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AGI to Lower Debt Levels With Sale of Turkish Development Projects

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Key Takeaways

  • {\"0\":\"Alamos Gold will sell its Turkish subsidiary, including Kirazli, Agi Dagi and Camyurt projects.\",\"1\":\"The $470M deal with Tumad will be paid in three installments over two years.\",\"2\":\"AGI will use proceeds to reduce debt and fund Island Gold, Lynn Lake and Puerto Del Aire projects.\"}

Alamos Gold Inc. (AGI - Free Report) announced that its Netherlands subsidiaries have inked a definitive agreement with Tumad Madencilik Sanayi ve Ticaret A.S to sell their fully owned Turkish subsidiary, including Kirazli, Agi Dagi and Camyurt projects located in northwestern Turkiye. The proceeds from this deal will help Alamos Gold to focus on its portfolio of other high-return growth projects.

AGI’s Strategic Deal With Tumad

Tumad is a mining company that operates in the Republic of Türkiye. The deal has been finalized at $470 million. Tumad will pay the price in three installments. 

The first instalment of $160 million will be paid on completion of the deal. As part of the second installment, Alamos Gold will receive $160 million in the first year of the closing. Finally, Alamos Gold will receive $150 million on the second anniversary of the closing. 

Alamos Gold plans to use the proceeds from the sale to lower existing debt obligations. The proceeds from the deal will help AGI in developing its key projects, like the Island Gold Phase 3+ Expansion, Lynn Lake and Puerto Del Aire in Mexico. The move helps the company unlock substantial value for its assets, focusing on lower-cost North American projects with strong growth potential.

The deal is expected to be complete in the fourth quarter of 2025, subject to regulatory approvals.

Alamos Gold’s Q2 Performance

AGI reported record adjusted earnings of 34 cents per share in second-quarter 2025, beating the Zacks Consensus Estimate of 33 cents. The bottom line increased 42% year over year and was within the company’s guidance of 74-84 cents.

Total revenues increased year over year to $438 million from the prior-year quarter’s $333 million.

AGI Stock’s Price Performance

Shares of Alamos Gold have appreciated 60% in a year compared with the industry’s 70.6% surge.

 

Zacks Investment Research Image Source: Zacks Investment Research

 

AGI Zacks Rank & Stocks to Consider

The company has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are The Mosaic Company (MOS - Free Report) , Agnico Eagle Mines (AEM - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . MOS and AEM sport a Zacks Rank #1 (Strong Buy), and CRS has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $6.94 per share. The estimate indicates year-over-year growth of 64.1%. It has an average trailing four-quarter earnings surprise of 10%. Agnico Eagle Mines’ shares have surged 79.1% in a year.

The Zacks Consensus Estimate for Mosaic Company’s 2025 earnings is pegged at $3.17 per share, indicating a year-over-year rally of 60.1%. Mosaic Company’s shares jumped 31.5% last year.

Carpenter Technology has an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for CRS’s 2025 earnings is pegged at $9.36 per share. Its shares surged 68% last year.

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