Alamos Gold Provides Three-Year Operating Guidance Outlining 46% Production Growth by 2028 at Significantly Lower Costs Further production growth to one million ounces annually expected by 2030 through development of Lynn Lake and the Island Gold District Expansion
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 Provides Three-Year Operating Guidance Outlining 46% Production Growth by 2028 at Significantly Lower Costs
Further production growth to one million ounces annually expected by 2030 through development of Lynn Lake and the Island Gold District Expansion
Toronto, Ontario (February 4, 2026) – Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) provided updated three-year production and operating guidance. The Company also outlined longer term production guidance of approximately one million ounces per year by 2030 through the larger expansion of the Island Gold District (announced on February 3, 2026) and initial production from Lynn Lake.
“Our operational performance over the past year was not up to our standards and not reflective of our long-term track record. We expect to deliver a stronger performance in 2026, particularly into the second half of the year as production ramps up and costs decrease with the completion of the shaft expansion at Island Gold,” said John A. McCluskey, President and Chief Executive Officer.
“As demonstrated by our three-year guidance and tremendous exploration success across our asset base, we continue to make excellent progress on our growth initiatives providing one of the strongest outlooks in the sector. We expect to deliver 46% production growth by 2028, and nearly 20% decrease in AISC. This trend is expected to continue with production expected to increase to one million ounces annually by 2030 driven by the multi phased expansion of the Island Gold District and start up of Lynn Lake. All of this growth is in Canada, its all lower cost, and we can fund it internally while generating growing free cash flow,” Mr. McCluskey added.
Three-Year Guidance Overview(1)
| 2026 | 2027 | 2028 | ||||
| Total Gold Production (000 oz) | 570 - 650 | 650 - 730 | 755 - 835 | |||
| Total Cash Costs(1) ($/oz) | $1,020 - 1,120 | $825 - 925 | $775 - 875 | |||
| All-in Sustaining Costs(1),(2) ($/oz) | $1,500 - 1,600 | $1,325 - 1,425 | $1,200 - 1,300 | |||
| Sustaining & Growth Capital(1)(3) Operating mines ($ millions) | ||||||
| $333 - 375 | $275 - 315 | $240 - 280 | ||||
| Growth Capital – Development Projects | ||||||
| Island Gold District Expansion ($ millions) | $240 - 260 | $130 - 145 | $80 - 90 | |||
| Lynn Lake ($ millions) | $140 - 160 | $380 - 410 | $290 - 310 | |||
| PDA ($ millions) | $137 - 145 | $15 - 20 | - | |||
| Total Capital ($ millions) | $850 - 940 | $800 - 890 | $610 - 680 |
(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 2027 and 2028 includes the same assumptions for G&A and stock-based compensation as included in 2026.
(3) Sustaining and growth capital guidance excludes capitalized exploration.
- Production expected to increase 12% in 2026 and 46% by 2028 to between 755,000 and 835,000 ounces: production guidance for 2026 decreased relative to the previous guidance1 provided in January 2025 (“Previous Guidance”), with slightly lower production from Canadian operations partially offset by an increase at the Mulatos District. Production guidance for 2027 is largely in-line with Previous Guidance and represents a 13% increase from 2026. A further 15% increase is expected in 2028, driven by the completion of the Island Gold District Expansion (“IGD Expansion”) for a cumulative 46% increase in production relative to 2025
- Further production growth to approximately one million ounces per year expected by
2030, almost doubling 2025 production:
- Lynn Lake to drive additional growth starting in 2029 with annual production expected to average 186,000 ounces over the first 10 years
- IGD Expansion to 20,000 tonnes per day (“tpd”) expected to be completed in 2028, driving further growth into 2029 and 2030 with annual production ramping up to average 534,000 ounces over the first 10 years starting in 2028 (post expansion)
- Additional longer-term upside potential through the incorporation of higher-grade regional targets within the expanded Island Gold District milling complex
- Total cash costs and AISC expected to decrease 24% and 18%, respectively, by 2028
relative to 2025:
- Costs in 2026 are expected to be consistent with 2025 and decrease steadily starting in the second half of 2026 with the completion of the shaft expansion at Island Gold
- Costs expected to continue declining through 2028 and beyond driven by lowcost growth from the Island Gold District, and initial production from Lynn Lake in 2029
- 2026 AISC guidance increased from Previous Guidance reflecting ongoing inflation, higher royalties with a 67% increase in the budgeted gold price, increased investment in critical roles across Canadian operations to support higher operating efficiency and the transition away from contractors in key areas starting in 2027, accelerated sustaining capital spending at the Island Gold District in support of the larger expansion, and additional costs from operating the Island Gold mill
