Dallas, Texas 08/25/2014 (FINANCIALSTRENDS) – Allied Nevada Gold Corp (NYSEMKT:ANV) is one shining name in the current lot of gold miners these days. With record production of 56,864 ounces in the second quarter, it has bettered it’s last year’s production for the same period by over 51%.
Similarly, its production phase for the precious yellow metal in the remaining months of 2014, are expected to be in-line with guidance.
However, production increase has not helped rekindle its share prices though!
The continued drive down of share prices are reportedly based on the consecutive drop in net income for this gold producer.
Beginning 2011 through 2014Q1, net income has been $47.7, $36.7, and $8.8 million for 2013Q1, with $0.3 million net income for the most recent quarter.
The progressive drop in income for one of the better known gold producing companies has meant that investors have shied away. The share prices continue to remain under pressure as the question of the company’s current profitability is of primary importance to the average investor.
As share prices struggle to catch-up with previous high or medium prices, there is a new limitation that falls in the way of Allied Nevada Gold Corp (NYSEMKT:ANV).
The limitation is essentially on the expansion plans.
One of the most ambitious projects the company has been aspiring to set up and begin operations is the Hycroft Mine.
This mine plays a very important role in Allied Nevada because of proven reserves of minerals it holds, which is 10.6 million ounces of gold as well as $67.1 million of silver. More importantly, Allied Nevada Gold Corp (NYSEMKT:ANV) will be able to gain additionally by recovering metals which are in transitional as well as sulphide ores.