Alamos Gold Achieves Increased 2024 Guidance with Record Annual Production; Three-Year Operating Guidance Outlines 24% Production Growth by 2027 at Significantly Lower Costs Lynn Lake expected to provide additional low-cost growth starting in 2028 with
F O R I M M E D I A T E R E L E A S E
ALAMOS GOLD INC.
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823 Toronto, Ontario, Canada M5J 2T3 Telephone: (416) 368-9932 or 1 (866) 788-8801
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Achieves Increased 2024 Guidance with Record Annual Production; Three-Year Operating Guidance Outlines 24% Production Growth by 2027 at Significantly Lower Costs
Lynn Lake expected to provide additional low-cost growth starting in 2028 with construction decision announced
Toronto, Ontario (January 13, 2025) – Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported fourth quarter and annual 2024 production. The Company also provided updated three-year production and operating guidance and announced a construction decision on the Lynn Lake project in Manitoba.
“With the solid finish to the year, we met both our quarterly and increased annual production guidance. Production increased 7% from 2023 to a record 567,000 ounces and combined with strong margin expansion, we generated record revenues and free cash flow while investing in high-return growth,” said John A. McCluskey, President and Chief Executive Officer.
“This investment in growth is expected to drive our production 24% higher over the next three years. We are also pleased to announce the start of construction on Lynn Lake, another attractive project that will provide additional growth into 2028. All of this growth is in Canada, it is lower cost, and it is all fully funded providing Alamos with one of the strongest outlooks and lowest political risk profiles in the sector. This growth is underpinned by high-quality, long-life assets with significant upside potential that we expect to continue to unlock with our largest exploration budget ever,” Mr. McCluskey added.
Fourth Quarter and Full Year 2024 Operating Results
| 2023 | |||||
| Q4 2024 | Q4 2023 | 2024 | 2024 Guidance1 | ||
| Gold production (ounces) | |||||
| Young-Davidson | 45,700 | 49,800 | 174,000 | 185,100 | 180,000 - 190,000 |
| Island Gold | 39,400 | 31,600 | 155,000 | 131,400 | 145,000 - 155,000 |
| Magino | 16,200 | n/a | 33,000 | n/a | 40,000 - 50,000 |
| Mulatos District | 38,900 | 48,100 | 205,000 | 212,800 | 185,000 - 195,000 |
| Total gold production – Original guidance | 485,000 - 525,000 | ||||
| Total gold production – Revised guidance(1) | 140,200 | 129,500 | 567,000 | 529,300 | 550,000 - 590,000 |
(1) Revised 2024 guidance issued on September 12, 2024
- Met increased guidance with record annual production: produced a record 567,000 ounces, achieving the mid-point of revised guidance which was increased by 13% in September 2024. Full year production increased 7% from 2023, including a strong finish to the year with 140,200 ounces in the fourth quarter, in line with quarterly guidance
- Costs expected to meet 2024 guidance: costs have not been finalized for 2024 but all-in sustaining costs (“AISC”) are expected to be at the top end of the range of revised full year guidance at $1,300 per ounce. Fourth quarter costs are expected to be slightly lower than the third quarter, as previously guided
- Record financial performance: sold 141,257 ounces of gold at a realized price of $2,632 per ounce for revenues of $375 million, inclusive of silver sales. Full year sales totaled 560,234 ounces of gold at an average realized price of $2,379 per ounce for record revenues of $1.3 billion. The strong operational performance and higher realized gold prices are also expected to drive record annual cash flow from operations and free cash flow
- Strong balance sheet: ended the year with approximately $325 million of cash and cash equivalents, up from $225 million at the end of 2023 reflecting strong ongoing free cash flow generation, while continuing to reinvest in high-return growth. The Company remains in a net cash position with $250 million drawn on its credit facility. The proceeds from the credit facility were previously used to retire debt inherited from Argonaut Gold
Three Year Guidance Overview(1)
| 2025 | 2026 | 2027 | ||||||
| Current | Previous | Current | Previous | Current | ||||
| Total Gold Production (000 oz) | 575 - 625 | 630 - 680 | ||||||
| 580 - 630 | 630 - 680 | 680 - 730 | ||||||
| Total Cash Costs(1) ($/oz) | $775 - 875 | $750 - 850 | ||||||
| $875 - 925 | $800 - 900 | $775 - 875 | ||||||
| All-in Sustaining Costs(1),(2) ($/oz) | $1,175 - 1,275 | $1,100 - 1,200 | ||||||
| $1,250 - 1,300 | $1,150 - 1,250 | $1,125 - 1,225 | ||||||
| Total Sustaining & growth capital(1)(3) Operating mines; ex. Exploration & Lynn Lake ($ millions) (4) | $425 - 475 | $345 - 390 | ||||||
| $460 - 510 | $370 - 415 | $215 - 245 | ||||||
| Lynn Lake ($ millions) | - | - | ||||||
| $100 - 120 | $250 – 275 | $235 - 260 | ||||||
| Total ($ millions) | - | - | ||||||
| $560 - 630 | $620 - 690 | $450 - 505 |
(1) Refer to the “Non-GAAP Measures and Additional GAAP” disclosure at the end of this press release for a description of these measures.
