How To Capitalize On The Coming Gold Boom

November 20, 2019 - OilPrice.com


It's no secret that a small move up in gold prices...

Converts -- directly -- in to a huge move in junior gold miners.

For every 1% move in gold... a small gold miner can rise 20%... 40% or more.

And right now, the smartest investors -- insiders at TD, Merrill, Citi and more -- are calling for gold to rise 33%.

Gold could surpass its all-time highs and shoot up over $2,000 per ounce.

This could send gold miners into the stratosphere.

Back in 2016, gold prices jumped 26% in 6 months… and gold miner returns were stellar:

Mid cap miners such as Endeavour Mining Corp gained 196% in 6 months, while its Ontario based competitor IAMGold gained 256% in that same timeframe.

…but the real winners were small-cap miners.

Argonaut Gold’s share price jumped 298% in 6 months, and its peer Great Panther Mining saw its share price even jump by a whopping 340% in no more than 4 months after it reported a 19% in gold production.

And one company positioned to ride the coming gold rush than anyone else is African Gold Group Inc. (TSXV:AGG, OTCMKTS:AGGFF).

AGG has a mine in one of the biggest mineral belts on earth, in a part of West Africa that has just become the capital of the global gold industry, where mining firms are spending hundreds of millions of dollars on new acquisitions.

And AGG hopes to strike it rich in the next big gold boom.

Its mine already has resources of more than 2.2 million ounces.

A project that is planned to come on-line soon, with a total resource base of 2.2 million ounces of gold worth billions of dollars.

And management team of dedicated veterans …led by a titan of the mining world who has turned tiny firms into multi-hundred million dollar powerhouses.

Here are five reasons to get excited about African Gold Group (TSXV:AGG, OTCMKTS:AGGFF):

##1 The Kobada Mine…$140 million

The Kobada Gold Project is in southern Mali—and investors should take note of the difference.

While Northern Mali has had some trouble, southern Mali is stable, safe, and extremely favorable to mining.

Mali is Africa’s third-largest gold producer, and the southern belt near the borders with Cote d’Ivoire and Guinea is one of the most prolific gold belts in the world.

The belt stretches more than 25km throughout the whole Kobada concession and is entirely owned by AGG.

Studies have suggested a current resource base of 2.2 million ounces.

The company thinks it can hit 50,000 ounces a year and build upwards to 100,000 ounces a year in a short time frame. The completion date of December 12 is in sight, with another feasibility study coming up in April 2020.

At current prices, that would be $140 million in gross revenue a year... for a tiny small-cap firm.

Mineralization is evident at shallow depths, which means miners won’t have to sink big pits or blast away too much rock to get at the ore deposits.

Total costs look like they’ll come in under $50 million, with the gold close to the surface—the company has only had to dig 300 meters so far.


In Mali alone, there are at least twenty different mining companies are investing.

And the regulatory environment couldn’t be more ideal—the Malian government has embraced mining, Mali’s biggest GDP contributor, and has streamlined the permit process.

Where in North America permitting can take as long as 5-7 years, in Mali companies can have permits in hand in a matter of months.

For Kobada, licenses acquired from the Malian government expire in 2045 and cover an area of more than 200 square km


The area around AGG’s (TSXV:AGG, OTCMKTS:AGGFF) operation at Kobada is turning into gold’s newest hot-spot.

According to Mining Intelligence, 61 new assets are in production or construction stages, with 24 assets undergoing economic assessments. And there’s a huge number of assets in the exploration phase—more than 360 in total.

In fact, West Africa seems poised to become a new center for global gold mining—thanks to vast, untapped deposits, low costs and a favorable political and regulatory environment.

Guinea, Mali and Burkina Faso already produce twice as much gold as South Africa…and things may only get better from here.

#2 The Billion Dollar Gold Belt

Kobada is part of a massive belt running across a huge swath of West Africa.

