(TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended March 31
“We produced 125,000 ounces in the first quarter
meeting the low end of quarterly guidance with a solid performance from Island Gold offset by a slower ramp up of the Magino mill
as well as lower production from Young-Davidson
Both operations have demonstrated a significant improvement in April and we expect this to contribute to stronger production and lower costs in the second quarter
With a further increase in production and decrease in costs expected in the second half of the year
we remain on track to achieve our full year production guidance,” said John A
“We expect this improvement to continue over the next several years through our portfolio of high-return
The Phase 3+ Expansion continues to track well for completion in 2026
and with construction activities ramping up on Lynn Lake and PDA this year
we expect steady growth over the next several years towards a run rate of 900,000 ounces per year
we see excellent potential to grow production to one million ounces per year through a further expansion of the Island Gold District
and it’s all fully funded providing one of the strongest outlooks in our sector,” Mr
First Quarter 2025 Operational and Financial Highlights
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
(1) Cost of sales includes mining and processing costs
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.(3) Sustaining finance leases at Island Gold District are not included as additions to mineral property
plant and equipment in cash flows used in investing activities.(4) Cash and cash equivalents in the comparatives reflect the balance as at December 31
2024.(5) Average realized gold price during the first quarter of 2025 included the delivery of ounces into the gold prepayment facility based on the prepaid price of $2,524 per ounce.(6) Comparative prior year period figures do not include the Magino mine
as the acquisition of the Magino mine was completed on July 12
(1) Cost of sales includes mining and processing costs
and amortization expense.(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.(3) For the purposes of calculating mine-site all-in sustaining costs
the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.(4) Includes capitalized exploration at Island Gold District of $3.9 million for the three months ended March 31
2025 ($3.5 million for the three months ended March 31
(5) Includes capitalized exploration at Young-Davidson of $2.0 million for the three months ended March 31
2025 ($1.0 million for the three months ended March 31
2024).(6) Includes capitalized exploration at Mulatos District of $0.7 million for the three months ended March 31
2025 ($1.9 million for the three months ended March 31
2024).(7) The Island Gold District includes Island Gold and Magino mines for the three months ended March 31
Comparative prior year period figures do not include the Magino mine
2024.(8) The Mulatos District includes Mulatos and La Yaqui Grande mines.(9) Sustaining capital expenditures for Island Gold District include certain finance leases classified as sustaining
Social and Governance Summary Performance
with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free
The Company’s overarching commitment is to have all employees and contractors return Home Safe Every Day
Two minor reportable events occurred during the first quarter
a minor spill of process water occurred within the paste plant which was promptly contained and recovered
preventing it from entering the surrounding environment
The second reportable incident involved a supplier's equipment malfunction during the transfer of natural gas tanks
Both incidents were promptly reported to regulators
The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects
This includes investing in new initiatives to reduce the Company's environmental footprint with the goal of minimizing the impacts of its activities
medical support and infrastructure investments were provided to local communities
The Company believes that excellence in sustainability provides a net benefit to all stakeholders
The Company continues to engage with local communities to understand local challenges and priorities
Ongoing investments in local infrastructure
cultural and community programs remain a focus of the Company
The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values
including the Company’s commitment to sustainable development
(1) Frequency rate is calculated as incidents per 200,000 hours worked
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and associated MD&A for a description of these measures.(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites
the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expenses to the mine sites
(3) Cost of sales includes mining and processing costs
and is calculated based on the mid-point of total cash cost guidance.The Company’s objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term
This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while re-investing in high-return internal growth opportunities and supporting higher returns to shareholders
the Company provided three-year production and operating guidance
which outlined growing production at declining costs over the next three years
Refer to the Company’s guidance press release for a summary of the key assumptions and related risks associated with the comprehensive 2025 guidance and three-year production
The Company's cost and capital guidance does not factor any potential impact from tariffs introduced by the United States on imports from countries including Canada and Mexico or potential retaliatory tariffs on imports from the United States
The Company does not expect its revenue structure will be impacted by the tariffs as its gold production is refined in Canada or Europe
The Company’s cost structure predominantly relates to input costs which are not expected to be directly affected by the tariffs
The Company will continue to monitor developments and may take steps to limit the impact of any tariffs as may be appropriate in the circumstances
First quarter production of 125,000 ounces was in-line with the low end of quarterly guidance with a solid quarter from Island Gold offsetting lower production from Young-Davidson and Magino
Following the implementation of a number of optimization initiatives within the Magino mill during the second half of 2024
the operation demonstrated significant improvements in the latter portion of the first quarter
This progress has continued into the second quarter with milling rates averaging approximately 9,500 tonnes per day ("tpd") in the last two weeks of April with further improvement expected in May
Higher milling rates at Magino along with increased grades at Young-Davidson and La Yaqui Grande are expected to drive stronger production in the second quarter of between 135,000 and 150,000 ounces
A more significant increase in production is expected into the second half of 2025 driven by higher grades and mining rates at Island Gold
The Company remains on track to achieve annual production guidance of between 580,000 and 630,000 ounces
Reflecting the expected stronger performance moving forward
the Company expects AISC to decrease approximately 20% in the second quarter
with further decreases the remainder of the year
The Company is monitoring its full year cost guidance given higher share-based compensation and royalty costs compared to guidance
which are impacted by factors outside of the Company's control
the Company remains confident with its full year cost guidance
The Company's pipeline of high-return organic growth projects
Lynn Lake and PDA all continue to advance supporting one of the strongest growth profiles in the sector
The Phase 3+ Expansion remains on track to be completed during the first half of 2026
driving further production growth at lower costs in 2026
The shaft sink has advanced to a depth of 1,154 metres (“m”) as of late April and remains on track to reach the ultimate planned depth of 1,373 m in the third quarter
The integration of the Magino and Island Gold operations continues to progress with the transition to processing Island Gold ore through the larger and more efficient Magino mill expected to be completed in early May 2025
This is expected to drive significant operating cost synergies starting in the second quarter of 2025
with further improvements in 2026 upon completion of the Phase 3+ Expansion
Production is expected to increase further to a range of 680,000 to 730,000 ounces in 2027
driven by additional low-cost growth from Island Gold
A further increase in production and decrease in costs is expected into 2028 with the startup of production from Lynn Lake
With average annual production of 176,000 ounces over its first 10 years at first quartile mine-site AISC
Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year
there is excellent potential to increase consolidated production to approximately one million ounces per year through a further expansion of the Island Gold District
This is supported by the large Mineral Reserve and Resource base at Island Gold and Magino
and significant ongoing growth in higher grade Mineral Reserves at Island Gold
An expansion study is currently underway and is expected to be completed during the fourth quarter of 2025
Capital spending in 2025 will be focused on the ramp up of construction activities at Lynn Lake and PDA
as well as the final full year of spending at the Phase 3+ Expansion
Capital spending is expected to increase modestly into 2026 with lower capital at the Island Gold District offset by the ramp up in spending on Lynn Lake and PDA
capital spending is expected to decrease 27% relative to 2026 driven by significantly lower capital at the Island Gold District
A further decrease in capital is expected in 2028 with the completion of construction of Lynn Lake
The global exploration budget for 2025 is $72 million
a 16% increase from $62 million spent in 2024
and the largest in the Company's history reflecting broad based exploration success across its assets
The Company continues to demonstrate its long-term track record of value creation through exploration with Global Mineral Reserves increasing 31% in 2024 to 14.0 million ounces (298 mt grading 1.45 g/t Au)
This reflected an initial Mineral Reserve at Burnt Timber and Linkwood
tremendous ongoing exploration success at Island Gold
Mineral Reserves have now increased for six consecutive years for a cumulative increase of 44% over that time frame
the Company's cash flow during 2025 will be impacted by the planned delivery of 49,384 ounces into the gold prepayment facility
The ounces will be delivered monthly in 2025 (4,115 ounces per month) and recorded as revenue based on the prepaid price of $2,524 per ounce
There will be no cash flow associated with the delivery of these ounces in 2025
The Company delivered 12,346 ounces in the first quarter
representing 25% of the gold prepayment facility
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow
$289.5 million of cash and cash equivalents at the end of the first quarter of 2025
the Company expects to generate strong free cash flow through the remainder of 2025 while funding its growth projects
with a significant increase in free cash flow expected following the completion of the Phase 3+ Expansion in 2026
Island Gold District Financial and Operational Review
and amortization.(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
(3) For the purposes of calculating mine-site all-in sustaining costs
the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense
(4) Grams per tonne of gold ("g/t Au").(5) Mine-site free cash flow does not include lease payments which are classified as cash flows used in financing activities on the condensed interim consolidated financial statements
(6) Comparative prior year period figures do not include the Magino mine
2024.(7) Includes ore stockpiled during the quarter
(8) Total waste mined includes operating waste and capitalized stripping
The Island Gold District produced 59,200 ounces in the first quarter of 2025
driven by the inclusion of the Magino mine
as well as an increase in tonnes and grades processed from Island Gold
Underground mining rates averaged 1,225 tpd in the first quarter
Grades mined averaged 11.50 g/t Au in the first quarter
9% higher than in the prior year period and consistent with annual guidance
