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Alamos Gold Inc. (AGI.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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9.69+0.77 (+8.63%)
At close: 04:00PM EDT

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  • M
    Mark
    Best in class gold producer with top notch management...it's a long-term hold!
  • J
    Jazenevc
    Lynn Lake another update from Canada’s federal government site
    Start of quote
    August 15, 2022 — The Impact Assessment Agency of Canada has extended the three-year time limit for Alamos Gold Inc. to provide the information or studies required for the project’s environmental assessment.
    End of quote
    This extension was requested by the company on June 28 to prevent the approval process from expiration on August 28, 2022. This extension has been granted and new expiration date is August 28, 2023.
  • R
    Richard
    outstanding report.
  • J
    Jazenevc
    From Manitoba local press on the provincial government reporting on transportation project, providing access to Lynn Lake construction site.
    Start of quotes
    $36-million rehabilitation of Miles Hart Bridge which spans the Burntwood River in northern Manitoba has been given the green light by the province. The bridge is three kilometres north of Provincial Trunk Highway 6 in Thompson. It is a vital link between Thompson and northern communities and an important conduit to the Alamos gold mine exploration project. Engineers have been working on designs for the structure, according to a spokesperson for Manitoba Finance, and construction is scheduled to begin this month. “The design for the rehabilitation of the Miles Hart Bridge is completed,” the spokesperson said. “The construction is tendered and awarded with work scheduled to begin in the summer of 2022.” The project is expected to be substantially complete in 2024. It is part of a three-year capital investment strategy announced by Manitoba Transportation Infrastructure (MTI) in the province’s 2022 budget.
    …..
    The bridge project will also help to facilitate development by creating employment and boosting the local and provincial economies, the spokesperson said. “For example, Lynn Lake is located on PR 391 approximately 320 kilometres north of Thompson, serviced by PR 391 and is also the site of the Alamos gold mine exploration project.” The Alamos gold mine is particularly important to the region. Once operational, it is projected to extract 145,000 ounces of gold per year, with an expected mine life of 12 years. It’s anticipated the mine will create more than 500 jobs. The company has indicated that ore hauling will begin next year, using a significant stretch of PR 391.
    End of quotes
    Hopefully, Canadian federal environment agency will be able to finalize Lynn Lake approval process in 2023 after already spending 5 (five) years on studying the issue.
  • J
    Jazenevc
    From today’s Bloomberg notes.
    Start of quote
    Alamos Gold is being lauded by an analyst at National Bank after that miner bucked a trend by maintaining its cost forecast for the year and posting a sequential dip in AISC.
    End of quote
    The article referred to other gold miners, starting with Newmont, reporting substantial increases in cost. Alamos did it much better by comparison.
  • J
    Jazenevc
    The conference call transcript shows management confident in present situation and future development. Costs are under control and will even get lower as Mexican mine ramps up. Next year cost increases will be contained at 5%. Labor shortages do not affect the company.
    In total, it goes all right. Certainly, gold price could be higher to make it really good, but obviously this is out of the company control.
  • J
    Jazenevc
    Lynn Lake development news from Canada’s government site.
    Start of quote
    August 10, 2022 — The Impact Assessment Agency of Canada is reviewing the adequacy of the information submitted by the proponent on August 9, 2022 related to the Environmental Impact Statement.
    End of quote
    This is 3rd or 4th, lost the count, package submitted by the company and the timeline is close to deadline dates. The approval of the project gets to very critical point. Hard to assess, looking from outside, the chance of the positive outcome.
  • J
    Jazenevc
    The advantage of releasing a relatively good report on an extremely good day for the sector.
  • J
    Jerry
    Just in -

    Alamos Gold Announces Significant Permitting Milestone at Island Gold with Filing of Closure Plan Amendment

    Permitting Ontario

    TSX: AGI
    www.alamosgold.com

    Mr. John McCluskey reports:

    All amounts are in United States dollars, unless otherwise stated.

    TORONTO, March 16, 2022 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today announced the Closure Plan Amendment for the Island Gold Mine has been filed by the Ontario Government. This represents a significant milestone for the operation, allowing for ramp up of construction activities on the Phase III expansion, including the pre-sink of the shaft which is expected to begin mid-2022.

    As outlined in the Phase III expansion study released in July 2020, the expansion is expected to drive production approximately 70% higher to average 236,000 ounces of gold per year at industry low mine-site all-in sustaining costs of $534 per ounce once completed in 2025. Since the completion of the study, Mineral Reserves and Resources have increased 37% to total 5.1 million ounces of gold as of the end of 2021. This growth will be incorporated into an updated mine plan which is expected to be released mid-2022. The optimized mine plan is also expected to incorporate higher-grade additions in proximity to the planned shaft bottom earlier in the mine life, further increasing the value of the operation.
  • J
    Jazenevc
    The latest update for Lynn Lake permitting process.
    Start of quote
    July 4, 2022 — On June 28, 2022, the Impact Assessment Agency of Canada received a request to extend the three-year time limit and allow Alamos Gold Inc. more time to provide the required information or studies for the environmental assessment. The Agency is reviewing the request and will make a determination as to whether it will be granted.
    End of quote
    In the request the company explains the reasons for the extension. The company believes that it adequately answered all previous requests for information, starting from 2017. The EIA was requested in 2019 and submitted in 2020. However, the government agency continues working on the issue, while the process approaches regulatory deadline on August 28, 2022. If the project is not approved by this date, then the company would have to re-submit EIA and start the process from the beginning. To avoid this the company requests to extend the current process by 12 months until August 28, 2023.
    The whole story is a bureaucratic nightmare. That’s how it works in Canada. Fortunately, Lynn Lake approval is not an urgent matter. The company does not have money to start construction right now. It expects to proceed with this, in case project is approved finally, only when Island Gold expansion nears completion, i.e. no earlier than 2024. Also, the access road to project area had major bridge renovation started recently, which will be completed also in 2024.
  • D
    Derek
    On Thursday, Alamos market cap dropped to as low as $1.9B. This a hair above the combined $1.7B market cap Alamos enjoyed in April 2015, shortly after the announced merger with Aurico Gold. The combined company had net cash of $100M with annual production of $380K/oz at AISC of $1100/oz. At the time, gold was under $1200/oz and falling straight down for the last 2 years before bottoming at $1050 later that year. Kirazli was mired in a legal battle which saw numerous delays involving the EIA. There was no Island Gold, no Lynn Lake, Young Davidson was several years away from lower mine expansion and Mulatos reserves were declining while costs were rising. Now I have to ask, is Alamos today worth just 12% more than April 2015 Alamos?
  • J
    Jer
    I find it odd that this company is down. It has great growth opportunity, good balance sheet, and yoy revenue growth.

