RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Raymond James: Underperform rating and C$1.00 target for ALO"The Florida Canyon Mine is an open pit gold mine and heap
leach operation which initiated activity in 1986."
So the story is that Rye Patch brought it back into production. "
The Florida Canyon Mine restarted production after a rehabilitation period in April 2017 and achieved commercial production in December 2017. " William Howald, the company's President and CEO, commented, "This is truly a unique and transformational opportunity that has fantastic synergies with our existing projects at Lincoln Hill, Gold Ridge and Wilco located 30 kilometres to the south. We are creating a new and exciting company with anticipated initial annual production of 75,000 ounces gold expected to begin in 2017 with the potential to expand the existing Measured and Indicated Resource of 1.1 million ounces. Florida Canyon provides Rye Patch with a solid foundation from which to grow and significant exploration upside in and around the mine and throughout the district."
It's obviously proving very troublesome. That explains the pressure on ALO since the transaction as RPM shareholders were eager to off-load their shares to salage what they could. Now what percentage of the ore inventory is going to lead to gold ounces within 90 days? If we exclude ore inventory from working capital it obviously goes way down. Debt remains low, but with ore inventory as high as it is, it makes a big difference whether that converts to cash and when.