
Minera Alamos Inc (TSXV:MAI) – Thinking Big Starting Small
Minera Alamos is a gold development stage company with two ready-to-build assets in northwest Mexico. We expect the first to start production mid-2020, followed by the second in mid-2021. Based on this aggressive timeline, we believe the company should produce 86k oz at AuEq at US$627/oz Au by 2022, generating C$77.9M in EBITDA. With a team that has done it before in Mexico, we believe this timeline is achievable. We expect the stock to re-rate as the market gains comfort regarding the production and cost guidance provided. We are initiating with a fair value estimate of $0.40 per share (derived from 0.8x our base case 8% NAVPS of C$0.51).