$AABB: Asia Broadband Stock Offers Low-Priced Expo
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For those looking to add a microcap name to their portfolio, Asia Broadband Inc. (OTC: AABB) is one to consider. Yes, there's a risk. But with a growing asset base to support an intrinsic valuation at higher levels, the rewards from catching this stock during weakness could yield significant near-term returns. In fact, at $0.02 on Monday, the path of least resistance for this resource-focused company is likely higher. Again, a speculative presumption. However, there are reasons to be bullish.
Foremost is that AABB is better positioned today than at any time in its history to create shareholder value. That includes when AABB shares scored an intraday high in May, roughly 60% higher than its current price. However, with an uptick in volume over the past three trading sessions, reclaiming that $0.04 price may be a near-term target as investors appraise a more robust Asia Broadband. Plenty is contributing to the case for higher share prices, including recent news from the company that does more to fortify the attack on recent highs; it could send shares appreciably higher from there.
Specifically, AABB highlighted value drivers that expose a valuation disconnect worth seizing.
Assets Support Higher Valuations
For those new to Asia Broadband, they are a resource company focused on producing, supplying, and selling precious and base metals primarily to Asian markets. They do so by utilizing its specific geographic expertise, experience, and industry contacts to facilitate its innovative distribution process, from its production and supply of precious and base metals in Mexico to its client sales networks in Asia. This vertical integration differentiates AABB from its peers, providing them a unique ability to facilitate efficient transactions and, importantly, from an investor's perspective, diversify its revenue-generating opportunities.
That's evidenced by AABB adding a digital assets component to its business model. Specifically, the company announced creating its digital assets business segment in June, supported by its freshly minted AABBG mine-to-token gold-backed cryptocurrency within its AABB Wallet. They did more. Through its proprietary digital exchange AABBExchange, the proprietary cryptocurrency payment gateway solution PayAABB.com, and it's Golden Baboons Mining Club NFT collection, AABB said it expects its token to become a worldwide standard of exchange that is stable, secured, and trusted with gold backing. All of that increases the inherent potential of its projects. From an intrinsic standpoint, the digital asset benefits further from demand-based price appreciation, a differentiation from most other cryptocurrencies.
AABB management is not short on optimism for the project. They expect that with its newly-minted ERC-20 gold-backed AABB Gold token coinciding with the launch of AABB Wallet, they have the potential to become a global leader in providing an exchange that is secure, transparent, trusted, and backed by the world's most precious commodity- gold. Like its others, it's an ambitious project. But keep in mind the team at AABB has delivered success.
And with its Bonanza Gold Mine, history could repeat.
Bonanza Gold Mine In Mexico
Asia Broadband recently announced significant progress in its exploration and development activities at its 100% owned registered concession at the Bonanza Gold Mine Project in Acaponeta, Nayarit, Mexico. In addition to progress made on the ground, AABB is excited about reports that indicate that the potential recoveries from the project can be more significant than initially expected. Keep in mind that it's not AABB making the claim. Development activities have been directed by the recommendations outlined in the certified geological technical report prepared by a qualified professional person (QP) from Micon International Limited. That report provides other points of interest.
Notably, it provided preliminary mineral resource estimates of gold and silver values in the initial technical report exceeding $10 million at the current spot precious metal prices. That's before any additional work is completed that could enhance that estimate. Even so, knowing they are sitting on millions, the AABB geological and mining operations team has been utilizing the report to maximize its exploration, development, and resource expansion program, as well as facilitate production, efficiencies, and processing equipment installations. It's important to mention that the Bonanza gold project adds to other prospective high-yield mining assets in its portfolio, all of which can be exploited through the company's strategic mission to more quickly develop project locations and monetize precious underground assets as well as their physical gold holdings.
Here's more excellent news. Precedent suggests AABB can unearth significant value, a bullish proposal supported by its location at the prolific mining region of Acaponeta in Nayarit, Mexico. Already, its Bonanza property has shown high-grade gold assay results from samples and drilling activities with the most significant gold values of more than 10 grams per ton (g/t). That's a good measure. Not only that, it positions the company to grow bigger faster, as the estimates support intensifying efforts for rapid expansion, which can benefit from high expected production and low operating costs. In other words, revenues can fall faster to its bottom line.
Shifting Into A Higher Gear To Monetize Assets
That's not all. With the potential upside at Bonanza expected to be more significant than initial reports indicated, AABB has shifted its development pace into high gear, investing appropriately to expedite development based on the bullish signals and recommendations outlined in its certified resource report. It's a plan in motion that, like its others, is multi-dimensional, including plans to become a larger company.
AABB noted in-progress plans to implement its mining property acquisition strategy, which will optimize development capital utilization by focusing operations and expansion interests in regions of Mexico. That allows them to leverage their strength and exploit a comparative advantage relating to development resources and expertise to guide rapid expansion. The goal- duplicate its previous gold production success.
While parts of AABB are impressive, the sum of them is what makes AABB attractive. All tolled, AABB is making tremendous progress toward monetizing key assets. And its expansion into the digital currencies sector, with multiple interests able to drive new revenues, adds to a value proposition already worthy of consideration.
In other words, don't be misled by a low share price; it doesn't tell the entire story of Asia Broadband. AABB is more significant than its price shows and has an excellent chance of transforming ambition into revenues in 2023. On that expectation, it's fair game to assume that the current roughly two-cent price tag could become a springboard toward substantially higher share prices. More directly said, the next update from Asia Broadband could close the window of opportunity.
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