Can anyone help me understand the weakness in Allied Gold?...

Can anyone help me understand the weakness in Allied Gold? because as I see it Allied is trading at a 12 month low, despite a rising Gold price, rising production (+28% CAGR by 2015 one of the strongest among the listed UK Gold miners) according to their UK broker Oriel Securities.

Costs are rising for the Gold miners (Oil, Labour, Steel) but this is more than compensated for in the rising Gold price, with Allied benefitting as an un-hedged operator. Their UK broker Oriel Securities suggests that Allied Gold currently trades on the lowest Enterprise Value/ounces on both reserves and resources.

Some posts here have suggested that the recent announcement on the exercise of options by Directors, represents a stock overhang. But surely just because they have been issued shares and “in the money”, does not mean that they are sellers at current levels. This just happens to be the timing of exercise? If they were to sell at current levels (year lows), of course the shares would fall. But at these levels there must be a reasonable possibility that Management could buy shares as a sign of confidence?

Allied, despite being in the FTSE 250 is not well known or well researched. The company does however have a high quality Institutional shareholder register, and currently offer over 100% upside to Oriel Securities 320p target price.

Any views in agreement or otherwise welcome, particularly on the point of rising costs?