At extreme capitulation
During the extreme 2015-2016 trough before mining stocks advanced 3X to over 10X, ALO when it was considered ripe for bankruptcy had a low of $1.05 before quicking snapping back to $1.85 and reaching $8 by July of that year. The company is far better positioned now, but the performance of Florida Canyon remains a question mark. This new team has invested quite a bit into SF, which I heard is what saved Timmins from bankruptcy, so the performance of SF should be better through the rest of the year and into its ~2022 mine life. But really this company needs at least US$1400 gold to begin thriving, and should be a whole new beast with US$1600 gold.
Shareholders of ALO should also follow LMC, TXG, and TSN in order to observe the performance of nearby mines and companies. LMC in particular has excellent insider ownership and insider buying and I think that stands in the face of those dismissing this part of Mexico as too risky. The Tier 1 team at LMC doesn't think so, and you can bet they would love to get their hands on Ana Paula to integrate it within the rest of their portfolio.
“The new owners of Leagold are intending to build a company like they did at Endeavour Mining, where they built a company in West Africa through acquisitions, so there’s speculation about who they might acquire first,” he says.
“Potentially we’d be a good fit — there’s always that potential — but our mission is to build a mid-tier gold mining company, so we’ll keep doing the right things, and if someone wants to buy us, we’ll run like hell and make them tackle us from behind.”