First twenty calls also get a blender! At least now ‘the what and when of which’ investors are ‘waiting for’ is quantifiable, - the audit of the Corporation's 2012 Annual Audited Financial Statements, to be filed on or before June 30; then, the company can resume serious negotiations with interested parties, of which there are more than a few for, as one can well imagine, Alhambra, having a lot going for it, is a rare prize.
The disparity between what ALH is really ‘worth’ (and will someday be trading at) and what it is selling for right now is nothing short of extraordinary; mind boggling really.
How about a brief trip down memory lane?
Last time ALH was down at these levels transpired April and May, 2009. What was going on then?
Ironically, on May 4th, 2009, Alhambra announced that “a temporary Management Cease Trade Order ("MCTO") has been issued by the Alberta Securities Commission ("ASC") against the Corporation's Chief Executive Officer and Chief Financial Officer as opposed to a general cease trade order against the Corporation.” Sound familiar?
- Just like now, the reason was “due to the delay in filing its 2008 annual audited financial statements, management's discussion and analysis and CEO and CFO certificates (collectively, the "2008 Annual Audited Financial Statements").”
Of course, at that point, such a filing was held off “due to ongoing litigation over the ownership of Saga Creek Gold Company LLP which resulted in Alhambra losing ownership, control and management of its revenue generating assets and due to lack of funds to remunerate the auditors.”
That was a truly bleak time; as many of us recall all too well.
Here are a few highlights, (or is it lowlights):
- “Regarding the ongoing litigation, on April 16, 2009, Alhambra submitted an appeal to the Supreme Court of Kazakhstan asking the court to overturn the judgment of the Supervisory Chamber of the Eastern-Kazakhstan Oblast Court. At this point in time, Alhambra does not know if, and or when the Supreme Court will hear the Corporation's appeal.”
- On February, 12, 2009, Alhambra announced that “according to written confirmation received from the Kazakhstan Ministry of Justice, 100% of the ownership of Saga Creek Gold Company LLP ("Saga Creek") has been re-registered in the names of Marsa Aktiengesellschaft (Lichtenstein) and Teragol Investment Limited (Cyprus) (the "Claimants"). As a result, Alhambra has been divested of all ownership, control, management of and operating responsibility for its former wholly-owned subsidiary, Saga Creek.”
- Also, as if this horrible misfortune were not travesty enough, a ridiculously foolish ‘Legal Dispute’ with Victoria Oil and Gas PLC was still overhanging things; causing further uncertainty, angst, and heartache.
Not trying to dredge up bad memories, but these were surely inordinately difficult and extremely trying times; nonetheless, with great determination, immense dexterity and almost unbelievable stick-to-it-ness, management unfailingly simultaneously tackled all of these predicaments with great tenacity and, on September 15, 2009, shares of Saga Creek were successfully re-registered back into Alhambra's name, with Alhambra regaining ownership and full control of Saga Creek. Meanwhile, that annoying litigation (to which Alhambra was never a direct party) was discontinued; and rightly so.
O.K., maybe during April and May of 2009 a price of ten cents per share made some sense.
- Dealing with that host of problems took a herculean effort; making today’s issues look like a walk in the park. You think?
- When contrasted and compared with ‘dealing with that host of problems’ it makes those confronting the company today seem minor; perhaps even almost trivial. You think?
- What will ‘great determination, immense dexterity and almost unbelievable stick-to-it-ness’ translate into with present circumstances and conditions to work with?
Fast forward, - - -
Against incredible odds, Alhambra has successfully established a solid foundation, and, if not constantly capital-constrained (soon to be remedied through a ‘creative’ financing) would already be a world-class miner.
