedule and within budget."
Sangmuah also commented that, "the better-than-expected ramp-up for Phase 1 has positioned the company well to deliver compelling production growth through Phase 2 that would boost production to 470 koz/year by 2020. Given the production growth profile, we believe AKG would be a coveted asset in any of the major's asset portfolios."
Chris Thompson, writing in a Nov. 24 research report, commented that the "site visit takeaway" for Raymond James was that Asanko's operating performance "affirm[s] the potential we see in [its] operation."
Looking forward, Thompson noted, "We continue to anticipate a mine plan that delivers production and cash-flow growth with an increase in processed tonnes and a drop in head grade as Esaase ore is processed (1.4 g/t Av grade). Clarity on AKG's near-term production potential will be revealed with a revised feasibility study anticipated in Q4/16."
In addition, Thompson said the mine's "near-term production potential (Phase 1 completed, 2017 production and cost guidance recently released) and Phase 2A expansion plan rank as the paramount near-term value driver for AKG's shareholders."
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1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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CIBC World Markets, Asanko Gold Inc., Nov. 21, 2016
Analyst Certification: Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst's personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
Potential Conflicts of Interest: Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.
In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.
--CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Asanko Gold Inc. in the next 3 months.
--CIBC World Markets Corp., CIBC World Markets Inc., and their affiliates, in the aggregate, beneficially own 1% or more of a class of equity securities issued by Asanko Gold Inc.
Clarus Securities, Asanko Gold Corp., Nov. 24, 2016
The analyst has visited the Company’s mining operations in Ghana. Partial payment or reimbursement was received from the issuer for the associated travel costs.
Within the last 24 months, Clarus Securities Inc. has received compensation for investment banking services with respect to the securities of this Company.
Within the last 24 months, Clarus Securities Inc. has managed or co-managed a public offering of securities of this company.
The research analyst and/or associates who prepared this report are compensated based upon (among other factors) the overall profitability of Clarus Securities and its affiliate, which includes the overall profitability of investment banking and related services. In the normal course of its business, Clarus Securities or its affiliate may provide financial advisory and/or investment banking services for the issuers mentioned in this report in return for remuneration and might seek to become engaged for such services from any of such issuers in this report within the next three months. Clarus Securities or its affiliate may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis. Clarus Securities, its affiliate, and/or their respective officers, directors or employees may from time to time acquire, hold or sell securities discussed herein, or in related securities or in options, futures or other derivative instruments based thereon.
Each Clarus Securities research analyst whose name appears on the front page of this research report hereby certifies that (i) the recommendations and opinions expressed in the research report accurately reflect the research analyst’s personal views about the Company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
Raymond James, Three Mines in Transition, Nov. 24, 2016
Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst’s efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.
The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.
Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months.
--Raymond James Ltd-the analyst and/or associate has viewed the material operations of AKG.