07. Alamos Gold Inc. (NYSE:AGI)
Upside Potential: 46%
Forward P/E Ratio: 14.25
Year To Date Share Price Gain: 34%
Alamos Gold Inc. (NYSE:AGI) stands out as one of the best gold stocks to invest in now, thanks to its impressive fundamentals and significant growth potential. With a forward P/E ratio of 14.25 as of December 20, the stock offers an attractive valuation. Analysts see an upside potential of 46%, with a target price of $26.39 compared to its current share price of $18.11. Moreover, the stock has already gained 34% year-to-date, reflecting its robust performance.
Founded in 2003 and headquartered in Toronto, Canada, Alamos Gold focuses on acquiring, exploring, developing, and extracting gold deposits. The company operates major mines like Young-Davidson and Island Gold in Ontario, Canada; Mulatos in Sonora, Mexico; and the Lynn Lake project in Manitoba, Canada. It also holds interests in the Quartz Mountain project in Oregon, USA, underscoring its geographically diversified asset base.
Alamos Gold's Q3 2024 earnings highlight its strong financial and operational performance. The company reported record production of 452,000 ounces of gold, supported by the recent acquisition of Argonaut Gold and the addition of the Magino mine. While all-in sustaining costs (AISC) rose to $1,425 per ounce due to higher-cost production from Magino, the company remains on track to reduce costs significantly in the coming years. By 2026, AISC is projected to decline to $1,150 per ounce as the Phase 3 expansion at Island Gold nears completion, driving annual production close to 700,000 ounces.
Financially, Alamos delivered record quarterly revenue of $361 million, fueled by gold sales at an average price of $2,458 per ounce. The company generated $88 million in free cash flow during the quarter, bringing the year-to-date total to $219 million. Its robust cash position of $292 million and total liquidity of $540 million underscore its ability to fund growth initiatives like exploration and mill expansions.
With a focus on cost reduction, production growth, and high-return investments, Alamos Gold is well-positioned to capitalize on rising gold prices. Its inclusion in the TSX 30 for exceptional performance over the past three years further cements its status as a top gold stock to watch.