$ALO : Alio Gold – Independent Economic Analysis

Long-Term Price Case$1,700/oz.$1,700/oz.
ProjectFlorida CanyonAna Paula
Mineral Reserves1 Mozs.1 Mozs.
Shares Outstanding84,700,00084,700,000
Market Cap$65,219,000$65,219,000
Average Annual Production74,918 ozs.118,067 AuEq ozs.
Recovery71%85%
LoM9.8 Years7.5 Years
Payable Product734,200 ozs.885,506 AuEq ozs.
True All-in Cost (TAIC) $1,283/oz.$1,195/oz.
Gross Revenue$1,248,140,000$1,505,360,200
Royalty($57,414,440)($30,107,204)
Refining Charges($3,369,978)($3,542,024)
Gross Income$1,187,355,582$1,471,710,972
Total Operating Costs($662,900,000)($445,400,000)
Operating Profit$524,455,582$1,026,310,972
Income Taxes($136,358,451)($384,866,615)
Total Capital Costs($81,900,000)($194,150,000)
Net Income$306,197,131$447,294,357
Net Profit Margin25%30%
Absolute Cost Structure (ACS)75%70%
Total True Value$8.90/sh.
Cash Flow Multiple10x
Total Annual Cash Flow$90,864,641
Total Future Market Cap$908,646,410
Total Future Market Cap Growth1,293%
Target$10.72/sh.

Notes: All Values in U.S. Dollars

Alio Gold is an outlier: The Future Market Cap Growth projection is higher than for peers in spite of a comparable TAIC, as Total Operating and Capital Costs are relatively low while its Capital Structure is tight.

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