Mining here has been very lucrative, with Resolute and Barrick realizing big gains.

It’s called the Birimian Greenstone Belt. And it’s already made a splash.

Take the Morila mine, in southern Mali, just east of Kobada. Operated by gold giant Barrick, the mine has been in operation since 2000.

Or Tongon in Cote d’Ivoire, also run by Barrick, where 230,000 oz was dug up…worth $322 million.

Or the Syama Mine, in Mali, operated by Resolute, which estimates it will produce 300,000 oz of gold per year.

At current prices, that’s $420 million.


Kobada sits squarely in a belt of mines that have brought in big gains for investors.

And West Africa is only now growing into a new global gold hub…it’s only now popping up on investors’ radar. That means things will only get better from here.

Just this year, Ghana outpaced South Africa as Africa’s biggest gold producer.

Mali, in third place, isn’t too far behind.

There are potentially hundreds of new assets that lie untapped, ready for exploitation by companies looking to make big gains, fast.

And AGG (TSXV:AGG, OTCMKTS:AGGFF) could be even bigger than investors realize.

#3 From Millions to Billions…Just Like That

There are real reasons to expect big things from AGG and the Kobada Mine.

First, take the company’s projected haul—50,000 oz a year.

Valued at the current rate of $1400 per oz, that’s revenue of $70 million. Not too shabby for a little company.

The company estimates the total haul for the Kobada property to be 2.2 million ounces, which at gold’s current prices could be worth as much as $3.1 billion in revenue.

The company is racing ahead of its schedule—accommodation for staff is 95% complete, holes are being drilled at a rate of one every three days, and a new feasibility study is set for April 2020, past the December 12 drilling completion date.

Despite recent news, including the decision by the Fed to cut interest rates, consolidation in the gold market means we can expect the $1400/oz rate to hold steady, or to trend upwards.

With China`s gold buying spree ramping up and increasing international trade tensions, industry experts expect the prices to go up to $2000.

That means the estimated gold at the Kobada property could be soon worth more than $4 billion.

That’s huge news…and it’s probably only the beginning, considering the massive value trapped in the Birmian belt.

And AGG (TSXV:AGG, OTCMKTS:AGGFF) has a team that knows what it’s doing. They know how to execute on big projects.

#4 A Firm Hand at the Wheel

The team at AGG is a superb group of industry professionals and financial whiz-kids who have spun iron ore into gold for decades.

And this group is ready to do it again.

Two directors, Sir Sam Jonah and Bruce Humphrey, have a hundred years of combined experience working the finances for mining operations.

Working the heavy machinery is miner Danny Callow. Callow served as the head for Glencore’s African Copperdivision. For Glencore, he built numerous large-scale copper and cobalt projects, including a copper and cobalt operation in Africa from green fields to a 210,000-ton copper producer and the largest cobalt mine in the world.

But the real news here is Stan Bharti, the company’s new CEO.

With thirty years of experience and a jaw-dropping resume, Bharti could lead AGG into a golden age.

Just a few of his victories:

- Started and founded Desert Sun in 2002 at $0.40 a share sold 2006 $750 million or $7.50 a share (TSX: DSM)

- Started and founded Consolidated Thompson 2004 at $0.25 a share sold in 2011 for $4.9 billion or $17.50 a share (TSX: CLM)

- Started Avion Gold 2008 at $0.40 a share and sold in 2012 for $400 million or $0.88  a share (TSX: AVR)

- Started Sulliden 2009 at $0.40 a share and sold in 2014 for merged value of $464 million or $ 1.47 (TSX: SUE)

Companies under Stan’s leadership have uncovered 20 million ounces of gold, more than 3 billion ounces of iron ore and 1.5 billion ounces of potash.

He’s amassed more than $3 billion in investment capital for his companies and brought in billions to his shareholders.

Bharti correctly predicted that gold prices would bounce back in the mid-1990s and again between 2003 and 2015. He’s got a knack for working the gold market—a skill that should be useful as gold surges in 2020.

