Alamos Gold: Why I’m Buying Today

The spot price of gold has enjoyed a nice uptick in late 2022 and early 2023. Indeed, the yellow metal has established itself nicely as the top alternative asset as cryptocurrencies have suffered a steep decline. Gold was priced at US$1,927 per ounce as of the very early morning of January 27. The yellow metal may still have room to run in 2023, which is why I’m interested in this mining stock today.

Alamos Gold (TSX:AGI)(NYSE:AGI) is a Toronto-based multinational gold producer that operates three mines throughout North America. It also has an additional six projects in development. Shares of this gold stock have soared 80% year-over-year as of close on January 26. The stock has jumped 7.8% so far in the New Year.

Investors can expect to see its fourth quarter and full-year fiscal 2022 earnings in the second half of February. In the third quarter of fiscal 2022, Alamos Gold produced 123,400 ounces of gold – up 19% from the third quarter of fiscal 2021. This was the highest quarterly production achieved in almost two years. However, it still reported a net loss of $1.4 million. On the other hand, it posted free cash flow of $1.4 million over negative free cash flow of $8.1 million in Q3 FY2021.

This gold stock is geared up for very strong earnings growth in the quarters ahead. Investors should look to snatch up Alamos Gold after it has surged back to profitability in fiscal 2022.

tsx
nyse
gold
tsx-agi
alamos-gold-inc