Today I’ll be talking about Asia Broadband Inc. (OTC: AABB) a resource and crypto stock. AABB was very active in 2021 and has a Mine-to-Token vertical integration model which sets it apart from a lot of players in this space.
Essentially, AABB sources precious and base metals in Mexico thanks to its acquisition of the Bonanza Gold Mine Project in November as well as several other gold production sites where AABB has a comparative advantage in terms of resources. This property acquisition strategy gives the company a supply of precious & base metals which it then delivers to Asian markets where it has established client sales networks.
The company took it a step further by minting the AABBG gold-backed cryptocurrency in March 2021 through its digital assets business segment. This crypto works with the AABB Wallet and its proprietary digital exchange called the “AABBExchange”. Because its a gold backed crypto, the company seems pretty bullish that the AABBG token could gain ground as a stablecoin.
AABB’s crypto exchange launched in December as part of its Wallet but has run into some complications. The exchange will have at least 200 cryptocurrency exchange trading pairs available but launched with just SHIB and USDT. Now it has around 30 trading pairs available and the company is working on adding more while rolling out other modules to optimize the platform.
I’d say AABB’s real asset is its crypto which is backed by $30 million in physical gold held by the company. This means that the AABB gold token was valued at approximately $5.60 when it launched which is the equivalent of 0.1 gram of gold. Because the token is backed by gold, its value is tied to the market price of gold at a minimum.
This means the token’s value can increase as gold prices fluctuate. An example of how this could work are the tensions between Russia and Ukraine which have boosted the value of gold. In times of uncertainty, gold is usually more highly valued so it’s no surprise that gold hit June’s high of $1,900 per ounce recently.
So you can see how AABB’s 5.4 million tokens could become more highly valued due to the Russia-Ukraine conflict or any other international crisis. According to the company, it will be launching an international marketing campaign for its exchange and token in March which could be the spark this project needs to attract more investors.
In the meantime, AABB has been working to attract other commercial client’s for its AABB wallet and has recently brought on KYN Capital Group, Inc. to the Company’s commercial client user base for the AABB Wallet. Expanding its network of business clients and contacts will be a very important driver of growth for this company and it looks like AABB is ready to get the ball rolling on this.
But right now, investors are waiting for geological reports from the Bonanza Gold Mine Project and the Tequila Gold Mine Joint Venture. Reports from both sites are due sometime this month but the Tequila Gold Mine is expected to have an update on its gold production in March. AABB wowed investors last March when the company confirmed $16.8 Million in annual gross profit thanks to its vertically integrated mineral resource production in Mexico and high resource demand as well as investment capital in Asia.
However, according to its latest quarterly report, AABB has made $158 thousand from token sales and around $3,000 from exchange fees. But has almost $71 million in cash on hand. A lot of money went into making its cryptocurrency and exchange and the company reported roughly $539,355 in development costs associated with the projects.
In my opinion, it looks like AABB could be gearing up for some big updates in March and this could be a major catalyst for the company since its been following a downtrend since the end of 2021.
I’m watching AABB for an update in March on how they plan to roll out their international marketing plan as well as any news from its gold production sites. It looks like there have been some delays in getting their exchange fully functioning but AABB has surprised investors with its business model’s success before and it could again.
If AABB drops through what looks like a strong support here around 9 cents that could be a dip buy opportunity since it’s traded above 10 cents for most of the last year. It looks like the company also has a lot of cash on hand after selling some of its assets so we’ll see what AABB has in store for 2022.