| Canaccord Upgrades Alamos Gold, Sees 39% Return Possibility | |
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Shares of Alamos Gold Inc (NYSE: AGI) are up more than 2.7 percent on Friday, following an upgrade at Canaccord. In a report, analysts Rahul Paul and Alex Pernin boosted their rating from Hold to Buy, while trimming their price target from C$9.00 to C$8.50.
The new rating and price target seek to reflect the recent share price weakness (the stock fell more than 31 percent year-to-date, and more than 13 percent over the past week), which has created the opportunity for a 39 percent upside.
Related Link: 5 Junior Gold Miners Trading At Less Than 0 Per Ounce
After the company merged with its equal AuRico Gold Inc (NYSE: AUQ), the analysts at Canaccord started viewing the MergeCo as a “higher-quality intermediate gold producer, combining Alamos' strong balance sheet, AuRico's attractive asset base (underpinned by the Young-Davidson mine in Ontario) and Alamos' current growth pipeline.”
At current valuations, the experts see potential for additional multiple expansion at Alamos, longer term, based on:
1) The successful overhaul at the San Carlos underground operation.
2) The concession of the forestry and operating permits necessary for the Turkish assets to operate.
3) An ameliorated consolidated cash cost profile, which in part responds to the start of production at the La Yaqui and Cerro Pelon satellite deposits.
Latest Ratings for AGI
Date | Firm | Action | From | To |
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Jul 2015 | Canaccord Genuity | Upgrades | Hold | Buy | Jul 2015 | Raymond James | Maintains | | Market Perform | Jun 2015 | Desjardins | Upgrades | Hold | Buy |
View More Analyst Ratings for AGI
View the Latest Analyst Ratings
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Aurico Gold Inc.
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PRODUCER |
CODE : AUQ.TO |
ISIN : CA3649151089 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Aurico is a gold producing company based in Canada. Aurico produces gold, silver in Mexico, develops gold and silver in Mexico, and holds various exploration projects in Mexico. Its main assets in production are OCAMPO and LAS TORRES in Mexico, its main asset in development is EL CUBO in Mexico and its main exploration properties are LOS JARROS, LA BANDERA MEXICO, GUADALUPE Y CALVO, MEZQUITE and GUADALUPE Y CALVO in Mexico. Aurico is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 1.0 billions as of today (US$ 802.6 millions, € 722.1 millions). Its stock quote reached its highest recent level on October 07, 2011 at CA$ 9.97, and its lowest recent point on July 03, 2015 at CA$ 3.58. Aurico has 281 670 016 shares outstanding. |