- Capital spending of $850 to $940 million expected in 2026 (excluding capitalized exploration): up from Previous Guidance primarily reflecting the addition of the recently approved IGD Expansion, including accelerated spending on tailings and underground development to support the larger expansion. Total capital guidance includes:
- Sustaining capital guidance of $193 to $220 million: up from 2025 and previous guidance reflecting increased tailings capital at the Island Gold District in support of the larger expansion as mining rates increase, as well as timing of capital expenditures at Young-Davidson. A further increase is expected in 2027 and 2028 supporting growing production within the expanded Island Gold District
- Growth capital guidance of $657 to $720 million: up from 2025, reflecting the inclusion of capital for the IGD Expansion
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- Capital expected to decrease approximately 28% by 2028, relative to 2026, with the completion of the IGD Expansion, followed by a further decrease in 2029 with the completion of construction at Lynn Lake
- Lynn Lake total initial capital increased to $934 million ($871 million remaining 2026+) reflecting scope changes including a larger mill, industry-wide inflation, and an extended construction timeline given the wildfires that occurred in Manitoba in 2025:
- Mill capacity to increase by 13% to 9,000 tpd, driving average annual production rates higher, in addition to other scope changes to support a larger, longer-life operation
- Other key drivers of the updated capital budget include three years of inflation since the completion of 2023 Feasibility Study, and a longer construction timeline due to the impact of Northern Manitoba wildfires in 2025
- Exploration budget increased to a record $97 million: a 35% increase from the 2025 budget with expanded programs at the Island Gold District, Young-Davidson and Lynn Lake. The expanded exploration budget is underpinned by broad-based success across the Company’s asset base in 2025
- Increasing free cash flow while funding growth:
- Free cash flow totalled approximately $350 million in 2025 while funding the Phase 3+ Expansion
- Free cash flow expected to be in excess of $500 million in 2026 at a $4,500 per ounce gold price while funding the ramp up of spending on other high-return growth projects including the IGD Expansion, Lynn Lake and PDA, as well as a record exploration budget
- Further growth to more than $1 billion of free cash flow expected in 2028 driven by growing production, and declining costs and capital with the completion of the Phase 3+ Expansion in 2026 and IGD Expansion in 2028. Additional growth expected in 2029 with initial production from Lynn Lake
- Growing free cash flow expected to support increasing returns to shareholders:
- Record $81 million returned to shareholders in 2025 through dividends and share buybacks. This included the repurchase of 1.3 million shares for $38.8 million, or $29.21 per share
- Growing returns expected to be supported by increasing free cash flow in 2027 and beyond at current gold prices
(1) Guidance statements in this release are forward-looking information. See the Assumptions and Sensitives section of this release along with the cautionary note at the end of this release. All comparisons to current and Previous Guidance are based on mid-point of the range.
Upcoming 2026 catalysts
- 2025 year-end Mineral Reserve and Resource update: February 2026
- Completion of Phase 3+ Shaft Expansion: Q4 2026
- Exploration updates across assets: ongoing
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2026 Guidance
| 2026 Guidance | 2025 Guidance(1) | |||||
| Lynn Lake | ||||||
| Island Gold | Young- | |||||
| District | Davidson | Mulatos District | Total | Total | ||
| Gold production (000 oz) 290 - 330 155 - 175 125 - 145 | 570 - 650 | 545 | ||||
| Cost of sales, including amortization ($ millions)(2) | ~$810 | |||||
| ~$920 | ||||||
| Cost of sales, including amortization ($/oz)(2) | ~$1,525 | |||||
| $1,450 - 1,550 | ||||||
| Total cash costs ($/oz)(3) $875 - 975 $1,350 - 1,450 $930 - 1,030 - | $1,020 - 1,120 | ~$1,080 | ||||
| All-in sustaining costs ($/oz)(3) | $1,500 - 1,600 | ~$1,525 | ||||
| Mine-site all-in sustaining costs $1,340 - 1,440 $1,730 - 1,830 $1,000 - 1,100 - ($/oz)(3)(4) | ||||||
| Capital expenditures ($ millions) | ||||||
| Sustaining capital(3)(5) $135 - 150 $55 - 65 $3 - 5 - | $193 - 220 | $138 - 150 | ||||
| Growth capital(3)(5) $355 - 385 $25 - 30 $137 – 145 $140 - 160 | $657 - 720 | $362 - 410 | ||||
| Total Sustaining and Growth $490 - 535 $80 - 95 $140 - 150 $140 - 160 Capital(3)(5) ($ millions) | $500 - 560 | |||||
| $850 - 940 | ||||||
| Capitalized exploration(3) ($ millions) $33 $12 $9 $6 | $60 | $39 | ||||
| Total capital expenditures and $523 - 568 $92 - 107 $149 - 159 $146 - 166 capitalized exploration(3) ($ millions) | $539 - 599 | |||||
| $910 – 1,000 |
(1) 2025 actuals are preliminary; final figures will be released with fourth quarter and full year results to be reported on February 18, 2026
(2) Cost of sales includes mining and processing costs, royalties, and amortization expense but excludes silver credit, 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.
