Inflation expectations are starting to rise and this is positive for gold. A rising gold price will drive a leveraged move higher in gold producers.

Alamos Gold (AGI) was created in 2003 from a merging of Alamos Minerals and National Gold. This mid tier company has four operating mines in Ontario, Canada and Sonora State, Mexico. These are mining friendly jurisdictions so there is little political risk verse places like Africa.

The most important mine call Young-Davidson is located in northern Ontario. It was acquired in 2015 and is one of the largest underground gold mines in Canada. The mine has 3.2 million ounces of provable reserves and estimated 13 years mine life. There are also potential for mine expansion as the company continues to explore the region.

The company is growing right with a health cash balance and little debt. This way they will not be forced to sell the best assets at fire sale prices during market trouble. The discipled strategy slows growth relative to other mid tier companies but the less risk is comforting in this volatile sector.

This gold bull market is in the early innings. As prices rise, AGI will launch like a rocket to the moon. Check it out.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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