Alamos Gold Inc (AGI)

[amarksp]

Yes, your valuation of $14.55 per ounce seems accurate.

Gold juniors were being valued at about $35 per ounce when POG was at $300, and Francisco/other mergers last year tend to support a $50 per ounce valuation.

Thus, using a conservative $35 per ounce valuation, Alamos is selling at 42% of fair value.

Assuming POG = $320, using a $50 per ounce valuation seems reasonable, thus Alamos should be over a triple from here.

To get this triple, IMO, all we will need to see is a few buyouts/mergers of other juniors. Believe Minefinders and Gabriel (resettlement/environmental issues likely to be resolved soon?) are my most likley takeover candidates in 2003, and both of these should be valued at over $50 per ounce, IMO. Once the market sees $50+ per ounce valuations being placed on these takeover juniors, then the market value on the rest will rise...