Alacer Gold Stock Analysis - I sold | Summary and Q&A

TL;DR

The video discusses why the speaker bought and sold Alistair Gold and how the company's investment potential has shifted from a margin of safety value to a growth exploration story.

Key Insights

• ❣️ The speaker originally invested in Alistair Gold due to their heavy investment in the sulphide project and the stockpiled gold assets, which provided a margin of safety.
• 🔇 The company's stock price increased by 70% from the initial investment, prompting the speaker to re-evaluate their investment and eventually sell their shares.
• 🙈 The speaker preferred investing in certainty and saw the company's shift towards exploration as a potential risk.
• 👷 Alistair Gold's CEO highlighted a transformational year for the company, completing the sulphate plant construction and starting production.
• ✋ There are potential catalysts, such as dividends, positive exploration results, and higher gold prices, that could push the stock price higher.
• 🔇 The speaker believed that the value investing opportunity with Alistair Gold had been realized and that the company now offers more growth potential.
• 💐 The average grade of gold reserves for future production at Alistair Gold was lower than the stockpiled gold, resulting in potentially lower cash flows.

Transcript

good day fellow investors this would be a very interesting video especially for Alliser gold investors because it will explain in the first place why I bought a letter back in may 2000 18 and why I sold recently so it will give you a good perspective the company from an investment perspective has changed it was a margin of safety value investment a... Read More

Questions & Answers

Q: Why did the speaker decide to sell their Alistair Gold shares?

The speaker sold their shares because the company's focus shifted to exploration and future production would have lower cash flows, which did not align with their prefered investment approach based on certainty.

Q: What were some of the catalysts that might push the stock price of Alistair Gold higher?

Some potential catalysts for Alistair Gold's stock price to increase include if they pay significant dividends in 2019, if they show positive results in their exploration efforts, and if gold prices go up.

Q: How did the speaker determine the fair value of Alistair Gold?

The speaker used various factors, including the value of the sulphide project, estimated cash flows, exploration potential, and current stock price, to calculate a fair value estimate for Alistair Gold.

Q: What were some of the risks associated with investing in Alistair Gold?

Risks for investing in Alistair Gold included potential operating issues, gold price fluctuations, and uncertainties related to exploration results and permits.

Summary & Key Takeaways

• The speaker initially bought Alistair Gold at CAD 2.25 per share and was satisfied with their position. However, with the company's stock now up 70% and trading at CAD 3.7 to 3.9, they decided to sell.

• The speaker originally invested in Alistair Gold because they were investing heavily in the sulphide project and had stockpiled one million ounces of gold. The market cap was also relatively low compared to the value of their assets.

• The speaker ultimately sold their shares because the company's focus shifted to exploration and future production would have lower cash flows. They preferred investing in certainty rather than exploration promises.