The company said the operational metrics at its Florida Canyon operation in Nevada, USA, improved in the final quarter of 2019, achieving record quarterly processing rates and its lowest operating cost per tonne since it acquired the mine in March 2018 through the acquisition of Rye Patch Gold.

Alio said the second heap leach pad at Florida Canyon was receiving ore and it provided guidance of between 60,000oz and 70,000oz in 2020 at a cash costs of $975-1,075/oz.

"Our fourth quarter results at Florida Canyon showed significant improvement and were markedly better than those achieved in the middle of the year, confirming that Florida Canyon is indeed turning the corner. In the fourth quarter we were able to mine 31% more tonnes per day, process 48% more tonnes per day and deposit 37% more gold on the leach pad than in the third quarter," said president and CEO Mark Backens.

Florida Canyon suffered from poor fleet availability during the third quarter of 2019 which it remedied through the acquisition of a new loading and haulage fleet.

The company had cash and cash equivalents of $16.6 million at the end of 2019 and net working capital of $48.6 million.

Shares in Alio Gold are trading at C60c, valuing the company at $52 million.