The Gold Report

Henry Lazenby, Mining Weekly (11/6/13) "Allied Nevada Gold Corp. reported adjusted earnings per share for Q3/13 that beat analyst expectations. Revenue increased by 18% year-over-year to $76.74M, up from $64.82M. The company increased its gold sales by 51% to 52,713 oz compared with 34,851 oz sold in the same period of 2012. Q3/13 total sales were an all-time quarterly record for Allied Nevada and represented an improvement of 27%, or 11,201 oz, up from Q2/13."

Morning Coffee (8/7/13) "Allied Nevada Gold Corp. produced 39,195 oz gold and 132,841 oz silver in Q2/13. Production is expected to ramp up through the second half of 2013, benefiting from additional tons under leach and the increasing capacity of the Merrill-Crowe plant."

Henry Lazenby, Mining Weekly (5/17/13) "Allied Nevada Gold Corp. closed a bought deal equity financing with a syndicate of underwriters for $150.5M. . .the company issued 14M shares at a price of $10.75 apiece. . .it plans to use the proceeds to fund capital expenditures at its Hycroft mine, near Winnemucca in north-west Nevada, and for general corporate purposes. . .Allied Nevada said it might now rather construct a 75 Ktpd plant in 2015. The benefit would be to have more time to optimize the engineering, which could result in reduced capital expenditure when the time was right to construct the second phase."

Morning Coffee (4/10/13) "Allied Nevada Gold Corp. is on the right track. . .the company reiterated its six-month production guidance, highlighting that it was on track to produce 90–100 Koz gold. . .Allied Nevada said it had sold 27,256 oz gold and 174,766 oz silver in the first quarter, and plans to sell about 7,200 oz gold and 43,200 oz silver in the second quarter. Management added that ANV would be able to complete the expansion of its Hycroft mine on schedule, and without exceeding the total budget of $1.2B it had originally set for the project."

Henry Lazenby, Mining Weekly (4/10/13) "The Toronto-listed stock of Allied Nevada Gold Corp., which operates the Hycroft silver/gold mine near Winnemucca in north-west Nevada, on Tuesday spiked by more than 30%, after it released preliminary operational results for the first quarter ended March 31. . .gold sales totaled 27,256 oz. . .the company expected to sell about 7,200 oz gold and 43,200 oz silver in the second quarter, which remained in precipitate at the end of the first quarter owing to retort capacity limitations. With the successful commissioning of a second retort during the first quarter, Allied Nevada expected to be able to process all of the precipitate generated from its Merrill-Crowe plant."

Jay Taylor, Hotline (4/5/13) "I continue to find Allied Nevada Gold Corp. stock to be very attractive, especially since it has been taken down to the current levels. In fact, I believe it may be one of the most promising producers out there at this point in time, at least if the company can do what it says it will do over the longer term, which is nothing short of phenomenal."

Morning Coffee (4/1/13) "Allied Nevada Gold Corp. announced that effective immediately, Scott Caldwell has been replaced as president and CEO; Bob Buchan, the company's current executive chairman, will assume the additional duties of president and CEO. Citing the underperformance of the Hycroft mine, in Nevada, Allied Nevada's board of directors replaced Caldwell and believes Buchan's experience and leadership at this critical juncture are necessary to facilitate the timely and efficient expansion of Hycroft."

Chen Lin, What Is Chen Buying? What Is Chen Selling? (3/18/13) "I think Allied Nevada Corp. is a good pick. I am very familiar with the company and have owned shares since its spin-off from Vista Gold Corp. It is trying to build one of the greatest gold/silver mines in Nevada. . .it looks way oversold to me."

Jay Taylor, Hotline (3/15/13) "With gold production scheduled to range between 225–250 Koz this year, plus 1.5–1.8 Moz silver, Allied Nevada Gold Corp. should reach tier-two status this year before it accelerates onward and upward into 'the big leagues' starting in 2015 and continuing in 2016 when it brings its second mine, Hasbrouck, into production. . .as I look around at major mining companies and their growth prospects, at its current price, Allied Nevada looks as promising as anything I can see."