(2) All-in sustaining cost guidance for 2026 and 2027 includes the same assumptions for G&A and stock-based compensation as included in 2025.
(3) Sustaining and growth capital guidance excludes capitalized exploration.
(4) Previous sustaining and growth capital guidance is for producing mines only and excludes capital for Lynn Lake, other development projects, and capitalized exploration.
- 2025 production guidance increased; 7% growth expected in 2025 and 24% growth by 2027: production guidance for 2025 increased slightly from the previous guidance provided in September 2024 reflecting additional production from Mulatos through residual leaching. Production is expected to increase 24% by 2027, relative to 2024, driven by lowcost growth from Island Gold following the completion of the Phase 3+ Expansion in the first half of 2026
2 | ALAMOS GOLD INC
- Lynn Lake to drive additional growth in 2028 with construction decision announced: construction activities are expected to ramp up through 2025 with initial production expected during the first half of 2028. With average annual production of 176,000 ounces over its first ten years at first quartile mine-site AISC, Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year
- Magino mill expansion provides additional longer-term upside potential: an evaluation of longer-term expansion of the Magino mill to between 15,000 and 20,000 tonnes per day (“tpd”) is underway and expected to be completed by the end of 2025. A larger expansion of the mill could support additional growth from the Island Gold District and increase consolidated production closer to one million ounces per year
- Total cash costs and AISC expected to decrease slightly in 2025 and approximately
10% by 2027, relative to 2024:
- Low-cost production growth in 2025 expected to more than offset inflationary
pressures, driving AISC lower
- AISC expected to decrease approximately 10% by 2027 to between $1,125 and $1,225 per ounce: the completion of the Phase 3+ Expansion at Island Gold in 2026 is expected to drive costs lower through 2026 and 2027. A further decrease in costs is expected in 2028 through low-cost production growth from Lynn Lake
- AISC guidance for 2025 and 2026 has increased approximately 4% from previous guidance primarily reflecting ongoing labour inflation. The increase in 2025 AISC also reflects continued residual leaching at Mulatos, which carries higher reported costs
- Capital spending expected to decrease approximately 20% by 2027, relative to 2025: with the completion of the Phase 3+ Expansion in 2026, and PDA in 2027. Total capital (excluding capitalized exploration) is expected to range between $560 to $630 million in 2025, an increase from 2024 and previous guidance for 2025 reflecting the inclusion of construction capital for Lynn Lake (excluded from previous three-year guidance), accelerated spending on PDA development in the current year, as well as the impact of ongoing labour inflation. Total capital spending guidance for 2026 has increased relative to previous guidance for the same reasons
- The total capital budget for 2025 includes:
- Sustaining capital guidance of $138 to $150 million: up slightly from 2024 with further increases expected in 2026 and 2027, reflecting growing production rates within the expanded Island Gold District
- Growth capital guidance of $422 to $480 million: up from 2024 reflecting the inclusion of construction capital for Lynn Lake and PDA. Growth capital is expected to decrease by approximately 36% in 2027 with the completion of the Phase 3+ Expansion in 2026 and PDA in 2027
- Exploration budget increased to $72 million: a 16% increase from the 2024 budget with expanded budgets at the Island Gold District and the Qiqavik project in Quebec. The 2025 exploration program represents the largest exploration budget in the Company’s history supporting broad based success across its asset base
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- Fully funded growth supporting significant free cash flow growth 2026 onward: the Company expects to continue generating positive free cash flow while funding its highreturn, low-cost growth projects at current gold prices. These projects are expected to drive significant free cash flow growth with the completion of the Phase 3+ Expansion in 2026, PDA in 2027, and Lynn Lake in 2028, reflecting growing production, and declining costs and capital
(1) Guidance statements in this release are forward-looking information. See the Assumptions and Sensitives section of this release along with the cautionary note at the end of this release.
