RE:RE:RE:RE:RE:...that should give some boostThis is catalyst 1 of the re-rating process by divesting non-core assets, paying down debt and increasing working capital removes the immediate uncertainty that drove analysts rating down from $6 to $1. Remember the term "Alio walking a tightrope" - as concerns arose cashflow with and cash on hand. This has, at least in part, been addressed.
Catalyst 1A is that the SF pushback is now able to proceed, which will allow for SF to produce according to their plan - around 80k - 100k oz per year and a LOM of 7 years starting FY19.
Catalyst 2 will be the release in November/December of the 43-101 for FC, which should show 60k-70koz for 7 years with an AISC around $1000/oz starting FY19.
With the above, we should see FY19 production of 140koz at minimum in FY19, giving analysts and investing public some certainty going forward to base their valuation analysis upon.
With gold price looking as if it should continue to rise, I see Alio being well positioned to benefit going forward.
B