Mill throughput averaged 1,212 tpd and mill recoveries averaged 98% during the first quarter
Mining rates averaged 50,122 tpd during the first quarter
slightly lower than planned for the first quarter
mining rates were focused on waste stripping activities
Mining rates have subsequently improved to average over 15,000 tpd of ore in April
Mill throughput increased 8% from the fourth quarter to average 7,235 tpd in the first quarter
Grades processed during the first quarter of 0.86 g/t Au were slightly below the low-end of annual guidance
but are expected to increase to be consistent with guidance for the remainder of the year
Milling rates were lower than planned due to restricted ore flow through the crushing and conveying circuit
This was caused by deficiencies in the initial ore flow design for winter conditions
which created blockages within the feeders and undersized transfer chutes
The chutes were expanded during the quarter and combined with the various optimization activities undertaken in the second half of 2024
milling rates increased substantially towards the end of the quarter averaging 8,200 tpd in March
This improvement has continued into April with milling rates averaging approximately 9,500 tpd in the last two weeks of April with further improvement expected in May
In advance of the transition to processing Island Gold ore through the Magino mill
approximately 8,000 tonnes of high grade ore from Island Gold was blended with Magino ore and processed through the Magino mill in April
Reflecting the increased milling rates at Magino
significant improvement in the consistency of the operation
Island Gold's mill is expected to be shut down in early May
following which ore from Island Gold will be trucked and processed through the larger and more cost-effective Magino mill
Revenues of $152.0 million in the first quarter were 114% higher than the prior year period
driven by higher realized gold prices and an increase in ounces sold given the acquisition of Magino in mid 2024
Cost of sales of $79.5 million in the first quarter were 138% higher than the prior year period due to the increase in ounces sold
cost of sales were 52% higher for the first quarter compared to the prior year period due to the inclusion of relatively higher cost ounces from Magino
Total cash costs were $1,068 per ounce in the first quarter
above the annual guidance range and driven by lower grades processed at Magino and higher unit costs given lower mill throughput
Mine-site AISC were $1,446 per ounce in the first quarter
also higher than the annual guidance range
Costs are expected to trend lower through the remainder of the year as milling rates increase at Magino and mining rates gradually increase at Island Gold and Magino
both driving lower unit operating costs for the district
Total capital expenditures were $72.3 million in the first quarter
including $48.6 million of growth capital and $3.9 million of capitalized exploration
Growth capital spending remained primarily focused on the Phase 3+ Expansion
The shaft sink advanced to a depth of 1,154 m at the end of April and is scheduled to be completed in the third quarter of 2025
bulk earthworks commenced for the expansion of the Magino mill to 12,400 tpd
The expansion of the Magino mill is expected to be completed by mid-2026 to coincide with the completion of the Phase 3+ Expansion at Island Gold
Mine-site free cash flow was $18.9 million for the first quarter
net of the significant capital investment related to the Phase 3+ Expansion and exploration
the Island Gold District is expected to continue self funding the Phase 3+ Expansion
The operation is expected to generate significant free cash flow from 2026 onward after the completion of the expansion
Young-Davidson Financial and Operational Review
royalties and amortization.(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
(3) For the purposes of calculating mine-site all-in sustaining costs
Young-Davidson produced 35,400 ounces of gold in the first quarter
12% lower than the prior year period due to lower tonnes mined
partially offset by higher grades processed and recovery rates
Mining rates averaged 6,762 tpd in the first quarter
below annual guidance of 8,000 tpd and an 8% decrease compared to the prior year period
This reflected lower production drilling and scoop availability
which impacted stope productivity and the mining sequence
Production drilling metres and scoop availability improved throughout the quarter with mining rates returning to planned levels of 8,000 tpd in March and April
and are expected to remain at similar rates through the rest of the year
Milling rates averaged 6,658 tpd in the first quarter
9% lower than the prior year period as a result of lower underground mining rates
4% higher than the prior year period and consistent with the low-end of full year guidance
Grades mined are expected to increase in the second quarter and combined with higher mining and processing rates
this is expected to drive stronger production in the second quarter and through the remainder of the year
Mill recoveries averaged 91% for the first quarter
Revenues increased to $101.2 million in the first quarter
Cost of sales were $65.1 million in the first quarter
Total cash costs of $1,350 per ounce and mine-site AISC of $1,655 per ounce in the first quarter were higher than the prior year period
primarily due to higher unit costs given the lower mining and processing rates
Costs are expected to decrease through the remainder of the year reflecting higher mining rates and grades
Capital expenditures in the first quarter totaled $18.8 million
including $10.7 million of sustaining capital and $6.1 million of growth capital
$2.0 million was invested in capitalized exploration during the quarter
Young-Davidson continues to generate strong ongoing mine-site free cash flow
including $39.2 million in the first quarter
Young-Davidson has generated over $100 million in annual mine-site free cash flow for four consecutive years
The operation is well positioned to generate similar free cash flow in 2025 and over the long-term
Mulatos District Financial and Operational Review
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
The Mulatos District produced 30,400 ounces in the first quarter
51% lower than the prior year period due to the planned stacking of lower grades at La Yaqui Grande
Production is expected to increase sequentially through the remainder of the year reflecting the stacking of higher grades
La Yaqui Grande produced 20,700 ounces in the first quarter
Grades stacked averaged 0.75 g/t Au for the first quarter
consistent with the low-end of annual guidance
grades stacked are expected to increase through the year
from the low end of guidance in the first quarter to the high end by the fourth quarter
Stacking rates were 11,400 tpd in the first quarter
The recovery rate of 84% in the first quarter was consistent with the annual guidance range of 70% to 90%
Mulatos commenced residual leaching in December 2023 and produced 9,700 ounces in the first quarter
The operation is expected to benefit from ongoing gold production at decreasing rates through the remainder of 2025
Revenues of $84.0 million in the first quarter were 32% lower than the prior year period
partially offset by higher realized gold prices
Cost of sales decreased to $50.6 million in the first quarter
Total cash costs of $1,233 per ounce and mine-site AISC of $1,320 per ounce in the first quarter were higher than the prior year period
primarily due to lower grades processed at La Yaqui Grande
Costs are expected to decrease through the remainder of the year as higher grades are mined and processed
Capital expenditures totaled $4.0 million in the first quarter
including $0.6 million of sustaining capital and $0.7 million of capitalized exploration
Growth capital spending of $2.7 million was primarily related to procurement and detailed engineering for PDA
The Mulatos District generated mine-site free cash flow of $0.6 million in the first quarter
primarily related to the 2024 income and mining taxes payable reflecting the profitability of the operation
Cash tax payments are expected to decrease to average between $10 and $15 million per quarter for the remainder of the year
The Mulatos District is expected to generate stronger mine-site free cash flow through the remainder of the year reflecting higher production
the Company announced the Phase 3+ Expansion at Island Gold to 2,400 tpd from the current rate of 1,200 tpd
which will involve various infrastructure investments
as well as accelerated development to support the higher mining rates
Following the completion of the expansion in 2026
the operation will transition from trucking ore and waste up the ramp to skipping ore and waste to surface through the new shaft infrastructure
driving production higher and costs significantly lower
the Company announced an update to the Phase 3+ Expansion with initial capital increased by approximately $40 million to $796 million
a 5% increase from the initial capital estimate provided in 2022
The increase reflects inflation and scope changes since the Phase 3+ Expansion commenced in 2022
partially offset by synergies from the acquisition of Magino
75% of the total initial capital has been spent and committed on the project
the Company spent $46.3 million on the Phase 3+ Expansion and capital development
Progress on the Phase 3+ Expansion during the first quarter is summarized as follows:
The Phase 3+ Expansion remains on schedule to be completed in the first half of 2026
Island Gold 1050L shaft station with galloway - March 2025
the Company announced a positive construction decision on the Lynn Lake project
With the approval of the Closure Plan in January 2025
the required permitting and pre-construction conditions have been met allowing for the start of construction on the Lynn Lake project
MCCN withdrew its application for judicial review of the positive Decision statement issued by the Minister of Environment and Climate Change Canada in respect of the Lynn Lake Project and its corresponding internal appeal of the Environment Act Licenses issued by the Province of Manitoba
The Company now has IBA's in place with both of the First Nation communities proximate to the Lynn Lake project
Alamos’ senior leadership team attended a groundbreaking ceremony at the end of March 2025
as well as representatives from the First Nations and local communities
Construction activities began ramping up during the quarter 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
Growth capital spending at Lynn Lake is expected to be between $100 million and $120 million in 2025 and will be focused on access road upgrades
Construction activities and capital spending are expected to increase in 2026 and 2027 with first gold production expected in the first half of 2028
Total initial capital for Lynn Lake was estimated to be $632 million in the 2023 Study
based on input costs as of the fourth quarter of 2022
Given ongoing industry-wide labour and materials inflation
which has averaged close to 5% per year since the end of 2022
initial capital is expected to increase by approximately 10%
the Company reported positive results of an internal economic study completed on its Burnt Timber and Linkwood satellite deposits located in proximity to the Lynn Lake project
The 2023 Study for Lynn Lake was based only on the Gordon and MacLellan deposits which are to be mined over the first 11 years
with the processing of lower grade stockpiled ore for the remainder of the 17-year mine life
The Burnt Timber and Linkwood deposits are expected to provide a source of additional mill feed to the Lynn Lake project starting in year 12
deferring the lower grade stockpiles until later in the mine plan
This is expected to extend the mine life of the combined Lynn Lake project to 27 years
and enhance its economics as a low-capital
The two deposits are expected to have an average annual production of 83,000 ounces of gold over a 10 year mine life
By leveraging mining equipment and planned processing infrastructure at Lynn Lake
the project is expected to be developed for low initial capital of $67 million
This is expected to contribute to high returns for the Burnt Timber and Linkwood satellite deposits