Upcoming 2025 catalysts
- Burnt Timber and Linkwood study (satellite deposits to Lynn Lake): Q1 2025
- 2024 year-end Mineral Reserve and Resource update: February 2025
- Island Gold District life of mine plan (base case): Mid-2025
- Island Gold District expansion study: Q4 2025
- Island Gold District, Mulatos District, and Young-Davidson exploration updates: ongoing
2025 Guidance
| 2025 Guidance | 2024 Guidance(1) | |||||
| Lynn Lake | ||||||
| Island Gold | Young- | |||||
| District | Davidson | Mulatos District | Total | Total | ||
| Gold production (000 oz) 275 - 300 175 - 190 130 - 140 | 580 - 630 | 567 (actual) | ||||
| Cost of sales, including amortization ($ millions)(2) | $745 | |||||
| $805 | ||||||
| Cost of sales, including amortization ($/oz)(2) | $1,310 | |||||
| $1,330 | ||||||
| Total cash costs ($/oz)(3) $725 - 775 $1,075 - 1,125 $925 - 975 - | $875 - 925 | $890 - 940 | ||||
| All-in sustaining costs ($/oz)(3) | $1,250 - 1,300 | $1,250 - 1,300 | ||||
| Mine-site all-in sustaining costs $1,100 - 1,150 $1,390 - 1,440 $1,025 - 1,075 - ($/oz)(3)(4) | ||||||
| Capital expenditures ($ millions) | ||||||
| Sustaining capital(3)(5) $80 - 85 $55 - 60 $3 - 5 - | $138 - 150 | $128 - 145 | ||||
| Growth capital(3)(5) $270 - 300 $15 - 20 $37 - 40 $100 - 120 | $422 - 480 | $227 - 255 | ||||
| Total Sustaining and Growth $350 - 385 $70 - 80 $40 - 45 $100 - 120 Capital(3)(5) ($ millions) | $355 - 400 | |||||
| $560 - 630 | ||||||
| Capitalized exploration(3) ($ millions) $20 $9 $6 $4 | $39 | $43 | ||||
| Total capital expenditures and $370 - 405 $79 - 89 $46 - 51 $104 - 124 capitalized exploration(3) ($ millions) | $398 - 443 | |||||
| $599 - 669 |
(1) Revised 2024 guidance issued on September 12, 2024.
(2) Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of total cash cost guidance.
(3) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release for a description of these measures.
(4) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites the Company allocates a portion of share based compensation to the mine sites, but does not include an allocation of corporate and administrative expenses to the mine sites.
(5) Sustaining and growth capital guidance excludes capitalized exploration.
Gold production in 2025 is expected to range between 580,000 and 630,000 ounces, a 7% increase from 2024 (based on the mid-point) driven by the ramp up of production at Island Gold, and a full year from Magino. This represents an increase from the previous three-year guidance provided in September 2024 reflecting the ongoing benefit of residual leaching of the main Mulatos leach pad, partly offset by slightly lower production from Young-Davidson.
4 | ALAMOS GOLD INC
Total cash costs and AISC are expected to decrease slightly in 2025, with costs higher in the first half of the year and decreasing in the second half of the year. AISC are expected to decrease approximately 15% in the second half of 2025, relative to the first half of the year, driven by higher grades and mining rates at Island Gold, higher grades at La Yaqui Grande, as well as a lower contribution from residual leaching from Mulatos. Production from residual leaching carries higher reported costs though is very profitable from a cash flow perspective, with the majority of these costs previously incurred and recorded in inventory.
