Alio Gold Inc. T.ALO

Doggy Soup...

[MisterB]

I'm still holding shares of this dog and should have sold all once we saw the pit pushback not delivering to grade, and therefore plan.   It is important to note that the pit pushback is predicated on $1350 gold (if I am not mistaken).

A few things overall:

• SF currently has an assigned value of Nil from analysts based on the current gold price, the fact they are only 60% complete the pit pushback, and are focussed on processing their stockpile
• No one will buy SF, so selling it is a pipe dream
• As the POG increases, SF pit pushback will become viable again and will proceed. I would expect this, imo, around the end of the year
• Like the ocean tide, the Price of Gold will lift all ships (companies)
• FC looks to have an interesting year, with decent production and AISC.  They should high-grade it using radio tower pit, which is moderately higher than the grade sent to the heap leaches over the ramp up period
• I read somewhere (MD&A, PPT?) that they want to restart standard Mine and they were looking for a partner for this ??.  I cannot remember the source.
• Ramping up Standard mine would add a lot of value here
• AP:  What a cluster F decision to start the underground.  They should have just focussed on completing the feasibility on the initial plan and i hope they restart that with a goal to complete the feasibility sans underground.
  • I would not be surprised to see a Joint Venture with AP which would alleviate a lot of concerns and put it in the forefront again.  I wonder if we would get appropriate value in the arrangement.

Until then, i expect decent results over FY19, but my decision to hold shares (and average down at this level) is based on the strong belief that Gold is on the cust of a major bull run starting in the second half of this year - and going forward for a number of years.

B

[zzthnx]

Thanks, MisterB. Excellent post that helps to give me some hope that maybe all is not lost with my depressingly underwater investment in this company.