and after-tax NPV (5%) of $177 million at a base case gold price assumption of $2,200 per ounce and CAD/USD foreign exchange rate of $0.75:1
At a gold price of $2,800 per ounce and CAD/USD foreign exchange rate of $0.70:1
returns increase to an after-tax IRR of 83% and after-tax NPV (5%) of $292 million
Development spending (excluding exploration) was $6.7 million in the first quarter of 2025
Development spending is expected to ramp up throughout the year
Lynn Lake ground breaking ceremony - March 2025
the Company reported the results of the development plan for the PDA project located within the Mulatos District
PDA is a higher-grade underground deposit adjacent to the Mulatos open pit and will benefit from the use of existing crushing infrastructure from Cerro Pelon
supporting lower initial capital and project execution risk
the Company announced it has been granted approval of an amendment to its existing MIA by SEMARNAT
allowing for the start of construction on the PDA project
Construction activities on PDA are expected to begin ramping up toward the middle of 2025
Capital spending on PDA is expected to total $37 to $40 million in 2025 to advance underground development and procurement of mill long lead time items
The remainder of the total initial capital estimate of $165 million will be spent in 2026 and 2027 with first production anticipated mid-2027
PDA is expected to produce an average of 127,000 ounces per year over the first four years and 104,000 ounces over the current mine life (based on Mineral Reserves as at December 31
Total cash costs are expected to average $921 per ounce and mine-site AISC $1,003 per ounce
consistent with the Company’s overall low cost structure
Reflecting the low cost structure and low initial capital
PDA is expected to be a high-return project with significant exploration upside
PDA has an estimated after-tax IRR of 46% and after-tax NPV (5%) of $269 million using base case gold price assumption of $1,950 per ounce and a MXN/USD foreign exchange rate of 18:1
and after-tax NPV (5%) increases to $492 million
Development spending (excluding exploration) was $2.7 million in the first quarter of 2025
primarily on detailed engineering and refurbishing the crushing equipment from Cerro Pelon
Spending on PDA is expected to progressively increase throughout the year with underground development commencing in the second half of the year
the Company suspended all construction activities on its Kirazlı project following the Turkish government's failure to grant a routine renewal of the Company’s mining licenses
despite the Company having met all legal and regulatory requirements for their renewal
the Turkish government refused the renewal of the Company’s Forestry Permit
The Company had been granted approval of all permits required to construct Kirazlı including the Environmental Impact Assessment approval
and GSM (Business Opening and Operation) permit
and certain key permits for the nearby Ağı Dağı and Çamyurt Gold Mines
These permits were granted by the Turkish government after the project earned the support of the local communities and passed an extensive multi-year environmental review and community consultation process
the Company announced that its Netherlands wholly-owned subsidiaries Alamos Gold Holdings Coöperatief U.A
(the “Subsidiaries”) would be filing an investment treaty claim against the Republic of Türkiye for expropriation and unfair and inequitable treatment
The claim was filed under the Netherlands-Türkiye Bilateral Investment Treaty (the “Treaty”)
had their claim against the Republic of Türkiye registered on June 7
2021 with the International Centre for Settlement of Investment Disputes (World Bank Group)
Bilateral investment treaties are agreements between countries to assist with the protection of investments
The Treaty establishes legal protections for investment between Türkiye and the Netherlands
The Subsidiaries directly own and control the Company’s Turkish assets
The Subsidiaries invoking their rights pursuant to the Treaty does not mean that they relinquish their rights to the Turkish project
The Company will continue to work towards a constructive resolution with the Republic of Türkiye
The Company incurred $1.1 million in the first quarter of 2025 related to ongoing care and maintenance and arbitration costs to progress the Treaty claim
A total of $27 million is budgeted for exploration at the Island Gold District in 2025
The exploration program will build on the success from 2024
with high-grade gold mineralization extended across the Island Gold deposit
as well as within multiple structures within the hanging wall and footwall
Mineral Reserves increased 32% to 2.3 million ounces with grades increasing 11% to 11.40 g/t Au (6.2 mt)
This marked the 12th consecutive year of Mineral Reserve growth
Inferred Mineral Resources increased 2% to 3.8 million ounces with grades also increasing 13% to 16.52 g/t Au (7.1 mt)
Consistent with the increase in Mineral Reserve grades
a key driver of the increase in Mineral Resource grades has been significantly higher-grade additions in the lower portions of Island East and Island Main where 324,000 ounces were added
With the deposit open laterally and at depth
and some of best intercepts ever drilled at Island Gold located within the lower portion of Island East
there is excellent potential for further growth in Mineral Reserves and Resources
The discovery cost of the high-grade Mineral Resource additions averaged an attractive $13 per ounce in 2024
and $13 per ounce over the past five years
a total of 41,500 m of underground drilling is planned in 2025 with a focus on defining new Mineral Reserves and Resources in proximity to existing production horizons and infrastructure
This includes drilling across the strike extent of the main Island Gold deposit (E1E and C-Zones)
as well as within a growing number of newly defined hanging-wall and footwall zones
18,000 m of surface exploration drilling has been budgeted targeting the area between the Island Gold and Magino deposits
as well as the down-plunge extension of the Island Gold deposit
30,800 m of underground delineation drilling is planned and focused on the conversion of the large Mineral Resource base to Mineral Reserves
Magino’s exploration program has been incorporated into the broader Island Gold District budget which totals $27 million
The focus in 2025 will be expanding mineralization to the east of the pit which was previously constrained by the border with Island Gold prior to the acquisition
Included within 2025 sustaining capital guidance is 18,000 m of surface delineation drilling planned at Magino
The focus of the delineation drilling is the conversion of the large Mineral Resource base to Mineral Reserves
The regional exploration program at the Island Gold District includes 10,000 m of surface drilling
The focus will be following up on high-grade mineralization intersected at the Cline and Edwards deposits located approximately seven km northeast of the Island Gold mine
Drilling will also be completed at the Island Gold North Shear target
and to the east and along strike from the Island Gold mine to test the extension of the E1E-zone
8,504 m of underground exploration drilling was completed in 32 holes
and 3,492 m of surface drilling was completed in six holes
a total of 7,416 m of underground delineation drilling was completed in 26 holes
focused on in-fill drilling to convert Mineral Resources to Mineral Reserves
A total of 72 m of underground exploration drift development was also completed during the first quarter
7,664 m of surface drilling was completed in 16 holes during the first quarter
The regional exploration drilling program also commenced in the first quarter
with 854 m completed in three holes targeting mineralization at the past-producing Cline-Edwards Mines
Total exploration expenditures during the first quarter of 2025 were $5.0 million
A total of $11 million is budgeted for exploration at Young-Davidson in 2025
This includes 25,600 m of underground exploration drilling focused on extending mineralization in the syenite
and continuing to evaluate and expand on the newly defined hanging wall zones
500 m of underground exploration development is planned
including 400 m to establish a hanging wall exploration drift to the south
This will allow for drill platforms with more optimal locations and orientations to test the higher grade mineralization discovered in the hanging wall
The regional program includes 6,000 m of drilling focused on evaluating the Otisse NE target
located approximately three km northeast of Young-Davidson
A comprehensive data compilation project will also commence in 2025 for the Wydee and Matachewan projects
which were acquired in the third quarter of 2024
and located to the west and east of Young-Davidson
two underground exploration drills completed 5,290 m in ten holes from the 9305 and 9500 levels
Drilling is targeting syenite-hosted mineralization as well as continuing to test mineralization in the hanging wall sediments and mafic-ultramafic stratigraphy
Total exploration expenditures during the first quarter of 2025 were $3.0 million
A total of $19 million is budgeted at Mulatos for exploration in 2025
down slightly from $21 million spent in 2024
The near-mine and regional drilling program is expected to total 45,000 m
This includes 15,000 m of surface exploration drilling at the GAP-Victor and PDA Extension targets at PDA
The regional exploration program includes 10,000 m of drilling focused on advanced and greenfield targets within the Mulatos District
Ongoing exploration success at PDA in 2024 drove a 9% increase in Mineral Reserves to 1.1 million ounces
with grades largely unchanged at 5.45 g/t Au
PDA is a higher-grade underground deposit located adjacent to the main Mulatos pit
The results of a positive internal economic study were announced in September 2024 and highlighted an attractive
With the amendment to the environmental permit received earlier this year
construction activities are expected to begin ramping up towards the middle of the year with first production anticipated mid-2027
The planned addition of a mill to process higher-grade sulphides has created new opportunities for growth within the Mulatos District
where drilling in 2024 followed up on wide high-grade underground oxide and sulphide intersections previously drilled below the pit
The 2024 program was successful in defining an initial Measured and Indicated Mineral Resource at Cerro Pelon totaling 104,000 ounces
Cerro Pelon remains open in multiple directions and will be a focus of the 2025 exploration program as a significant opportunity for further growth
As the deposit is located within trucking distance of the planned PDA mill
exploration activities continued at PDA and the near-mine area with 2,390 m of drilling completed in nine holes
The focus was on infill drilling the GAP-Victor portion as well as the eastern extent of the PDA zone
Drilling also commenced at Cerro Pelon to evaluate the high-grade sulphide potential to the north of the historical open pit
A total of 1,900 m in five holes were completed in the first quarter
testing greenfield targets across the property
A total of $4 million is budgeted for exploration at the Lynn Lake project in 2025
with the focus shifting to the ramp up of construction activities
The exploration program includes 7,000 m of drilling focused on expanding Mineral Resources at the Burnt Timber and Linkwood deposits
The Company will also continue prioritizing a pipeline of prospective exploration targets within the 58,000 ha Lynn Lake Property
total Mineral Reserves for the Lynn Lake District increased 42% to 3.3 million ounces
This was driven by the successful conversion of Mineral Resources to Reserves at Burnt Timber and Linkwood in 2024 resulting in an initial Mineral Reserve of 0.9 million ounces grading 0.95 g/t Au
Burnt Timber and Linkwood are satellite deposits to the Lynn Lake project and are expected to provide additional mill feed
An internal economic study on Burnt Timber and Linkwood was released on February 13
Burnt Timber and Linkwood are expected to extend the mine life of the Lynn Lake project
The combined mine life of the Lynn Lake project is expected to increase to 27 years
up from the 17 years outlined in the Lynn Lake Feasibility Study
Surface exploration drilling in the first quarter focused on Mineral Resource expansion drilling at both Burnt Timber and Linkwood