Trevor Turnbull, Scotia Capital (3/8/13) "We met with Allied Nevada Gold Corp.'s CEO, Scott Caldwell, to discuss the new mine plan and latest developments: Our impression was positive that Q1/13 guidance and particularly FY/13 guidance are achievable. . .of greater consequence, in our opinion, the company hopes to have some offtake agreements in place later this year that should demonstrate favorable terms for its concentrates."

Mike Parkin, Merrill Lynch (3/1/13) "We believe Allied Nevada Gold Corp. will reverse its trend of missing sales guidance this year, and if we are correct we expect the stock to rerate to a premium to the peer group, which we feel is warranted given the Hycroft project offers more than a 200% increase in Au eq production by 2016 in a low political risk region at/or below industry average total cash costs. . .we are maintaining our Buy rating."

Trevor Turnbull, Scotia Capital (2/26/13) "We expect Allied Nevada Gold Corp. to reach its target range of 45–50 Koz Au in Q1/13. . .we do not see any need for financing this year given the company's $347M cash balance at year-end. . .2013 capex guidance is $399M, $130M of which is to be financed through capital leases. . .the company also has a $120M undrawn line of credit. . .we are maintaining our Sector Perform rating."

Mike Kozak, Cormark Securities (2/26/13) "Allied Nevada Gold Corp.'s expanded Hycroft operation still boasts very attractive economics at very conservative metal prices. . .Hycroft's life-of-mine production profile of +550 Koz/year Au and +25 Moz/year Ag should be achievable without any additional share dilution. . .over the longer term, the company offers the most attractive growth profile among midtiers and projected bottom quartile cash costs. . .we continue to rate the stock Top Pick."

Andrew Mikitchook, GMP Securities (2/25/13) "Allied Nevada Gold Corp.'s financial results released this morning are broadly in line with expectations. . .updated mine plan economics look positive. . .we continue to believe that the Hycroft mill expansion project is fully funded at current metal prices. . .we remain positive on the long-term outlook for the company. . .we continue to view Allied Nevada as a discounted intermediate producer with good long-term rerating potential as it continues to expand its current operations and build a new milling operation, expected to boost production from 150 Koz in 2012 up through 500 Koz in 2015."

Trevor Turnbull, Scotia Capital (2/22/13) "Allied Nevada Gold Corp. summarized its new mine plan. . .the company raised its cutoff grade slightly, resulting in a lower strip ratio. This offset a portion of the higher mining costs the company is now assuming."

Mike Parkin, Merrill Lynch (2/22/13) "This morning, Allied Nevada Gold Corp. released a new life-of-mine (LOM) plan (19 years) for the Hycroft mine, which calls for a lower LOM strip ratio (from 1.26:1 to 1.15:1), which helps to reduce the LOM total cash cost estimate from US$166/oz (net of silver by-products) to US$146/oz. . .through the completion of the expansion of the Hycroft mine, we estimate Hycroft will achieve midtier producer status (500+ Koz annual gold production) by year-end 2014."

Craig West, GMP Securities (1/18/13) "Allied Nevada Gold Corp.'s Q4/12 production of 46.9 Koz is a record quarter for the company. . .we continue to view Allied Nevada as a discounted intermediate producer, with good long-term rerating potential as it continues to expand its current operations and build a new milling operation, expected to boost production from 150 Koz in 2012 up through 500 Koz in 2015."

Brian Quast, BMO Capital Markets (1/16/13) "Allied Nevada Gold Corp. provided an update on the results of ongoing metallurgical test work for the Hycroft mill expansion. Results indicate overall recoveries at the mill of 79.7% for gold and 85.5% for silver, which is an improvement of 1.7% for gold and 0.6% for silver compared to the April 2012 technical report."

Mike Parkin, Bank of America Merrill Lynch (1/16/13) "Allied Nevada Gold Corp. reported the results from a recently completed metallurgical test program, which in our opinion shows to be mildly positive for the mill project at Hycroft (97.3% of our NAV). Overall, the results show that the mill recovery rates for gold and silver could be 1.7% and 0.6% higher than what was originally estimated in the April 2012 feasibility study."

