Hi there,
We quite like Alamos Gold. In 2020, AISCs are expected to be above $1K per ounce, which is quite high.
However, this number is supposed to drop in a big way next year and average just above $800 an ounce. Likewise, after a dip in production in 2020 the expectation is for 25% production growth next year.
It operates in safe jurisdictions and is well capitalized with no debt. Alamos is also poised for exponential cash flow growth in the second half of the year.
The near-term headwinds include current shutdowns of mines in Canada and Mexico which is bound to further impact production. Most gold companies are dealing with these COVID-19 measures. The completion of the Young-Davidson lower mine is now expected be completed by July - a month delay because COVID-19 impacted operations.
The company has run up quite a bit, but I consider it a buy the dip candidate in the gold industry.
Mat