The drill program was completed at the end of the quarter
Exploration spending totaled $1.9 million in the first quarter
A total of $7 million has been budgeted for exploration at the Qiqavik project in 2025
The project was acquired in April 2024 through the acquisition of Orford Mining Corporation
Qiqavik is a camp-scale property covering 60,400 ha in the Cape Smith Greenstone Belt in Nunavik
The Qiqavik project covers 50 km of strike covering prospective gold hosting environments and several major crustal-scale structures such as the Qiqavik break and the Bergeron fault
Early-stage exploration completed to date indicates that high-grade gold occurrences are controlled by structural splays off the Qiqavik break
The 2025 exploration program will focus on drilling prospective targets identified in 2024 through detailed geological mapping
and a high-resolution Lidar survey with photo imagery
A total of 7,000 m of heli-supported surface drilling is planned with two rigs and focused on testing the highest priority target areas
The program will also focus on advancing other targets across the belt with ongoing geological mapping
Exploration activities in the first quarter were focused on ongoing data interpretation to support targeting ahead of the drill program which is expected to commence late in the second quarter
Exploration spending totaled $0.3 million in the first quarter
the Company sold 117,583 ounces of gold for operating revenues of $333.0 million
representing a 20% increase from the prior year period
The increase was due to higher realized gold prices and the inclusion of ounces at Magino given its acquisition in July 2024
partially offset by lower sales volumes at La Yaqui Grande due to planned stacking of lower grades
Ounces sold were 6% lower than production in the quarter due to timing
with the sale of these ounces to benefit future quarters
The average realized gold price in the first quarter was $2,802 per ounce
This was $57 per ounce less the London PM Fix price
reflecting the delivery of the 12,346 ounces into the gold prepayment facility executed in July 2024 based on the prepaid price of $2,524 per ounce
Cost of sales (which includes mining and processing costs
and amortization expense) were $195.2 million in the first quarter
primarily due to the inclusion of higher cost ounces from Magino
cost of sales were $152.0 million which was 12% lower than the prior year period
driven by lower ounces sold from other operations
Key drivers of changes to cost of sales as compared to the prior year period were as follows:
Mining and processing costs were $139.0 million
15% higher than the prior year period primarily due to the inclusion of ounces sold at Magino
mining and processing costs were $109.5 million
The decrease was primarily driven by lower ounces sold
Total cash costs of $1,193 per ounce and AISC of $1,805 per ounce were above the prior year period driven by the higher costs per ounce at Young-Davidson and Magino and increased share-based compensation
Given the 45% increase in the share price during the quarter
the revaluation of previously issued share-based compensation increased AISC by approximately $210 per ounce compared to the prior year period
and by approximately $230 per ounce compared to budget
The other drivers of the increase in costs were lower mining rates at Young-Davidson and lower grades stacked at La Yaqui Grande
Royalty expense was $4.8 million in the first quarter
higher than the prior year period expense of $2.6 million
due to the higher average realized gold price
and inclusion of royalty expense from Magino
Amortization of $51.4 million in the first quarter was consistent with the prior year period
amortization of $437 per ounce was higher than the prior year period
reflecting the inclusion of Magino which has a higher amortization base
The Company recognized earnings from operations of $94.7 million in the first quarter
the Company held forward contracts that were acquired as part of the acquisition of Argonaut
totaling 100,000 ounces in 2026 and 50,000 ounces in 2027
have an average forward price of $1,821 per ounce
and mature monthly throughout 2026 and 2027
The Company recognized unrealized losses of $68.4 million on the forward contracts inherited from Argonaut driven by the movement in gold price in the quarter
The Company recognized unrealized losses of $1.5 million on gold option contracts in the prior year period
The Company reported net earnings of $15.2 million in the first quarter
compared to $42.1 million in the prior year period
which included adjustment for unrealized loss on commodity hedge derivatives
adjusted earnings reflect unrealized foreign exchange gains recorded within deferred taxes and foreign exchange gains totaling $2.5 million and other adjustments of $0.8 million
Reminder of First Quarter 2025 Results Conference Call
The Company's senior management will host a conference call on Thursday
2025 at 11:00 am ET to discuss the first quarter 2025 results
Participants may join the conference call via webcast or through the following dial-in numbers:
A playback will be available until June 1, 2025 by dialling (905) 694-9451 or (800) 408-3053 within Canada and the United States. The pass code is 8101878#. The webcast will be archived at www.alamosgold.com
who is a qualified person within the meaning of National Instrument 43-101 ("Qualified Person")
has reviewed and approved the scientific and technical information contained in this press release
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America
This includes the Island Gold District and Young-Davidson mine in northern Ontario
the Company has a strong portfolio of growth projects
including the Phase 3+ Expansion at Island Gold
Alamos employs more than 2,400 people and is committed to the highest standards of sustainable development
The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release
Cautionary Note Regarding Forward-Looking Statements
This release contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S
outcomes or developments that the Company expects to occur are
forward-looking statements and are based on expectations
estimates and projections as at the date of this release
identified by the use of forward-looking terminology such as "expect"
“plan” or variations of such words and phrases and similar expressions or statements that certain actions
occur or be achieved or the negative connotation of such terms
guidance and expectations pertaining to: gold production; production potential; mining
and production rates; gold grades; gold prices; foreign exchange rates; free cash flow
NPV; total liquidity; returns to stakeholders; impacts of inflation and the implementation of any tariffs; mine plans; mine life; Mineral Reserve life; Mineral Reserves and Resources; exploration potential
and projected results; funding of growth initiatives; the Company's approach to reduction of its environmental footprint
and related investments in new initiatives; the Company's climate change strategy and goals; community relations
and initiatives; corporate governance; synergies resulting from the integration of the Magino and Island Gold operations; processing of ore from Island Gold through the Magino mill; increases to production
and decreases to costs resulting from the intended completion of the Phase 3+ Expansion at Island Gold; intended infrastructure investments in
the Phase 3+ Expansion; Island Gold District Life of Mine Plan and Expansion Study; construction activities
capital spending and timing of initial production with respect to the Lynn Lake project and the PDA project; initial underground Mineral Resource at Cerro Pelon; the Burnt Timber and Linkwood deposits near the Lynn Lake project; growing production
and increases in profitability; the sale of Quartz Mountain to Q-Gold
the total consideration payable under the transaction agreement and the expected timing of the closing of the transaction; as well as other general information as to strategy
plans or future financial or operating performance
production plans and expected sustainable productivity increases
expected increases in mining activities and corresponding cost efficiencies
sufficiency of working capital for future commitments and other statements that express management’s expectations or estimates of future plans and performance
Alamos cautions that forward-looking statements are necessarily based upon a number of factors and assumptions that
while considered reasonable by the Company at the time of making such statements
are inherently subject to significant business
political and competitive uncertainties and contingencies
Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information
Risk factors that may affect Alamos’ ability to achieve the expectations set forth in the forward-looking statements in this document include
but are not limited to: changes to current estimates of Mineral Reserves and Resources; changes to production estimates (which assume accuracy of projected ore grade
recovery timing and recovery rate estimates which may be impacted by unscheduled maintenance
labour and contractor availability and other operating or technical difficulties); operations may be exposed to illnesses
epidemic or pandemic on the broader market and the trading price of the Company's shares; provincial and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in Canada
the United States and Türkiye; the duration of any regulatory responses to any illness
epidemic or pandemic; government and the Company’s attempts to reduce the spread of any illness
epidemic or pandemic which may affect many aspects of the Company's operations including the ability to transport personnel to and from site
contractor and supply availability and the ability to sell or deliver gold doré bars; fluctuations in the price of gold or certain other commodities such as
and electricity; changes in foreign exchange rates (particularly CAD
USD and Turkish lira); the impact of inflation and any tariffs
trade barriers and/or regulatory costs; changes in the Company's credit rating; any decision to declare a quarterly dividend; employee and community relations; litigation and administrative proceedings (including but not limited to the investment treaty claim announced on April 20
2021 against the Republic of Türkiye by the Subsidiaries) and any resulting court or arbitral decision(s); disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; delays with the Phase 3+ Expansion project at the Island Gold mine
including the risks of obtaining and maintaining necessary licenses and permits
authorizations and/or approvals from the appropriate regulatory authorities for the Company’s development stage and operating assets; labour and contractor availability (and being able to secure the same on favourable terms); contests over title to properties; expropriation or nationalization of property; inherent risks and hazards associated with mining and mineral processing including environmental hazards
pressures and cave-ins; changes in national and local government legislation
the United States and other jurisdictions in which the Company does or may carry on business in the future; increased costs and risks related to the potential impact of climate change; failure to comply with environmental and health and safety laws and regulations; disruptions in the maintenance or provision of required infrastructure and information technology systems; risk of loss due to sabotage
protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company
The litigation against the Republic of Türkiye
results from the actions of the Turkish government in respect of the Company’s projects in the Republic of Türkiye
Such litigation is a mitigation effort and may not be effective or successful
the Company’s projects in Türkiye may be subject to resource nationalism and further expropriation; the Company may lose any remaining value of its assets and gold mining projects in Türkiye and its ability to operate in Türkiye
there is no certainty as to the quantum of any damages award or recovery of all
or even retaining control of its assets and gold mining projects in Türkiye can only result from agreement with the Turkish government