Consolidated production is expected to increase 12% from 2025 to a range of between 570,000 and 650,000 ounces. This is expected to be driven by the ramp up of underground mining rates through the year at Island Gold in conjunction with the completion of the Phase 3+ Expansion towards the end of 2026, as well as increased mining rates at Young-Davidson. Production is expected to be higher in the second half of the year driven by the ongoing ramp up at Island Gold.
Compared to Previous Guidance, 2026 production guidance is approximately 7% lower reflecting slightly lower production from the Canadian operations, partially offset by an increase from the Mulatos District. This reflects slightly lower grades at Young-Davidson, and a more conservative ramp up of underground mining rates at Island Gold with the shaft to be operational toward the end of 2026.
Total cash costs and AISC per ounce are expected to be consistent with 2025 and trend lower through the year. Costs are expected to be above the full year guidance range in the first half of the year, with a significant decrease expected into the second half of 2026 driven by the ramp up of underground mining rates at Island Gold. A further decrease in costs is expected in each of 2027 and 2028.
Total cash costs and AISC guidance have both increased relative to Previous Guidance reflecting inflation of approximately 5%, increased royalties given the substantially higher gold price, slightly lower grades at Young-Davidson, and a larger investment in key roles across the Canadian operations to drive increased operating efficiency. The added labour complement will support the transition away from contractors starting in 2027 within certain segments of the Canadian operations, including maintenance and underground development.
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AISC have also increased due to higher sustaining capital. This reflects additional investment in critical spares to minimize any unplanned downtime at all operations, and accelerated spending on tailings lifts and other sustaining capital to support the larger expansion of the Island Gold District.
Costs and Capital Spending Expected to Decrease Significantly in H2 2026
| H1 2026 | H2 2026 | 2026 Guidance | |
| Total gold production (000 oz) | 270 - 310 | 300 - 340 | 570 - 650 |
| Total cash costs(1) ($/oz) | $1,100 - 1,200 | $975 - 1,075 | $1,020 - 1,120 |
| All-in sustaining costs(1) ($/oz) | $1,625 - 1,725 | $1,400 - 1,500 | $1,500 - 1,600 |
| Total capital expenditures and capitalized exploration(1) ($ millions) | $410 - 450 | ||
| $500 - 550 | $910 - 1,000 |
(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 2025, and previous guidance for 2026, to a range of $850 to $940 million, excluding capitalized exploration of $60 million. This reflects the inclusion of capital for the IGD Expansion, acceleration of certain capital expenditures at the Canadian mine-sites, and ongoing inflation.
Island Gold District capital spending is expected to total $490 to $535 million, including $355 to $385 million of growth capital. Approximately one-third of the growth capital is expected to be attributable to the completion of the Phase 3+ Expansion, including the shaft infrastructure and paste plant. The remainder will be focused on the IGD Expansion, which entails expanding the Magino mill to 20,000 tpd, and accelerating underground development and increasing mobile equipment to support higher underground and open pit mining rates over the longer-term. Capital spending on PDA in 2026 is expected to range between $137 and $145 million, with the majority of the spend on advancing underground development and mill construction. Total initial capital estimate of $165 million for PDA remains unchanged and the project remains on track for initial production mid-2027.
