Alamos Gold "sector perform," target price reduced

03/13/08 - CIBC World Markets

NEW YORK, March 13 (newratings.com) - Analysts at CIBC World Markets maintain their "sector perform" rating on Alamos Gold Inc (A4L), while reducing their estimates for the company. The target price has been reduced from C$10 to C$9.

In a research note published yesterday, the analysts mention that the company has posted its quarterly results short of expectations. Alamos Gold is likely to produce 122,000 ounces this year at a cost of $447 per oz, the analysts say. The company is still struggling to get its Mulatos mine in Mexico to achieve optimal operating conditions, CIBC World Markets adds. The EPS estimate for 2008 has been reduced from $0.27 to $0.26.