- Alamos Gold is nearly 35% off of its highs, and is coming down to test a its key quarterly moving average near $7.40 per share.
- The company has one of the most attractive organic growth profiles among Tier-1 gold producers in the sector, with its Phase III Expansion at Island set to be a game-changer.
- While Alamos has generated minimal free cash flow since FY2016, this is expected to change dramatically, with free cash flow increasing materially despite another capital intensive year in FY2021.
- I see this violent correction as a buying opportunity, but ideally, the bulls are going to want to play defense at $7.40 on a quarterly closing basis to prevent further selling pressure.
For further details see:
Alamos Gold: Back On The Sale Rack