Alamos Gold Study Yields 30% Reserve Gain and $60 Price Target
Alamos Gold’s Island Gold District expansion study showed a 30% mineral reserve boost and Magino mill capacity rising to 20,000 tonnes per day. Scotiabank raised Alamos Gold’s price target from $55 to $60 while forecasting annual output above 530,000 ounces from 2028 with $1,025 all-in sustaining costs per ounce.
1. Expansion Study Results
The Island Gold District expansion study completed on February 3 reported a 30% increase in mineral reserves and outlined plans to expand the Magino mill’s processing capacity to 20,000 tonnes per day, positioning the operation among Canada’s largest gold mills.
2. Production and Cost Outlook
The study projects average annual production exceeding 530,000 ounces from 2028—27% higher than the previous life-of-mine plan—while estimating all-in sustaining costs of $1,025 per ounce over the first ten years, improving long-term profitability metrics.
3. Analyst Price Target Increase
On February 6, Scotiabank analyst Ovais Habib raised the company’s price target from $55 to $60, a 9.09% increase based on the stronger reserve base and improved cost profile from the expansion study.