More Florian Florian Siegfried: The Disconnect Between Gold and Gold Stocks Will Flip
https://youtu.be/nZz4qc7-IEw
If he is right, there is a lot of leverage in the ALO portfolio as long as nothing significant goes wrong. This portfolio is going to be a "show me" portfolio because of the perceived politial risk of the Ana Paula crown jewel. Until that gets off the ground and is producing gold to plan, the stock will trade perpetually at a discount. The market also wants to see Florida Canyon's issues resolved.
Florian reported in January, 2018:
The fund has reduced its position in Rye Patch Gold, the emerging gold producer in Nevada. The CAPEX for the Florida Canyon (FC) Mine has been underestimated by management, resulting in ongoing equity dilution. Meanwhile the ramp-up issues at FC still persist, and in our view the leaching kinetics need to see a material improvement to turn FC into a free cash flow generating mine. There is plenty of resource potential at FC but at this time we take a more cautious stance until FC reaches its name plate mining and processing capacity and achieves the planned gold recoveries.