ALTA Gold upgraded by The Red Chip Review (available only to subscribers), in July 15 issue, gave ALTA an A rating (upgraded from B). I wonder whether the recent increase in volume reflects this or reflects that the community thinks that ALTA has found a low around 1.5.... in any case: in this Red Chip Review, Kenneth E. Trbovich (the ALTA reviewer) has a section entitled: "Future prospects: Let the sweetheart dance begin". In that section he mentions that:
(a) ALTA has purchased a crusher, and conveyor system for the Olinghouse property
(b) The first pour at Olinghouse will occur this month of August. from ore already being stockpiled.
(c) Yearly production will be 100000 ounces a year from that property
(d) Above are "best news for ALTA's shareholders since ALTA restarted mining operations in 1993"
(e) current hedging program allows to sell all its gold at $335 per ounce through Jan 1999 while leaving plenty of upside if gold should firm... Beginning in February 1999, production will be sold at no less than $280 per ounce... still being able to capture additional upside if and when gold prices firm
....
What looks very promising is that ALTA will be able to produce in 1999 about 142000 ounces from Kinsley, Griffon and Olinghouse at an average cash cost of $173...
We are reminded that ALTA's gold production in 1996 was 49500 ounces, 38500 ounces only in 1997 (data from Gold Stock Analyst) and that forecasts predict a 1998 production estimate at 80000 oz and a 1999 estimate at 145000 oz (Gold Stock Analyst)...(just about 4x 1997 production!).
The Red Chip Review has a price target of $3 for 1998 and $4 over coming 12 months... even if price of gold remains at $290...
Looking good for ALTA, IMHO... Management has been impeccable as they have been able to remain profitable for last 14 quarters I believe, despite severe drop in POG.
Good luck all.
FHG
At this share price, ALTA could be a prime target for a take over, methinks. |