Mike Parkin, Merrill Lynch (11/28/12) "We believe Allied Nevada Gold Corp.'s Q4/12-to-date operating update is better than what consensus was expecting, which is supported by the share price reaction today (the company is outperforming the peer group by about 1.25% at the time of writing this report). . .the operating results from today support a significant improvement QOQ. . .December will likely be the best month of the quarter due to the recovery lag in the heap pad and the growing ounces stacked on the pad."

Brian Christie, Desjardins Securities (11/28/12) "Allied Nevada Gold Corp. announced an operational update for Hycroft for Q4/12. . .~30 Koz Au and 175 Koz Ag have been or are available for sale. . .Hycroft expansion plans continue to be on track, with both the foundation work for the crushing system and the ground preparation for the north leach pad and Merrill-Crowe plant completed. . .we view this update positively as current mining operations have continued to exceed design expectations and expansion plans are on track. We reiterate our Buy rating on the company."

Brian Christie, Agnico-Eagle Mines Ltd. AEM:TSX; AEM:NYSE (11/27/12) "Allied Nevada Gold Corp. announced exploration updates for its Hycroft, Hasbrouck (including Three Hills) and Wildcat properties; the Hycroft 2012 drilling program was focused on infill, condemnation and in-pit resource conversion drilling, and also on obtaining further material for metallurgical testing. . .at Hasbrouck, two areas of mineralization were identified, highlighted by a 66m intercept grading 3.3 g/t Au and 2.4 g/t Ag. . .the initial drilling program at Wildcat was designed to confirm historical resources, drill-test historically mined high-grade veins and conduct first-pass exploration drilling on property-wide targets. . .we view the results positively, given they confirm potential for further resource expansion."

Trevor Turnbull, Scotia Capital (11/19/12) "We visited Allied Nevada Gold Corp.'s office to meet with members of the technical team and toured the Hycroft operation and expansion. Production from heap leaching appears to be increasing quickly in Q4/12 as the solution grades running through the Merrill-Crowe plant are now double the Q3/12 levels. . .construction and permitting are proceeding on schedule."

Ron Stewart, Dundee Capital Markets (11/7/12) "At the end of Q3/12, Allied Nevada Gold Corp. reported a total of 155,331 oz gold in inventory at a carrying value of $148.2M. This represents an increase of 37,246 oz or $53.4M since the beginning of the year. . .we believe the company offers a unique value proposition in the precious metals space."

Mike Kozak, Cormark Securities (11/6/12) "Allied Nevada Gold Corp. is currently ramping up gold production at an oxide leach operation at its Hycroft mine; it has also identified a world-class gold-silver ore body in the sulphide zone below the current mining operations, that, while low grade, could form the basis for a new mine in Nevada. As the company proves up the economic viability and size of the sulphide zone as well as lowers the financial risk by successfully developing the Hycroft oxide heap-leach mine, there is excellent upside for Allied Nevada."

Michael Jalonen, Merrill Lynch (10/11/12) "In our view, Allied Nevada Gold Corp. should rerate over time to trade more in line with the midtier producers and at a premium to the current junior/intermediate peers as Allied Nevada is a company in transition and should be a midtier producer (500 Koz/year) by late 2014 through the fully financed expansion of the world-class Hycroft mine."

Mike Parkin, (10/4/12) "We are initiating coverage on Allied Nevada Gold Corp. with a Buy rating and a 12-month price objective of $58. . .the Hycroft mine is a world-class asset (5+ Moz of contained gold) and should elevate the company to midtier producer status (500+ Koz/year) when the mine expansion and mill addition are completed in 2014. . .Allied Nevada expects production should steadily increase throughout the expansion process and eventually average of 582 Koz gold and 29.1 Moz silver over the 2015–2024 period."

