Thesis
Alamos Gold's (AGI) Q2 results showed solid performance on all key metrics (production, costs, and margins). AGI achieved firm results despite flat Y/Y average realized gold prices. Management is doing well to manage costs and simultaneously improve margins. The stock has promising long-term growth prospects fuelled by its exploration/development projects. However, there are rising challenges for one of AGI's Turkish projects (that is, Kirazli) which is expected to go into production next year. At present, these challenges hamper the outlook of the Kirazli project and we need more clarity on the issue