Construction activities at Lynn Lake are expected to restart in the spring of 2026 with spending expected to total between $140 and $160 million. This represents a 43% decrease from the previous guidance for 2026, reflecting the previously disclosed deferral of construction activities due to wildfires in Northern Manitoba in 2025. Capital spending on Lynn Lake is expected to increase into 2027 and 2028 during peak construction and then decrease into 2029 with initial production expected in the first half of 2029.
Capital spending is expected to be first half weighted in 2026, though will vary by asset. Spending at the Island Gold District is expected to be first half-weighted while spending at Lynn Lake is expected to ramp up into the second half of the year.
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2026 Capital Guidance Increase1 (US$M)
$37 -$113 $32 $34 $250 $850-940
$620-690
Previous guidance Island Gold District PDA development Acceleration of Inflation/other Lynn Lake (timing Current guidance Expansion (timing of spend) certain capex at of spend)
the Canadian mine- sites
(1) Capital guidance excludes capitalized exploration.
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2026 – 2028 Guidance
| 2026 | 2027 | 2028 | ||||||
| Current | Previous | Current | Previous | Current | ||||
| Gold Production (000 oz) Island Gold District Young-Davidson Mulatos District Total Gold Production (000 oz) | 330 - 355 180 - 195 120 - 130 630 - 680 | 375 - 400 180 - 195 125 - 135 680 - 730 | ||||||
| 290 - 330 | 380 - 420 | 470 - 510 | ||||||
| 155 - 175 | 155 - 175 | 155 - 175 | ||||||
| 125 - 145 | 115 - 135 | 130 - 150 | ||||||
| 570 - 650 | 650 - 730 | 755 - 835 | ||||||
| Total Cash Costs(1) ($/oz) | $800 - 900 | $775 - 875 | ||||||
| $1,020 - 1,120 | $825 - 925 | $775 - 875 | ||||||
| All-in Sustaining Costs(1),(2) ($/oz) | $1,500 - 1,600 | $1,150 - 1,250 | $1,325 - 1,425 | $1,125 - 1,225 | $1,200 - 1,300 | |||
| Sustaining capital(1),(3) ($ millions) | $160 - 175 | $180 - 200 | ||||||
| $193 - 220 | $235 - 255 | $210 - 235 | ||||||
| Growth capital – operating mines(1),(3) ($ millions) | $140 - 155 | $105 - 130 | $40 – 60 | $20 - 25 | $30 - 45 | |||
| Sustaining & growth capital(1),(3) - operating mines ($ millions) Island Gold District Expansion ($ millions) Lynn Lake ($ millions) PDA ($ millions) Total sustaining & growth capital(1),(3) ($ millions) | $333 - 375 | $265 - 305 - $250 - 275 $105 - 110 $620 - 690 | $275 - 315 | $200 - 225 - $235 - 260 $15 - 20 $450 - 505 | $240 - 280 | |||
| $240 - 260 | $130 - 145 | $80 - 90 | ||||||
| $140 - 160 | $380 - 410 | $290 - 310 | ||||||
| $137 - 145 | $15 - 20 | - | ||||||
| $850 - 940 | $800 - 890 | $610 - 680 |
(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 2027 and 2028 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 increase to a range of between 650,000 and 730,000 ounces in 2027, a 13% increase from 2026, and 27% increase from 2025. The Island Gold District is expected to drive this growth with 2027 representing the first full year operating from the new shaft infrastructure, supporting higher underground mining rates. The completion of the IGD Expansion in 2028 is expected to drive a further increase in production to a range of 755,000 to 835,000 ounces, representing a 15% increase from 2027 and cumulative 46% increase from 2025.
Further growth is expected into 2029 with initial production from Lynn Lake, and the ramp up of underground mining rates at Island Gold to 3,000 tpd, as outlined in the IGD Expansion Study. By 2030, production is expected to increase to a rate of approximately one million ounces annually.
Total cash costs and AISC in 2027 are expected to decrease 18% and 11%, respectively, from 2026 driven by low-cost growth from the Island Gold District with the completion of the shaft and connecting the Magino mill to low-cost grid power.
A further decrease in costs is expected into 2028 with AISC expected to be in the range of between $1,200 and $1,300 per ounce. This represents a 9% decrease from 2027 and nearly 20% decrease from 2025. This is expected to be driven by the first full year of production from PDA in Mexico and a further increase in low-cost production from the Island Gold District with the completion of the IGD Expansion.
