The new chief executive of Aguia Resources puts a strong case for re-visiting the company despite a 97% fall in the share price since early 2011
The new chief executive of Aguia Resources puts a strong case for re-visiting the company despite a 97% fall in the share price since early 2011. In short, it could be a highly competitive phosphate producer in a market (Brazil) using 100% of locally produced phosphate. Investors' judgements will justifiably be coloured by previous board instability, a failed potash exploration effort and some messy governance practices. All of that might be enough to prevent the company getting the needed funding for a feasibility study. With a current market value of just $8 million, the company is moving beyond exploration to project development and is now highly leveraged to proof it can do the job. This would normally be worth a close look but might best suit a new investor whose judgement is untainted by history.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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