RE:RE:39 million ALO shares to aquire Rye Patch GoldYou say "why buying another mine with limited minelife"
Comparing current operating mines Florida Canyon mine life is 8 years which is longer than 6 years of San Fransisco. Total resources of Rye Patch is 4.6 Moz AuEq with other pits. Plus there is a lot of high grade sulphide under the oxide they haven't drilled but have tested with 95% recovery. The new lower 21% tax rate of US will be good. Current $1300 gold price is much higher than planned in the PEA.
Both companies are very cheap. Ratios of both companies are very undervalued relative to peers.
Larger diversified miner can improve the ratios closer to peers as they said.
Who knows, maybe 2 head are better than 1.
kkkrrr wrote:
hmm, makes this sense? the Florida Canion Mine is up and running and delivers cashflow... but without new findings the minelife is limited ... looks like Alio possibly overpaid..don't like it at all because Alio has enough own problems..why buying another mine with limited minelife for about 100 million$??? ... this dilutes future profits .. upside is Lincold Hill and Wilco (nearly 2 million oz of Gold combined)....
on the positive side: 2x cashlow from 2 mines maybe makes it easier finance Ana Paula ...