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Costs are expected to continue decreasing into 2029 and 2030 with the ramp up of underground mining rates at Island Gold to 3,000 tpd, as outlined in the IGD Expansion Study, and the start of production from the low-cost Lynn Lake project.
Capital spending is expected to decline slightly in 2027 with increased spending at Lynn Lake offset by lower spending on PDA and the Island Gold District. In 2028, capital spending is expected to decrease approximately 24% compared to 2027 as the IGD Expansion is completed. A more significant decrease is expected into 2029 and 2030 with the completion of construction at Lynn Lake.
(1) Production and AISC are based on mid-point of guidance.
(2) Refer to the “Non-GAAP Measures and Additional GAAP” disclosure at the end of this press release for a description of these measures.
(3) Total consolidated all-in sustaining costs include corporate and administrative and share based compensation expenses.
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Island Gold District
| Guidance | ||||||
|---|---|---|---|---|---|---|
| Island Gold District | 2025A | 2026E | 2027E | 2028E | ||
| Gold Production (000 oz) 250 Previous Guidance (000 oz) | 290 - 330 | 380 - 420 | 470 - 510 | |||
| 330 - 355 | 375 - 400 | |||||
| Island Gold District costs Total Cash Costs(1)(2) ($/oz) ~$1,045 | ||||||
| $875 - 975 | ||||||
| Mine-site AISC(1),(2),(3) ($/oz) ~$1,475 | $1,340 - 1,440 | |||||
| Island Gold (Underground) Tonnes of ore processed5 (tpd) 1,159 | ||||||
| 1,400 - 2,000 | ||||||
| Grade processed (g/t Au) 11.69 | 9.0 - 11.5 | |||||
| Average recovery rate (%) 98% | ~97% | |||||
| Magino (Open Pit) (4) Tonnes of ore mined (tpd) 14,973 | ||||||
| 16,000 - 20,000 | ||||||
| Grade mined (g/t Au) 0.82 | 0.70 - 0.80 | |||||
| Tonnes of ore processed (tpd) 8,232 | 7,800 - 9,200 | |||||
| Grade processed (g/t Au) 1.34 | 1.00 - 1.10 | |||||
| Average recovery rate (%) 95% | ~95 % | |||||
| Island Gold District Tonnes of ore processed – Total (tpd) 9,169 | ||||||
| 9,200 - 11,200 | ||||||
| Grade processed – Total (g/t Au) 2.39 | 2.40 - 2.80 | |||||
| Average recovery rate – Total (%) 97% | 96 - 97% | |||||
| Sustaining capital(1) ($ millions) - | $135 - 150 | |||||
| Growth capital(1) ($ millions) - | $355 - 385 | |||||
| Total sustaining & growth capital(1) - (ex. exploration) ($ millions) | $490 - 535 | |||||
| Capitalized exploration(1) ($ millions) - | $33 |
(1) Refer to the “Non-GAAP Measures and Additional GAAP” disclosure at the end of this press release and the Q3 2025 MD&A for a description and calculation of these measures.
(2) 2025 actuals are preliminary; final figures will be released with fourth quarter and full year results to be reported on February 18, 2026
(3) 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.
(4) Magino mill results include the processing of open pit ore from Magino and excess underground ore not processed within the Island Gold mill.
(5) Island Gold average milling rates exclude the period where mill was on care and maintenance between July 16 and September 23, 2025.
Production from the Island Gold District is expected to increase 24% in 2026, compared to 2025, driven by the ramp up of underground mining rates. Mining rates are expected to increase from 1,400 tpd at the start of the year to 2,000 tpd by the end of 2026, coinciding with the completion of the shaft infrastructure. Underground grades mined are also expected to increase through the year from approximately 9 g/t Au in the first quarter to 11.5 g/t Au in in the fourth quarter, with the full year averaging close to the Mineral Reserve grade. Given the increase in underground mining rates and grades through the year, production is expected to be weighted to the second half of the year.
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Underground mining rates are expected to continue increasing to 2,400 tpd early in 2027 driving a further increase in production into 2027. Following the completion of the IGD Expansion in 2028, underground mining rates are expected to increase by 2029 to a long-term rate of 3,000 tpd, all supported by the shaft infrastructure expected to be completed in the fourth quarter of 2026. The ramp up in underground mining rates and completion of the IGD Expansion in 2028 are expected to drive significant growth over the next three years with 2028 production approximately double 2025 levels.