AISC guidance for 2025 has increased approximately 4% from previous guidance primarily reflecting ongoing cost inflation, as well as the increased contribution of production from Mulatos through residual leaching. Company-wide inflation is expected to be approximately 4% in 2025, consistent with 2024, with the largest driver being ongoing labour inflation.
2025 guidance – costs expected to decrease significantly in H2 2025
| H1 2025 | H2 2025 | 2025 Guidance | |
| Total gold production (000 oz) | 280 - 305 | 300 - 325 | 580 - 630 |
| Total cash costs(1) ($/oz) | $950 - 1,000 | $800 - 850 | $875 - 925 |
| All-in sustaining costs(1) ($/oz) | $1,350 - 1,400 | $1,150 - 1,200 | $1,250 - 1,300 |
| Total capital expenditures and capitalized exploration(1) ($ millions) | $304 - 339 | ||
| $295 - 330 | $599 - 669 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release for a description of these measures.
Capital spending is expected to increase from 2024 reflecting the inclusion of development capital for Lynn Lake and PDA, with the start of construction on both projects in 2025, as well as continued spending on the Phase 3+ Expansion within the Island Gold District. The Phase 3+ Expansion remains on track for completion in the first half of 2026, with 2025 representing its final full year of construction capital spending.
The primary driver of the increase in capital relative to previous guidance for 2025 is the inclusion of development capital for Lynn Lake, following a construction decision, accelerated capital spending at PDA, as well as inflation. Previous guidance for 2025 excluded development capital for Lynn Lake and included $20 million of capital for the start of construction on PDA. Capital spending on PDA is now expected to total $37 to $40 million in 2025 to progress underground development. There are no changes to the initial capital estimate of $165 million for PDA with some of the planned spending in 2026 and 2027 pulled forward into 2025. The Company expects to receive approval of an amendment to the existing environmental impact assessment (“MIA”) during the first half of 2025 allowing for the ramp up of construction activities by mid-year.
Capital spending is expected to be evenly split between the first and second half of the year though will vary by asset. Spending at the Island Gold District is expected to be weighted towards the first half of the year while spending at Lynn Lake and PDA is expected to ramp up into the second half of the year.
5 | ALAMOS GOLD INC
2025 Capital Guidance (US$M) (1)
$560 - 630 $15 $20 $110
$425 - 475
Previous capital Lynn Lake PDA development Inflation/Other Current capital guidance development (timing of spend) guidance
(1) Capital guidance excludes capitalized exploration.
2025 – 2027 Guidance
| 2025 | 2026 | 2027 | ||||||
| Current | Previous | Current | Previous | Current | ||||
| Gold Production (000 oz) Island Gold District Young-Davidson Mulatos District Total Gold Production (000 oz) | 275 - 300 180 - 195 120 - 130 575 - 625 | 330 - 355 180 - 195 120 - 130 630 - 680 | ||||||
| 275 - 300 | 330 - 355 | 375 - 400 | ||||||
| 175 - 190 | 180 - 195 | 180 - 195 | ||||||
| 130 - 140 | 120 - 130 | 125 - 135 | ||||||
| 580 - 630 | 630 - 680 | 680 - 730 | ||||||
| Total Cash Costs(1) ($/oz) | $775 - 875 | $750 - 850 | ||||||
| $875 - 925 | $800 - 900 | $775 - 875 | ||||||
| All-in Sustaining Costs(1),(2) ($/oz) | $1,250 - 1,300 | $1,175 - 1,275 | $1,150 - 1,250 | $1,100 - 1,200 | $1,125 - 1,225 | |||
| Sustaining capital(1),(3) ($ millions) | $145 - 160 | $135 - 150 | ||||||
| $138 - 150 | $160 - 175 | $180 - 200 | ||||||
| Growth capital ex. Lynn Lake(1),(3) ($ millions) | $322 - 360 | $280 - 315 | $210 - 240 | $210 - 240 | $35 - 45 | |||
| Total sustaining & growth capital(1),(3) ex. Lynn Lake ($ millions) Growth capital - Lynn Lake ($ millions) Total sustaining & growth capital(1),(3) inc. Lynn Lake ($ millions) | $460 - 510 | $425 - 475 - - | $370 - 415 | $345 - 390 - - | $215 - 245 | |||
| $100 - 120 | $250 - 275 | $235 - 260 | ||||||
| $560 - 630 | $620 - 690 | $450 - 505 |
(2) All-in sustaining cost guidance for 2026 and 2027 includes the same assumptions for G&A and stock based compensation as included in 2025.
