Far East Capital Newsletter
Aguia bid for Andean is a game changer
26 Dec 2023

In This Issue

Aguia bid for Andean is a game changer

Our market is wasting no time in catching up with overseas markets, performing quite spectacularly over the past week as if there isn't a care in the world. This is the Christmas rally that we usually hope for, but don't always receive. Whether it carries through with much momentum in the New Year remains to be seen, but it certainly leaves the 2023 bear dead and buried. We can start buying stocks again, based on merit, without fearing that the general sentiment will scuttle our plans.

Last Friday, Aguia Resources announced an intention to bid for Andean Mining, an unlisted company with a portfolio of high-grade gold, silver and copper projects in Colombia. The jewel in the crown is the Santa Barbara Gold Mine that has already demonstrated considerable merit in a 12 month long pilot operating phase. This mine will be recommissioned as a 50 tpd, continuous mining and treatment operation based on very high-grade veins that have been sampled at one ounce per tonne. The restart program is estimated to take about six months and cost less than $2m to accomplish.

As we frequently say, "grade is king". Cash flow from Santa Barbara will be instrumental in rebuilding the Company's fortunes. This looks to be a real game changer for Aguia. 

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