We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alamos Gold Gears Up to Report Q3 Earnings: What to Expect?
Read MoreHide Full Article
Alamos Gold (AGI - Free Report) is slated to report third-quarter 2024 results on Nov. 6, after market close. AGI is expected to have delivered year-over-year earnings growth , supported by upbeat gold prices, increased sales volumes and lower costs. Higher production is likely to have been driven by the recent addition of the Magino mine and increased output at both Young-Davidson and Island Gold mines.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for AGI’s third-quarter earnings has moved down 4.35% over the past 60 days to 22 cents per share. Despite the revision, the consensus mark indicates a 57% surge from the year-ago actual.
Image Source: Zacks Investment Research
Alamos Gold’s Solid Earnings Surprise History
The company’s earnings outpaced the Zacks Consensus Estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 13.4% on average.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for AGI
Our proven model does not conclusively predict an earnings beat for Alamos Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: AGI has an Earnings ESP of -0.78%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Have Shaped Alamos Gold’s Q3 Performance
In September, Alamos Gold raised its gold production guidance for 2024 to 550-590 thousand ounces, from its earlier expectation of 485-525 thousand ounces, to reflect the contribution of the Magino mine and upbeat performance at Mulatos District in the first half of 2024.
The Magino mine was added to Alamos Gold’s portfolio following the acquisition of Argonaut Gold on July 12, 2024. Its performance is expected to have been impacted by downtime to implement various improvements to the crushing and conveying circuit. Magino’s production is expected to be slightly lower than the second quarter’s output of 22,700 ounces.
The Young Davidson mine is expected to produce 180-190 thousand ounces in 2024. To achieve this target, it has to produce 95.9-105.9 thousand ounces in the second half of the year, indicating a 6% year-over-year increase at the midpoint. With grades improving in the second half, the mine is set to achieve its targets.
The 2024 production target for the Island Gold mine is in the range of 145-155 thousand ounces. With 75.1 thousand ounces produced in the first half of the year, the mine has to produce 69.9-79.9 thousand ounces in the second half. It indicates a 10% year-over-year improvement at the midpoint in the second half.
Even though there was a planned downtime at the mine in the second half of July to upgrade the underground ventilation infrastructure, mining rates are expected to have improved. We expect output in the third quarter to have been higher year over year.
At Mulatos, first-half production was at around 115.6 thousand ounces, which was 4% higher from prior year levels aided by solid performance at La Yaqui Grande. Alamos Gold raised its expected production range for Mulatos to 185-195 thousand ounces for 2024. The guidance indicates Mulatos’production for the second half to be 69.4-79.4 thousand ounces, indicating a 27% plunge. Grades stacked at La Yaqui Grande are expected to have decreased slightly in the third quarter due to the rainy season. The recovery of ounces through residual leaching at Mulatos is also expected to have declined.
Overall, we expect improved production numbers for Alamos Gold in the quarter, aided by Young Davidson and Island Gold, which will be somewhat offset by lower production at Mulatos. Contribution from Magino is also expected to boost results.
Gold prices averaged $2,491 per ounce in the third quarter, up 29% year over year. Throughout the quarter, gold prices have been fueled by increasing expectations of interest rate cuts and rising tensions in the Middle East. The Fed’s announcement of a 50-basis-point rate cut at the Sept. 17 - Sept. 18 meeting lifted gold prices, which ended the quarter at above $2,600 per ounce.
Higher grades at Island Gold and Young Davidson are expected to have led to declines in total cash costs and mine-site all-in sustaining costs. This is likely to have been partially offset by higher costs at La Yaqui Grande owing to lower production.
Year-over-year improvement in production and sales volumes, elevated gold prices and lower costs are likely to have translated into improved earnings for Alamos Gold.
AGI Stock’s Price Performance
Alamos Gold’s shares have gained 61.9% in the past year against the industry’s 48.5% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
Kinross Gold Corporation (KGC - Free Report) , scheduled to release its third-quarter 2024 results on Nov. 5, currently has an Earnings ESP of +8.24% and a Zacks Rank of 1.
The Zacks Consensus Estimate for KGC’s earnings is pegged at 17 cents per share, indicating year-over-year growth of 41.7%. It has a trailing four-quarter average earnings surprise of 29.1%.
Royal Gold, Inc. (RGLD - Free Report) , set to release third-quarter earnings on Nov. 6, has an Earnings ESP of +1.13% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for RGLD’s earnings is pegged at $1.33 per share, indicating a 75% year-over-year increase. It has a trailing four-quarter average earnings surprise of 6.4%.
Osisko Gold Royalties (OR - Free Report) , which currently carries a Zacks Rank of 2, is expected to report third-quarter results later this month. OR has an Earnings ESP of +1.59%.
The Zacks Consensus Estimate for OR’s earnings for the quarter is pegged at 11 cents per share, indicating 22% year-over-year growth. It has a trailing four-quarter average earnings surprise of 4.1%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Alamos Gold Gears Up to Report Q3 Earnings: What to Expect?
