BuzzardsWhile the gutless carcass of Oldco is being leached out in the boreal and the Sonora, the scavenger grows fat and greasy. Has that bitter taste of .0185 + a stale (but "organic") tamale improved any? Do you feel your lever has been pulled?
. 10:45 AM EDT, 04/23/2024 (MT Newswires) -- Alamos Gold (AGI.TO) maintained its "Outperform" rating and saw its price target raised to US$18 from US$16 at RBC Capital Markets on Tuesday, after assuming the successful closing of AGI's planned acquisition of Argonaut Gold (AR.TO).
"We continue to see the transaction as strongly accretive, strategically sound (with little risk of an interloper emerging), and adding to the forecasted organic growth across the portfolio over the next four years," the bank said.
RBC updated its valuation and estimates for Alamos after "baking" Argonaut's Magino operation into Alamo's Island Gold model (near 50% of total NAV) leading to near 15% higher NAVPS/sFCF.
According to RBC, the integration would boost Alamos' immediate production in the third quarter as its deal for Argonaut is expected to close in July, RBC said.
RBC said management expects Magino and Island Gold to be treated as one mining complex, sharing the existing Magino mill and tailings storage facility while producing over 400,000 ounce per year of gold at AISC under $1,000/oz at full production in 2027 and beyond.
RBC expects to see "strong accretion" both near and long term and "more levers to pull on growth".
"We see [Alamos'] stable production, strong track record of execution, organic growth, and exposure to Canada as justifying the current premium to mid-cap peers," RBC said.