He already pulled off one miracle. In the middle of the biggest financial crisis in history back in 2008, Bharti turned Avion around and sold it off for $500 million four years later.

That’s a 20x growth rate.

And now Bharti wants to repeat the feat with AGG.

“It feels like we are in 2003 again,” Bharti said, “at the cusp of a great run in gold and gold stocks.”

“I have always bought or acquired undervalued assets in emerging markets. This gives our shareholders the best potential for HUGE returns. AGG (TSX:AGG.V, OTCMKTS:AGGFF) fits in that category very well.”

“The team is now complete,” he declared, “and we are ready to take this asset to the next level in one of the most bullish environments I have seen in my 30 year career in mining “

#5 A New Gold Rush

It’s all happening again: the second big gold rush.

Talk of a return to the gold standard is spiking…and gold prices are climbing.

There’s a good chance interest rates could fall even further…into negative territory. And that will make gold irresistible for investors.

The VanEck Vectors Junior Gold Miners ETF, one of the most popular small-cap mining ETF’s, has gone up 50% in the last 2 months.

Mining expert and financial genius Stan Bharti, the new chief of AGG, thinks gold will reach $2000/oz.

This little $30 million market cap company with its billion dollar mine in Mali could see a colossal surge of investor interest.

You don’t need to invest much in a small-cap miner…say $1000 or $2000 or so…to realize huge gains.

And as big companies snap up small firms, the chance for a major pay-day grows—just look at what Bharti was able to accomplish last time, taking a small company and growing it 20x.

This is the new gold rush.

And it pays to get in first.

Other companies poised to gain as gold prices continue to inch higher:

Seabridge Gold Inc. (NYSE:SA, TSX:SEA)

Seabridge is an ambitious young company taking the industry by storm. It has a unique strategy of acquiring promising properties while precious metals prices are low, expanding through exploration, and then putting them up for grabs as prices head upward again.

The company owns four core assets in Canada; the KSM project, which is one of the world’s largest underdeveloped projects measured by reserves, Courageous Lake, a historically renowned property, and Iskut, a product of a recent acquisition by Seabridge.

Recently, Seabridge closed a major extension deal to continue expansion at its KSM project. CEO Rudi Fronk stated: "We are pleased that our EA Certificate has been renewed until 2024 under the same terms and conditions, reaffirming the Government of British Columbia's support for KSM and the robustness of the original 2014 EA.”

Teck Resources (NYSE:TECK) (TSX:TECK-B)

Teck could be one of the best-diversified miners out there, with a broad portfolio of Copper, Zinc, Energy,  Gold, Silver and Molybdenum assets. Its free cash flow and a lower volatility outlook for base metals in combination with a potential trade war breakthrough could send the stock higher in H2 of this year.

Teck’s share price stabilized last year, and many investment banks now see the stock as undervalued. Low prices for Canadian crude and disappointing base metals prices weighed on Q4 earnings.

Despite its struggles, however, Teck Resources recently received a favorable investment rating from Fitch and Moody’s and will likely benefit from its upgraded score. “Having investment grade ratings is very important to us and confirms the strong financial position of the company,” said Don Lindsay, President and CEO. “We are very pleased to receive this second credit rating upgrade.”

Turquoise Hill Resources (NYSE:TRQ TSX:TRQ)

Turquoise is a mid-cap Canadian mineral exploration and development company headquartered in Vancouver, British Columbia. Its focus is on the Pacific Rim where it is in the process of developing several large mines

The company mines a diversified set of metals/minerals including Coal, Gold, Copper, Molybdenum, Silver, Rhenium, Uranium, Lead and Zinc. One of the fortes of Turquoise hill is its good relationship with mining giant Rio Tinto.

Turquoise has seen its share price languish last year, and the successful development of its world-class Oyu Tolgoi project in Mongolia is of utmost important to the future of this miner.

