Under McCunn Before McCunn came aboard, SF was seriously neglected, mismanaged and underperforming, and was all but ready to be put on care & maintenance.
We can now look towards SF in having several years or more of 100,000+ AU production, generating cash flows from operations that average around $28M p/yr at $1250 gold, while also improving on margins at SF by eliminating the need for diesel power at the crushing circuit, and through improved metallurgy having higher gold recoveries.
At AP we've had success with permits arriving without delays, along with several new institutional investors coming aboard from Sprott Asset Management LP to Morgan Stanley Canada, affirming with their respectful DD that AP without a doubt is a very robust money generator.
The one word that describes this relatively new management team is GROWTH. Not only preparing for construction/production to begin, the Alio Team went out and raised $C50M to not only cover the funding of the definitive feasibility study, along with able to cover the equity part needed for capex (the remaining 90m-100m will be financed through debt), but also set forth an ambitious above & below ground exploration program that will in short time double our resources & reserves.
For Alio, other than a rising gold price the next fastest way of increasing shareholder value is through the drill bit. The Alio Team understanding the sizable mineralization below the pit, along with the tonnage limitation in the pit to feed the mill at full capcity, decided to go after that higher grade underground breccia mineralization to fill the crusher that was lacking 1000 tpd of feed.
Denver Gold Forum: https://www.denvergoldforum.org/dgf17/company-webcast/ALO:CN/
Conservatively. that 1000 tpd would generate around an additional 40,000 Au ounces p/y, on top of the 110,000 Au ounces p/y already from AP's OP, giving us 150k Au ounces from AP & 100k Au from SF or a combined 250,000 Au ounces per year, while increasing the LOM substantially.
A back of the envelope combined SF & AP production scenario of 250K Au per/year, AISC would come in around $US750 per/ounce, and a post tax NPV of around $US780M. This accounts not only for the increased production, but also for the doubling of AP's LOM.
In the open pit we have around 440K Breccia Au ounces at an average grade of 6 gpt, continuing underground the high grade breccia appears to contain upwards of 750K Au ounces of additional shareholder value. But what may be of even greater value underground is the Skarn Target.
Management believes that the skarn zone deposit may be the feeder zone for the breccia pipe mineralization and as in the case of these skarn deposit along the Guerrero gold belt, they also often contain silver & copper as what Torex skarn deposits have shown.
We have just begun to see how large this skarn deposit can grow with having only a handful of holes drilled into it, and with the UG drilling to begin at AP mid/2018, I would not at all surprised to see at least a doubling of what is now our current reserves & resources at AP.
Of course the larger the resource along with the possibility of adding other metals to the mix, creates options going forward from mine plan to financing, and have not touch upon the above ground mapping, geophysical work, and drilling to begin Q1/2018 on AP's huge land package.
I am 100% behind managements plan for growth, which in other words is a plan to increase shareholder value.
If I was not behind management I of course would not own this stock. GLTA