Rising output sets them up for gains

Article Excerpt

ALAMOS GOLD $8.17 (Toronto symbol AGI; TSINetwork Rating: Speculative) (604-681-2802; www.alamosgold. com; Shares outstanding: 266.3 million; Market cap: $3.2 billion; Dividend yield: 0.3%) owns the Mulatos and El Chanate mines in Mexico, and the Young-Davidson mine in northern Ontario. The company also has a number of development projects in Turkey, the U.S., Mexico and Canada. These include its advanced-stage La Yaqui project, near the Mulatos mine in Mexico, and its advanced-stage Kirazli gold project in Turkey. Both should enter production over the next few years. In the quarter ended September 30, 2017, Alamos’s gold production increased 7.8%, to a record 107,000 ounces from 99,228 a year earlier. Cash flow rose 11.3%, to $51.3 million from $46.1 million (all figures except share price and market cap in U.S. dollars). The higher output offset lower gold prices. Cash flow per share was unchanged at $0.17 on more shares outstanding. Alamos has now completed its acquisition of Richmont Mines (symbol RIC on Toronto) for $929 million…