In the short term, investors can expect the share price to come back somewhat as the company looks undervalued by any means. If oil prices break out above $1320 per ounce, Turquoise Hill Resources is poised to profit from it.

Great Panther Mining (NYSE:GPR, TSX:GPR)

Based in Vancouver, Great Panther is active in Brazil and Mexico where it explores for silver, gold, lead, and zinc ores. The second half of 2018 has been tough for the midcap miner, but its share price doubled last month, shortly after the acquisition of Beadell resources, which adds another 200,000 gold equivalent ounces to its reserve base.

According to a recent statement in the press, the focus in the near-term will be on the integration of the Brazilian operations, the continued optimization of the Tucano gold mine, and advancing an exploration program to unlock the significant exploration potential of Tucano."

Now the company has managed to bump production and add to its reserves, the near-term catalyst needs to come from higher gold and silver prices. 

Endeavour Silver (NYSE:EXK, TSX:EDR)

Endeavour operates three silver-gold mines in Mexico, but it’s also got three attractive development projects. Production has dropped and all-in sustaining costs have risen, leading to a negative cash flow. But the company has significantly reduced its debt, so its future is anything but bleak. 

2019 has been an up and down year for Endeavour. Its three mines in Mexico and a planned fourth mine in the Mexican state of Zacatecas are expected to see their output increase this year while the company has managed to keep AISC at reasonable levels last year, the question remains whether they can keep the costs low this year.

Near term catalysts should be expected from the El Cubo and Terronera projects in Mexico, but real share price gains can’t be expected until gold and silver prices break out.

By. Meredith Taylor

IMPORTANT NOTICE AND DISCLAIMER

PAID ADVERTISEMENT. This communication is a paid advertisement. Oilprice.com, Advanced Media Solutions Ltd, and their owners, managers, employees, and assigns (collectively “the Publisher”) is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by 2227929 Ontario Inc. to conduct investor awareness advertising and marketing concerning African Gold Group. Inc.2227929 Ontario Inc. paid the Publisher fifty thousand US dollars to produce and disseminate this and other similar articles and certain banner ads. This compensation should be viewed as a major conflict with our ability to be unbiased.

Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our articles experience a large increase in volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price may likely occur.

This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security. Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser. This communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company’s SEC, SEDAR and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results. This communication is based on information generally available to the public, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher cannot guarantee the accuracy or completeness of the information.

SHARE OWNERSHIP. The owner of Oilprice.com owns shares and/or stock options of the featured companies and therefore has an additional incentive to see the featured companies’ stock perform well. The owner of Oilprice.com has no present intention to sell any of the issuer’s securities in the near future but does not undertake any obligation to notify the market when it decides to buy or sell shares of the issuer in the market. The owner of Oilprice.com will be buying and selling shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

FORWARD LOOKING STATEMENTS. This publication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. The Publisher notes that statements contained herein that look forward in time, which include everything other than historical information, involve risks and uncertainties that may affect the companies’ actual results of operations. Factors that could cause actual results to differ include, but are not limited to, changing governmental laws and policies, the success of the company’s gold exploration and extraction activities, the size and growth of the market for the companies’ products and services, the companies’ ability to fund its capital requirements in the near term and long term, pricing pressures, etc.

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you acknowledge that you have read and understand this disclaimer, and further that to the greatest extent permitted under law, you release the Publisher, its affiliates, assigns and successors from any and all liability, damages, and injury from this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

TERMS OF USE. By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here http://oilprice.com/terms-and-conditionsIf you do not agree to the Terms of Use http://oilprice.com/terms-and-conditions, please contact Oilprice.com to discontinue receiving future communications.

INTELLECTUAL PROPERTY. Oilprice.com is the Publisher’s trademark. All other trademarks used in this communication are the property of their respective trademark holders.  The Publisher is not affiliated, connected, or associated with, and is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks.