RE:ALO market position;fb454 wrote
Hi everyone. I haven`t posted in about a year but I still follow this stock. What a shame of what they`ve done to this company. I wonder if they changed their way of doing business and respecting stockholders. When Greg M. took over I emailed him multiple times and tried calling him many times. He never responded. I called the H.R. person and she told me he doesn`t speak to stockholders. Fine with me. I sold my stock over the course of 2 weeks. I see the stock never recovered from his mismanagement. He hired too many people that were not needed; including 1 consultant after another. I guess they didn`t know what to do either. If anyone understands mining even a little bit; you could look at the maps and see that getting Anna Paula going was their best avenue. Even when gold was down at 1150, all in costs at A.P. are 500 per ounce. They even had a plant already in place that the original founder left them. If they weren`t sure of what to do I suggested to them at the time to get a JV partner who`s done this before. They have been inept since they forced out the original founders. They even raised the money for A.P. and blew it on consultants and other useless hires. 80 million dollars out the window. Could of mined with that. I guess no one has the ability to hold them accountable. Major stockholders can vote them all out but nothing doing. The board is made up of officers of other miners. Probably just waiting for the company to fail and then buy them on the cheap. Their fiduciary responsibilty is to help Alio be a success. They are negligent. I am glad the name isn`t Timmins Gold anymore. It was a profitable company with excellent management. They`ve all moved on to be successful with new companies. I`ll invest with them. The best thing would be for a hostile takeover. I wouldn`t even bother speaking with management. To all current stockolders; good luck. You will need it.
----------------------
Boy dont you sound a little bitter. Must have taken a good Cor%%$nholing on your shares here. Cant say i havent had that feeling.
Mistakes have been made here in the last few years for sure. Whos fault it was dont really know. Probably a number of people could take some blame along with some bad luck and low gold prices that did not help. They hired consultants , changed mine plan etc to get San Fran mine profitable, but did not work out. Anyway that is history and we have to look to the future.
A lot of the money raised for Ana Paula did go into purchasing equipment and getting the underground ramp partially built etc. The problem was that the San Fran mine did not bring in the cashflow that was to help build Ana Paula and indeed used up much of the money that was needed for it. This sort of thing happens more often than not as small gold miners often do not have the financial resources to get a new mine built and operating which usually takes a lot more money and time to get up and running than expected Of course hindsight is always 20 - 20.
The new management is trying to get the Florida Canyon mine up to speed with new equipment. As long as gold prices hold even if they can get the costs down a couple hundred dollars an ounce from here and get production up to near the 70 000 ounce range they could still cash flow aprox. $25 to $30 million per year.
Ana Paula also is still in the background. If and when Florida Canyon starts making good cashflow hopefully next year i would not be surprised to see things start to happen there as that is the asset that could make this company into a big cashflow producer.
The recent $15 million investment by Sprott gives me a lot more confidence in this company. I would not be surprised if Florida Canyon gets up to speed and starts making good cashflow next year that Sprott would make a deal with ALIO to provide money for Ana Paulas construction. Either by a loan, JV or loan and large private placement or a combination of these things at hopefully much higher of a shareprice than we have now. That along with Florida Canyons cashflow could allow Ana Paula to be built and operating in the next 3 years. And then i believe we have Goldcorp still lurking around in the background.
Yes mistakes were made here in the past. Most junior miners have these types of problems as it is a tough business which can burn up a lot of cash fast. Many end up going completely bankrupt. Investing in junior gold miners is very risky and not for the faint of heart. And we all know the risks going in and nobody forced us to buy any of these stocks. We all buy them because of the lure of the big payoff which happens sometimes. While everyone is happy and congratulates themselves on how smart they are when they have a big winner we should also take responsibility for the big losses and not blame everyone else.
With all the things Alio have going for them with a couple operating mines one being ramped up to hopefully good profits. Another big asset in Ana Paula in the background. $60 million in cash and working capital and no debt. With Sprott on board and a market cap. of around $65 million i am willing to take a chance on this stock being one of my big winners.
Havent had one of them in some time in the gold sector. Looks like this one has everything it takes to be the next one.
This was a $7.50 stock a couple years ago. It is now around one tenth of that price and i would say in much better shape going forward than it was then. At these shareprices i am willing to make a resonably large bet on this stock.
As often happens with these types of stocks things may not work out or take a lot longer and cost more money than planned to get up to speed. I am not trying to tell anyone whether to buy or not just that things are looking better here in my eyes than they have in years.
With all the bad things and losses that have happened here in the last couple of years which are reflected in the current shareprice there appears to be nothing but pessimism around this company. And that is why i like it as it appears that almost nobody is pricing in any of the tremendous upside that this company could have as early as next year.
Posts like yours are a perfect example of what i mean.