The investment treaty claim described in this release may have an impact on foreign direct investment in the Republic of Türkiye which may result in changes to the Turkish economy
including but not limited to high rates of inflation and fluctuation of the Turkish Lira which may also affect the Company’s relationship with the Turkish government
the Company’s ability to effectively operate in Türkiye
and which may have a negative effect on overall anticipated project values
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this release are set out in the Company's latest 40-F/Annual Information Form under the heading “Risk Factors”
which is available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov
The foregoing should be reviewed in conjunction with the information
risk factors and assumptions found in this release
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information
Indicated and Inferred Resources: All resource and reserve estimates included in this press release or documents referenced in this press release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining
Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves
NI 43-101 is a rule developed by the Canadian Securities Administrators
which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects
Mining disclosure in the United States was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934
Securities and Exchange Commission (the “SEC”) has adopted final rules
to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S
Securities Act (“Regulation S-K 1300”) which became mandatory for U.S
reporting companies beginning with the first fiscal year commencing on or after January 1
the SEC now recognizes estimates of “Measured Mineral Resources”
“Indicated Mineral Resources” and “Inferred Mineral Resources”
the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards
Investors are cautioned that while the above terms are “substantially similar” to CIM Definitions
there are differences in the definitions under Regulation S-K 1300 and the CIM Standards
there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”
“indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under Regulation S-K 1300
investors are also cautioned that while the SEC recognizes “measured mineral resources”
“indicated mineral resources” and “inferred mineral resources” under Regulation S-K 1300
investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves
Mineralization described using these terms has a greater degree of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves
investors are cautioned not to assume that any measured mineral resources
or inferred mineral resources that the Company reports are or will be economically or legally mineable
International Financial Reporting Standards: The condensed interim consolidated financial statements of the Company have been prepared by management in accordance with International Financial Reporting Standard 34
as issued by the International Accounting Standards Board
These accounting principles differ in certain material respects from accounting principles generally accepted in the United States of America
The Company’s reporting currency is the United States dollar unless otherwise noted
Non-GAAP Measures and Additional GAAP Measures
The Company has included certain non-GAAP financial measures to supplement its condensed interim consolidated financial statements for the three months ended March 31
which are presented in accordance with IFRS
together with measures determined in accordance with IFRS
provide investors with an improved ability to evaluate the underlying performance of the Company
Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS
and therefore they may not be comparable to similar measures employed by other companies
The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS
Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions
a review of investor uses and new regulations as applicable
Any changes to the measures are duly noted and retrospectively applied as applicable
Adjusted Net Earnings and Adjusted Earnings per Share
“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings:
The Company uses adjusted net earnings for its own internal purposes
Management’s internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of adjusted net earnings
the presentation of adjusted net earnings enables shareholders to better understand the underlying operating performance of the core mining business through the eyes of management
Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies
Adjusted net earnings is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other companies
It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS
The measure is not necessarily indicative of operating profit or cash flows from operations as determined under IFRS
The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure
Cash Flow from Operating Activities before Changes in Working Capital and Cash Taxes
“Cash flow from operating activities before changes in working capital and cash taxes” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations
and is calculated by adding back the change in working capital and cash taxes to cash flow from operating activities
“Cash flow from operating activities before changes in working capital and cash taxes” is a non-GAAP financial measure with no standard meaning under IFRS
“Company-wide free cash flow" is a non-GAAP performance measure calculated from cash flow from operating activities
plant and equipment expenditures and non-recurring costs
The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash company-wide
Company-wide free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies
Company-wide free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from operating mine-sites
The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash
Mine-site free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies
Mine-site free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS
(1) Cash from operating activities for the Canadian operations excludes the impact of the 12,346 ounces delivered into the gold prepayment arrangement
The non-cash adjustment to reflect the settlement of the gold prepayment arrangement is included in Company-wide Free Cash Flow.(2) Comparative prior year period figures do not include the Magino mine
Total cash costs per ounce is a non-GAAP term typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period
This non-GAAP term is also used to assess the ability of a mining company to generate cash flow from operations
Total cash costs per ounce includes mining and processing costs plus applicable royalties
and net of by-product revenue and net realizable value adjustments
Total cash costs per ounce is exclusive of exploration costs
Total cash costs per ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies
The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS
All-in Sustaining Costs per ounce and Mine-site All-in Sustaining Costs
The Company adopted an “all-in sustaining costs per ounce” non-GAAP performance measure in accordance with the World Gold Council published in June 2013
The Company believes the measure more fully defines the total costs associated with producing gold; however
this performance measure has no standardized meaning
there may be some variation in the method of computation of “all-in sustaining costs per ounce” as determined by the Company compared with other mining companies
“all-in sustaining costs per ounce” for the consolidated Company reflects total mining and processing costs
For the purposes of calculating "mine-site all-in sustaining costs" at the individual mine-sites
the Company does not include an allocation of corporate and administrative costs and corporate share-based compensation
Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s development projects as well as certain expenditures at the Company’s operating sites that are deemed expansionary in nature
Non-sustaining capital expenditures are expenditures primarily incurred at development projects and costs related to major projects at existing operations
where these projects will materially benefit the mine site
Capitalized exploration expenditures are expenditures that meet the IFRS definition for capitalization and are incurred to further expand the known Mineral Reserves and Resources at existing operations or development projects
and non-site specific costs are not included in the all-in sustaining cost per ounce calculation
All-in sustaining costs per gold ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies
The measure is not necessarily indicative of cash flow from operating activities under IFRS or operating costs presented under IFRS
Total Cash Costs and All-in Sustaining Costs per Ounce Reconciliation Tables
The following tables reconciles these non-GAAP measures to the most directly comparable IFRS measures on a Company-wide and individual mine-site basis
(1) Corporate and administrative expenses exclude expenses incurred at development properties.(2) Comparative prior year period figures do not include the Magino mine
2024.(3) Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature
Total sustaining capital expenditures for the period are as follows:
Adjusted EBITDA represents net earnings before interest
and amortization and removes the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period
The measure also removes the impact of non-cash items such as impairment loss charges or reversals
and realized and unrealized gains or losses on derivative financial instruments
Adjusted EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs
Adjusted EBITDA does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies
(1) Adjusted EBITDA has been restated in the prior year comparatives to include the impact of non-cash unrealized gains or losses on derivative financial instruments
Additional GAAP measures are presented on the face of the Company’s consolidated statements of comprehensive income (loss) and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS
but rather should be evaluated in conjunction with such IFRS measures
The following additional GAAP measures are used and are intended to provide an indication of the Company’s mine and operating performance:
Condensed Interim Consolidated Statements of Financial Position
ALAMOS GOLD INC.Condensed Interim Consolidated Statements of Financial Position(Unaudited - stated in millions of United States dollars)
ALAMOS GOLD INC.Condensed Interim Consolidated Statements of Comprehensive Income(Unaudited - stated in millions of United States dollars
ALAMOS GOLD INC.Condensed Interim Consolidated Statements of Cash Flows(Unaudited - stated in millions of United States dollars)
On May 5, 2025, Canaccord Genuity issued an update regarding Alamos Gold (AGI, Financial)
The analyst Dalton Baretto maintained a 'Buy' rating on AGI
indicating continued confidence in the stock's potential performance
Despite maintaining the rating, Canaccord Genuity decided to lower the price target for Alamos Gold (AGI, Financial) from CAD 52.00 to CAD 51.00
This adjustment reflects a price target percentage change of -1.92%
Alamos Gold (AGI, Financial) remains a point of interest for investors
with the latest analyst update indicating slight modifications in forecasted price expectations
yet maintaining an optimistic 'Buy' stance
Based on the consensus recommendation from 6 brokerage firms, Alamos Gold Inc's (AGI, Financial) average brokerage recommendation is currently 1.7
has reported its financial results for the quarter ended March 31
Looking specifically at Matachewan’s Young-Davidson Mine, it produced 35,400 ounces of gold in the first quarter, 12 percent lower than the prior year period due to lower tonnes mined, partially offset by higher grades processed and recovery rates.
Revenues at the mine increased to $101.2 million in the first quarter, 22 percent higher than the prior year period, driven by higher realized gold prices, partially offset by lower ounces sold. Cost of sales were $65.1 million in the first quarter, comparable with the prior year period.
Total cash costs of $1,350 per ounce and mine-site AISC of $1,655 per ounce in the first quarter were higher than the prior year period, primarily due to higher unit costs given the lower mining and processing rates. Costs are expected to decrease through the remainder of the year reflecting higher mining rates and grades.
