Credit Suisse has a bullish outlook on gold for 2017, but that sentiment hasn't fully carried over for the precious metal's miners.
A projected increase in costs and capital expenditures at Alamos' flagship Mulatos mine in Sonora, Mexico is the main reason for the downgrade, analyst Anita Soni wrote in a research note circulated to investors Friday.
The mine has 44.7 million tons of proven and probable reserves.
Despite the expected sluggishness for Alamos, Soni has a rosy sentiment for the safe haven commodity: the bank has a $1,338 per ounce price target on gold for 2017.
"We remain positive as real [interest] rates are still low and remain supportive," she wrote. "We believe the market is underestimating trade protectionism and 2017 supply/demand should be more supportive."
January gold Comex futures were trading at $1,118 per ounce Friday.