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  "documentTitle": "Asanko Gold Inc. (AKG)",
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  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
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  "presentationDate": "2017-05-31 00:00:00",
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      "text": "AKG is at very high risk for a liquidity crisis in 2018.",
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      "text": "liquidity: $48 million",
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      "text": "The company's liquidity is limited to only $48 million of cash on hand as of Q1 2017, and it has no availability on its $150 million revolver with Red Kite. We adjusted the company's Source and Uses table for 2017 below, using the company's assumptions (although we believe its assumptions are aggressive).",
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      "text": "We estimate that excess liquidity carried into 2018 could range from $24 million -$8 million, assuming a $1,200 gold spot price. These assumptions do not include lower production, higher potential costs, or capex increases.",
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      "text": "The company adds in receivables to its cash on hand, which we see as aggressive because receivables are not always liquid and the full amount might not be collected. However, we used the company-favorable $66 million cash number for the beginning 2017.",
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      "text": "AKG is at very high risk for a liquidity crisis in 2018. When factoring in the seemingly binary possible Nkran outcomes of either an expensive west wall pushback or pinchout, we expect the company to run out of cash in 12 – 18 months.",
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      "text": "For 2017, we used management's guidance, despite having proven unreliable, and added Phase One of the wall pushback costs. If the cost for the west wall pushback is in the mid to upper end of our estimates, the company could experience tightening of liquidity in 2017 with problems manifesting in 2018.",
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      "text": "106 AKG assumes $1,200 / Oz in many of its slides.",
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