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Asanko Gold Inc.

Asanko Gold Inc.'s vision is to become a midtier gold mining company that maximizes value for all its stakeholders. The company's flagship project is the fully financed, multimillion ounce Asanko gold mine project located in Ghana, West Africa. Asanko is managed by highly skilled and successful technical, operational and financial professionals. The company is strongly committed to the highest standards of environmental management, social responsibility, and health and safety for its employees and neighboring communities.

Expert Comments:

Joe Mazumdar, Canaccord Genuity (8/26/15)
"Delaying Asanko Gold Inc.'s Esaase option (+2 years) allows for 100% organic funding. . .funding P2 Esaase internally removed the need for external sources, which included a previously modeled US$170M debt facility (H2/16E) and a CA$100M equity raise (2017E) to fund the US$290–300M capital required to develop the project. The net impact of the removal of the external sources of funding and the reduction in valuation related to the delay in production (+2 years) led to an increase in our target price (CA$0.10 or 4%) to CA$2.55. As our revised target price implies a 34% return, we have upgraded our recommendation on Asanko to Speculative Buy from Hold."

Canaccord Genuity's Morning Coffee (8/19/15)
"Asanko Gold Inc. is in the process of updating a 12-month plan for the commissioning and ramp-up of the phase 1 Obotan gold project (expected Q3/15) and expectations are for first pour by Q1/16 leading to commercial production by Q2/16. We also expect a feasibility study for phase 2 Esaase in Q3/16 to advance it to a construction decision."

Brent Cook, Exploration Insights (8/9/15)
"We own Asanko Gold Inc.'s stock in the letter and have for some time. The company controls two deposits in Ghana with a total Measured and Indicated 7.9 Moz and reserves of 5.2 Moz. The mine is being developed in two phases, with phase 1 exploiting the Obotan deposit. . .phase 2 will exploit the Esaase deposit. . .the combined project shows an after-tax net present value (5%) of $770M and internal rate of return of 27% at $1,300/oz gold, with all-in sustaining costs of $798/oz."

"Asanko Gold Inc. is advancing the first phase (P1 Obotan) of the Asanko gold mine in Ghana through commissioning (Q1/16E) to commercial production (Q2/16E). We recently upgraded Asanko from Hold to Speculative Buy as our target price (CA$2.60) implies a +30% return to current levels. Year to date in 2015, Asanko has outperformed the Market Vectors Junior Gold Miners ETF benchmark (up 11.6% vs down 19.1%). . .I rate the Asanko phase 1 ramp up as excellent as P1 Obotan construction is 60% complete with 2,400 personnel on site and on schedule for first pour by Q1/16 leading to cash flow positive commercial production (Q2/16), in line with our forecasts. All critical path items are in hand and on schedule, according to the company. Mining is advancing faster than planned (100 Kt/day, +10%) as the contractor has mined over 7.9 Mt of the required 21.7 Mt of pre-stripping for Nkran. Importantly, dewatering has pumped out 56% (3.36 Mm3) of the 6.0 Mm3 required at the Nkran pit, which hosts the largest mineable resource base (>85%) at P1 Obotan. The water level has fallen 24m since dewatering began in December 2014. Another critical item is the partial relocation of the Nkran village (88 buildings), which is on track for the end of Q3/15.

As power availability and reliability is a critical issue in Ghana, Asanko's management has signed a deal with an independent power producer, Genser Energy Ghana Ltd., to secure power to the site. We estimate that ~45% of Asanko's processing costs are related to power. The company is also progressing on its 30km 161 kV power line (Q3/15E completion) to connect to the power grid. Under the power purchase agreement (PPA), Genser Energy as operators will have the right to utilize the power line to sell excess power onto the grid or to supply through the grid. The PPA also provides Asanko some security and flexibility with respect to power needs during ramp-up of the 3 Mt/year processing facility at Nkran." read more >

"One of the opportunities is in what we call predevelopment names. Asanko Gold Inc., which is building the 2.3 Moz Asanko mine in Ghana, is one. It has the balance sheet and the financing necessary to go into production, so long as it executes according to plan. And it's trading at fairly significant discounts relative to intermediate or junior gold producers." read more >

Joe Mazumdar, Canaccord Genuity (7/22/15)
"We upgrade our recommendation on Asanko Gold Inc. to Speculative Buy from Hold. Year to date in 2015, the company has still outperformed the GDXJ benchmark (up 9.4% versus down 10.5%). We anticipate commissioning of the 3 Mtpa Nkran plant facility by Q1/16 leading to commercial production by Q2/16E."

More Expert Comments

Experts Commenting on This Company

Brent Cook, Analyst, Geologist Exploration Insights
Adrian Day, Founder – Adrian Day Asset Management
Micheal George, Geologist – U.S. Geological Survey
Ovais Habib, Analyst – Scotia Capital
Jeb Handwerger, Author Gold Stock Trades
Andrew Kaip, Analyst – BMO Capital Markets
Jeff Killeen, Analyst – CIBC World Markets
James Kwantes Resource Opportunities
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
Geordie Mark, Research Analyst – Haywood Securities
Filipe Martins, Analyst – GMP Securities
Joe Mazumdar, Sr. Analyst – Canaccord Genuity
Charles Oliver, Senior Portfolio Manager – Sprott Asset Management
Tony Robson, Managing Director and Co-Head for Global Mining Research – BMO Capital Markets
Lawrence Roulston – Quintana Resources Capital ULC
Jordan Roy-Byrne, Editor/CMT The Daily Gold
Rick Rule, Chairman – Sprott Global Resource Investments Ltd.
Nana Sangmuah, Research Analyst, Precious Metals – Clarus Securities
Florian Siegfried, Senior Portfolio Manager – AgaNola
Chris Thompson, Mining Analyst – Raymond James
Scott Wright, Research Analyst and Consultant – Zeal Reports

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
 
High quality deposit with near-term production and lowest quartile costs
 
Fully funded to production
 
Respected management team with track record of delivering shareholder returns
catalyst Calendar
Asanko Gold Inc. Content