Q: Currently have an underweight position in this company. Would you consider increasing or just hold as is.
Any comments or recent news would be appreciated.
Brian
Any comments or recent news would be appreciated.
Brian
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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
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
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
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
Q: AQA was up on Friday and today is up another 2.5 pennies. If this keeps up I may even break even one day! I have checked my online brokers news feeds which don't show anything noteworthy. Do your sources show any reason for the strength?
Thanks,
Jim
Thanks,
Jim
Q: On your Sept 25th response to my question about AQA you noted that they need to raise cash in order to finance development and you would like to see more insider ownership.
If I understand Aquilla's Nov 9/10th press releases they have now raised some cash. Do you agree and do you think $10 million will be sufficient for the next 12 months or will more money be needed in the interim?
Has insider ownership changed? Is OBL considered to be an insider now that they have one board seat and 14% ownership stake?
They note in their press release that project is "high grade polymetallic". Do you think this is an overstatement? I always thought they had a low grade deposit. The market capitalization is somewhere around 70 million dollars which seems about right to me. If it was higher grade I would have thought the capitalization would have been higher.
Thanks
Jim
If I understand Aquilla's Nov 9/10th press releases they have now raised some cash. Do you agree and do you think $10 million will be sufficient for the next 12 months or will more money be needed in the interim?
Has insider ownership changed? Is OBL considered to be an insider now that they have one board seat and 14% ownership stake?
They note in their press release that project is "high grade polymetallic". Do you think this is an overstatement? I always thought they had a low grade deposit. The market capitalization is somewhere around 70 million dollars which seems about right to me. If it was higher grade I would have thought the capitalization would have been higher.
Thanks
Jim
Q: Please comment on Aquila's report of the latest round of drilling. The results seem generally positive but lacking a "home run".
Thanks,
Jim
Thanks,
Jim
Q: I think Aquila has been raising money by selling shares which were over-subscribed. It looks like insiders have purchased 24% of the issued shares. Finder's fees (cash and warrants) have been awarded to company insiders I suppose. Certainly there has been share dilution but surely dilution is preferable to borrowing money against non-existant cash flow. I know the stock is high risk but my exposure is very low - less than 0.1%.
2 questions...
Does everything still look OK to 5i?
Does Hudbay own any part of the Back-Fourty target?
Thanks
Jim
2 questions...
Does everything still look OK to 5i?
Does Hudbay own any part of the Back-Fourty target?
Thanks
Jim
Q: May I have your thoughts on the latest news from Aquila? They appear to have obtained some permits from the authorities and the stock was bid up on Friday. Is bulk sampling on the horizon or are they more likely to diamond drill the ore body to get a better handle on the grades and consistency?. Are the option holders in the money?
Thank you.
Thank you.