(3) Sustaining and growth capital guidance excludes capitalized exploration.
Gold production is expected to continue increasing into 2026, and in 2027 to a range of 680,000 to 730,000 ounces, an increase of approximately 24% relative to 2024. This is expected to be driven by low-cost growth from the Island Gold District with the Phase 3+ Expansion on track to be completed in the first half of 2026.
6 | ALAMOS GOLD INC
Lynn Lake is expected to drive further production growth starting in 2028 with initial production expected during the first half of the year. With average annual production of 176,000 ounces, Lynn Lake is expected to increase company-wide production to approximately 900,000 ounces per year.
An evaluation of a longer-term expansion of the Island Gold District milling capacity to between 15,000 and 20,000 tonnes per day is also underway, which could support additional growth bringing company-wide production to approximately one million ounces per year.
Total cash costs and AISC in 2026 are expected to decrease 6% from 2025. This is expected to be driven by low-cost growth from the Island Gold District, following the completion of the Phase 3+ Expansion, and the connection of the Magino mill to lower cost power from the electric grid. Costs are expected to continue to decrease into 2027 to a range of $1,125 to $1,225 per ounce, representing a 10% decrease from 2024. This reflects a full year of production from the Island Gold District following the completion of the Phase 3+ Expansion. A further decrease in costs is expected in 2028 with the start of low-cost production from Lynn Lake.
Capital spending is expected to increase modestly into 2026 with the lower capital at the Island Gold District following the completion of the Phase 3+ Expansion, offset by the ramp up in spending on Lynn Lake and PDA. In 2027, capital spending is expected to decrease 27% relative to 2026 driven by significantly lower capital at the Island Gold District, and the completion of construction of PDA. A further decrease in capital is expected in 2028 with the completion of construction of Lynn Lake.
2025 - 2027 Production and AISC Guidance(1),(2),(3)
$1,275 $1,200 $1,175
0 0 2025E 2026E 2027E
Island Gold District Young-Davidson Mulatos AISC (US$/oz)
(1) Production and AISC are based on mid-point of guidance.
(2) Refer to the “Non-GAAP Measures and Additional GAAP” disclosure at the end of this press release for a description of these measures.
(3) Total consolidated all-in sustaining costs include corporate and administrative and share based compensation expenses.
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Island Gold District
| Guidance | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Island Gold District | Q3 YTD | Q4 2024 | 2024A | 2024E(4) | 2025E | 2026E | 2027E | |||
| 2024 | ||||||||||
| Gold Production (000 oz) 132 56 188 Previous Guidance (000 oz) | 185 - 205(4) | 275 - 300 | 330 - 355 | 375 - 400 | ||||||
| 275 - 300 | 330 - 355 | |||||||||
| Island Gold costs Total Cash Costs(1) ($/oz) $592 - - | ||||||||||
| $550 - 600 | ||||||||||
| Mine-site AISC(1),(2) ($/oz) $892 - - | $875 - 925 | |||||||||
| Magino costs Total Cash Costs(1) ($/oz) $2,025 - - | ||||||||||
| $1,450 - 1,550 | ||||||||||
| Mine-site AISC(1),(2) ($/oz) $3,007 - - | $2,250 - 2,350 | |||||||||
| Island Gold District costs Total Cash Costs(1) ($/oz) - - - | ||||||||||
| $770 - 805(5) | $725 - 775 | |||||||||
| Mine-site AISC(1),(2) ($/oz) - - - | $1,210 - 1,233(5) | $1,100 - 1,150 | ||||||||
| Island Gold (Underground) Tonnes of ore processed (tpd) 1,031 1,197 1,072 | ||||||||||
| 1,200 | 1,200 - 1,400 | |||||||||
| Grade processed (g/t Au) 12.97 11.19 12.47 | 9.3 - 13.3 | 10.0 - 13.0 | ||||||||
| Average recovery rate (%) 98% 98% 98% | 96 - 97% | 96 - 97% | ||||||||
| Magino (Open Pit) Tonnes of ore mined(3) (tpd) 10,228 10,410 10,325 | ||||||||||
| n/a | 14,800 | |||||||||
