RE:RE:Green 3 days in a row! GET LONG $$$ back over $1 quick Alio looks to have carved out a bottom over the last three weeks.
From an AISC perspective, FC was mining and processing 30% more ore than plan, and actually mining from benches (if I recall correctly). So, 30% higher costs vs. plan to get Ore on the pad, but this didn't translate to immediate gold production (as expected).
- They should pull back on the mining to be consistent with their plan, they will reduce cost will producing the same Oz
- They will "high-grade it" in the interim, being selective with ore to limit costs
- there will be no extra costs such as the almost $2M to complete the RPM transaction
- Exploration costs were halted at Ana Paula, so will be a fraction of costs in the last Q
- high-grading/selective mining was started in June and grade was already increasing as of July, so we will see lower costs
All in, I see lower costs and manageable AISC (considing SF was at $1172 last Q, if I recall). Key will be cost containment, which seems to be under control... but, I then again, i don't trust this management until they prove what they can do.
Finally, lots of JV options for AP...
B