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Alio Gold Inc. T.ALO

"Alio Gold Inc is a gold mining company. It is engaged in exploration, development and production in Mexico. Its projects include San Francisco mine in Sonora, Mexico and the development stage Ana Paula project in Guerrero, Mexico."


TSX:ALO - Post by User

Comment by asforecastson Nov 08, 2019 5:00pm
140 Views
Post# 30329795

RE:RE:RE:3rd Q results, Remember to breath

RE:RE:RE:3rd Q results, Remember to breathScarda, thanks for the post.
I still kept some shares but the impairment charge on Ana Paula is huge and no details were released on why with a higher POG and great looking technical report the company took it down by 66%.  I, too, would like to buy more stock lower and see some visibility on Ana Paula.  Florida Canyon has P&P of .37grams/ton and a company needs to be as efficient as Argonaut Gold to generate pos cash flow and profits with that deposit. ALO is not (yet) even with a spanking new fleet.
Ana Paula was discovered in 1972 and never built.  Why?  Why is mgnt cutting its legs off?  Impairing it to $37mil gives them a built-in loss on the property in the event of a sale and it is the best property in their portfolio.  Timmins bought it for $113mil in 2015 and Alio is no more than a name change from Timmins.
I would buy more ALO if these questions could be made clearer but mgnt does not communicate in details.
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