AKG:NYSE.MKT; AKG:TSX

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.
AKG:NYSE.MKT AKG:TSX

Expert Comments:

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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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."

Chris Thompson, Raymond James (9/19/16)
"The initial results from Asanko Gold Inc.'s Akwasiso are encouraging and reflect the Nkran shear corridor’s exploration potential. . .Highlighted intersections include 54 m at 3.85 g/t Au, 16 m at 3.65 g/t Au, and 12 m at 4.66 g/t Au. . .Our C$6.75 target is derived by applying a 50/50 weighting on a 10x 2017E CPFS and a 1.3x NAV. Our target price implies a 1.25x P/NAV multiple which we feel is justified given AKG’s organic growth profile (Phase II expansion)."

Nana Sangmuah, Clarus Securities (9/16/16)
"We are encouraged by the positive update that reflects Asanko Gold Inc. management team's confidence in the operational performance at Nkran and potential for a compelling 56% production growth by 2018. . .2017 guidance has been revised to +220 koz (prior ~185 koz as per May 2015 DPP)supported by additional ore feed from near mine satellite deposits, which is in-line with our estimated 230 koz for 2017. . .We expect the stock to re-rate towards emerging producer peers as the Company continues to deliver on operational milestones. We maintain our BUY rating and target price of $8.50 per share."

Jeff Killeen, CIBC World Markets (9/15/16)
"We expect that the increase in grades will be of the most significance to the market today and will help to alleviate any overhang on the stock in relation to the lower grades recorded by Asanko Gold Inc. in Q2. . .We calculate our price target of C$6.00 for Asanko by applying an ~8x multiple to our estimated life-of-mine cash flow per share of C$0.77 at a 1.32 US$/C$ exchange rate. . .The C$6.00 price target represents a ~1.2x multiple to our 5% discounted NAV, which is in line with small to mid-size producer peers."

Geordie Mark, Haywood Securities (9/15/16)
"Asanko Gold Inc. announced an increase to its H2/16 production guidance to 100,000 –105,000 ounces from 90,000 –100,000 ounces previously. . .We deem these new data and H2/16 production projections as highly positive as mining and milling operations appear to be exceeding forecast levels. . .Furthermore, with the permitting received for Adubiaso Extension and clearing under way we deem that operational risk is becoming progressively derisked for throughput expansion. . .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."

Chris Thompson, Raymond James (9/15/16)
"Asanko Gold Inc. announced an increase in production guidance for 2H16, as well as production figures for July and August 2016. 2H16 guidance is increased to 100–105 k oz Au from 90–100 koz (RJL estimate 94 koz), and the mill is operating steady state at 3.3 Mtpa (110% of design capacity), both of which should contribute to a strong second half of 2016 for AKG. . .while costs weren't released, we note that AKG's focus is on bringing costs in-line with expectations by year-end 2016."

More Expert Comments

Experts Following This Company

Ian Abbott – Goldman Sachs
Benjamin Asuncion – Haywood Securities
Jayant Bhandari
Robert Cohen, VP and Portfolio Manager, GCIC Ltd. – Dynamic Funds
Brent Cook, Analyst, Geologist Exploration Insights
Jeff Killeen, Analyst – CIBC World Markets
Chen Lin What Is Chen Buying? What Is Chen Selling?
Brien Lundin, Author Gold Newsletter (Jefferson Financial)
George Mack, Interviewer – BioDecade
Geordie Mark, Head, Mining Research – Haywood Securities
Joe Mazumdar – Canaccord Genuity
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
Q2
2016
Commercial Production Declared for Phase 1
Q2
2016
Q3
2016
Phase 2 DFS published
Asanko Gold Inc. Content