Alamos Gold Price Target Lowered to $82 at CIBC
CIBC Capital Markets on Friday lowered its price target on Alamos Gold (AGI.TO, AGI) to C$82 from CD$90 after the company lowered guidance for second-quarter production from its Young-Davidson mine in Ontario.Analyst Cosmos Chiu maintained an Outperformer rating on shares of the gold producer."Alamos Gold disclosed that the Young-Davidson mine has been impacted by two seismic events in the past week, with one occurring at an active mining front," Chiu said in a note to clients."While no injuries were sustained, infrastructure was damaged limiting access to two higher stopes that had been scheduled to be mined in Q2," the analyst said.In a statement on Thursday, Alamos said it is revising lower its second quarter production guidance to between 130,000 and 135,000 ounces."While disappointing, Young-Davidson (~16% of corporate NAV5%) is no longer the key driver of value for the company with the emergence of the Island Gold District (~60% of corporate NAV5%)," Chiu said."Island Gold continues to perform well, and remains on track to achieve full-year guidance with significant growth for the remainder of the year," the analyst said.Chiu said his price target reduction reflects the short-term operational impact from Young-Davidson.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $42.27, Change: $-9.13, Percent Change: -17.76%