Capital expenditures in the first quarter totaled $18.8 million, including $10.7 million of sustaining capital and $6.1 million of growth capital. Additionally, $2.0 million was invested in capitalized exploration during the quarter.
The release also stated Young-Davidson continues to generate strong ongoing mine-site free cash flow, including $39.2 million in the first quarter. Young-Davidson has generated over $100 million in annual mine-site free cash flow for four consecutive years. The operation is well positioned to generate similar free cash flow in 2025 and over the long-term, with a 14 year Mineral Reserve life.
A total of $11 million is budgeted for exploration at Young-Davidson in 2025, an increase from $9 million spent in 2024. This includes 25,600 m of underground exploration drilling focused on extending mineralization in the syenite, and continuing to evaluate and expand on the newly defined hanging wall zones.
To support the program, 500 m of underground exploration development is planned, including 400 m to establish a hanging wall exploration drift to the south, from the 9620 level. This will allow for drill platforms with more optimal locations and orientations to test the higher grade mineralization discovered in the hanging wall.
The regional program includes 6,000 m of drilling focused on evaluating the Otisse NE target, located approximately three km northeast of Young-Davidson. A comprehensive data compilation project will also commence in 2025 for the Wydee and Matachewan projects, which were acquired in the third quarter of 2024, and located to the west and east of Young-Davidson, respectively.
During the first quarter, two underground exploration drills completed 5,290 m in ten holes from the 9305 and 9500 levels. Drilling is targeting syenite-hosted mineralization as well as continuing to test mineralization in the hanging wall sediments and mafic-ultramafic stratigraphy.
Total exploration expenditures during the first quarter of 2025 were $3.0 million, of which $2.0 million was capitalized.
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your car type is determined when you arrive to pick up the car
Drive Happy Deals are usually the cheapest option
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Alamo allows you to earn airline miles or hotel points for your rentals with 19 different partners
Alaska Airlines Mileage Plan
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Opting to earn airline or hotel points can be a great option for your rentals
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If you need assistance with anything related to Alamo’s services, you can find customer service information under the Customer Support tab in the bottom right menu
From there you can view FAQs for a plethora of different topics you may need assistance with
Here are some helpful phone numbers depending on your needs:
Curious how Alamo stacks up against its competitors
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Here were the nightly quotes from each company – excluding any membership discounts:
Alamo can be a great choice for your car rental if the price is right
Many rental car programs are similar in the cars they offer and fees that they charge
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Enterprise and Alamo are separate rental car companies
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Here is a breakdown of the information Alamos Gold
a prominent player in the gold mining industry
operates multiple mines in Canada and Mexico
The company recently released its first-quarter 2025 earnings report
highlighting a production of 125,000 ounces of gold
which aligns with the lower end of its quarterly guidance
The report noted solid performance from Island Gold
offset by slower ramp-up at the Magino mill and lower production at Young-Davidson
improvements in April are expected to bolster production and reduce costs in the upcoming quarters
Key financial metrics from the first quarter include revenues of $333 million from selling 117,583 ounces of gold at an average price of $2,802 per ounce
Despite a 6% lower sales volume than production
the company anticipates future quarters will benefit from the timing of these sales
Total cash costs were reported at $1,193 per ounce
with all-in sustaining costs (AISC) at $1,805 per ounce
both above guidance due to increased share-based compensation costs
Alamos Gold expects these costs to decrease significantly in the second quarter and beyond
Alamos Gold is progressing with its Phase 3+ Expansion
and has commenced construction at Lynn Lake
The company aims to achieve a production run rate of 900,000 ounces per year
with potential growth to one million ounces annually through further expansion of the Island Gold District
The acquisition of Magino and ongoing exploration success have contributed to a 31% increase in mineral reserves
Alamos Gold remains focused on achieving its full-year production guidance of 580,000 to 630,000 ounces
The company is optimistic about its growth trajectory
supported by internally funded projects and strong liquidity
With ongoing improvements in production and cost efficiencies
Alamos Gold is well-positioned to enhance shareholder value and maintain its competitive edge in the gold mining sector
Disclaimer & DisclosureReport an Issue
Alamos Gold, Inc. ( (AGI) ) has released its Q1 earnings
Disclaimer & DisclosureReport an Issue
Canaccord has adjusted its price target for Alamos Gold (AGI, Financial)
while maintaining a Buy rating on the stock
This change follows the release of Alamos Gold's first-quarter results
which revealed an unexpectedly weaker performance
The company's challenges were mainly due to elevated costs attributed to equipment availability issues at the Young-Davidson site and ramp-up difficulties at the Magino project
Alamos Gold sold 6% fewer ounces than it produced during the quarter
For the complete transcript of the earnings call, please refer to the full earnings call transcript
Record production and strong margin expansion drive record free cash flow of $272 million while funding high-return growth
(TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter and year ended December 31
“We delivered another record year operationally and financially driven by strong performances across our operations
meeting our increased guidance and achieving a new annual record for the second consecutive year
Full year costs were in line with guidance and combined with the rising gold price
This included record free cash flow of $272 million while funding additional high-return growth
including the Phase 3+ Expansion and our largest exploration budget ever,” said John A
“Our significant investment in exploration continues to create value with global Mineral Reserves increasing 31% to 14 million ounces
including another substantial increase in higher-grade Reserves and Resources at Island Gold
We will be incorporating this growth into the Island Gold District Life of Mine Plan and Expansion Study to be released later this year that we expect will outline a larger
Fourth Quarter and Full Year 2024 Highlights
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.(3) Sustaining capital expenditures include sustaining capital lease expenditures at Magino
which are not included as additions to mineral property
plant and equipment in cash flows used from investing activities
and amortization expense.(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.(3) For the purposes of calculating mine-site all-in sustaining costs
the Company does not include an allocation of corporate and administrative and share-based compensation expenses.(4) Includes capitalized exploration at Young-Davidson of $2.0 million and $5.9 million for the three months and year ended December 31
2024 ($1.3 million and $5.1 million for the three months and year ended December 31
respectively).(5) Includes capitalized exploration at Island Gold of $1.7 million and $12.4 million for the three months and year ended December 31
2024 ($3.3 million and $11.1 million for the three months and year ended December 31
(6) Includes capitalized exploration at Mulatos District of $1.6 million and $7.5 million for the three months and year ended December 31
2024 ($5.5 million and $11.8 million for the three months and year ended December 31
2023).(7) Includes capitalized exploration at Magino of $2.2 million and $2.2 million for the three months and year ended December 31
2024.(8) The Mulatos District includes La Yaqui Grande and Mulatos pit.(9) The 2024 full year results for Magino are for Alamos’ ownership period from July 12
2024.(10) Sustaining capital expenditures for Magino include certain finance leases classified as sustaining
Alamos had 25 recordable injuries across its sites including one lost time injury ("LTI")
Alamos had 84 recordable injuries across its sites including 4 LTIs
Two minor reportable events occurred during the fourth quarter
an effluent grab sample slightly exceeded the daily limit for phosphorus
The other minor reportable event was at Young-Davidson
where minor seepage was identified at the toe of the dam and quickly contained within the tailings management facility with no impact to the surrounding environment
This includes investing in new initiatives to reduce the Company's environmental footprint with the goal of minimizing the impacts of our activities
(1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and associated MD&A for a description of these measures.(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites
the Company does not include an allocation of corporate and administrative and share-based compensation expenses to the mine sites
(3) Cost of sales includes mining and processing costs
and is calculated based on the mid-point of total cash cost guidance
The Company’s objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term
The Company delivered another record operational and financial performance in 2024
Full year production was in-line with guidance and increased 7% from 2023 to a record 567,000 ounces
reflecting the acquisition of the Magino mine in July
and strong ongoing performances from Island Gold and the Mulatos District
2024 revenues increased 32% from 2023 to a record $1.3 billion
Full year costs were also in-line with guidance contributing to strong margin expansion
Through growing production and increasing margins
the Company generated record free cash flow of $272.3 million while continuing to fund its high-return growth initiatives including the Phase 3+ Expansion at Island Gold
The Mulatos District had another strong year with production exceeding increased guidance
and the operation generating record mine-site free cash flow of $239.9 million in 2024
Young-Davidson also generated a record $140.9 million in mine-site free cash flow
marking the fourth consecutive year free cash flow has exceeded $100 million
Island Gold had another solid year on multiple fronts with production at the top end of guidance
significant progress made on the Phase 3+ Expansion
and ongoing exploration success driving another year of substantial growth in Mineral Reserves and Resources
this significant investment in growth was all self-financed by Island Gold
The integration of the Magino and Island Gold operations continues to advance providing significant synergies
Immediate capital savings have already been realized
with the previously planned mill and tailings expansions at Island Gold no longer required
The utilization of the larger and more efficient Magino mill to process Island Gold ore is expected to drive operating cost synergies starting in 2025 with further improvements in 2026 upon completion of the Phase 3+ Expansion