    Only downsides that I can see from this company is Turkey and a decline in gold price. Regardless though, the targeted production of gold from their mines are expected to ramp up/continue to have strong performance which should help the top and bottom lines.
  • R
    Richard
    With the Y-D lower mine all but complete after a full decade of development (and 400 Million+ in investment), Alamos Gold now owns two of the most profitable underground gold mines in Canada. Both Y-D and Island have mine lives stretching out 10+ years and each is capable of generating 100 - 150 Million in free cash flow annually at current gold prices. The 2020s is good time to be an AGI owner - and I mean the whole decade, not just this year.
  • R
    Richard
    Island gold mine adds another 1 million ounces of gold resources at grades 40% higher than the grades they are currently mining. This is an amazing feat in 1 year. Underground mines don't just grow that fast from drilling. Now Island gold has about 5 Million total ounces and will continue to get even bigger. They are committed to driving a shaft down right where these ounces are over the net few years and ramp up production. The combination of a shaft and higher grade will result in really low AISC numbers for Island for 20+ years after they finish the shaft and upgrades. As predicted, Island Gold has now officially becoming the next Red Lake of Canada.
  • T
    Temel
    it is rather sad to see AGI go down like that. AGI is one of the rare miners properly managed among the 400k-500k oz of Gold producers. Hopefully Gold goes back to 1800 and gets more attention from investors. Stay safe and profitable!
  • H
    Hawk51168
    John A. McCluskey, President and Chief Executive Officer, stated: “When we first acquired the Island Gold Mine we were aware of its potential. It had 1.8 million ounces of Mineral Reserves and Resources, and through exploration investment we have increased this high-grade deposit to 5.1 million ounces of Mineral Reserves and Resources. By further investing in the Phase III expansion, we will more than double the mine life. This mine will be an economic engine for this region for years to come, and positively impact the closest town of Dubreuilville and surrounding communities.” This is very impressive.
  • J
    Jazenevc
    CEO gave interview to BNAmericas, posted today. It seems to be entirely about Mexican operations, Mulatos and Esperanza. The company still considers Mulatos as an important asset.
    Start of quote
    Mulatos remains a consistent gold producer and significant cash flow generator, with strong exploration potential and we are balancing multiple sources of ore to produce around 150,000oz/y gold. We are also advancing exploration and recently restarted our exploration program. In 2021 we increased our Mulatos exploration budget to US$9mn. We see great potential ahead.
    End of quote
    It is also encouragingly see the company having specific plans for Esperanza.
    Start of quote
    The Esperanza gold project is an attractive, low-cost, low capital intensity, and low technical risk growth project. We are planning for Esperanza to be designed and constructed to the same high-level environmental and social standards as our Mulatos mine and operations in Canada. This year, we will complete all the necessary studies to advance the project to permitting.
    End of quote
  • J
    Jerry
    Ontario assets lift Alamos Gold to Buy rating at Canaccord
    Jun. 14, 2019 1:41 PM ET|About: Alamos Gold Inc. (AGI)|By: Carl Surran, SA News Editor

    Alamos Gold (AGI +1.3%) is higher after Canaccord upgrades shares to Buy from Hold and raises its stock price target to C$8.25 from C$6.50, citing the miner's northern Ontario assets.

    Canaccord's Dalton Baretto sees "promising exploration upside" at Island Gold that could result in an accretive Phase 3 expansion, and believes the bulk of the risk at Young-Davidson associated with lower mine construction is now behind the company, and that the risks associated with the remaining construction and eventual tie-in are much lower.

    AGI's average Sell Side Rating is Outperform, its average Seeking Alpha Authors' Rating is Bullish, and its Quant Rating is Very Bullish.
  • J
    Jazenevd
    According to local Turkish press, the Ministry of Energy and Natural Resources confirmed that Alamos request to extend Kirazli mining license is still valid and still in evaluation phase. Turkish anti- mining folks demand complete annulment of the project, but the government keeps it open.

    Perhaps, the government will keep it in suspense until the company finds a local partner familiar with local traditions. Once it is done, things may go smoother. It would be truly happy-end solution for the company and especially for shareholder value here.
    Needless to say, present stock performance is not bad. However, resolving Turkish issue, esp. in somewhat positive way, should be an additional, extremely positive factor for share price here.
  • J
    JSF
    Two points often overlooked on AGI. Not only are they profitable, but they are debt free. That gives them a lot of options to expand or invest. Also of note is the lack of streaming agreements. This company is rock solid with this structure.