Compared to Previous Guidance, 2026 production is expected to be 9% lower reflecting decreased milling rates from the Magino mill and a slightly slower ramp up of underground mining rates to 2,400 tpd. With the shaft expected to be operational towards the end of 2026, mining rates are now expected to ramp up to planned rates of 2,400 tpd early in 2027, compared to the fourth quarter of 2026 previously.
Open pit mining rates are expected to average approximately 18,000 tpd of ore through the year, an increase over 2025 mining rates when more waste was being mined. Approximately 7,800 to 9,200 tpd of the higher-grade open pit ore will be processed through the Magino mill with milled grades for open pit ore expected to be between 1.0 and 1.1 g/t Au.
The Island Gold mill will continue to be operational until the Magino mill expansion to 20,000 tpd is completed in 2028. Underground ore will be processed at the Island Gold mill at a rate of approximately 1,265 tpd with underground ore mined above that level to be processed within the Magino mill. The remaining ore feed to the Magino mill will be from the open pit.
Total cash costs and mine-site AISC are expected to decrease approximately 11% and 6%, respectively in 2026, relative to 2025. Costs are expected to decrease through the year, particularly into the second half of 2026 reflecting increasing underground mining rates, and the completion of the shaft towards the end of 2026. Mine-site AISC for 2026 reflects higher royalty costs, ongoing labour inflation, increased investment in critical roles to support higher operating efficiency, higher processing costs associated with running the Island Gold mill, and accelerated sustaining capital spending in support of the IGD Expansion to 20,000 tpd. This includes increased tailings capital and underground development.
Capital spending at the Island Gold District (excluding exploration) is expected to be in the range of between $490 and $535 million in 2026, an increase over 2025 primarily due to the inclusion of capital for the IGD Expansion. Capital spending will be higher in the first half of the year as the focus will be on completing the Phase 3+ Expansion. Approximately one-third of growth expenditures are attributable to completing the Phase 3+ Expansion with the remainder of growth capital associated with the larger IGD Expansion.
The Phase 3+ Expansion is expected to be completed in the fourth quarter of 2026 with remaining spending focused on completing the final 29 metres of the shaft sink to the planned ultimate depth of 1,379 metres, as well as completing construction of the 1350-level loading pocket, paste plant and power line project. The power line project is expected to connect the Magino mill to lower cost grid power by the end of 2026, eliminating the reliance on Compressed Natural Gas (“CNG”) for power generation. In addition to driving significant processing cost savings into 2027, this is also expected to provide a more reliable source of power for the mill. Capital spending on the IGD Expansion will be focused on construction of the new parallel circuit as part of the mill expansion to 20,000 tpd, accelerated underground development, and additional open pit and underground mobile equipment to support higher underground and open pit mining rates.
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Young-Davidson
| Guidance | ||||||
|---|---|---|---|---|---|---|
| Young-Davidson | 2025A | 2026E | 2027E | 2027E | ||
| Gold Production (000 oz) 153 Previous Guidance (000 oz) | 155 - 175 | 155 - 175 | 155 - 175 | |||
| 180 - 195 | 180 - 195 | |||||
| Total Cash Costs(1),(2) ($/oz) ~$1,245 | ||||||
| $1,350 - 1,450 | ||||||
| Mine-site AISC(1),(2),(3) ($/oz) ~$1,635 | $1,730 - 1,830 | |||||
| Tonnes of ore processed (tpd) 7,413 | ||||||
| 7,600 - 8,000 | ||||||
| Grade processed (g/t Au) 1.94 | 1.90 - 2.05 | |||||
| Average recovery rate (%) 91% | 90 - 92% | |||||
| Sustaining capital(1) ($ millions) - | $55 - 65 | |||||
| Growth capital(1) ($ millions) - | $25 - 30 | |||||
| Total sustaining & growth capital(1) (ex. - exploration) ($ millions) | $80 - 95 | |||||
| Capitalized exploration(1) ($ millions) - | $12 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and the Q3 2025 MD&A for a description and calculation of these measures.
(2) 2025 actuals are preliminary; final figures will be released with fourth quarter and full year results to be reported on February 18, 2026
(3) 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.
