{ "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": 21, "pageCount": 43, "prevPage": 20, "nextPage": 22, "slideType": "appendix_data", "function": "analyze_data", "density": "overcrowded", "nDataPoints": 28, "notes": "The slide combines a technical data table with a critical narrative analysis of corporate strategy, suggesting 'desperation' in the company's exploration and development timeline.", "elementsJson": [ "headline_text", "data_table", "paragraph", "footnote" ], "metadataConfidence": 0.95, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-91b6b54834a7/21", "deckHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7#slide-21", "components": [ { "bbox": null, "kind": "callout", "text": "AKG’s sudden resumption of exploratory drilling in 2017 strikes us as a desperate attempt to hit a large high grade deposit that could potentially save the company (or at least distract the market from the serious problems at Nkran).", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203c-716b-be72-1330c2b85d78", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.11, "y": 0.48 }, "kind": "paragraph", "text": "AKG's sudden resumption of exploratory drilling in 2017 strikes us as a desperate attempt to hit a large high grade deposit that could potentially save the company (or at least distract the market from the serious problems at Nkran). In April, the company disclosed that a large portion of its exploration budget, which had grown approximately four times from last year, had already been used to drill out recently-acquired Akwasiso. The speed with which this new deposit accelerated through the ranks of AKG's satellite pit development plans, in our opinion, further underscores the company's desperation and the lack of potential of the other satellite deposits.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "4ea0efda-9f07-402a-9cab-dc59b3e45cb2", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.78, "x": 0.11, "y": 0.64 }, "kind": "paragraph", "text": "A skeptical interpretation is that the company accelerated Akwasiso's drilling so that it could first \"bulk up\" its December 2016 MRE and generate another upgrade (+26% to its reserve ore tonnage and grade, 65% to its ounces) just before release of its new LoM and multi-pit", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "78005592-e578-47fb-89b4-99f1cc2935a1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.11, "y": 0.32 }, "kind": "paragraph", "text": "We see more signs of desperation when reviewing the acquisition of, drilling program for, and fast-track permitting of Akwasiso. Despite owning ~679 square kilometers of unexplored land, and five near-mine satellite deposits, the company opened negotiations on near-mine acquisition targets. By Q3 2016 it closed on the Akwasiso concession for $8.6 million in cash and shares. The infill drilling (used to confirm the presence of mineralization) continued through April 2017. On May 23, 2017, ALTO advanced Akwasiso to the top of the satellite mine development plan, scheduling it for H2 2017.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "e52569cb-4a4d-4bcf-88dc-b32126203a8f", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.78, "x": 0.11, "y": 0.75 }, "kind": "source-note", "text": "Footnotes 53-60 detailing sources for the Akwasiso narrative.", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "20ea0554-530a-4684-a510-3ab6b1fce3ca", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.52, "x": 0.24, "y": 0.12 }, "kind": "table", "text": "Table 14-12: Dynamite descriptive statistics for the various domains generated", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "7d415356-5813-4770-8616-d368fc8cd4c9", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.25, "x": 0.11, "y": 0.28 }, "kind": "title", "text": "Next mine up: Akwasiso", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "01a9a249-140a-4a76-b3d2-c43a69d1e376", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.35, "x": 0.24, "y": 0.1 }, "kind": "title", "text": "Dynamite Hill Statistical Analysis", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "89a28458-bb7a-435e-afb2-b4dc461c87e6", "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 }