Bottomed Out Gold Mining Stock with Buyout Potential?
As a company focused on exploration and production of precious metals, Amani Gold Limited (OTC:BRYYF)(ASX: ANL) is believed to have significant potential after its recent resource estimates exceeded 4 million ounces of gold. Throughout 2021, BRYYF went through several changes in management and operations in order to prepare for its diamond drilling campaign in the Democratic Republic of Congo. With its most recent appointment to its Board of Directors, many investors believe a potential buyout could be ahead for BRYYF stock.
Fundamentals
As is, there are many reasons investors are bullish on BRYYF. For one thing, the Kilo-Moto Belt of the DRC – which is home to the company’s mining sites – also hosts Barrick’ 17 million-ounce Kibali group of deposits. Barrick is one of the largest mining companies in the world and its site produced 350 to 380 thousand ounces in 2021 while operating just 35 km from Giro. Few mining stocks can boast such close proximity to a high producing mine like Kibali.
Clearly, this is a bullish sign for BRYYF’s nearby mining sites. But investors have also compared Amani Gold to Moto Goldmines which was formerly owned by BRYYF’s now Executive Director – Klaus Eckhof. After completing its feasibility study in 2009 on the Kibali mining project, Moto was acquired by Randgold Resources and AngloGold for $578 million before Randgold was acquired by Barrick in a $6 billion deal. At the time of the Moto Goldmine Acquisition, the site had 5.5 million ounces in probable gold resources and an additional 5.7 million ounces of inferred gold. This is comparable to BRYYF’s site which contains 4.4 million ounces of indicated and referred gold. However, in 2019 the price of gold was roughly $1,050 per ounce while the price per ounce has risen to near $1,800 per ounce in 2021. The major difference between both sites is the feasibility report which is necessary to upgrade Amani’s gold reserves to proven or probable.
For this reason, BRYYF’s Executive Director Klaus Eckhof is an important component of BRYYF’s management team and the fact that he chose BRYYF over other mining stocks hints at the company’s potential. Not only does he have over 25 years of experience as a geologist identifying, exploring and developing mineral deposits around the world, but his role in the Moto Goldmine Acquisition has some bullish investors hoping for a repeat.
Technical Analysis
BRYYF is currently trading at $.0012 with a support at .0011 and a secondary, stronger support at .0009. The stock shows a resistance at .0014. The RSI is resting at 48 and the MACD is bullish. Meanwhile, accumulation saw a huge jump at the end of March and has remained relatively steady since. Given that BRYYF is trading at its historical support, the stock is likely approaching bottom and could be due for a reversal.
Following the company’s shareholder conference, many investors are bullish that a buyout offer could be impending given BRYYF’s close proximity to Barrick’s site just 35km away. This could explain the strong accumulation which could continue building up to the July 2022 resource review. With a market cap of only $26 million, a possible buyout offer could be a huge boon for shareholders. But as is, BRYYF stock could see a rebound off of its support with announcements regarding the assay results of its third and fourth drill holes.
BRYYF Stock Forecast
While continuing its diamond drilling campaign at the Kebigada, the company intends to begin reverse circulation drilling at Kebigada south east in May and into June. It will follow that with drilling at the Congo ya Sika in June before its resource review in July. It’s worth noting that Australian analysts have been very bullish on Klaus Eckhof’s leadership of Moto Goldmines took the company from 4 cents per share to $4 per share — a 9,900% return. He was also credited with the lithium-focused company’s – AVZ Minerals (ASX:AVZ) – 2,500% run from 1.4 cents to 37 cents over one year. Clearly, his name holds considerable weight in the mining business and some believe that his work with BRYYF could yield similar results. With this in mind, many are hoping that July’s resource review or feasibility study will be the catalyst for a potential buyout offer – making BRYYF stock one to watch.
Fundamentals
As is, there are many reasons investors are bullish on BRYYF. For one thing, the Kilo-Moto Belt of the DRC – which is home to the company’s mining sites – also hosts Barrick’ 17 million-ounce Kibali group of deposits. Barrick is one of the largest mining companies in the world and its site produced 350 to 380 thousand ounces in 2021 while operating just 35 km from Giro. Few mining stocks can boast such close proximity to a high producing mine like Kibali.
Clearly, this is a bullish sign for BRYYF’s nearby mining sites. But investors have also compared Amani Gold to Moto Goldmines which was formerly owned by BRYYF’s now Executive Director – Klaus Eckhof. After completing its feasibility study in 2009 on the Kibali mining project, Moto was acquired by Randgold Resources and AngloGold for $578 million before Randgold was acquired by Barrick in a $6 billion deal. At the time of the Moto Goldmine Acquisition, the site had 5.5 million ounces in probable gold resources and an additional 5.7 million ounces of inferred gold. This is comparable to BRYYF’s site which contains 4.4 million ounces of indicated and referred gold. However, in 2019 the price of gold was roughly $1,050 per ounce while the price per ounce has risen to near $1,800 per ounce in 2021. The major difference between both sites is the feasibility report which is necessary to upgrade Amani’s gold reserves to proven or probable.
For this reason, BRYYF’s Executive Director Klaus Eckhof is an important component of BRYYF’s management team and the fact that he chose BRYYF over other mining stocks hints at the company’s potential. Not only does he have over 25 years of experience as a geologist identifying, exploring and developing mineral deposits around the world, but his role in the Moto Goldmine Acquisition has some bullish investors hoping for a repeat.
Technical Analysis
BRYYF is currently trading at $.0012 with a support at .0011 and a secondary, stronger support at .0009. The stock shows a resistance at .0014. The RSI is resting at 48 and the MACD is bullish. Meanwhile, accumulation saw a huge jump at the end of March and has remained relatively steady since. Given that BRYYF is trading at its historical support, the stock is likely approaching bottom and could be due for a reversal.
Following the company’s shareholder conference, many investors are bullish that a buyout offer could be impending given BRYYF’s close proximity to Barrick’s site just 35km away. This could explain the strong accumulation which could continue building up to the July 2022 resource review. With a market cap of only $26 million, a possible buyout offer could be a huge boon for shareholders. But as is, BRYYF stock could see a rebound off of its support with announcements regarding the assay results of its third and fourth drill holes.
BRYYF Stock Forecast
While continuing its diamond drilling campaign at the Kebigada, the company intends to begin reverse circulation drilling at Kebigada south east in May and into June. It will follow that with drilling at the Congo ya Sika in June before its resource review in July. It’s worth noting that Australian analysts have been very bullish on Klaus Eckhof’s leadership of Moto Goldmines took the company from 4 cents per share to $4 per share — a 9,900% return. He was also credited with the lithium-focused company’s – AVZ Minerals (ASX:AVZ) – 2,500% run from 1.4 cents to 37 cents over one year. Clearly, his name holds considerable weight in the mining business and some believe that his work with BRYYF could yield similar results. With this in mind, many are hoping that July’s resource review or feasibility study will be the catalyst for a potential buyout offer – making BRYYF stock one to watch.