- Alamos Gold is down 16% year-to-date, following a guidance cut in Q3, and with the gold sector continuing to remain out of favor.
- While the guidance cut was disappointing, it doesn't affect Alamos' bright future, and Mulatos should perform much better beginning in H2 2022 as production shifts to La Yaqui Grande.
- With the potential for 12% compound annual production growth looking at much lower costs, Alamos is one of the only names sector-wide with high growth combined with meaningful margin expansion.
- Given this rare combination of exploration upside, organic growth, an improved jurisdictional profile and margin expansion looking ahead to 2025, I see this pullback in Alamos Gold as a gift.
For further details see:
Alamos Gold: Island Mine Continues To Deliver