| Grade mined (g/t Au) 0.90 0.80 0.85 | n/a | 0.80 - 0.90 | ||||||||
| Tonnes of ore processed(3) (tpd) 6,881 6,670 6,768 | n/a | 9,800 - 10,000 | ||||||||
| Grade processed (g/t Au) 0.92 0.91 0.91 | n/a | 0.90 - 1.05 | ||||||||
| Average recovery rate (%) 95% 94% 94% | n/a | 94 - 95 % | ||||||||
| Island Gold District Tonnes of ore processed – Total (tpd) - - - | ||||||||||
| n/a | 11,200 | |||||||||
| Grade processed – Total (g/t Au) - - - | n/a | 1.95 - 2.40 | ||||||||
| Average recovery rate – Total (%) - - - | n/a | 96% | ||||||||
| Sustaining capital(1) ($ millions) $47 - - | $85 - 95 | $80 - 85 | ||||||||
| Growth capital(1) ($ millions) $129 - - | $180 - 200 | $270 - 300 | ||||||||
| Total sustaining & growth capital(1) $177 - - (ex. exploration) ($ millions) | $265 - 295 | $350 - 385 | ||||||||
| Capitalized exploration(1) ($ millions) $11 - - | $15 | $20 |
and calculation of these measures.
(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites the Company allocates a portion of share based compensation to the mine sites, but does not include an allocation of corporate and administrative expenses to the mine sites.
(3) Q3 YTD 2024 and 2024 data reflects Alamos’ ownership period starting July 12, 2024.
(4) Refers to updated 2024 guidance announced on September 12, 2024.
(5) Refers to combined Island Gold District guidance provided September 12, 2024: 145 – 155 koz at total cash costs of $550 – $600/oz & mine-site AISC of $875 – $925/oz at Island Gold & 40 – 50 koz at total cash costs of $1,450 – $1,550/oz & mine-site AISC of $2,250 – $2,350/oz at Magino.
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Production guidance for the Island Gold District in 2025 and 2026 is consistent with previous guidance. Production is expected to increase approximately 53% in 2025 driven by higher underground mining rates at Island Gold and a full year of production from the Magino open pit. An additional 19% increase in production is expected in 2026 reflecting a further increase in underground mining rates following the completion of the Phase 3+ Expansion. This growth is expected to continue into 2027 driven by a full year of higher underground mining rates. Starting in 2027, annual production from the Island Gold District is expected to average close to 400,000 ounces per year, representing a more than 100% increase from 2024, at substantially lower costs.
The Magino mill is expected to ramp up to 11,200 tpd by the end of the first quarter of 2025 at which point the Island Gold mill will be shut down and ore from Island Gold will be trucked and processed through the Magino mill. A number of optimization initiatives were implemented within the Magino mill which required downtime during the second half of 2024. This included replacing the secondary crusher during the third quarter with additional downtime in the fourth quarter to replace the primary crusher and grizzly panel. These improvements are now complete and will support higher throughput rates going forward.
Underground mining rates are expected to average 1,200 tpd in the first quarter and gradually ramp up to 1,400 tpd in the fourth quarter. The completion of the shaft excavation in mid-2025 will supply increased ventilation underground, allowing for higher mining rates into the second half of the year. Average underground grades mined are also expected to be higher in the second half of the year contributing to slightly higher production and lower costs relative to the first half of the year.
Total cash costs and mine-site AISC are expected to decrease 5% and 8%, respectively from 2024 guidance reflecting increased throughput rates from both the underground and open pit, partially offset by cost inflation, with labour being the main ongoing driver. Costs are expected to decrease further starting into the second half of 2026 following the completion of the Phase 3+ Expansion, and connection of the Magino mill to lower cost grid power.
