{ "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": 24, "pageCount": 43, "prevPage": 23, "nextPage": 25, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "dense", "nDataPoints": 8, "notes": "This is a text-heavy research note page focusing on operational underperformance and questionable reporting practices.", "elementsJson": [ "paragraph", "footnote" ], "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b96-91b6b54834a7/24", "deckHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7", "deckJsonHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-91b6b54834a7#slide-24", "components": [ { "bbox": null, "kind": "callout", "text": "Nkran does not contain the gold AKG and investors expected", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-203c-716b-be72-28bd8f3c205c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.035, "w": 0.764, "x": 0.118, "y": 0.093 }, "kind": "paragraph", "text": "22.6%), while growth of indicated and inferred make up some of the difference. The cutoff grades for Nkran and Esaase were lowered dramatically, which also raises eyebrows.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2b808c6d-5ccb-49b6-9bc1-f98c6199ddd4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.063, "w": 0.764, "x": 0.118, "y": 0.146 }, "kind": "paragraph", "text": "Alarmingly, the same MRE increased the value of satellite deposits using a highly questionable assumed gold price of $2,000/Oz., which is way out of line with AKG's peers. AKG has not yet released a technical report that would shed light on the reasonableness of the upgrades to the satellite pits – investors should demand AKG do so immediately.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "826ff653-f37a-485a-9612-5f5725957dbc", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.105, "w": 0.764, "x": 0.118, "y": 0.339 }, "kind": "paragraph", "text": "The mine plan provided from 2015 contains data on the intended ore grade to be mined by year. The first two years of mining were to deliver rich ore at average mined grades of 2.44 g/t in 2015, 2.15 g/t in 2016, and 2016 feed grades reaching 2.58 g/t. However, AKG reported no ore for 2015, and mined grades never exceeded 2.0 g/t in any quarter in 2016. Feed grades from the three quarters of 2016's commercial production were also disappointingly low, reported at just 1.7, 2.1, and 2.1 g/t, 18.3% less than the 2.58 g/t average feed grade predicted.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "831cbe4d-8bef-480f-a3de-12cd8b6fdc6c", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.049, "w": 0.764, "x": 0.118, "y": 0.271 }, "kind": "paragraph", "text": "By the end of 2016, it was already clear that AKG's aggressive mining failed to reach high grading ores or deliver the quantity of ounces predicted. It succeeded only in removing more material and depleting even more ore from the “guts” of the deposit.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "93716a39-5e3f-4960-9643-c5567f22a194", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.35, "x": 0.118, "y": 0.867 }, "kind": "source-note", "text": "77 AKG, Technical Presentation, 2015-02-10\n78 AKG, Q4 2016, earnings presentation, p. 5\n79 AKG, Q4 2016, earnings press release", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5a0607ab-fd77-473d-9701-af15db7904a4", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.021, "w": 0.598, "x": 0.118, "y": 0.234 }, "kind": "title", "text": "Nkran does not contain the gold AKG and investors expected", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f8e266f9-1a8c-4b2c-be04-960bec7438c9", "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": [ { "to": 26, "from": 24, "name": "Hypothesis Test", "slug": "42-hypothesis-test", "bestFor": "Strategy validation, due diligence, research presentations", "matchId": "945d81b3-b463-484c-896c-781ded484628", "evidence": "The document presents data on AKG's gold production and reserves.", "position": 2, "objective": "To test the hypothesis that AKG's MRE analyses are flawed", "structure": "The Hypothesis -> Test 1 (Supports/Refutes) -> Test 2 (Supports/Refutes) -> Conclusion (Validated/Pivoted)", "confidence": 0.7, "description": "State a hypothesis upfront, then systematically prove or disprove it with evidence" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }