This gold miner is expected to grow earnings by more than 37% this year.
Alamos Gold Inc. (AGI.TO)
From Power Growth Investor
Through the shares of Alamos Gold, investors tap into the company’s Mulatos and El Chanate mines in Mexico, and the Young-Davidson and Island mines in northern Ontario.
Alamos continues to explore in order to expand the reserves at the Island mine. It budgeted a total of $25 million in 2021 for surface and underground exploration for that purpose. That was up from the $13 million it spent in 2020. Drilling so far has been very successful and continues to reveal several high-grade mineral deposits.
In the quarter ended September 30, 2021, Alamos’ revenue fell 9.3%, to $198.0 million from $218.4 million. (All figures except share price and market cap in U.S. dollars.) Gold production fell 10.6%, to 104,700 ounces from 117,100, as a temporary shortfall at Mulatos offset higher output at its Canadian mines. Gold prices were also lower.
Alamos’ cash flow per share declined 21.2% in the quarter, to $0.26 from $0.33. That reflects the lower production and gold prices.
With cash of $211.4 million and no debt, the company has strong speculative appeal. Its prospects for increased production are also good. Meanwhile, Alamos raised its quarterly dividend by 25% with the March 2021 payment, to $0.025 from $0.02.
Alamos Gold is a buy.
Patrick McKeough, Power Growth Investor, tsinetwork.ca, 888-292-0296, January 2022