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Real-Time news about Allied Gold (London Stock Exchange): 0 recent articles
|dvsfm: i got a few more this morning at 32p, our time will come again, the main listing will enable funds/all share trackers to buy in, with hopfully an increasing share price|
|linessj: As a holder of AGLD can someone please clarify the possible share/price position for me assuming that, as planned, we move to the main market. 1 new share for 6 old shares, current price 31p, will this mean the the new share price will be (6*31p)£1.86.
I apprecitate that the current economic climate, company performance and outlook has a big influence on the price. Does anyone have any experience of other shares moving to the main market and how their shares performed? Thanks in advance.|
|ajviews: Good to see some recent buying strength in Allied and I think the share price should be good for a continued recovery here with the UK now supposedly the lead market and more so running up to the LSE main listing at the end of June. Given the share price has recently pulled back more than is justified by co news and not in direct relation to the POG moves, the share price shouldn't really be influenced to the same extent by any general seasonal market weakness IMO.
My brief read of the scheme docs on the web site show nothing that revealing for current investors but any potential new investors may find it a useful source for the company history and background to the LSE listing process. I am not entirely convinced of the merits in spending A$3.5m for this process, particularly as one of the reasons given is for the purpose of accessing future financing in UK markets which has the hallmarks of further dilution to come. However if that financing was in line with achieving the co.'s longer term growth goals of targeting 350k/oz annual production, that would be a big positive and would certainly move Allied further up the list of mid cap gold producers. For 2011 the current focus is to reach 200k/oz p.a. and the doc's confirm that Allied is currently producing at that run rate, so that reflected in reported figures combined with the undoubted interest of main UK market funds buying into what I believe will continue to be a strong market for proven gold producing co.'s and with Allied achieving inclusion into the FTSE350 indices at some point, there are a lot of positive factors here that I think will continue to support a share price advance over the remainder of 2011. - AJ|
|thehardestbutton: Nope - don't understand your gripe at all DBlack so not really sure Rebecca Greco will either?
Shareholder value has been preserved - you're now holding shares in an expanded company with significantly reduced debt. Did you notice the share price plummet the last time they raised cash in this way? Nope - me neither!
As the share price is up this morning and is likely to continue to progress in the coming months given the strategy of Mr Caruso and his board I wonder why you're not buying more.
'Expect a bid within 24 months at $90 an ounce? Why pay any more?'
Nope you've lost me there as well.....|
|cestnous: Bought a shedload this am. in two isas. One shows as a sell. Paid 39.75.
A bargain @ this price. Been waiting, wondering why so little action but Minesite made up my mind for me.
STOP PRESS: Wits Gold Expands Its Options, And Will Now Be A Producer As Well As An_
March 21, 2011
Allied Gold Pours Its First Gold In The Solomon Islands, And Is Now Heading Towards A Production Target Of 200,000 Ounces A Year
By Our Man in Oz
The disaster in Japan did more than just drag down the uranium sector. The flow of grim news is drowning out news of some promising developments elsewhere. There's no better example than the way the market has treated Allied Gold in the days following its announcement of the first gold at its Gold Ridge project in the Solomon Islands. Rather than reward a company which has delivered on its promises and taken a big step towards becoming a world-class gold miner, investors instead chose to sit on the sidelines as Japan staggered through its triple-headed catastrophe of earthquake, tsunami and nuclear crisis. Since reporting the pour last Wednesday the multiple-listed Allied (Aim, TSX and ASX) has slipped A3 cents lower to A62 cents, and sagged to as low as A54 cents at one stage. But that price might soon be viewed as the bargain of the year, as stockbrokers form a conga-line to heap praise on Allied, tipping it as A$1.00 company in the making.
The importance of Gold Ridge to Allied will become clearer over the course of 2011, but the key fact is that the company is now more than a one-trick pony. Gold Ridge joins Allied's existing operating at Simberi Island in Papua New Guinea, confirming the company as a major player in the gold belt of the South Pacific. With an initial target of 120,000 ounces of gold a year, Gold Ridge puts Allied on track to meet a first stage production target of 200,000 ounces a year. That will be followed by future expansion which will raise total production to more than 300,000 ounces a year, at around US$600 per ounce.
