Alamos Gold Inc (TSX:AGI, NYSE:AGI) has seen its price target raised by Jefferies analysts following the release of its updated life-of-mine (LOM) plan for its Island Gold District, which now incorporates the Magino asset.
The analysts’ new price target of $38 represents a 42% upside from Alamos Gold’s share price at the time of writing.
“With a 20-year mine life, strong operational leverage, and visible growth ahead, Alamos is well-positioned to outperform,” Jefferies wrote, maintaining a ‘Buy’ rating.Â
The company’s updated plan included significantly lower long-term costs, the analysts wrote. “All-in sustaining cost (AISC) came in roughly 26% below what we were modeling,” they noted.Â
The new plan forecasts average annual production of 306,000 ounces over 20 years at an AISC of $1,003 per ounce, well below Jefferies’ prior estimate of $1,347 per ounce.
The analysts attributed the cost improvement to…