- Alhambra currently has between 32,000 and 36,000 ounces of ‘recoverable gold’ stacked in various stages (“work in progress”) undergoing processing by means of its “Heap Leach Method”; and, with roughly half of all production costs (including drilling, trucking, and lifting costs, plus resource and extraction taxes) already been pre-paid (i.e., roughly $350 per ounce ‘booked’ in advance), ‘actual production costs’ from here on out are extremely attractive; consisting primarily of leaching and resin stripping processes (“Process Operating Costs”); as such, ‘on the heap’ recoverable gold worth roughly $50 million will, after all other overhead costs are factored in, yield in excess of $20 million in free cash flow; worth roughly twice current market cap.
Is this all you get for your dime?
No.
We’ll also throw in a toaster oven and enormous exploration potential:
- Comprehensive ground gravity and high resolution magnetic surveys, and a remote sensing survey, were completed over the Dombraly-Shirotnaia gold trend in conjunction with an ASTER imagery survey to locate areas of hydrothermal alteration (associated with the style of gold mineralization known to occur in the region); with these technologies identifying many prospective tectonic features (structural controls on the alteration including faults and fracture zones).
- Taken together, it has been established that significant potential (in the southeastern portion of Alhambra’s licenses) exists to host very large gold deposits; and, going forward, a better understanding of the structural and alteration signatures (for known zones of gold mineralization) will be used to locate new targets for exploration.
- On a near-term basis, 18 new exploration targets were identified; - five deemed ‘high priority’.
On the exploration front, we’ll also throw in (but only for the next hour) one of Alhambra's 2012 early-stage exploration targets (Zhanatobe) where significant gold mineralization at depth (in both the Northern and Central areas) has been intersected.
Still not interested?
Not enough for your dime, (one tenth of a U.S. dollar; not worth what it used to be, and steadily losing ‘real’ value)?
O.K., you force a hard bargain.
Did we mention that you also get (in your favorite color) a gold mine?
… Still not enough?
How about three of them?
For your dime (the smallest in diameter and thinnest of all U.S. coins currently minted for circulation) you will also be the proud owner of an initial independent National Instrument ("NI") 43-101 gold resource estimate for an appealing gold deposit at Dombraly containing at least 301,000 ounces of Inferred current mineral resources (grading 1.01 g/t Au) and 22,000 ounces of Indicated current mineral resources (grading 1.22 g/t Au).
- Better yet, due to timing, the initial estimate for Dombraly does not incorporate the analytical results for the successful 32 hole (5,528 m) core drilling program completed at the end of October 2011 which resulted in the discovery of two new zones of higher grade gold mineralization, thereby extending known areas of gold mineralization both north and south. When economics permit, an updated estimate for Dombraly will be forthcoming, significantly increasing resources.
Behind door number two you will also get (out shortly) a ‘new’ NI-43-101 compliant resource estimate complete with an ‘updated’ Scoping Study; enjoying a net present valuation of several hundred million dollars; in itself amounting to several dollars per share.
What else do you get for your dime? (By the way, since passage of the Coinage Act of 1965, the dime's silver content was removed).
We have been saving what may well be the best for last.
For that same dime you will also find yourself the contented owner of an initial independent National Instrument ("NI") 43-101 gold resource estimate for an enthralling gold deposit at Shirotnaia; potentially a very extensive (yet complex) deposit remaining open along both strike and depth.
- Shirotnaia contains at least 645,000 ounces of Inferred mineral resources (grading 0.58 g/t Au) and 71,000 ounces of Indicated mineral resources (grading 0.76 g/t Au). Here too, due to timing, the initial Estimate for Shirotnaia does not incorporate either the analytical results for three diamond drill holes (489 m) from the 2011 drilling program or the entire 2012 diamond drilling program consisting of 18 core holes (3,691 m); and, when economics permit, an updated estimate for Shirotnaia will be forthcoming, significantly increasing resources.
- As you have probably heard (if not, check out the commercial we’re running on T.V.), this resplendent 2012 drilling program included a phenomenal high-grade 'intersection' extending 500 feet (open at depth) within the same major flexure hosting two world class gold fields a mere few miles away; - a domain where large very-high-grade deep gold deposits are customary within this particular gold belt.
To top it all off, there is a greatly strengthened board of directors.
Call now. First twenty calls also get a blender.