Capital spending at the Island Gold District (excluding exploration) is expected to range between $350 and $385 million in 2025. This is an increase from 2024 reflecting the final full year of Phase 3+ Expansion development, as well as additional capital to support increased underground and open pit mining rates given the large and growing Mineral Reserve and Resource base. Capital spending includes additions to the mobile fleet as well as rebuilds, additional loading capacity within the open pit, and the addition of a truck maintenance shop, all supporting higher open pit mining rates over the longer term.
Within the Phase 3+ Expansion, capital spending will be focused on completion of shaft sinking to an ultimate depth of 1,373 metres, and construction of the loading pocket, underground crusher, and paste plant. Additionally, work will be advanced on the power line project for the Phase 3+ Expansion, and Magino substation to connect the Magino mill to lower cost grid power. This is expected to drive significant cost savings into 2026 with the Magino mill currently utilizing compressed natural gas (“CNG”) for power generation.
9 | ALAMOS GOLD INC
Young-Davidson
| Guidance | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Young-Davidson | Q3 YTD | Q4 2024 | 2024A | 2024E (3) | 2025E | 2026E | 2027E | |||
| 2024 | ||||||||||
| Gold Production (000 oz) 128 46 174 Previous Guidance (000 oz) | 180 - 190 | 175 - 190 | 180 - 195 | 180 - 195 | ||||||
| 180 - 195 | 180 - 195 | |||||||||
| Total Cash Costs(1) ($/oz) $1,080 - - | ||||||||||
| $1,000 - 1,050 | $1,075 - 1,125 | |||||||||
| Mine-site AISC(1),(2) ($/oz) $1,358 - - | $1,225 - 1,275 | $1,390 - 1,440 | ||||||||
| Tonnes of ore processed (tpd) 7,516 8,116 7,667 | ||||||||||
| 8,000 | 8,000 | |||||||||
| Grade processed (g/t Au) 2.07 2.10 2.08 | 2.15 - 2.30 | 2.05 - 2.25 | ||||||||
| Average recovery rate (%) 91% 91% 91% | 90 - 92% | 90 - 92% | ||||||||
| Sustaining capital(1) ($ millions) $35 - - | $40 - 45 | $55 - 60 | ||||||||
| Growth capital(1) ($ millions) $26 - - | $20 - 25 | $15 - 20 | ||||||||
| Total sustaining & growth capital(1) $61 - - (ex. exploration) ($ millions) | $60 - 70 | $70 - 80 | ||||||||
| Capitalized exploration(1) ($ millions) $4 - - | $10 | $9 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and the Q3 2024 MD&A for a description and calculation of these measures.
(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites the Company allocates a portion of share based compensation to the mine sites, but does not include an allocation of corporate and administrative expenses to the mine sites.
(3) Refers to updated 2024 guidance announced on September 12, 2024.
Gold production at Young-Davidson is expected to remain at similar levels over the next three years reflecting consistent grades, processing rates and recoveries.
Grades mined and processed are expected to range between 2.05 and 2.25 grams per tonne of gold (“g/t Au”) in 2025, and remain at similar levels through 2028. Grades mined are expected to increase in 2029 and beyond and average closer to Mineral Reserve grade, as YD West becomes more of a significant contributor to production.
Total cash costs are expected to increase approximately 7% from 2024 guidance reflecting ongoing cost inflation, with the largest driver being labour inflation in northern Ontario. Mine-site AISC are expected to increase 13% from 2024 guidance reflecting the increase in total cash costs as well as higher sustaining capital. Mine-site AISC are expected to remain at similar levels in 2026 and 2027.
Capital spending in 2025 (excluding exploration) is expected to range between $70 and $80 million. This represents an approximate $10 million increase from 2024 guidance reflecting inflation and higher sustaining capital, partly offset by lower growth capital. The higher sustaining capital is due to an increase in underground development, as well as fleet replacement and rebuilds. Capital spending is expected to remain at similar levels in 2026 and 2027.
Young-Davidson generated $91 million of mine-site free cash flow through the first three quarters of 2024 putting the operation on track for record free cash flow of more than $100 million for the fourth consecutive year. With a 15-year Mineral Reserve life and significant exploration upside, Young-Davidson is well-positioned to generate similar levels of free cash flow over the longer term at current gold prices.
