Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Allied Nevada's Debt Load: The Consequences, Opportunity, And Risk

With gold and silver prices falling over the past couple of years it is not surprising that mining shares have fallen substantially as well. Yet few mining companies have seen their stocks fall as far as Allied Nevada Gold (NYSEMKT:ANV), which has lost nearly 90% of its value in the past year. This might come as a surprise considering that not only has the company substantially increased its output from its Hycroft Mine in Nevada, but it has been a profitable producer even at depressed gold prices.

This investor pessimism has almost certainly been driven by the company's large debt position. In 2012 the company assumed nearly $500 million in debt in order to fund the expansion of...

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