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Bullboard - Stock Discussion Forum 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 Discussion

Alio Gold Inc. > More cashflow. . . with large upside. . .
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Post by chopchopbc on Mar 20, 2018 11:52pm

More cashflow. . . with large upside. . .

I'd like any of these naysayers to find a gold deal where the acquirer went up in price at the deal announcement -  they are like hens teeth - and yet combining businesses gives better stability, liquidity, treasury.  How was Barrick and Goldcorp built... M&A...

How many single asset companies do well for a large period of time (Torex anyone?)

This is extra cashflow, scale and security with no dilution (RPM are also at a steep discount) and no debt payments to make.

If anyone in their right mind actually thinks this is a bad deal - please enlighten us to what their play would be... I'm almost certain the naysayers plans out there would be pretty humourous.

Comment by ganndolph on Mar 21, 2018 9:40am
chopchopbc, Since when does merging one marginal low grade gold deposit with another subeconomic low grade deposit result in a successful profitable company?  Yes, there is more gold production, but two losses added together make a bigger loss! After taking a look at the Florida Canyon's historical gold production, average recoveries from 1987 to 1999 were 66.85 percent, but that was ...more  
Comment by HARJAY on Mar 21, 2018 10:18am
ganndolph Since i am not familiar with this co. can you clarify what happened at the end of June that seemed to cause the   S / P  drop from what looks like about $800 to its present level in the $9 range according to the  chart. Thanks
Comment by chopchopbc on Mar 21, 2018 11:01am
So you would suggest Alio acquire a high grade, high cashflow asset? With what exactly? That is my question to the armchair experts - if this is a bad move in your mind (which i dont) please suggest your alternative. If the RPM asset didnt have some hairs on it, by definition Alio would not be able to acquire it.  If however the Alio team in their process have weighed the risks and ...more