Why Alamos Gold Stock Rocketed 58% in April
Shares of gold miner Alamos Gold (NYSE: AGI) rose a dramatic 58% in April according to data from S&P Global Market Intelligence. That comes off of a pretty awful March, when the stock fell roughly 14% but was, at one point, down around 30%. Through the first four months of the year Alamos rose 34%. Gold, using SPDR Gold Shares (NYSEMKT: GLD) as a proxy, was basically flat in March, advanced roughly 13% in April, and was up by about 11% between January and April.
Alamos is a relatively small gold miner, with just three main operating assets. In late March, while the broader market was still fretting about the spread of COVID-19, it was forced to shut down one of those mines, known as Island Gold. In early April it had to shut another mine, Mulatos. However, financial results in the first quarter remained relatively strong, news that was finally released in late April when the company reported earnings. Gold production fell roughly 12% year over year in the first quarter, which isn't surprising given the mine disruption, but higher realized gold prices offset most of the pain. Adjusted earnings came in at $0.08 per share, up from $0.03 in the previous year.
Image source: Getty Images
Source Fool.com