Bob Moriarty, (9/10/12) "Allied Nevada Gold Corp.'s Hycroft mine has just about 25 Moz Contained gold and 867 Moz silver in 2P reserves. . .it is now the biggest project in Nevada and will soon be one of the 10 biggest producing mines in the world."

Brian Christie, Desjardins Securities (8/15/12) "Allied Nevada Gold Corp. announced that it has received a positive record of decision from the U.S. Bureau of Land Management for an environmental impact statement authorizing the amended plan of operations for the heap leach expansion at its Hycroft mine. The approval allows for expanded mining areas, construction and operation of the large north and south leach pads and associated infrastructure, which will more than support the current life-of-mine heap-leach reserve. . .we reiterate our Buy on the company."

Mike Kozak, Cormark Securities (8/9/12) "Allied Nevada Gold Corp. is currently ramping gold production at an oxide leach operation at its Hycroft mine. The company has also identified a world-class, gold-silver ore body in the sulphide zone below the current mining operations that, while low grade, could form the basis for a new mine in Nevada. . .there is excellent upside for the company. . . we believe now is an excellent time to initiate or add to a position in this premier name."

Tara Hassan, National Bank Financial (8/9/12) "Allied Nevada Gold Corp.'s longer-term fundamentals, which tend to be the focus for investors, were positive with the company highlighting early delivery of larger capacity equipment and earlier-than-expected permitting. . .we reiterate our Outperform rating."

Ron Stewart, Dundee Capital Markets (8/9/12) "Allied Nevada Gold Corp. announced its Q2/12 financial and operational results and reported EPS and CFPS (before changes in working capital) of $0.07 and $0.07, respectively. . .drivers of an improved second half include the increased amount of large-capacity equipment now in-use, a reduced strip ratio and higher-grade material expected to be mined. . .Allied Nevada announced that the public comment period for the Environmental Impact Statement (EIS) is now closed. With the final approval expected shortly, the company will be able to expand its current mining area and add 16M sq ft of space for its leach-pad expansion."

The Gold Report Interview with Jay Taylor (7/18/12) "I bought Allied Nevada Gold Corp. at $5/share and sold it somewhere in the $30s. I am looking to buy it back. This company has done everything it has said it would; it under-promises and over-delivers. If it continues to do that, especially when it gets to the sulphide part of its project, it will be an enormous success. The oxide production is already successful. Allied Nevada could produce more than 1 Moz Au eq from its Hycroft project at lower costs than it is producing now. . .judging from its recent press releases and its track record of exceeding its promises—Allied triple production at Hycroft by late 2013." More >

Trevor Turnbull, Scotia Capital (7/10/12) "We have initiated coverage on Allied Nevada Gold Corp. with a Sector Outperform rating and a one-year target price of $46/share. . .the company is expanding one of Nevada's largest gold and silver deposits, aiming to grow to nearly 600 Koz of gold output by 2015; the Hycroft mine should also be one of the greatest sources of global silver production, averaging over 25 Moz annually; we believe this growth trajectory, the massive resource base and the better-than-average life-of-mine cash costs (due to treating the silver as a byproduct credit) make the company a potential takeover candidate."

Craig West, GMP Securities (7/5/12) "We are resuming coverage of Allied Nevada Gold Corp. . .with cash on hand, operating cash flows and financing now in place, we believe the $1.2B mill expansion project at the company's Hycroft mine in Nevada is now fully funded. The project adds to an already impressive growth profile (from expanding oxide heap-leach operations) and is expected to boost production at Hycroft over 600 Koz/year gold and 25 Moz/year silver by 2015, making it one of the largest precious metal mines in North America."

The Gold Report Interview with Quinton Hennigh (6/18/12) "It will be interesting to see what happens to up-and-coming producers like. . .Allied Nevada Gold Corp. over the next few years—do they get bought or survive through acquisitions?" More >

Mike Kozak, Cormark Securities (6/14/12) "Allied Nevada Gold Corp. is currently ramping up gold production at an oxide leach operation at its Hycroft mine. . .the company identified a world-class, gold-silver ore body in the sulphide zone below the current mining operations that, while low grade, could form the basis for a new mine in Nevada. . .the oxide heap leach and mill expansion are on budget and on schedule, and the company's balance sheet post-debt issue is in excellent (fully financed) shape. . .we believe now is an excellent time to initiate or add to a position in this premier name. . .we continue to rate Allied Nevada Gold a Top Pick."

