Section 1: Introduction

Section 2: Company Overview

Alamos Gold Inc (TSX: AGI) acquires, explores, and produces gold and other precious metals, and operates in two principal geographic areas: Canada and Mexico. The company has three operating mines in North America: The Young-Davidson Mine in Canada and the Mulatos and El Chanate Mines in Sonora, Mexico. The Young-Davidson mine is the group's largest revenue contributor, and the property also holds mineral leases and claims covering approximately 11,000 acres.

Kalkine’s Inflation Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

2.1 The Key Positives, Negatives, Investment Highlights, and Risks

Section3:  Financial Highlights

 3.1 Key Financial Highlights

Section 4:  Key Metrics

The company has successfully improved its Gross Margin and Return on Equity in the current quarter. Also, the company is maintaining a healthy Quick Ratio. Below charts depict the change in Gross Margins and Current Ratio for the firm in the one past year.

Section 5:  Stock Recommendation Summary

5.1 Valuation Methodology Illustrative EV to Sales Based

5.2 Price Performance and Stock Recommendation

The stock has witnessed an upside of ~14.55% in 1 month and of ~23.42% over the last 3 months. Moreover, the stock is trading above the average 52-week high price of CAD 21.18 and 52-week low price of CAD 14.80 providing an opportunity to ride the trend.

5.3 One-Year Technical Price Chart

One-Year Technical Price Chart (as of April 11, 2024). Source: REFINITIV, Analysis: Kalkine Group

5.4 Technical Summary

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 11, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.