{"id":17962,"date":"2019-08-17T09:32:43","date_gmt":"2019-08-17T13:32:43","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=17962"},"modified":"2019-08-18T05:36:24","modified_gmt":"2019-08-18T09:36:24","slug":"alamos-gold-agito","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/alamos-gold-agito\/","title":{"rendered":"Alamos Gold Can Go Up Despite Doubling This Year"},"content":{"rendered":"<p>Like many other gold equities, even <strong>Alamos Gold<\/strong> [stock_market_widget type=\"inline\" template=\"generic\" color=\"default\" assets=\"AGI.TO\" markup=\"(TSX: {symbol} {currency_symbol}{price} ({change_pct}))\" api=\"yf\"] has made the most of strong gold prices this year. Its stock has nearly doubled and there\u2019s good reason to believe that Alamos is not done growing yet thanks to the end-market conditions and the company\u2019s operational moves.<\/p>\n<p>Let\u2019s take a closer look at how <a href=\"https:\/\/capital10x.com\/old\/alamos-gold-stock-get-better-agito\/\">Alamos<\/a> performed in the latest quarter as that will give us a fair idea about what to expect from the company in the coming months.<\/p>\n<h2>Alamos Gold Shines Bright<\/h2>\n<p><a href=\"https:\/\/capital10x.com\/old\/alamos-gold-spring-positive-surprise-agito\/\">Alamos Gold\u2019s<\/a> second-quarter <a href=\"https:\/\/finance.yahoo.com\/news\/alamos-reports-second-quarter-2019-210000238.html\">production<\/a> of 125,200 ounces of gold was in line with the company\u2019s guidance and the output in the year-ago period. The average realized gold price witnessed by the company during the quarter came in at $1,309 an ounce, which was essentially flat as compared to the year-ago period.<\/p>\n<p>The flat production and consistent gold pricing meant that Alamos\u2019 revenue was nearly flat year over year at $168.1 million. However, the important thing to note is that its adjusted net earnings shot up to $17.7 million as compared to the year-ago profit of $4.9 million.<\/p>\n<p>This increase in the bottom line was a result of the lower costs achieved by the company. Alamos Gold\u2019s total cash cost per ounce of gold sold came in at $699 an ounce during the quarter, down from $832 an ounce in the prior-year period. Its all-in sustaining costs came in at $926 an ounce as compared to $996 an ounce in the year-ago period.<\/p>\n<p>The lower costs were a result of an improvement in Alamos\u2019 grade profile at some of its assets. For instance, as COO Peter MacPhail <a href=\"https:\/\/finance.yahoo.com\/news\/alamos-gold-inc-agi-q2-183421400.html\">pointed out<\/a>:<\/p>\n<div class=\"su-quote su-quote-style-default su-quote-has-cite\"><div class=\"su-quote-inner su-u-clearfix su-u-trim\">Island Gold set another quarterly record with production of 39,500 ounces, a 48% increase compared to the second quarter of 2018. The outperformance was driven by higher mine grades of 14.5 grams per ton, and throughput of 1,130 tons per day, both above annual guidance.<span class=\"su-quote-cite\">Scott Skinner, General Manager at 48North's Good Farm<\/span><\/div><\/div>\n<p>The good news for investors is that Alamos forecasts further improvement in grades during the second half of the year at its mines. For instance, the company has advanced development activities at the Kirazli mine, where it expects solid production growth at attractive rates of returns.<\/p>\n<p>According to the press release:<\/p>\n<div class=\"su-quote su-quote-style-default su-quote-has-cite\"><div class=\"su-quote-inner su-u-clearfix su-u-trim\">As outlined in the 2017 Feasibility Study, Kirazl\u0131 has an expected 44% after-tax internal rate of return and is expected to produce over 100,000 ounces of gold during its first full year of production at mine-site all-in sustaining costs of less than $400 per ounce.<span class=\"su-quote-cite\">Scott Skinner, General Manager at 48North's Good Farm<\/span><\/div><\/div>\n<p>The company believes that Kirazli will deliver its initial production by the end of next year.<\/p>\n<h2>Gold Prices Will Be Another Tailwind<\/h2>\n<p>Alamos Gold\u2019s strategy of finding ways to boost production while keeping costs under check will prove to be a solid tailwind in a strong pricing environment. With gold trading at over $1,440 an ounce right now and expected to rise to over $1,600 an ounce going forward, it makes sense to stay invested in Alamos Gold because the stock can deliver more upside.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alamos Gold\u2019s (AGI.TO) strategy of boosting production while keeping costs under check will prove to be a solid tailwind in a strong pricing environment.<\/p>\n","protected":false},"author":8,"featured_media":15851,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[503,502,499,208],"class_list":{"0":"post-17962","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-metals","8":"tag-agi","9":"tag-agi-to","10":"tag-alamos-gold","11":"tag-company-news"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - 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