The Magino mill is expected to ramp up to 11,200 tpd by the end of the first quarter of 2025 after which it will begin processing ore from Island Gold at significantly lower processing costs
The acquisition has also de-risked the Phase 3+ Expansion and unlocked longer term upside potential across the Island Gold District
The shaft sink has advanced to a depth of 1,000 metres as of mid-February and is expected to reach the ultimate planned depth of 1,373 metres in the third quarter
The expansion remains on track to be completed in the first half of 2026
which will be a significant driver of further free cash flow growth over the longer-term through increasing production and declining costs
The Company continues to advance its other high-return internal growth opportunities
As outlined in the September 2024 development plan
high-return underground project with an estimated after-tax IRR of 46% at a conservative gold price of $1,950 per ounce
Based on its existing Mineral Reserves at year-end 2024
PDA is expected to more than triple the Mulatos District mine life to at least 2036
an amendment to the existing MIA was received allowing for the start of construction
Development activities are expected to ramp up in the second half of the year with initial production expected mid-2027
Detailed engineering on the Lynn Lake project continued through 2024 in advance of the construction decision made in January 2025
and all key permits needed to start development of the project approved
construction activities are expected to ramp up starting in the first quarter of 2025 putting first gold production on track for the first half of 2028
a positive internal study on the Burnt Timber and Linkwood satellite deposits was completed in February 2025 outlining a low capital intensity
high-return project that will leverage existing infrastructure from the Lynn Lake project
As satellite deposits to the Lynn Lake project
the incorporation of Burnt Timber and Linkwood is expected to extend the combined mine life
and increase longer term production rates at a low all in cost
Global Mineral Reserves and Resources continue to grow supporting this strong portfolio of growth assets
Mineral Reserves increased 31% in 2024 to 14.0 million ounces (298 mt grading 1.45 g/t Au)
an initial Reserve at Burnt Timber and Linkwood
and tremendous ongoing exploration success at Island Gold
This marks the sixth consecutive year of growth in Mineral Reserves for a cumulative increase of 44% over that time frame
Island Gold continues to be a significant driver of growth with its combined Mineral Reserve and Resources increasing 9% to 6.7 million ounces at substantially higher grades
This included a 32% increase in Mineral Reserves to 2.3 million ounces with grades increasing 11% to 11.40 g/t Au
Inferred Mineral Resources also increased 2% to 3.8 million ounces
with additions more than replacing the conversion to Mineral Reserves
while grades increased an impressive 13% to 16.52 g/t Au
Island Gold continues to establish itself as one of the highest-grade and fastest growing deposits in the world
This growth will be incorporated into the Island Gold District Life of Mine plan to be released mid-2025 and an Expansion Study expected to be released in the fourth quarter
The growing deposit and significant increase in grades are expected to support higher average annual gold production over the longer term
The Company provided three-year production and operating guidance in January 2025
2025 guidance press release for a summary of the key assumptions and related risks associated with the comprehensive 2025 guidance and three-year production
the United States introduced tariffs on imports from countries including Canada and Mexico
the Canadian and Mexican governments announced retaliatory tariffs on imports from the United States
all three countries postponed their previously announced tariffs for 30 days
While there is uncertainty as to whether the tariffs or retaliatory tariffs will be implemented
the Company’s cost structure predominantly relates to input costs which are not expected to be directly affected by the tariffs
The Company's cost and capital guidance released in January 2025 does not factor any potential impact from such tariffs
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
First quarter production is expected to be between 125,000 and 140,000 ounces at costs consistent with the top end of guidance for the first half of the year
Production is expected to increase and costs decrease into the second quarter
with a more significant improvement expected in the second half of the year
Total cash costs and AISC are expected to decrease slightly in 2025 compared with 2024
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
driven by higher grades and mining rates at Island Gold
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
production is expected to increase 24% to a range of 680,000 to 730,000 ounces
driven by low-cost growth from Island Gold following the completion of the Phase 3+ Expansion
Capital spending is expected to increase in 2025 reflecting the inclusion of development capital for Lynn Lake and PDA
with the start of construction on both projects in 2025
as well as the final full year of capital on the Phase 3+ Expansion
Capital spending is expected to increase modestly into 2026 with the lower capital at the Island Gold District offset by the ramp up in spending on Lynn Lake and PDA
This includes expanded exploration programs at the Island Gold District and Qiqavik
as well as significant ongoing programs at Young-Davidson and the Mulatos District
Given the strong ongoing profitability of the Mulatos District operation
the Company expects to pay between $70 and $80 million in cash tax payments in Mexico in 2025
which includes the 2024 year-end tax payment due in the first quarter of 2025 of approximately $45 million
The ounces will be delivered monthly in 2025 (approximately 4,115 ounces per month) and recorded as revenue based on the prepay price of $2,524 per ounce
There will be no cash flow associated with the sale of these ounces in 2025
$327.2 million of cash and cash equivalents at the end of 2024
and approximately $827.2 million of total liquidity
Cash and cash equivalents increased by 12% from the third quarter driven by continued free cash flow generation
the Company expects to continue generating positive free cash flow while funding its growth projects
royalties and amortization.(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
the Company does not include an allocation of corporate and administrative and share based compensation expenses
Young-Davidson produced 45,700 ounces of gold in the fourth quarter
8% lower than the prior year period with lower grades mined partially offset by stronger mining rates
Production for the full year totaled 174,000 ounces
slightly below guidance and the prior year
Mining rates averaged 8,030 tonnes per day ("tpd") in the fourth quarter
in-line with guidance and a 7% increase compared to the prior year period
Mining rates averaged 7,614 tpd for the full year
reflecting temporary lower scoop availability earlier in the year
Milling rates averaged 8,116 tpd in the fourth quarter
Milling rates for both the fourth quarter and full year were consistent with mining rates
Mill recoveries averaged 91% for the fourth quarter and full year
Revenues increased to $120.5 million in the fourth quarter
revenues for the full year of $415.3 million were 17% higher than the prior year with higher realized gold prices partially offset by lower ounces sold
Cost of sales were $65.9 million in the fourth quarter
marginally higher than the prior year period
Cost of sales were $261.9 million for the full year
Total cash costs were $955 per ounce in the fourth quarter
a 4% increase compared to the prior year period
Total cash costs were $1,047 per ounce for the full year
higher than the prior year as a result of inflation
Mine-site AISC were $1,191 per ounce for the fourth quarter
a 2% decrease compared to the prior year period due to timing of sustaining capital expenditures
Mine-site AISC averaged $1,314 per ounce for the full year
above the prior year and annual guidance reflecting higher sustaining capital per ounce
Capital expenditures in the fourth quarter totaled $21.3 million
including $10.6 million of sustaining capital and $8.7 million of growth capital
Young-Davidson generated record mine-site free cash flow of $50.3 million in the fourth quarter
This marked the fourth consecutive year the operation has generated more than $100 million of mine-site free cash flow
Young-Davidson is well positioned to generate similar levels of free cash flow over the long-term
Island Gold Financial and Operational Review
and amortization.(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
Island Gold produced 39,400 ounces in the fourth quarter of 2024
Island Gold produced a record 155,000 ounces
an 18% increase compared to the prior year and at the top-end of annual guidance
Underground mining rates averaged 1,228 tpd in the fourth quarter
below annual guidance reflecting scheduled downtime in July to upgrade the underground ventilation infrastructure
as well as a focus on maximizing the extraction of significantly higher-grade ore from within the 1025 mining horizon in the first half of the year
The upgrade to the ventilation infrastructure was successfully completed as part of the Phase 3+ Expansion project and will support increased development rates in the near term and higher underground mining rates over the longer term
Grades mined averaged 11.05 g/t Au in the fourth quarter
Grades mined averaged 12.47 g/t Au for the full year
32% higher than in the prior year and consistent with the upper end of annual guidance
Mill throughput averaged 1,197 tpd for the fourth quarter and 1,072 tpd for the full year
Mill recoveries averaged 98% for the full year
above guidance and reflecting the higher grades processed in the quarter and for the year
Mill recoveries are expected to return to within the guided range of 96-97% in 2025
the Island Gold mill is expected to be shut down at the end of the first quarter of 2025
Revenue of $103.9 million in the fourth quarter were 73% higher than the prior year period
driven by higher realized gold price and an increase in ounces sold
revenues of $363.1 million for the full year were 47% higher than the prior year
Cost of sales of $34.7 million in the fourth quarter and $132.2 million for the full year were 3% and 7% higher than the prior year periods
cost of sales were 21% and 10% lower in the fourth quarter and the full year
as compared to the prior year periods due to the higher grades processed
Total cash costs were $594 per ounce in the fourth quarter
both lower than the prior year periods and consistent with guidance
Mine-site AISC of $791 per ounce for the fourth quarter and $865 per ounce for the full year
driven by higher grades processed and lower sustaining capital expenditures
Total capital expenditures were $83.7 million in the fourth quarter
including $74.3 million of growth capital and $1.7 million of capitalized exploration
Growth capital spending remained primarily focused on the Phase 3+ Expansion shaft site infrastructure
which advanced to a depth of 882 m by the end of the year
and is scheduled to be completed in the third quarter of 2025
detailed engineering continued to advance on the expansion of the Magino mill to 12,400 tpd
Mine-site free cash flow was negative $1.9 million for the fourth quarter and positive $12.4 million for the full year net of the significant capital investment related to the Phase 3+ Expansion
Island Gold is expected to continue self funding the Phase 3+ Expansion capital
The operation is expected to generate significant free cash flow from 2026 onward with the completion of the expansion
Magino Mine Financial and Operational Review
