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On Thursday, BMO Capital Markets reiterated its Outperform rating and C$44.00 price target for Alamos Gold Inc . (NYSE:AGI:CN) (NYSE: AGI), following the company’s release of its fourth quarter earnings for 2024. The gold producer, which has delivered an impressive 93.85% return over the past year according to InvestingPro data, reported earnings that aligned with analysts’ expectations, after previously announcing 2024 production numbers that met the mid-point of its revised annual guidance.
Alamos Gold’s fourth quarter costs showed some variance, with cash costs at $981 per ounce and all-in sustaining costs (AISC) at $1,333 per ounce. These figures were slightly off from BMO Capital’s estimates, which had anticipated cash costs of $996 per ounce and AISC of $1,400 per ounce. For the entire year, the company’s reported costs were $927 per ounce and AISC were $1,281 per ounce, which were in line with the provided guidance range of $890 to $940 per ounce for cash costs and $1,250 to $1,300 per ounce for AISC. InvestingPro analysis shows the company maintains a strong financial health score of 3.29 (GREAT), with revenue growth of 31.62% in the last twelve months.
In addition to its financial results, Alamos Gold also provided an annual reserve and resource update earlier in the week. This update is part of the company’s regular disclosures to investors, detailing the estimated quantities of gold that can be economically extracted from its mines.
BMO Capital’s analyst noted the company’s ability to meet its production and cost targets, which supported the decision to maintain the Outperform rating and the C$44.00 target price. The target price set by BMO Capital reflects the firm’s expectation of the stock’s future performance and is based on various factors, including the company’s earnings, reserves, and operational efficiency.
Alamos Gold Inc. is a Canada-based intermediate gold producer with diversified production from three operating mines in North America. The company’s consistent performance and strategic updates are key factors that analysts monitor when evaluating the stock’s potential.
In other recent news, Alamos Gold reported its gold production for the fourth quarter of 2024 at 140.2 thousand ounces, which matched BMO’s forecast but fell short of the consensus estimate of 144.2 thousand ounces. The Mulatos mine exceeded expectations with a production of 38.9 thousand ounces, compensating for the Magino mine’s lower output of 16.2 thousand ounces, which did not meet BMO’s estimate of 25.3 thousand ounces. On an annual scale, Alamos Gold produced 567 thousand ounces, aligning with the midpoint of its revised guidance range of 550-590 thousand ounces. The company has updated its three-year production guidance, projecting a 1% increase for 2025, stability for 2026, and a new range of 680-730 thousand ounces for 2027. This 2027 forecast is slightly below BMO’s previous estimate due to changes in the timeline for the Lynn Lake mine. Alamos Gold has also revised its cost guidance, with Total (EPA:TTEF) Cash Cost and All-In Sustaining Cost estimates for 2025 and 2026 rising by 9%/4% and 6%/4%, respectively, attributed to cost inflation and increased production from Mulatos. The new guidance for 2027 indicates a slight decrease in costs from 2026, with reductions of 3% for TCC and 2% for AISC.
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