Asanko Gold Inc.

Asanko Gold Inc.'s vision is to become a mid-tier gold producer that maximizes value for all its stakeholders. The company's flagship project is the multi-million ounce Asanko Gold Mine located in Ghana, West Africa, which is being developed in phases. Phase 1 was successfully built and commissioned within budget and ahead of schedule. Gold production commenced in January 2016 and commercial production was declared in April 2016. 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:

Jeff Killeen, CIBC World Markets (10/13/16)
"Asanko Gold Inc. reported a slight beat on Q3 production numbers of 54 koz vs. CIBC's estimate of 52 koz; the beat was primarily related to higher throughput and better recoveries with the mill consistently operating ~20% above design capacity in Q3. . .the average gold grade mined tracked higher through the quarter, approaching reserve grade of 2.15 g/t. That said, mined grades in September of 2 g/t were ~7% below reserve grade. . .with stockpiles increased, we expect mining/milling rates in Q4 will be more inline, and that the stockpile will remain at steady-state levels."

Geordie Mark, Haywood Securities (10/13/16)
"For Q3/16, Asanko produced 53,986 oz gold, which was higher than our expectations of 49 Koz; reported revenues came in at US$71.3 million from the sales of 54,393 ounces at an estimate average price of US$1,311/ounce, and exceeded our revenue expectation of US$66 million. . .we see these results as highly positive as Q3/16 gold production came in well above our expectations on higher than expected throughput rates, gold recoveries and milled head grades. The ramping throughput rates with elevated processing plant gold recoveries bodes well for operational performance."

Chris Thompson, Raymond James (10/13/16)
"Asanko Gold Inc. reported 3Q16 production results which were ahead of expectations. . .AKG expects to beat the upper end of its production guidance for 2H16 and produce between 106 koz and 111 koz for 2H16. . .although operating costs weren’t disclosed, we take comfort in noting that the 3Q16 strip (4.5:1) is lower than our estimated strip (5.7:1) for the quarter. . .our C$6.75 target is derived by applying a 50/50 weighting on 1.1x NAV and 11x 2017E CFPS estimate. . .our target price implies a 1.15x P/NAV multiple which we feel is justified given AKG’s organic growth profile."

Nana Sangmuah, Clarus Securities (10/13/16)
"We continue to believe that Asanko Gold Inc. is well positioned to deliver a compelling production growth of ~100% by 2019 through phase 2 and ultimately be a ~0.5 Moz producer by 2022, all which can be internally funded supported by the company’s high margin phase 1 operations. . .we maintain our BUY rating and target price of $8.50 per share. . .we believe near term catalysts including–Phase 2 DFS, Akwasiso resource update and Nkran Extension permits should support re-rating of the stock. . .we maintain our BUY rating and target price of $8.50 per share."

News that Asanko Gold has increased production guidance and secured positive drill results from a new exploration site at its Ghana mine project spurred positive comments from four analysts following the company.
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Geordie Mark, Haywood Securities (9/20/16)
"We believe Asanko Gold Inc. holds a critical mass of gold resources and reserves at Esaase and Obota that can be developed to provide Asanko Gold with growth capacity and processing optimality to start initial production on a low cost basis to weather potential commodity price volatility. . .Assuming total CAPEX of US$275 million and our current cost estimates, Asanko Gold should be able to fund the development through cash flow and existing debt facilities.. . .Our target price of $6.50 is based on an 8.0x EV/OCF multiple to our 2017 cash flow estimate of $0.74/sh. Our estimated corporate NAV 8% is $5.75 per share."

Nana Sangmuah, Clarus Securities (9/20/16)
"We believe that the near-mine exploration success coupled with throughput expansion should enable Asanko Gold Inc. to deliver a significant production boost in 2017 and 2018 before ore from the Esaase is accessed. . .We highlight that the Akwasiso target offers upside to our modelled ounces and though early, a potentially high grade profile. . .Despite a compelling production growth profile of ~100% by 2019, ahead of average for peers, AKG trades at 0.7x P/NAV or a ~45% discount to emerging producer peers trading at an average of 1.2x. We maintain our BUY rating and target price of $8.50 per share."

More Expert Comments

Experts Following This Company

Ian Abbott – Goldman Sachs
Benjamin Asuncion – Haywood Securities
Brent Cook, Analyst, Geologist Exploration Insights
Jeff Killeen, Analyst – CIBC World Markets
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
George Mack, Interviewer – BioDecade
Geordie Mark, Head, Mining Research – Haywood Securities
Joe Mazumdar Exploration Insights
Bob Moriarty, Author 321 Energy , 321 Gold
Nana Sangmuah, Research Analyst, Precious Metals – Clarus Securities
Ron Stewart, Analyst – Dundee Capital Markets
Chris Thompson, Mining Analyst – Raymond James
Ryan Walker, Analyst – Echelon Wealth Partners

The information provided above is from analysts, newsletters, the company and other contributors.

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Investing Highlights
World class asset with low cost production
Organic growth with potential to double production
Respected management team with track record of delivering shareholder returns
catalyst Calendar
Commercial Production Declared for Phase 1
Phase 2 DFS published
Asanko Gold Inc. Content