{ "docId": "019dd923-622c-750b-8b96-91b6b54834a7", "docSlug": "9776de5e0578", "documentTitle": "Asanko Gold Inc. (AKG)", "authorId": "51_Muddy_Waters", "authorName": "Carson C. Block", "documentKindSlug": "research-note", "documentKindLabel": "Research note", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2017-05-31 00:00:00", "orientation": "portrait", "aspectRatio": 0.77272725, "pageNumber": 14, "pageCount": 43, "prevPage": 13, "nextPage": 15, "slideType": "research-note", "function": "diagnose_problem", "density": "overcrowded", "nDataPoints": 8, "notes": "The slide functions as a critical research note questioning management's transparency and the financial viability of future stripping operations.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-91b6b54834a7/14", "deckHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7#slide-14", "components": [ { "bbox": { "h": 0.03, "w": 0.5, "x": 0.11, "y": 0.42 }, "kind": "callout", "text": "Nkran might have as few as two quarters of mining left", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "821854d3-f3b6-4b93-9578-875fa8790a5c", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "We believe the company was avoiding answering the question because it is unclear how much of the wall it can afford to remove.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203c-716b-be71-58aa971c4235", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.78, "x": 0.11, "y": 0.56 }, "kind": "list", "text": "166,000 ounces already pre-developed at Nkran, which don't require any further capital development to access - April 2017. To-date, the in-pit development work that we have done at Nkran gives us access to ore inventory of 2.7 million tons.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4be52687-7507-4c1c-ab36-9ad426d1ac6f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.78, "x": 0.11, "y": 0.46 }, "kind": "paragraph", "text": "AKG's latest public statements lead us to believe that Nkran might be nearing the end of its economic life. If Nkran pinches out this soon, AKG appears that it will be unable to fund Esaase.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "08100a02-8f72-4e81-a613-5b91bf94d548", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.11, "y": 0.09 }, "kind": "paragraph", "text": "exact size of the west wall pushback and did not provide a direct answer to the question when asked on the Q1 2017 conference call. We believe the company was avoiding answering the question because it is unclear how much of the wall it can afford to remove.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0fd52879-c5d4-425c-9c69-128736436c12", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.78, "x": 0.11, "y": 0.32 }, "kind": "paragraph", "text": "AKG's quandary is that it needs to pushback the west or east wall to avoid pinching out. This is essentially an additional pre-strip that AKG would need to do; however, doing so will require a substantial portion of its available cash.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6a91972f-b906-452f-8579-442422ee1c57", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.06, "w": 0.78, "x": 0.11, "y": 0.23 }, "kind": "paragraph", "text": "We estimate that if AKG decides to complete the pushbacks of the east or west walls needed to access new ore bodies, it will incur $75 to $115 million of stripping costs.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7e9f10c5-1f57-4a0a-aba9-29a1140c4c2f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "166,000 ounces already pre-developed at Nkran, which don't require any further capital development to access — AKG, press release, 2017-04-27. To-date, the in-pit development work that we have done at Nkran gives us access to ore inventory of 2.7 million tons containing approximately 166,000 ounces that is ready to be mined. — AKG, press release, 2017-05-04", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-203c-716b-be71-5ff498a4caca", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.78, "x": 0.11, "y": 0.8 }, "kind": "source-note", "text": "- $2 x 37,260,000 =$74.5 million; and, a base case of - $2 x 72,864,000 =$145.728 million, which then haircut to arrive at $115 million. 26-30 footnotes.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "c7774516-e083-4d47-88cb-e23a17c690d9", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 43, "from": 7, "beatId": "6be461ab-1701-4014-b503-c277fa3cb52c", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The document presents several contradictions and red flags in AKG's operations and financials.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }