RE:RE:RE:Merger makes little sense for Alio shareholdersYou keep saying Alio has no debt but they do have debt according to their Q4 financial statement: $1.7 mil vendor loan and other liabilities. Who knows what was added in Q1 since they need cash to advance Ana Paula.
If you want guidance, watch the PDAC interview. Not official, but still guidance.
The reason Alio share price has been dropping is because Alio needs funding to build Ana Paula, and San Fransisco short mine life and higher AISC isn't going to provide that needed cash. They have problem getting a large loan to build Ana Paula, so they have to resort to issuing shares for funding.
You say giving away shares, but you will need to give away shares anyway to fund Ana Paula on the next share issuance. With the merger and better cash flow, a debt financing for a larger company on better terms can help reduce that dilution. Rye's lender according to the news release is agreeing to defer the payback of the loan to several years, so the $15 mil that would have been paid in 2018 will be additional cash available. Rye had a Cad$20 mil financing in Q1 so they had plenty of cash to pay that $15 mil even without free cash from 2018 operations.
zebra2 wrote: I have been looking for the q4 results for Rye Patch to confirm their past revenues . For some reason they are not yet released or, posted on line . From what I can see of their past, they have only just commenced operation at the florida mine, and any existing Rye Patch past revenues are very small .( ie 19 million last 4 published quarters.) ..versus Alio , which produced.over $100 milllion annual revenue in 2017..My point about this being a bizaare deal, is that Alio has paid way too much for this deal, as it brings much more financial strength , $50 million cash as of q4... no debt , and a supposed good project to work on , being the Ana Paula projcet. My point: Why give up 47% of the future profits to Rye patrch shareholders.., unless there is something around the future of Alio that we aren't being told.. The aspiration tfor Rye Patch to produce 6000 ounces a month is just that, as they have provided no guidance todate.,