Alio Gold Corp. (ALO-T)

He likes this. There are risks as a junior gold producer, if you do something wrong. Thus far, they have done a good job of operating. High quality people.

Just changed presidents. Their growth is coming from the Ana Paula project in Mexico, a decent project. Their other mine in Mexico has got a rising cost structure, and he is not so keen on that one.

Have an existing single mine in Mexico, about a 120,000 ounce producer. Relatively low cost. Did an acquisition of 2 companies to try and build up the inventory. It is questionable of how early stage they were. There is a financing risk because they cannot finance from cash flow. There are also permitting risks. Don’t expect much in terms of growth, for a couple of years. There are other places he would prefer to be.

(Market Call Minute.) Have lots of free cash flow coming in over the next couple of years.

Had owned this before. It had a decent asset base in Mexico. Troublesome from a production perspective for a little while, but they fixed those problems and shored up the balance sheet and raised some money at the right time. Has a strong balance sheet. You have to have a constructive view on gold prices. Sees it as a takeout target.

A nice little producer with a main asset in Mexico. Not always the best performer. He will be in and out of it. It is getting to the point it is looking interesting. Have good, simple operations.

Surprise that the stock is up as much is it is today because he thinks they said they were going to delay the information on their mine plans. One of the better stories in gold. Wait for the earnings to come out before participating.

Surprise that the stock is up as much is it is today because he thinks they said they were going to delay the information on their mine plans. One of the better stories in gold. Wait for the earnings to come out before participating.

Has been a bit of an underperformer, but it looks good on valuation, cash flow growth and production growth. It could be a take-over target.

These stocks are not loved right now. It is funny because this is the least owned sector in all of North America and there is no one participating in them. He has this one rated as a Neutral with a $2.75 target. The fact that they are producing and they are working through is very important and very good. It just requires patience.

Has an excellent gold mine in Mexico that is in production which generates excellent cash flows. They also have a satellite project near their existing mine. On his radar.

Likes this one. Operations are running well and recently had a higher grade gold discovery, which will bode well for their future. $3.70 would be reasonable in one year.