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Mackie expects ‘better days ahead’ for Alamos despite ‘rough end to the year’.

The research company maintains a ‘buy’ on the shares of the Toronto-based company.

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Mackie Research expects Alamos’ operating cash flow to increase substantially year over year

Mackie Research said it continues to see a long-term value in Alamos Gold (NYSE:AGI), following a weaker than expected year, particularly from Mulatos.

Mackie said it believes Alamos’ cornerstone assets will continue to improve, particularly with the ramp up of Young-Davidson (YD).

Mackie said in a research note that as a result of increased production and better cost control, Mackie expects Alamos’ operating cash flow to increase substantially year over year, and hence view Alamos Gold as a preferred name in the intermediate space.

Alamos has released fourth-quarter operating results, with production of 104.7koz beating Mackie’s 98.2koz forecast due largely to better grades at both Young-Davidson and Mulatos.

As a result, annual production of 380,000 ounces fell within the lower end of guidance, which had previously been set at 375,000-425,000 ounces.

Mackie maintained its ‘buy’ rating on the stock with a $8.00 target price.

Shares of the Toronto, Ontario-based company were trading down 10.4% at $2.76 p.m. in New York on Thursday.

Quick facts: ALAMOS GOLD INC CLS A

Price: 7.13 CAD

TSX:AGI
Market: TSX
Market Cap: $2.79 billion
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