Alio Gold Inc. T.ALO

Merger makes little sense for Alio shareholders

[zebra2]

The proposed consolidation results in Alio  shareholders giving up 47% of future profits to a firm that has little revenue and brings $29 million in debt to the table. Go figure. If ALIO stock goes up in the short term, it will be because.traders exoect this deal to fall thru. Trully a bizarre financial arrangement.

[7849362]

Rye is currently at 5500 oz per month from latest interview. That is not little revenue. https://www.commodity-tv.net/c/mid,38655,PDAC_2018/?v=298229 Revenue does not matter as much as profit margin. Rye AISC is much lower than San Fransisco AISC. You say brings $29 million debt but neglect to say over $20 million cash from recent financing.

[kkkrrr]

5500 oz per month means they are near planned production ...     free cashflow for 2018 is possible here...   i think the market wants to see this CEO is able to deliver... producing cashflow at both mines , construction of the decline at ana Paula + drilling out the property ...  followed by building Ana Paula ...

[7849362]

It is not just possible, the PDAC interview said they expected most of the debt to be paid off by the end of 2018 before the merger. The other guy saying Rye brings $29 million in debt is incorrect. That is combined with Alo debt. The Rye debt facility is $25 million. Rye paid down $5 mil of that in Q4. The PDAC interview said they expected to pay $15 mil in 2018, leaving only $5 mil debt at the

[zebra2]

I have been looking for the q4 results for Rye Patch to confirm their past revenues . For some reason they are not yet released or, posted on line . From what I can see of their past, they have only just commenced operation at the florida mine, and any existing Rye Patch past revenues are very small .( ie  19 million last 4 published quarters.) ..versus Alio , which  produced.over $100

[kkkrrr]

you are wrong.. Rye Patch Florida Mine is in production since Q2 2017 and ramping up sine them... the want to produce 65000-70000 oz p.a. at AISC near 900$ .. means double operation margin as San Francisco at POG 1300$ ...   financially the mergewr makes sense ...     more cashflow from 2 mines means better chances for a debt financing for Ana Paula ...

[7849362]

You keep saying Alio has no debt but they do have debt according to their Q4 financial statement: $1.7 mil vendor loan and other liabilities. Who knows what was added in Q1 since they need cash to advance Ana Paula. If you want guidance, watch the PDAC interview. Not official, but still guidance. The reason Alio share price has been dropping is because Alio needs funding to build Ana Paula, and