"Re-rating imminent," is how analysts at RBC Capital Markets described Allied recently. "Allied is trading to a significant discount to its peers", RBC added. Other brokers agree. Mirabaud, Oriel Securities, and Wilson HTM in Brisbane have all chimed in over the past two months with optimistic opinions on Allied. The key factor is the proof that the Gold Ridge mine works as promised. "Commencing countdown" was the heading on Oriel's review of Allied. Oriel noted that Simberi and Gold Ridge represented a strong growth platform that could take production to an annual level of 320,000 ounces by 2015. And Wilson said: "We continue to look to first gold production from the Gold Ridge project as a near-term catalyst for a re-rating". Events in Japan have postponed, but not stopped, the re-rating. Wilson tips A92 cents as a target share price, and RBC suggesting A$1.00 as the objective.
More will be heard about Gold Ridge this week, following a formal opening ceremony to be held on Tuesday 22nd March, a year to the day after a reconciliation ceremony was held at the project site and sods were turned as the start of redevelopment. Prior to that, the project had spent the best part of a decade in mothballs after a small war in the Solomons. This time around, and after Allied has spent A$150 million on refurbishing and expanding the mine originally developed by Delta Gold. The project will process 2.5 million tonnes of ore a year for the recovery of 120,000 ounces of gold for a minimum of nine years at a target cost of US$650 an ounce in the first two years, falling thereafter to US$550 an ounce.
With reserves currently estimated at 1.3 million ounces, and likely to rise as exploration steps up, Gold Ridge acts as a perfect complement to Allied's other project, Simberi. At its most recent reserve estimate Simberi boasted 2.1 million ounces. Together, the two mines mean that Allied can officially talk about 3.4 million ounces in reserve and 8.3 million ounces in resources, a bigger reserve base than many of its better-known peers, and enough to provide material for at least 10 years of open pit mining. In his latest presentation, Caruso produced a series of telling graphics which showed that Allied has more reserves than Resolute, Kingsgate, Perseus and Medusa, but a market capitalisation that is significantly lower.
Boiled down, Allied is a company hitting its targets and delivering on promises, facts that some of the smarter professional investors have recognised. M&G has built its stake in the company to 19.9 per cent, Baker Steel is sitting on 9.9 per cent and Franklin Templeton now holds up to 7.4 per cent. What these investors see is what the brokers are starting to see too: a company undervalued at this stage of its graduation to the status of a 200,000 ounce a year gold producer. Oriel has compared Allied's current status with that of Avocet and Centamin which both commissioned mines in 2010 and were subsequently re-rated. It also added the thought provoking notion that with Gold Ridge joining Simberi in production there could now be interest in Allied as a takeover target.|
|ollyb10: Buy Allied Gold (AGDL:AIM) at
39p ahead of the company starting its second mine, expected in
March or April, and its likely
inclusion in the FTSE 250 later in year.
Resource stocks tend to get a valuation
boost when they bring on new mines and
tracker funds will buy into Allied Gold
once it qualifies for the mid-cap index.
The company says final preparations
are on track for its Gold Ridge project in
the Solomon Islands. The announcement
of first gold pour can have a major impact
on a miner's share price. Cluff Gold
(CLF:AIM) increased by 290% to 56.5p in
the three months after saying in
November 2008 it had produced its first
batch of gold from the Kalsaka mine in
Burkina Faso. Avocet Mining (AVM:AIM)
jumped by 21.5% to 104.5p in less than a
fortnight after pouring its first gold from
the Inata mine, also in Burkina Faso, in
Allied Gold expects to produce
between 20,000 and 30,000 ounces of
gold from Gold Ridge in 2011 and
110,000 to 120,000 ounces annually
thereafter. Production from its Simberi
site in Papua New Guinea is currently
running at an annual rate of 70,000 to
75,000 ounces. This will be increased to
100,000 ounces by the end of 2011.
Therefore Allied Gold will be producing
a combined 220,000 ounces from 2012.
This could increase to 320,000 ounces
annually by 2015 as it is hoping to extract
sulphide material at Simberi in addition
to the oxide deposit currently being
mined. The £409 million cap has begun a
feasibility study and hopes to make a
decision in mid-2012.
