We are short AKG because we believe it is highly likely to end up a Zero. On the back of flawed geology, AKG made investments in Nkran, its satellite pits, and Esaase that we believe will never be recovered. Nkran is already experiencing a serious collapse of its west wall that we believe is a sign of AKG’s desperation. We estimate AKG needs to spend $75 – $115 million soon to keep mining Nkran, or the mine will “pinch out”. Spending the money likely means AKG will run out of liquidity in 2018; not spending the money leaves the company without the cash flow to develop its largest deposit, Esaase.

In this slide deck, Muddy Waters presents six questions for management. These questions relate to insufficient disclosures on share ownership, stockpiles, depletion and technical information. Included are three pictures of the Nkran pit from May 28, 2017, so investors can make their own judgement on the condition of Nkran. Also included are pictures of puppies and rainbows, which we feel is the theme of most of management’s statements.