Alamos Gold (AGI - Free Report) is slated to report third-quarter 2024 results on Nov. 6, after market close. AGI is expected to have delivered year-over-year earnings growth , supported by upbeat gold prices, increased sales volumes and lower costs. Higher production is likely to have been driven by the recent addition of the Magino mine and increased output at both Young-Davidson and Island Gold mines.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
The Zacks Consensus Estimate for AGI’s third-quarter earnings has moved down 4.35% over the past 60 days to 22 cents per share. Despite the revision, the consensus mark indicates a 57% surge from the year-ago actual.
Alamos Gold’s Solid Earnings Surprise History
The company’s earnings outpaced the Zacks Consensus Estimates in each of the last four quarters. It has a trailing four-quarter earnings surprise of 13.4% on average.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for AGI
Our proven model does not conclusively predict an earnings beat for Alamos Gold this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: AGI has an Earnings ESP of -0.78%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped Alamos Gold’s Q3 Performance
In September, Alamos Gold raised its gold production guidance for 2024 to 550-590 thousand ounces, from its earlier expectation of 485-525 thousand ounces, to reflect the contribution of the Magino mine and upbeat performance at Mulatos District in the first half of 2024.
The Magino mine was added to Alamos Gold’s portfolio following the acquisition of Argonaut Gold on July 12, 2024. Its performance is expected to have been impacted by downtime to implement various improvements to the crushing and conveying circuit. Magino’s production is expected to be slightly lower than the second quarter’s output of 22,700 ounces.
The Young Davidson mine is expected to produce 180-190 thousand ounces in 2024. To achieve this target, it has to produce 95.9-105.9 thousand ounces in the second half of the year, indicating a 6% year-over-year increase at the midpoint. With grades improving in the second half, the mine is set to achieve its targets.
The 2024 production target for the Island Gold mine is in the range of 145-155 thousand ounces. With 75.1 thousand ounces produced in the first half of the year, the mine has to produce 69.9-79.9 thousand ounces in the second half. It indicates a 10% year-over-year improvement at the midpoint in the second half.
Even though there was a planned downtime at the mine in the second half of July to upgrade the underground ventilation infrastructure, mining rates are expected to have improved. We expect output in the third quarter to have been higher year over year.
At Mulatos, first-half production was at around 115.6 thousand ounces, which was 4% higher from prior year levels aided by solid performance at La Yaqui Grande. Alamos Gold raised its expected production range for Mulatos to 185-195 thousand ounces for 2024. The guidance indicates Mulatos’production for the second half to be 69.4-79.4 thousand ounces, indicating a 27% plunge. Grades stacked at La Yaqui Grande are expected to have decreased slightly in the third quarter due to the rainy season. The recovery of ounces through residual leaching at Mulatos is also expected to have declined.
Overall, we expect improved production numbers for Alamos Gold in the quarter, aided by Young Davidson and Island Gold, which will be somewhat offset by lower production at Mulatos. Contribution from Magino is also expected to boost results.
Gold prices averaged $2,491 per ounce in the third quarter, up 29% year over year. Throughout the quarter, gold prices have been fueled by increasing expectations of interest rate cuts and rising tensions in the Middle East. The Fed’s announcement of a 50-basis-point rate cut at the Sept. 17 - Sept. 18 meeting lifted gold prices, which ended the quarter at above $2,600 per ounce.
Higher grades at Island Gold and Young Davidson are expected to have led to declines in total cash costs and mine-site all-in sustaining costs. This is likely to have been partially offset by higher costs at La Yaqui Grande owing to lower production.
Year-over-year improvement in production and sales volumes, elevated gold prices and lower costs are likely to have translated into improved earnings for Alamos Gold.
AGI Stock’s Price Performance
Alamos Gold’s shares have gained 61.9% in the past year against the industry’s 48.5% decline.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter:
Kinross Gold Corporation (KGC - Free Report) , scheduled to release its third-quarter 2024 results on Nov. 5, currently has an Earnings ESP of +8.24% and a Zacks Rank of 1.
The Zacks Consensus Estimate for KGC’s earnings is pegged at 17 cents per share, indicating year-over-year growth of 41.7%. It has a trailing four-quarter average earnings surprise of 29.1%.
Royal Gold, Inc. (RGLD - Free Report) , set to release third-quarter earnings on Nov. 6, has an Earnings ESP of +1.13% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for RGLD’s earnings is pegged at $1.33 per share, indicating a 75% year-over-year increase. It has a trailing four-quarter average earnings surprise of 6.4%.
Osisko Gold Royalties (OR - Free Report) , which currently carries a Zacks Rank of 2, is expected to report third-quarter results later this month. OR has an Earnings ESP of +1.59%.
The Zacks Consensus Estimate for OR’s earnings for the quarter is pegged at 11 cents per share, indicating 22% year-over-year growth. It has a trailing four-quarter average earnings surprise of 4.1%.