Far East Capital Newsletter
Aguia's Andean takeover done - now get on with gold production
10 Jun 2024

In This Issue

Aguia's Andean takeover done - now get on with gold production

The end of financial year slowdown was evident last week. Combine that with the long weekend and you end up with a very quiet market. There will be some bargains in the market this month, as usual, but any buying can be done on the back foot as prices drift lower on small volume - except for special situations.

For the last six months Aguia Resources (AGR) has been in a virtual news flow lockdown due to the rules surrounding takeover bids. Finally, last week Aguia announced the closure of the successful bid for the unlisted public company, Andean Mining, that was originally announced last December. The first piece of news, released last Friday, was the plan to fast-track the reopening of the St Barbara Gold Mine in Colombia. As one shareholder commented, it provided a lot of detailed information that is worth reading.

Selling at 2.1c and a market capitalisation of around $23m, the market is totally ignoring the upside potential of strong earning streams from two projects across two commodities. Perhaps the story is too good to believe, but from where I sit, this is an extraordinary opportunity. The market will better appreciate the merit as the news starts to flow over the coming weeks.

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