Hi there,
I am not sure I would qualify Alamos' share price as one that is struggling.
AGI.TO is up by 85.82% which is almost double that of the TSX Global Gold Index which is up by 44%. The price of gold itself is up by 19% in 2020. Notably, it is outperforming most of the majors including the likes of AEM, KL, and NGT. I'd argue it has been one of the best gold stocks to own in 2020.
A big reason for this is that the company is about to enter a new era of cash generation. Cash flow is expected to rise materially in the second half and continue through 2021. Is it time to take profits? I guess that depends on your outlook on gold. Personally, I think the price of gold will be sustained for some time. It also acts as an excellent hedge against uncertainty, a potential crash and continued volatility.
As for valuations - AGI is trading at a slight premium to some if its peers, but it also has one of the highest average expected growth rates over the next couple of years. It is trading at 29 times forward earnings, 1.5 times book value and 5.9 times sales. For a company expected to grow earnings and revenue by an annual average of 56% and 16%, these valuations are quite respectable.
Mat
(Of note, I am long AGI and have no plans on selling)