The Globe and Mail reports in its Friday, June 27, edition that National Bank Financial analyst Don DeMarco calls a recent tour of Alamos Gold's Island Gold District "a snapshot in time of growing resource, production and FCF." The Globe's David Leeder writes in the Eye On Equities column that Mr. DeMarco continues to rate Alamos "outperform." Mr. DeMarco gave his share target a 50-cent boost to $52.25. Analysts on average target the shares at $49.31. The 100-per-cent-owned District in Northern Ontario is comprised of the adjacent Island Gold and Magino mines and accounts for 55 per cent of the analyst's mining net asset value for the Toronto-based company. Mr. DeMarco says in a note: "Overall the Island District shows a world class resource with material upside; with visibility for best-in-class operations, build quality and team upon execution of the base case; and Tier 1 jurisdiction providing additional favourable differentiation. All vectors are pointing to a generational, best-in-class asset, however, of acute interest to us is the next three years with forecast 20-per-cent production CAGR [compound annual growth rate] and 57-per-cent FCF CAGR, and upon execution provides opportunity to drive valuation rerate."
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