Alio Gold Predicts Growth in Production

GuruFocus.com
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- By Alberto Abaterusso

Alio Gold Inc. (ALO) was down 2.12% on the New York Stock Exchange American to $3.23 yesterday Jan. 30 after guidance on production and cost for 2018.

At the San Francisco Mine in the Mexican state of Sonora, the miner predicts a production of 90,000 to 100,000 ounces of gold in 2018. This is a 7.7% to 19.7% growth from 2017, as a result of several operational improvements at the main pit of the Mexican mineral deposit


Alio Gold expects an all-in sustain cost of $1,000 to $1,100 per ounce of metal sold. The company also projects to make $2.5 million to $3 million in capital expenditures, including financial resources for exploration activities.

For 2018, Greg McCunn, CEO of Alio Gold, said that the company "will continue to focus on cost efficiencies to drive down costs and improve overall productivity."

For 2018 consensus is for earnings of 40 cents per share and for revenue of $127.52 million.

For the 52-weeks through Jan. 30 the stock lost 21.61% and underperformed the VanEck Vectors Gold Miners ETF (GDX) by 19.5%. The 52-weeks is $0.07 to $6.06 per share.

Source: Yahoo Finance

Some indicators on Alio Gold:

  • The price-book (P/B) ratio is 0.71 times versus an industry median of 2.01 times

  • The EV-to-EBITDA ratio is 1.93 times versus an industry average of 10.14 times

  • The EBITDA margin is 32.12% versus an industry margin of 22.8%



Alio Gold has a recommendation rating of 2.4 out of 5. The average target price is $5.95. Analysts foresee an 84.2% upside from the current market valuation.

(Disclosure:I have no positions in any security mentioned in this article).

This article first appeared on GuruFocus.


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