Alamos Gold "buy," target price reduced

03/13/08 - GMP Securities

NEW YORK, March 13 (newratings.com) - Analysts at GMP Securities maintain their "buy" rating on Alamos Gold Inc (AL4). The target price has been reduced from C$9.50 to C$8.30.

In a research note published yesterday, the analysts mention that the company has reported flat 4Q results due to low recoveries and one-time charges. Alamos Gold would continue to record high costs in the near term, with an improvement in gold recoveries over the longer run, the analysts say. The company’s NAV has been reduced from C$5.59 to C$5.16/sh due to lower 2008 and 2009 production estimates.