Alamos Gold Inc. (AGI) Soars 3.08% on Three-Day Rally Amid C$985M Share Buyback to Boost EPS

Alamos Gold Inc. (AGI) reached its highest level so far this month on Dec. 23, surging 2.68% intraday. The stock has now risen for three consecutive sessions, gaining 3.08% over the period, as the company announced a C$985.1 million share-repurchase program aimed at boosting shareholder value. The initiative, which allows for up to 5% of public shares to be repurchased by December 2026, underscores management’s confidence in the stock’s undervaluation and aligns with its strategy to enhance earnings per share through reduced share counts.

The buyback, approved by the Toronto Stock Exchange and New York Stock Exchange, reflects Alamos Gold’s strong financial position. The company reported operating and net margins of 43.73% and 33.16%, respectively, alongside a conservative debt-to-equity ratio of 0.07. These metrics support its ability to sustain capital returns while maintaining operational flexibility. The program builds on prior repurchases under a C$54.4 million buyback in 2024-2025, reinforcing a disciplined approach to capital allocation. Analysts have responded favorably, with Desjardins initiating a “Buy” rating and a C$64 price target, citing the company’s Canadian growth projects and undervalued PEG ratio of 0.27.

Alamos Gold’s recent performance highlights its resilience amid operational challenges, including a third-quarter guidance revision and seismic activity at its Island Gold mine. Despite these headwinds, the stock has surged 110.6% over the past year, driven by robust revenue growth and a focus on high-grade gold reserves at operations like Mulatos in Mexico. The company’s emphasis on sustainable development and geographic diversification further strengthens its appeal to investors. With a market capitalization of $16.19 billion and a current ratio of 1.72, Alamos Gold remains well-positioned to balance growth initiatives with shareholder returns, capitalizing on favorable market conditions as the year concludes.