Post by
Fullplate on Jun 14, 2018 11:13pm
Came Here From Rye Patch
The acquisition of Rye Patch brought me here, and I have mixed feelings about the combination of the two companies. Florida Canyon and many of the nearby properties are very nice undervalued assets. Within the old Rye Patch, Florida Canyon had just been brought into production after a number of delays and missteps due in part to poor management. The other Rye Patch properties were to be developed from the cash flow now being generated from Florida Canyon, with the end result being a 200,000 oz producer in Nevada.
Now Florida Canyon’s cash flow will attempt to finance Ana Paula, leaving the other Nevada properties for the future. Florida Canyon should be very successful, but I doubt that it will produce more than 120,000 oz per year, and the AISC has been too high thus far. My guess is that it will take higher gold prices to self- fund Ana Paula. I consider a more likely outcome that ALO gets taken out within the next 12 months unless the share price rises north of $2.50 at $1300 gold.
Comment by
kkkrrr on Jun 15, 2018 1:35am
I think the SP will go up after Q3.. . the 2 producing mines will do better after some fixes and AISC will come down... SP is surpessed by many factirs.... political issues in mexico, past mine performance (Sf + Florida Canyon), delay FS Ana Paula (including water issues+Place for the tailing storage) .. but there will be an solution for all problems..its work in progress......