Today Asia Broadband Inc. (OTC: AABB) – through its wholly owned subsidiary Asia Metals, Inc. – completed the sale of the Guerrero Gold Belt Mine and facilities in Mexico worth $82 million to key joint venture partner, Qiangda Investments & Economics Co. Ltd. This concerns the sale of its mineral properties and mining operations, in addition all operational controls and authority over the property and facilities have been transferred to the designated management personnel of the new owner.
PSN is pleased to publish a recent interview with Asia Broadband that was conducted just before today’s announcement. This interview focuses on the company’s short and long-term goals and focuses on what makes Asia Broadband such a successful and different mining company.
You can read the entire interview with AABB below:
PSN: For those who are not or little familiar with Asia Broadband Ord Shs (AABB), how can we describe your company and activities?
Asia Broadband: AABB is a mining company and an expanding producer of primarily gold and silver with a comparative advantage of readily available resources and expertise in Mexico to accelerate the development of mineral properties. The current operations focus of AABB is on its gold property in Colima, Mexico, where development is rapidly moving toward production by duplicating the Company’s successful model of production expansion.
Also, AABB recently began working with a digital asset developer to create a proprietary cryptocurrency digital wallet and gold-backed token. The Company expects to release the gold-back token into circulation in the first quarter of 2021.
PSN: What are the short and long term goals of AABB? And what business strategy is or will be used to achieve these term goals?
Asia Broadband: AABB’s short-term goals are to accelerate the development of AABB’s gold property in Colima, Mexico, by duplicating its proven production expansion model. Another short-term goal of the Company is to release its gold-backed cryptocurrency token into circulation and leverage the monetization of gold assets for operations growth.
The primary long-term goal of the Company is to continue expanding operations to increase property and project asset valuations to build shareholder value and become an increasingly attractive acquisition target. Another long-term goal is to have our gold-backed token become a world-wide standard of exchange in the cryptocurrency market by having the unique quality of being secured and trusted with gold backing value.
PSN: The vertical integration approach to sales transactions is the unique strength of AABB and differentiates the Company to its shareholders. What makes the vertical integration approach of AABB different and how does it distinguish you from the competition?
Asia Broadband: AABB is focused on the production, supply and sale of precious and base metals, primarily to Asian markets. The Company employs a competitive advantage by utilizing specific geographic expertise, experience and extensive industry contacts that facilitate an innovative distribution process from the production and supply of precious and base metals in Mexico for delivery to our client sales networks in Asia. This vertical integration approach to guaranteed sales transactions and access to mineral supply driven funding sources is the unique strength of Asia Broadband and differentiates the Company to its shareholders.
PSN: We read that AABB has the goal and mission to minimize this impact of mining activities on the environment and sustain a net social and economic benefit to all people that are affected by your operations. How does AABB realizes this and which specific examples from the past can be shared that proves that?
Asia Broadband: AABB has strictly adhered to the compliance of all government mining, property and environment regulations that have allowed for the expansion of operations and the substantial growth of employment opportunities and economic benefits locally and internationally.
PSN: What can be said about the current $4M Phase II Exploration and Development Program? Can you explain what it is and why this is essential for AABB’s business?
Asia Broadband: The Program was completed in August 2020 and was a key component to allow for the preparation of a property pre-feasibility study to determine the scope and present value of the project.
PSN: Recently, AABB – via Asia Metals – signed a Letter of Intent to acquire a high potential mineral property in the state of Colima, Mexico. What can be said about this strategic move, the upcoming objectives and its added value?
Asia Broadband: The Colima property was acquired in October 2020 for its high development and production potential located in a prolific gold-iron-copper production area of Mexico. The property area is advantageously located for mining operations and has outstanding mineralization geology and geophysics. Such attributes contribute significantly to an accelerated development program of moving toward production and increased asset value.
Additionally, the Colima property is situated in a region of Mexico, where AABB has a comparative advantage of development resources and expertise readily available to rapidly expand mining operations.
