Alamos Gold Inc. (NYSE:AGI) is one of the 10 undervalued growth stocks for the next 5 years. Scotiabank analyst Ovais Habib raised Alamos Gold’s (NYSE:AGI) price target from $55 to $60 on February 6. This development comes after the company reported results from its Island Gold District (IGD) Expansion Study on February 3, highlighting a major growth initiative expected to significantly improve the company’s long-term growth outlook. The study shows a 30% increase in mineral reserves and an expansion of the Magino mill to 20,000 tonnes per day, supporting a higher processing rate of 3,000 tpd. This expansion is projected to boost production, establishing one of Canada’s largest and most profitable gold operations.

Following the expansion, the average annual gold output is expected to exceed 530,000 ounces starting in 2028, representing a 27% increase from the previous life-of-mine plan. Costs are also set to fall sharply, with mine-site all-in sustaining costs estimated at $1,025 per ounce over the first 10 years.

Just a day prior to this development, analyst Ovais Habib had reiterated his $55 price target, which he has now raised by 9.09%.

Alamos Gold Inc. (NYSE:AGI)  operates as a gold producer company across the United States, Canada, and Mexico. It mainly focuses on the exploration for gold deposits. The company was incorporated in 2003 and is headquartered in Toronto, Canada.

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Disclosure: None. This article is originally published at Insider Monkey.

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