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Investment Q&A

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Q: The company notes in it's presser that it will consider all available strategic and financial options to secure the required capital (to get the mine operational). Generally speaking the longer AQA can develop (and hold on too) a good mineable asset the better it will be for AQA and its shareholders. I suppose AQA have about 50 million still to spend from Osisko and they are going to need roughly an additional 250 million to get operational.
One option is dilution - sell shares to the public and retain 100% ownership. All things being equal the market cap would go up to 300 million and make a AQA a takeover target if the mine looked to be successful. All the new share holders will be looking to make a quick buck for sure.
Another option is a bank loan combined with dilution. However I don't see a bank loan unless the feasibility study indicates a high-grade zone near surface which could be mined quickly and be highly profitable. Even then I suspect the banks will hesitate to make a loan.
The last option would be to take on a larger mining company as a joint venture partner. This would leave AQA as part owner with cash flow which would be used to fund exploration at their two other sites. Once Osisko's money is all spent they will be pressing AQA to get operational as soon as possible. I think Osisko has a relationship with AEM who might be in turn be interested but maybe would want to see more gold ounces.
So AQA will spend most of the money it has left drilling the ore body looking for good grades especially good gold grades.
Do you think AEM would have any interest in the Back Forty deposit?
Last question on AQA for a while - I promise!
Thanks,
Jim
Read Answer Asked by James on June 06, 2018
Q: Thank you for your prompt response to my question. I checked the stock at 4:30 PM and l saw a news feed that the company had received the final government permit to operate the back fourty mineral deposit. (We will call it a mine if it ever gets into production). It appears possibly some people or maybe even many people knew the permit was going to be granted before the general public knew. Would this concern you?
Market capitalization has now passed 100 million. A Feasability Study is next up in the not too distant future. I am pretty sure management already knows the study will be positive - otherwise they wouldn’t be spending all this time and money getting permitted. There may news leakage out of the head office but I don’t think this company is a promotion and dump operation. Would you consider the company investable now or is it still highly speculative?
Thank you,
Jim
Read Answer Asked by James on June 05, 2018
Q: Company is "projecting transformation growth" and a "dramatic increase in consolidated cash flow from operating activities over the next 3 years". 1st quarter results were quite good and and yet the stock seems to be stuck in neutral! With a PE of 26ish, is the good news already baked into the stock price or do you see value here.
Read Answer Asked by Lloyd on May 31, 2018
Q: My question is about addition of cash to the balance sheet with out dilution. I have the above mentioned company in my risk portion of my portfolio. They seem to be on to a novel way to fund their mine in the form of a stream but with the help of an security token offering. so my question is if they are successful and add say $10,000,000 to the balance sheet, what should that do to the stock price. I would appreciate your insights. And any additional observations on the company as a whole.
Read Answer Asked by Todd on May 25, 2018
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