Brian Christie, Desjardins Securities (6/14/12) "Allied Nevada Gold Corp. held an investor day to introduce the full management team and to review all aspects of the company. Management maintained its 2012 guidance and expects production to ramp up and costs to decline. . .based on the new carbon processing arrangement, we have increased our 2012 sales forecast to 175,647 oz from our previous forecast of 155,347 oz. . .with much of the financing in place, as well as a capable management team to expand the project, we are maintaining our Buy."

Steven Butler, Canaccord Genuity (6/13/12) "We reiterate our Buy rating on Allied Nevada Gold Corp. following today's investor day. . .we believe the company is well financed from the recently completed high-yield debt financing and that current cash and expected operating cash flow can more than fund the expansion program at Hycroft. The shares trade at a deep discount to our valuation. . .we continue to expect significant rerating of the shares on execution of the accelerated heap leach and mill development at Hycroft."

Ron Stewart, Dundee Capital Markets (6/13/12) "Quality assets plus quality growth and quality management is Allied Nevada Corp.'s success equation. . .current indications are that the mine life at Hasbrouck could double as the exploration potential is more fully understood. Add to that the encouragement from the 1.1 Moz Wildcat project and we have the makings of a well managed, multi-mine producer with significant growth potential. . .we continue to believe the company offers exceptional leverage to investors."

Brian Christie, Desjardins Securities (6/8/12) "Allied Nevada Gold Corp. announced that it has located a new offsite carbon processor, having signed an agreement with Yukon-Nevada Gold Corp. to process Hycroft's gold- and silver-laden carbon at its Jerritt Canyon mill. . .we view the agreement positively as it allows Hycroft to unload its current inventory of gold on carbon while providing excess capacity for future carbon processing. We reiterate our Buy."

Ron Stewart, Dundee Capital Markets (6/8/12) "Allied Nevada Gold Corp. announced that it had reached an agreement with Yukon-Nevada Gold Corp. whereby Yukon-Nevada will process the estimated 162t stockpiled loaded carbon from Allied Nevada's Hycroft mine. . .once the stockpiled inventory is exhausted, Yukon-Nevada has agreed to process up to 30t loaded carbon per month. . .this will satisfy the company's requirements until such time as an on-site facility is operational, likely in about a year from now."

Brian Quast, CIBC World Markets (6/8/12) "Allied Nevada Gold Corp. announced that Yukon-Nevada Gold Corp will process Allied's gold- and silver-laden carbon at its Jerrit Canyon milling facility in Nevada. Terms of the arrangement are in line with Allied's previous contracts with other offsite processing facilities. . .this is positive for the stock as it would have taken approximately a year to build an onsite carbon processing plant if the company could not find a new offsite processor—all inventory (13 Koz gold, 37 Koz silver) will now be processed in Q3/12, which should result in an outsized EPS number that quarter."

Tara Hassan, National Bank Financial (5/29/12) "Allied Nevada Gold Corp. announced a bought deal for senior unsecured notes with gross proceeds of $400.4M at an effective interest rate of 8.375%. . .we expect that under our current price deck and production assumptions, the company has the bulk of the financing required to advance construction of the Hycroft mill. . .Allied Nevada is well positioned as one of the most significant near- and mid-term production growth opportunities, made further compelling by the lack of currency exposure."

Brian Christie, Agnico-Eagle Mines Ltd. AEM:TSX; AEM:NYSE (5/16/12) "Allied Nevada Gold Corp. announced a US$400.4M senior debt offering, the proceeds of which will be used to fund the expansion of the Hycroft mine; the notes carry an effective interest rate of 8.375% and mature in 2019; the debt is structured as a CA$400M issue with a corresponding cross-currency interest rate swap, guaranteeing an effective principal of US$400.4M. . .we view the financing positively. . .we reiterate our Buy–Above-Average Risk rating and US$52 target on Allied Nevada."

