Raymond James has cut its target price on Alio Gold (TSX: ALO; NYSE: ALO) from $4.50 to $1.00 per share and downgraded the company from market perform to underperform due to operating challenges, debt and declining gold prices.
The company has temporarily suspended all development work at its Ana Paula project in Mexico’s Guerrero state, including the construction of an underground decline, exploration work and the completion of a definitive feasibility study.
Alio Gold announced this week that, as a result, its vice president of project development, Paul Hosford, and project manager Terry Murphy, are leaving the company at the end of August. It also said that its chief financial officer, Colette Rustad, left the company on August 17.
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