AGI:CC - Alamos Gold: A Strong Start To 2024

2024-05-22 05:19:05 ET

Summary

• Alamos Gold reported a solid start to the year, tracking at ~27% of its annual guidance midpoint.
• The strong performance resulted in a significant increase in revenue and operating cash flow, but the real margin expansion will show up in Q2 given recent gold price strength.
• In this update, we'll dig into the Q1 results, recent developments, and why it continues to be a solid buy-the-dip candidate.

We're nearing the end of the Q1 Earnings Season for the Gold Miners Index ( GDX ) and while we saw solid margin expansion in Q1, the real margin expansion will arrive in Q2 with results set to be reported in July/August. One of the first companies that reported its results was Alamos Gold ( AGI ) and while its Young-Davidson Mine had a slow start to the year, La Yaqui Grande picked up the slack in a big way, generating ~$50 million in mine site free cash flow after year-end 2023 tax payments with a ~50,000 ounce quarter. In this update, we'll dig into the Q1 results, recent developments, and why it continues to be a solid buy-the-dip candidate....

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