These two gold stocks can rise even higher

Article Excerpt

Whatever the near-term outlook for gold, we think top-quality gold stocks like Alamos and Lundin—both hitting all-time highs—remain buys. That’s in part because of their prospects for increased production and cash flow—regardless of precious metal prices. ALAMOS GOLD INC., $27.46, is a buy. Through the shares (Toronto symbol AGI; TSINetwork Rating: Extra Risk) (www.alamosgold.com; Shares outstanding: 419.7 million; Market cap: $11.5 billion; Dividend yield: 0.5%) investors tap into the company’s Mulatos mine in Mexico as well as its Young-Davidson and Island mines in northern Ontario. As well, the gold miner recently completed the acquisition of Argonaut Gold and its Magino mine in northern Ontario for $325 million U.S. The acquisition gives Alamos a fourth long-life producing asset. It also gains the Lynn Lake project in Manitoba, which received federal environmental approval last year, as well as others in Turkey and Oregon. In the Alamos deal, Argonaut’s other assets such as the Florida Canyon mine in the U.S., as well as the El Castillo Complex, the…