PSN: Another mine development program in Colombia was added in October. What makes this location important for AABB’s business and what strategy and goals come with it?
Asia Broadband: Due to the travel and development restrictions from the Covid-19 pandemic, AABB has put the development of the property on hold and is considering a joint venture or sale of the property in the near future. AABB is focusing its efforts and resources on the development of its Colima, Mexico, property where the Company has a strategic advantage to efficiently expand mining operations and build asset value.
PSN: What can AABB share about its business partners and subsidiaries? To what extent have these proved to be an added value to your business?
Asia Broadband: AABB’s joint venture partner has been a key component in financing the expansion and development of Company and the Mexican subsidiary, Asia Metals Inc., has allowed for and facilitated the mining operations in Mexico.
PSN: What is the current financial state of the assets, revenue, income and possible debts? In other words, how ‘healthy’ is AABB in 2021?
Asia Broadband: AABB has grown tremendously in the past three years. Currently, the Company has a very strong balance sheet and substantial revenues that have recorded over $16 million in gross profit for 2020, while reducing outstanding debt. AABB also achieved economies of scale that lowered expenses, allowing net income to exceed $12 million in 2020.
PSN: We also read AABB is anticipating a three-fold increase in gold production levels in 2020 from the Company’s added operational capacity. As a result, AABB announced that this will record a historically high quarter. To what extent has this or will this come true (in numbers)?
Asia Broadband: AABB increased operational capacity early in the year resulted in a record high quarter to close out the year, achieving $16 million in gross profit and allowing net income to exceed $12 million in 2020.
PSN: AABB – via Asia Metals – is in the final stages of negotiating the terms of a development agreement with a digital asset and crypto wallet maker. What is AABB’s ambition to produce a gold-backed cryptocurrency coin and the cryptocurrency market?
Asia Broadband: AABB signed the development agreement in early December 2020 and expects the proprietary gold-backed cryptocurrency token to be released into circulation in the first quarter of 2021. The Company is excited to release the token into the market and expects to become a world-wide standard of exchange in the cryptocurrency market that is secured and trusted with gold backing, which is a unique quality relative to other cryptocurrency tokens.
PSN: Why did AABB enter the OTC stock market? And how satisfied is AABB with this decision and the progress today?
Asia Broadband: AABB successfully became a Current Pink company on OTC Markets to allow for increased investment access and liquidity to shareholders and the enhanced ability to raise capital for growth and development. AABB is expecting to achieve a higher tier public market listing in the near future to allow for even greater access to capital funding.
PSN: For those being quite unfamiliar with this industry, what is the main incentive for a company like AABB to be profitable?
Asia Broadband: AABB’s main incentive to be profitable is to identify, build and develop asset value to provide a substantial return on investment and increased value to shareholders.
PSN: How or where can interested parties follow the developments of AABB in the best way?
Asia Broadband: Investors can follow the Company’s developments through the information and news releases on our website www.asiametalsinc.com or on the websites www.otcmarkets.com or finance.yahoo.com under our trading symbol $AABB or by calling the investor relations department number on our news releases.
PSN: Based on the current world developments, what has AABB experienced since the outbreak of COVID-19? How did the pandemic effect the business and how did AABB respond to this?
Asia Broadband: AABB has been affected by the pandemic primarily due to the travel restrictions. However, Mexico has had minimal operating restrictions and limitations, unlike other countries, and AABB has decided to focus its efforts in Mexico. All necessary measures have been taken by the Company to reduce risks and ensure the safety of all associated parties since the outbreak.
PSN: Finally, is there anything that hasn’t been discussed in this interview about AABB that you would like to share with us?
Asia Broadband: AABB has reached an agreement with our joint venture partner to sell the GGB production property in Mexico. This property sale is a milestone achievement for AABB and has put the Company in a very strong financial and operating position to accelerate the expansion of the Colima gold property and launch our proprietary gold-backed cryptocurrency token into the market place in the first quarter of 2021.
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