Shareholders are obviously concerned with ALD management's decision to list on the Toronto Stock Exchange, dilute its shares to buy Solomons Gold at a critical time when the company ought to have been concentrating on its newly opened mine and earn cash while the price of gold is up.
The company would have been better served to save its lollies and retire its hedge book as soon as possible rather than speculate on another development project in a region with another dodgey political regime.
The market has obviously voted by devalueing the company by 22% since the Toronto listing and it is now up to management to recoup this lost value by demonstrating the wisdom of its purchase. Otherwise, like Lihir Tragics, ALD shareholders will have to wait on a takeover bid to get a decent return on investment.
ALD Price at posting:
$1.95 Sentiment: Hold Disclosure: Held
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