Thursday, April 09, 2015 12:00:51 PM
ASR.TO/ALIAF - Alacer next Rio Alto?
With market now digesting (and mourning) the loss of low-AISC gold producer RIO.TO which stood out as a winner in gold sector of last two years ) in a multi-year bull since Dec 2013 bottom I believe market could look to Alacer as a go to name.
Chart in bull since November 2014 Major sector bottom so we'll see soon enough.
They still have a million ounces of oxide resources left, are on of lowest AISC producers in sector, have $364 million of cash (with working capital roughly the same), no debt and a mine life to 2039 with sulphide reserves.
Capex is significant to expand plant for phase II sulphide processing but Alacer stands out as a no-brainer for an operating, long life, low AISC gold producer in Junior Space. I am sure there are 2 or 3 corporate development teams at majors/intermediates looking very closely at Alacer now since they issued their recent reserves update. Eldorado has lots of experience in central europe and stands out in my mind as potential acquisitor. I'll ask my friend this weekend if he has looked at metallurgy as a likely candidate will have prior experience with building and operating a similar sulphide ore mine.
Here is a quick outline on Alacer posted recently:
http://seekingalpha.com/article/3048066-alacer-gold-an-even-stronger-buy-following-updated-resource-and-reserve-estimate
Their board also approved the expansion today.
http://www.alacergold.com/download/news_releases/news_releases_2015/2015%2004%2009%20Board%20Approval%20to%20Proceed%20FINAL.pdf
No position but plan on buying on dips on support of trend line I think will be put in off of November 2014 low i.e. $2.50-$2.60 range now.
With market now digesting (and mourning) the loss of low-AISC gold producer RIO.TO which stood out as a winner in gold sector of last two years ) in a multi-year bull since Dec 2013 bottom I believe market could look to Alacer as a go to name.
Chart in bull since November 2014 Major sector bottom so we'll see soon enough.
They still have a million ounces of oxide resources left, are on of lowest AISC producers in sector, have $364 million of cash (with working capital roughly the same), no debt and a mine life to 2039 with sulphide reserves.
Capex is significant to expand plant for phase II sulphide processing but Alacer stands out as a no-brainer for an operating, long life, low AISC gold producer in Junior Space. I am sure there are 2 or 3 corporate development teams at majors/intermediates looking very closely at Alacer now since they issued their recent reserves update. Eldorado has lots of experience in central europe and stands out in my mind as potential acquisitor. I'll ask my friend this weekend if he has looked at metallurgy as a likely candidate will have prior experience with building and operating a similar sulphide ore mine.
Here is a quick outline on Alacer posted recently:
http://seekingalpha.com/article/3048066-alacer-gold-an-even-stronger-buy-following-updated-resource-and-reserve-estimate
Their board also approved the expansion today.
http://www.alacergold.com/download/news_releases/news_releases_2015/2015%2004%2009%20Board%20Approval%20to%20Proceed%20FINAL.pdf
No position but plan on buying on dips on support of trend line I think will be put in off of November 2014 low i.e. $2.50-$2.60 range now.
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