Alamos Gold (AGI) Stock Slumps on Lower Gold Prices
NEW YORK (TheStreet) -- Shares of Alamos Gold (AGI) - Get Report are down by 4.97% to $9.86 in late-afternoon trading on Tuesday, as falling gold prices weigh on gold mining stocks.
Gold for August delivery is down by 1.66% to $1,334.10 per ounce on the COMEX this afternoon.
The price of the precious metal has fallen two days in a row as Brexit uncertainties ease, thus decreasing demand for safe haven stocks.
"Tensions in Britain are easing for now, as the country will soon have a new prime minister," ActivTrades chief analyst Carlo Alberto de Casa told Reuters. "With the British pound gaining some ground, demand for gold and other safe havens is decreasing."
Since the U.K. voted to leave the European Union gold prices have increased by about $100 an ounce.
Gold mining stocks such as Barrick Gold (ABX) and Goldcorp (GG) are also declining.
Based in Toronto, Alamos is a mid-tier gold producer.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ALAMOS GOLD INC as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.
You can view the full analysis from the report here: AGI
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