I'm in now - a hold from hereHope you read my earlier post today suggesting to buy on the dip. The world is now talking about raising interest rates and tightening lending. ALO is now fully financed and should not need further funding. They should have 2 gold producing properties with a low float and a very good AISC average by the end of 2018.
I now have a near term target of $6.57 with the extra 8M shares and avg gold price for the past 3 months. At $1300 gold, that number quickly jumps to $7.46. Looking at the crystal ball, if ALO produces 200k oz/yr in 2019 without further dilution, give gold an avg price of $1200 and combined AISC at $800, then ALO has a value of $18.36. Can you imagine the value of ALO if the price of gold is much higher?
Here are some things that should help the price of ALO and other gold producers.
1) President Trump wants to keep the US$ low which is good for gold.
2) Rising Inflation is good for gold.
3) Oil prices should remain low which helps with input costs.
4) Equity prices are high and when they correct, gold usually performs well.
5) Asia growth continues and they like gold
6) The world is going cashless. Yes, in part to prevent tax evasion. If the gov't can lock any one's account and you have no cash access, you better hope you have some gold.
7) Lack of new gold discoveries.
8) Geopolitical changes and risks.
Therfore, the share price of ALO and other gold producers could be much higher 1 or 2 years from now. ALO's advantage is that it's share price does not yet reflect having 2 gold producing properties. The early bird gets the worm. All in my opion as usual.
Good Luck to the ALO longs.