Mike Kozak, Cormark Securities (5/8/12) "Allied Nevada Gold Corp. is currently ramping gold production at an oxide leach operation at its Hycroft mine; the company has also identified a world-class, gold-silver ore body in the sulphide zone below the current mining operations that, while low grade, could form the basis for a new mine in Nevada. As Allied proves up the economic viability and size of the sulphide zone as well as lowers the financial risk by successfully developing the Hycroft oxide heap-leach mine, there is excellent upside for the company. . .we continue to rate the stock Top Pick."

Seth Dadds, GARP Research & Securities (5/8/12) "Allied Nevada Corp.'s Q1 operating income rose from just $400,000 to $16.6M, driven by higher revenue and fewer exploration expenses; this lifted EPS to $0.13, compared to break-even levels the prior year. . .with a $1.2B capex program underway, we believe Allied is on track to transform into one of the world's largest and lowest-cost gold miners with 600 Koz gold and 15 Moz silver output in 2015. . . the expansion should boost the mining rate, improve recoveries and deliver a new mill to process the sulfides."

Craig West, GMP Securities (5/8/12) "We remain positive on the outlook for Allied Nevada Gold Corp., given its unmatched growth profile and discounted valuation versus peers—the stock remains a preferred equity among intermediate gold producers in our coverage universe. . .the company reported Q1/12 production of 32.5 Koz gold and 166 Koz silver, in line to slightly better than our forecasts for the period. . .we anticipate significant quarter-over-quarter growth through 2012. . .we maintain our Buy recommendation."

Steven Butler, Canaccord Capital (5/7/12) "We reiterate our Buy rating on Allied Nevada Gold Corp. following the release of Q1/12 results. . .The shares trade at a deep discount to our valuation and we continue to expect significant rerating of the shares on execution of the accelerated heap leach and mill development at Hycroft. There is also takeover optionality given the size and strategic nature of the sulphide deposit and the company's position as the third-largest titleholder in Nevada."

Michael Gray, Macquarie Capital Markets (5/7/12) "Allied Nevada Gold Corp.'s Hycroft is focused on future growth; the company reported Q1/12 earnings today. . .production was lower, with higher grades partially offsetting lower tonnage. Production was 32 Koz Au and 166 Koz Ag from 4 Mt ore grading 0.016 oz/t gold and 0.524 oz/t silver—11% and 74% higher than expected, respectively."

Ron Stewart, Dundee Capital Markets (4/26/12) "With a total mineral inventory of >25 Moz gold and ~850 Moz silver, Allied Nevada Gold Corp.'s Hycroft is a rare, giant precious metals deposit; we believe Allied Nevada represents an unparalleled opportunity for investors with a constructive view of metal prices and an appreciation that the risks have been assessed by a technically capable, high quality management team and board. . .Allied Nevada has done much to remove the uncertainty regarding the grade risk with the volume of drilling completed. . .Hycroft is indeed unique in many respects and represents an unparalleled investment opportunity in the precious metals space."

Tara Hassan, National Bank Financial (4/24/12) "Allied Nevada recently took delivery of the first two of nine new 930E haul trucks, which arrived ahead of schedule; excavation and ground work preparation for the crushing plant (construction permits received ahead of schedule) is ongoing. . .the company remains well positioned for gains in 2012 with operations set to ramp up through the year and in 2013 (sales expected to increase more than ~100%). We reiterate our CA$45.50 Target Price and Outperform rating."

Tara Hassan, National Bank Financial (4/18/12) "We have updated our valuation to reflect Allied Nevada Gold Corp.'s updated Hycroft mine plan, which outlines a notably larger operation over an extended mine life. . .we reiterate our Outperform rating. Our long-term thesis remains intact and we continue to believe Allied Nevada is well positioned as one of the most significant near- and midterm production growth opportunities, made further compelling by the lack of currency exposure, attractive cost structure, lack of near-term financing needs and upside from regional exploration."