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Allied Gold

May 2011

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • AGLD
  • Price:
  • 41p
Perhaps with one eye on the problems at its Simberi gold mine in Papua New Guinea, Allied has shored up its balance sheet by placing 156.3m new shares at 38.5p a share, raising gross proceeds of A$93.8m (£60.1m). Around A$50m will retire debt, while a further A$15m will fund the replacement of Simberi's diesel fuel electricity generation with heavy fuel oil to reduce power costs by 25%. The balance will fund Simberi's expansion as well as exploration and working capital needs. Encouragingly, production at Simberi has now re-commenced, while commissioning is progressing at its second mine in the Solomon Islands.Although the new shares have diluted eps forecasts to 1.9 cents for this year, rising to 9.8 cents (6.3p) for the year st ...

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Allied Gold - US$48m cash underpins recovery (December 2011)
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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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