News

November 11, 2008

Allied Gold Cuts Debt And Builds Production: Music To The Ears Of A Jaded Market

By Alastair Ford

Mark Caruso paces restlessly around the analysts’ update meeting. Perhaps he senses that the share price of his company, Allied Gold, is on the move. If so, he’s not wrong. Allied’s shares have been moving quite significantly of late, although it makes a big difference where you start your measurements from as to whether the recent movement looks positive or negative. From the negative perspective, Allied has not been immune to the general market sell-off and has dropped by around 75 per cent since the summer. On the other hand, the company issued a nicely positive update last week, and the shares rose by around 50 per cent, soaring off their 8.8p all-time low.

Some commentators are beginning to call the bottom of this market crash – the argument being that it’ll be bad for a long time to come, but that we’ve already seen the worst. At Minesite we’re not entirely convinced that the worst is over for the global economy, even if there has been some loosening of the credit markets recently. But on a brighter note, the worst may very well be over for Allied Gold’s share price. That bounce off the 8.8p low perhaps has a few of the hallmarks of the famed...