10 | ALAMOS GOLD INC
Mulatos District
| Guidance | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Mulatos District | Q3 YTD | Q4 2024 | 2024A | 2024E(3) | 2025E | 2026E | 2027E | ||
| 2024 | |||||||||
| Gold Production (000 oz) 166 39 205 Previous Guidance (000 oz) | 185 - 195 | 130 - 140 | 120 - 130 | 125 - 135 | |||||
| 120 - 130 | 120 - 130 | ||||||||
| Total Cash Costs(1) ($/oz) $892 - - | |||||||||
| $925 - 975 | $925 - 975 | ||||||||
| Mine-site AISC(1),(2) ($/oz) $954 - - | $1,000 - 1,050 | $1,025 - 1,075 | |||||||
| La Yaqui Grande Tonnes of ore stacked (tpd) 10,900 10,800 10,800 | |||||||||
| 10,000 | 10,500 | - | - | ||||||
| Grades stacked (g/t Au) 1.38 0.93 1.27 | 0.90 - 1.50 | 0.80 - 1.65 | - | - | |||||
| Recovery ratio (%) 98% 98% 98% | 80 - 90% | 70 - 90% | - | - | |||||
| Sustaining capital(1) ($ millions) $3 - - | $3 - 5 | $3 - 5 | |||||||
| Growth capital(1) ($ millions) $6 - - | $2 - 5 | $37 - 40 | |||||||
| Total sustaining & growth capital(1) $9 - - (ex. exploration) ($ millions) | $5 - 10 | $40 - 45 | |||||||
| Capitalized exploration(1) ($ millions) $6 - - | |||||||||
| $9 | $6 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and the Q3 2024 MD&A for a description and calculation of these measures.
(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites the Company allocates a portion of share based compensation to the mine sites, but does not include an allocation of corporate and administrative expenses to the mine sites.
(3) Refers to updated 2024 guidance announced on September 12, 2024.
Combined gold production from the Mulatos District is expected to be between 130,000 and 140,000 ounces in 2025, an 8% increase from previous guidance (based on the mid-point). The increase reflects the ongoing benefit of residual leaching of the main Mulatos leach pad. Production from La Yaqui Grande is expected to account for roughly 85% of production, with the remainder coming from residual leaching of the Mulatos leach pad.
Grades mined and stacked at La Yaqui Grande are expected to increase through the year, from an average of 0.80 g/t Au in the first quarter to 1.65 g/t Au in the fourth quarter driving production higher in the second half of the year. This is expected to be partly offset by declining rates of production from residual leaching, resulting in slightly higher combined production from the Mulatos District in the second half of the year.
Total cash costs and mine-site AISC in 2025 are expected to be consistent with 2024 guidance. Costs are expected to be above the top end of annual guidance during the first half of the year and decrease below the low end of annual guidance during the second half reflecting increased grades at La Yaqui Grande and a declining contribution of production from residual leaching. Residual leaching carries higher reported costs; however, it is very profitable from a cash flow perspective.
The ounces recovered through residual leaching are expected to carry a reported mine-site AISC of approximately $2,100 per ounce with the majority of these costs having been previously incurred and sitting in inventory. The cash component to be spent to recover these ounces in 2025 is expected to be approximately $1,000 per ounce, providing strong free cash flow.
11 | ALAMOS GOLD INC
Combined production from the Mulatos District is expected to remain at similar levels in 2026 and 2027. La Yaqui Grande is expected to be depleted during 2027. This is expected to be offset by the start of production from PDA mid-2027. PDA has an eight year mine life based on Mineral Reserves as of the end of 2023. This is expected to extend production from the Mulatos District until at least 2035, with significant additional exploration upside at PDA and other highergrade sulphide targets, including Cerro Pelon.
Capital spending is expected to total $40 to $45 million in 2025, an increase from 2024 reflecting the start of development on the PDA project. This includes $37 to $40 million of growth capital for PDA, up from $20 million outlined in the PDA study from September 2024 reflecting a faster ramp up of underground development in 2025. The total initial capital estimate of $165 million, announced in September 2024, is expected to remain unchanged with the balance to be spent in 2026 and 2027.
12 | ALAMOS GOLD INC