Chief financial officer Frank Terranova
confirms to Shares the company is applying to move from Aim to London's Main
Market. He expects the event to happen
by July. Terranova also reveals Allied Gold
is looking at becoming a London-incorporated business. This will enable it to qualify for the FTSE indices, assuming there
is the requisite minimum 25% free float
(essentially shares in the public domain
not held by management or family). Both
these events should be positive for the
share price. Many institutional investors
refuse to buy into Aim stocks, so they
could soon finally consider Allied Gold for
their books. The Main Market also has a
higher profile and often commands
loftier valuations than Aim.
Shares in Allied Gold have pulled back
this year after a strong run in the second
half of 2010. This is partly in reflection of a
correction in the gold price but also amid
local media speculation in the Solomon
Islands the landowners of Gold Ridge were
not happy about compensation for loss of
trees, proposed jobs creation and royalties,
thereby putting the mine start-up at risk.
The company says the local media is jumping to the wrong conclusions.
Terranova says it is true Allied Gold
continues to be in talks with landowners,
but claims these are more about building
long-term relationships and not about
matters which could delay Gold Ridge's
maiden production. He explains: 'The
previous owner of the mine promised
four or five apprenticeships; we will initially take on 30. Some people wanted us
to take on 750 apprenticeships, but that is
not workable. Surely 30 trainees is much
better than the five previously offered? I
wouldn't call this matter a dispute.'
The company is looking to cut costs.
Under consideration is a move from
diesel to heavy fuel oil at Simberi, as the
latter is around 30% cheaper. Terranova
says this would knock $50 per ounce off
mining costs, currently pegged at $652
per ounce. Allied Gold believes the
Solomon Islands government will soon
build a hydro power station which would
mean it can switch from diesel to hydro
power at Gold Ridge, potentially in three
With 8.3 million ounces of gold in its
portfolio and several share price catalysts
in sight, Allied Gold looks poised to shine.|
|roobarb36: Yes dvsfm, I agree, there always seems to be a lag in the prices. Even more gauling when you see the very eary trades, pre market open, well above the offer like this mornings 35.18p, more in line with the ASX price (arbitrage traders probably) which does not seem to be followed through here.
The other notable thing is the volume seems generally a lot higher in Aus on a day to day basis even taking the exchange rate into consideration.
Never mind, still a lot to look forward to in the first quarter of 2011 and I'm sure when expected announcements are made the investing community will join us in much greater numbers and propel the share price nearer to where we think it belongs.
Only wish I could top up myself but no more available cash.|
The 30p mark was a barrier on the way up and unfortunately now that it has broken below this support level the drop looked likely to falter further and faster.
A set back but one of those things unfortunately and we will just have to consolidate, regain a bit of upward momentum for a concerted push through the 30p resistance level again.
Should note that the closing price in Austarlia was 0.465 AUSD which equates to approx 28.7p so think we have overshot on the downside a touch.
As I said yesterday I could not see anything to justify a 10% drop in the share price given the POG, future QE to keep this high for the foreseeable future leading to higher profit margins, the expected ramp up in production, the 155% reserve increase in Simberi and two significant director purchases at full market value.
Can only put this down to faltering volume only just above a support level.
Break below this and any small fall accelerates quickly.
Thankfully it works in reverse too so it may take a bit to push back through 30p but if the volume is there to back it up the rise once it has been breached can be just as quick.|
|divinausa1: UKGeorge - 18 Oct'10 - 10:25 - 2083 of 2085
the drop can partly be blamed on the fall in gold price
we are at the same share price as of Oct 2009 circa 30p when gold was under $1000, now POG is $1360!
We have no increase in share price as the POG has gone up...
MMs playing games here imo plenty buying recently with directors buying too.|
|roobarb36: Forgot to add yesterday that Mark Caruso also seems confident as he recently paid full asking price for 100,000 shares.
He has been joined by Terence Harvey who has just bought 150,000 at an approximate conversion rate of about 28p.
Two directors purchasing approx £28,000 and £42,000 worth of shares out of their own pockets rather than just overly generous options or warrants is usually quite a good sign especially when we are not penniless and desperate for a quick share price lift.|
Allied Gold share price data is direct from the London Stock Exchange