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Alamos Gold (AGI) to Boost Portfolio With Orford Acquisition
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Alamos Gold Inc. (AGI - Free Report) announced that it has inked a deal to acquire all issued and outstanding shares of Orford Mining Corporation. This deal consolidates Alamos' existing ownership of Orford shares and expands its portfolio with key projects, such as West Raglan, the Joutel Properties and Nunavik Lithium. The transaction adds the highly prospective Qiqavik Gold Project, located in Quebec, Canada, to AGI’s portfolio.
The move reflects the company's commitment to building a pipeline of high-quality, long-term projects for sustained growth.
Orford is a gold and critical exploration company based in Northern Quebec. Its main assets are the Qiqavik, West Raglan and lithium exploration projects.
Currently, Alamos owns 61,660,902 Orford shares or 27.5% of the company's basic common stock outstanding. Orford stockholders will get 0.005588 of an Alamos common share for each Orford share, valuing Orford at C10 cents per share (7 cents per share), according to the terms of the transaction. Alamos aims to issue 0.9 million shares for C$16 million (approx. $12 million), excluding its current holding of Orford.
Alamos anticipates an excellent long-term potential from the 100% owned Qiqavik Gold Project in Nunavik, which spans 438 square kilometers. More than 40 attractive targets have already been found by Orford's exploration operations across this underexplored area, placing it as a potential hub for gold discoveries.
AGI has been quite active in its growth initiatives for the past few years.
Alamos produced a record 529,300 ounces of gold in 2023, marking a 15% increase from 2022. The figure came in at the top end of the company’s guidance. AGI expects the strong performance to continue in the next few years, with rising output and falling expenses.
Price Performance
AGI shares have gained 17.9% in the past year against the industry’s 5.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 52 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 151.5% last year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 71.2% in a year.
The Zacks Consensus Estimate for Ternium’s 2023 earnings is pegged at $7.98 per share. It has an average trailing four-quarter earnings surprise of 38.6%. TX’s shares have gained 36.5% in a year.
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Alamos Gold (AGI) to Boost Portfolio With Orford Acquisition
Alamos Gold Inc. (AGI - Free Report) announced that it has inked a deal to acquire all issued and outstanding shares of Orford Mining Corporation. This deal consolidates Alamos' existing ownership of Orford shares and expands its portfolio with key projects, such as West Raglan, the Joutel Properties and Nunavik Lithium. The transaction adds the highly prospective Qiqavik Gold Project, located in Quebec, Canada, to AGI’s portfolio.
The move reflects the company's commitment to building a pipeline of high-quality, long-term projects for sustained growth.
Orford is a gold and critical exploration company based in Northern Quebec. Its main assets are the Qiqavik, West Raglan and lithium exploration projects.
Currently, Alamos owns 61,660,902 Orford shares or 27.5% of the company's basic common stock outstanding. Orford stockholders will get 0.005588 of an Alamos common share for each Orford share, valuing Orford at C10 cents per share (7 cents per share), according to the terms of the transaction. Alamos aims to issue 0.9 million shares for C$16 million (approx. $12 million), excluding its current holding of Orford.
Alamos anticipates an excellent long-term potential from the 100% owned Qiqavik Gold Project in Nunavik, which spans 438 square kilometers. More than 40 attractive targets have already been found by Orford's exploration operations across this underexplored area, placing it as a potential hub for gold discoveries.
AGI has been quite active in its growth initiatives for the past few years.
Alamos produced a record 529,300 ounces of gold in 2023, marking a 15% increase from 2022. The figure came in at the top end of the company’s guidance. AGI expects the strong performance to continue in the next few years, with rising output and falling expenses.
Price Performance
AGI shares have gained 17.9% in the past year against the industry’s 5.7% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Universal Stainless & Alloy Products, Inc. (USAP - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Ternium S.A. (TX - Free Report) . USAP and CRS sport a Zacks Rank #1 (Strong Buy), and TX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 52 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP shares rallied 151.5% last year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 71.2% in a year.
The Zacks Consensus Estimate for Ternium’s 2023 earnings is pegged at $7.98 per share. It has an average trailing four-quarter earnings surprise of 38.6%. TX’s shares have gained 36.5% in a year.