Ambitious managmentI have been watching Alhambra for several years but never took a position because I thought it was overpriced for the amount of resources they had. Finally this week after doing my DD and realizing that they have taken the open pittable resources over the million oz mark and the tremendous exploration upside remaining on their huge land package I took the plunge and bought a lot of shares. I should also add that I am very impressed with the limited share dilution since the company's inception around 8 years ago. Excessive share dilution is one of the biggest sins of most juniors. IMO this is the cheapest emerging intermediate gold producer listed on the Canadian exchanges. If this management has what it takes to get us to their 200,000 oz per year production targets, while keeping the shares outstanding to under 300 million, then buying at these prices will have been a once in a lifetime bargain indeed. Hopefully this management can walk the walk and not just talk the talk. Only time will tell for sure, but their leadership over the last several years thru the financial crises and the legal challenges has shown promising signs that they have what it takes to succeed in this difficult and ambitious endeavor:
Alhambra to Increase Gold Output After Kazakhstan Court Victory
(Bloomberg)
Updated:2009-08-18 14:48
Counter:158
AlhambraResources Ltd., which won a court ruling upholding its ownership of itsgold-mining business in Kazakhstan, plans to boost output and may sellshares, Chairman and Chief Executive Officer John Komarnicki said.
Alhambra plans to produce 200,000 ounces a year at the 11,000square-kilometer (2.7 million-acre) Saga Creek property, up from 24,971ounces in 2008, Komarnicki said in a telephone interview today, withoutspecifying a timetable. The company will use cash flow initially andmay raise more than $100 million in debt and equity later, he said.
"We're going to be moving ahead with developing financing andmoving aggressively toward building the production base and continuingour exploration program," Komarnicki said.
A five-member panel of the Kazakhstan Supreme Court last weekoverturned lower court rulings that had invalidated the Calgary-basedcompany's ownership of the Saga Creek unit it acquired in 2002,Alhambra said.
The stock, which lost 97 percent of its value last year, morethan doubled the day Alhambra announced the court decision. The sharesrose 1 cent, or 3.1 percent, to 33 cents a share at 12:06 p.m. today inCanadian trading.
Raising equity "is dependent on the market, and the recovery," Komarnicki said.
He didn't rule out a sale of the company.
"We have had interest expressed by other gold producers," hesaid. "We know we are on the radar screen."If a bidder made an offerthat provided value for Alhambra's shareholders, "we'd certainly bewilling to talk," Komarnicki said.