Earnings & Focus...I'm always skeptical when a company releases earnings on a Friday, and considering the shareprice, I think we have good reason to be skeptical. That said, they released the financials on Aug 10th last year too (and it was a stellar quarter. For ALO, with the RPM acquisition, the company is in a "SHOW ME" state, and nothing else but positive earnings, increased production, decreased costs, will do (or, Major AP news).
These guys should produce 35koz this Q, between FC and SF. Anything less will be a disappointment, and quite frankly, I am anticipating disappointment.
I did talk to the company and they didn't really say much about operations other than their focus is to:
- Increase operational efficiency
- Show increased production
- Show increased Free Cash Flow
- Complete a technical report for FC in the fall
- This was to be done by Rye Patch, but the acquisition put it on hold. Now Alio will review the block model and determine best approach with a mine plan (this is what the market wants to see)
I agree this is deeply undervalued and has the potential to be a 5-bagger in 2 years, with upside wtih AP. Now management must not stray from their focus and they must show progress Q over Q.
I'll remain cautiously optimistic until they prove they can focus and achieve results.
B