Gold production at Young-Davidson is expected to increase approximately 8%, relative to 2025, driven by higher underground mining rates. Mining rates are expected to average approximately 7,600 tpd in the first quarter given increased ore pass availability and capacity. A new ore pass will be commissioned during the first quarter, such that four will be available by the second quarter, compared to two for much of the fourth quarter of 2025. This is expected to provide additional operational flexibility and support increased mining rates of approximately 8,000 tpd in the second quarter and through the rest of the year.
Compared to the previous 2026 guidance, production is approximately 12% lower primarily due to lower grades mined. Grades mined are expected to be between 1.90 and 2.05 g/t Au in 2026, similar to 2025. Grades are expected to remain at similar levels through 2030, after which grades are expected to increase to average closer to Mineral Reserve grade.
Total cash costs and mine-site AISC are expected to increase approximately 12% and 9%, respectively, from 2025. The key drivers of the increase reflect higher royalty costs, ongoing cost inflation, in particular for labour, as well as increased sustaining capital to support targeted mining rates of 8,000 tpd. Total cash costs and AISC are expected to remain at similar levels in 2027 and 2028.
Capital spending in 2026 (excluding exploration) is expected to be between $80 and $95 million, an increase over 2025. This is primarily due to an increased investment in capital spares to minimize potential unplanned downtime, increase underground development to support greater operational flexibility, as well as acceleration of the next tailings lift. Capital spending is expected to remain at similar levels in 2027 and 2028.
Young-Davidson generated approximately $250 million of mine-site free cash flow in 2025. With a 14-year Mineral Reserve life and significant exploration upside, Young-Davidson is wellpositioned to generate similar levels of free cash flow over the longer term at current gold prices.
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Mulatos District
| Guidance | ||||||
|---|---|---|---|---|---|---|
| Mulatos District | 2025A | 2026E | 2027E | 2028E | ||
| Gold Production (000 oz) 142 Previous Guidance (000 oz) | 125 - 145 | 115 - 135 | 130 - 150 | |||
| 120 - 130 | 125 - 135 | |||||
| Total Cash Costs(1),(2)($/oz) ~$950 | ||||||
| $930 - 1,030 | ||||||
| Mine-site AISC(1),(2),(3) ($/oz) ~$1,020 | $1,000 - 1,100 | |||||
| La Yaqui Grande Tonnes of ore stacked (tpd) 11,300 | ||||||
| 10,000 - 11,000 | - | - | ||||
| Grades stacked (g/t Au) 1.26 | 0.70 - 1.40 | - | - | |||
| Recovery ratio (%) 64% | ~90% | - | - | |||
| Sustaining capital(1) ($ millions) - | $3 - 5 | |||||
| Growth capital(1) ($ millions) - | $137 - 145 | |||||
| Total sustaining & growth capital(1) - (ex. exploration) ($ millions) | $140 - 150 | |||||
| Capitalized exploration(1) ($ millions) - | ||||||
| $9 |
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and the Q3 2025 MD&A for a description and calculation of these measures.
(2) 2025 actuals are preliminary; final figures will be released with fourth quarter and full year results to be reported on February 18, 2026
(3) 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.
Combined gold production from the Mulatos District is expected to be between 125,000 and 145,000 ounces in 2026, an 8% increase from previous guidance. The increase is due to the expected recovery of previously stacked ounces on the leach pad at La Yaqui Grande and continued residual leaching of the main Mulatos leach pad. Production from La Yaqui Grande will continue to account for the vast majority of production in 2026.
Grades mined and stacked at La Yaqui Grande are expected to be at the top end of guidance early in the year and decline through the year towards the lower end of guidance. Additionally, ounces produced from residual leaching at Mulatos are expected to decrease through the year, such that approximately 55% of the annual production is expected within the first half of the year.
Total cash costs and mine-site AISC in 2026 are expected to be consistent with 2025 costs. Reflecting the cadence of production through the year, costs are expected to be below the low end of guidance during the first half of the year and above the high end in the second half of the year.
Production is expected to decrease approximately 7% in 2027 reflecting the end of residual leaching from the main Mulatos leach pad, and wind down of mining operations at La Yaqui Grande with the depletion of the open pit. This is expected to coincide with the start of production from PDA by mid-2027, keeping production from the Mulatos District relatively stable. The PDA project has a 9-year mine life based on Mineral Reserves as of the end of 2024 with significant exploration upside at PDA, and other higher-grade sulphide targets, including Cerro Pelon and Halcon.
12 | ALAMOS GOLD INC