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Alio Gold Inc. T.ALO

"Alio Gold Inc is a gold mining company. It is engaged in exploration, development and production in Mexico. Its projects include San Francisco mine in Sonora, Mexico and the development stage Ana Paula project in Guerrero, Mexico."


TSX:ALO - Post by User

Comment by auburn2on May 23, 2018 2:22pm
94 Views
Post# 28070897

RE:Sell or Stay???

RE:Sell or Stay???The acquisition is a good synergy that should be showing some accretion very soon. RPM was burdened by debt and lack of liquidity - no longer the case with the combined entity. Give management another 12 months. $5 is a reasonable target. However I all else being equal I always prefer oil stocks as they're a much easier business. Production brought on incrementally vs big mines that require permits, construction, and all the rest that can go wrong. Yet gold stocks tend to trade at premium valuations. Gold companies use NPV-5 while oil companies use NPV-10 or NPV-12.5. I also remember the head of Front Street Capital complaining about the inferior management teams gold companies have vs the excellent teams that oil companies tend to have.
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