The results for Magino are for Alamos’ ownership period from July 12
the Company does not include an allocation of corporate and administrative and share-based compensation expenses
(4) Grams per tonne of gold ("g/t Au").(5) Mine-site free cash flow does not include lease payments which are classified as cash flows from financing activities on the consolidated financial statements
Operational Review (the fourth quarter and Alamos’ ownership period from July 12
Magino produced 16,200 ounces of gold in the fourth quarter and 33,000 ounces of gold during Alamos' ownership period starting July 12
Mining rates averaged 53,233 tpd during the fourth quarter
up from 46,258 tpd during the period of ownership in the third quarter
This included 11,090 tpd of ore in the fourth quarter up from 10,228 tpd during the third quarter
With a number of mill optimization initiatives implemented during the second half of 2024
mining activities were focused on stripping activities while continuing to stockpile lower grade ore for future processing
Mill throughput averaged 6,686 tpd in the fourth quarter down slightly from the third quarter and lower than planned
primarily due to longer than expected downtime to replace the primary crusher
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
These improvements were completed by the end of 2024 and will support higher throughput rates going forward
Mill throughput is expected to increase to approximately 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 larger and more cost-effective Magino mill
Grades processed during the fourth quarter and Alamos' period of ownership in 2024 were 0.89 g/t Au and 0.91 g/t Au
Recoveries for the period of ownership were 95%
above expectations reflecting the strong performance of the gravity circuit
Financial Review (for Alamos’ ownership period from July 12
Revenues were $44.2 million for the fourth quarter and $81.2 million for the period of Alamos' ownership during the second half of the year
with cost of sales of $35.4 million and $73.9 million for the same respective periods
Total cash costs were $1,672 per ounce in the fourth quarter and impacted by lower gold production due to the crushing circuit downtime to replace the primary crusher
Mine-site AISC for the fourth quarter were $2,666 per ounce
an 11% decrease from Alamos' ownership in the third quarter
were $19.5 million in the fourth quarter and $28.0 million for the period of Alamos' ownership in the second half of the year
Capital spending primarily included capitalized stripping costs
The operation was negative $18.1 million of mine-site free cash flow in the fourth quarter
and negative $40.2 million of mine-site free cash flow during the period of Alamos' ownership
driven primarily by changes in working capital and mill downtime for the crusher replacements which impacted gold production
The Company expects an improvement to the profitability of the operation in 2025 reflecting higher production and lower costs
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures
(4) Includes ore stockpiled during the quarter
(5) Grams per tonne of gold ("g/t Au").(6) Total waste mined includes operating waste and capitalized stripping
The Mulatos District produced 38,900 ounces in the fourth quarter
19% lower than the prior year period due to planned lower grades processed at La Yaqui Grande
Production for the full year totaled 205,000 ounces
exceeding the top end of the revised annual guidance by 5%
reflecting the strong ongoing performance from La Yaqui Grande
La Yaqui Grande produced 28,900 ounces in the fourth quarter and 158,600 ounces for the full year
reflecting higher stacking and recovery rates
Grades stacked averaged 0.93 g/t Au for the fourth quarter
Grades stacked over the full year averaged 1.27 g/t Au
Stacking rates of 10,800 tpd in both the fourth quarter and full year were above annual guidance of 10,000 tpd
The recovery rate of 98% in the fourth quarter and for the full year was above full year guidance reflecting the timing of ounces stacked relative to their recovery
Recoveries are expected to normalize in 2025 to between 70% and 90%
Mulatos commenced residual leaching in December 2023 and produced 10,000 ounces in the fourth quarter and 46,400 ounces for the full year
Revenues of $107.2 million in the fourth quarter and $487.3 million for the full year were 7% and 16%
Cost of sales decreased to $64.9 million in the fourth quarter
driven by the weaker Mexican peso and lower ounces sold
Cost of sales were $283.1 million for the full year
a 6% increase compared to the prior year due to inflationary pressures
Total cash costs of $1,113 per ounce and mine-site AISC of $1,198 per ounce in the fourth quarter were higher than the prior year period
primarily driven by inflation and lower grades stacked at La Yaqui Grande
Full year total cash costs of $935 per ounce and mine-site AISC of $1,001 per ounce were at the low end of guidance
and slightly higher than the prior year due to lower grades stacked
Capital expenditures totaled $5.3 million in the fourth quarter
including $1.3 million of sustaining capital and $1.6 million of capitalized exploration
including $4.4 million of sustaining capital and $7.5 million of capitalized exploration
Growth capital spending of $8.2 million for the full year was focused on the completion of the water treatment plant construction at La Yaqui Grande
as well as completion of the hydro electric line connecting the Mulatos District to the national grid at the end of November
This eliminates the need for on-site diesel generated power
and provides a significant energy cost savings moving forward which has been factored into 2025 guidance
The Mulatos District generated mine-site free cash flow of $53.4 million for the fourth quarter and a record $239.9 million for the full year
95% and 69% higher than the prior year periods
The strong free cash flow generation was net of $7.4 million of cash tax payments in the fourth quarter and $82.2 million in the year
Given the strong profitability of the operation in 2024
the Company expects to make significant cash tax payments in Mexico in 2025
This includes the 2024 year end tax payment due in the first quarter
which is expected to be approximately $45 million
Fourth Quarter 2024 Development Activities
the Company released the Phase 3+ Expansion Study (“P3+ Study”) conducted on its Island Gold mine
The Phase 3+ Expansion to 2,400 tpd from the current rate of 1,200 tpd will involve various infrastructure investments
the Company announced an update to the initial capital estimate for the Phase 3+ Expansion
reflecting inflation and scope changes since the P3+ Study was completed in the first half of 2022
as well as synergies from the acquisition of Magino
Initial capital for the Phase 3+ Expansion was increased by approximately $40 million to $796 million
a 5% increase from the initial capital estimate provided in the first half of 2022
72% of the total initial capital has been spent and committed on the project
The increase was driven by ongoing inflationary pressures since 2022
partially offset by synergies from the Magino acquisition
The key changes within the updated capital estimate are as follows:
the Company spent $74.3 million on the Phase 3+ Expansion and capital development
Progress on the Phase 3+ Expansion during the fourth quarter is summarized as follows:
Island Gold shaft site area - January 2025
Construction activities will begin ramping up during the first quarter of 2025 with initial production expected during the first half of 2028
Development spending (excluding exploration) was $7.8 million in the fourth quarter of 2024
primarily on detailed engineering and long lead time items
development spending (excluding exploration) was $19.7 million
the Company reported positive results of an internal economic study completed on its Burnt Timber and Linkwood satellite deposits located in proximity to the Lynn Lake project in Manitoba
the 2023 Study was released on the Lynn Lake project outlining a long-life
low-cost project in Canada with attractive economics
The 2023 Study was based only on the Gordon and MacLellan deposits which are to be mined over the first 11 years
with the processing of lower-grade stockpiled ore for the remainder of the 17-year mine life
Highlights of the Burnt Timber and Linkwood Study include:
The Company incurred $2.2 million in the fourth quarter of 2024 related to ongoing care and maintenance and arbitration costs to progress the Treaty claim
Fourth Quarter 2024 Exploration Activities
Total exploration expenditures during the fourth quarter of 2024 were $5.3 million
the Company incurred exploration expenditures of $20.3 million of which $14.6 million was capitalized
The focus of the 2024 near mine exploration program was on defining new Mineral Reserves and Resources in proximity to existing production horizons and underground infrastructure through both underground and surface exploration drilling
The 2024 program was successful in driving another significant year of growth at Island Gold with combined Mineral Reserve and Resources increasing 9% to 6.7 million ounces at substantially higher grades
This included a 32% increase in Mineral Reserves to 2.3 million ounces
with grades increasing 11% to 11.40 g/t Au (6.2 mt)
Inferred Mineral Resources also grew 2% to 3.8 million ounces with grades increasing 13% to 16.52 g/t Au
A total of 50,416 m of underground exploration drilling was completed in 185 holes in 2024
9,849 m of surface exploration drilling was completed in 11 holes
This drilling focused on evaluating targets across the strike extent of the main Island Gold Deposit (E1E and C-Zones)
as well as expanding newly defined zones in the hanging wall and footwall of Island Gold
36,686 m of underground delineation drilling was completed in 155 holes in 2024
which focused on the conversion of the large Mineral Resource base to Mineral Reserves
A total of 326m of underground exploration drift development was also completed in 2024
These platforms will allow for ongoing Mineral Resource conversion and Resource growth across the Island Gold deposit
The regional exploration drilling program at the Island Gold District continued in the fourth quarter
with 2,376m of drilling completed in 11 holes at Cline and Edwards
bringing the year-to-date regional drilling to 10,330 m across 35 holes
A surface drilling program commenced at Magino subsequent to the acquisition of Argonaut to focus on Mineral Resource expansion and conversion
14,583 m of drilling was completed in 26 holes which were successful in both infilling and expanding mineralization
The Company provided a comprehensive exploration update in January 2025 on its continued exploration success at Island Gold
Exploration drilling continues to extend high-grade gold mineralization across the Island Gold Deposit
as well as within several hanging wall and footwall structures
A significant portion of the following exploration results were completed after the year-end cut-off for Mineral Reserves and Resource estimates
highlighting the potential for ongoing growth
Island Gold Main zone exploration highlights: high-grade mineralization extended outside of Mineral Reserves and Resources in the E1E and C-Zones
These zones are the main structures that host the majority of currently defined Mineral Reserves and Resources at Island Gold
Island Gold Hanging Wall and Footwall exploration highlights: high-grade gold mineralization intersected within new and recently defined hanging wall and footwall zones across the main Island Gold Deposit
These zones represent significant opportunities to continue to grow near mine Mineral Reserves and Resources
which are low-cost to develop and produce from given their proximity to existing infrastructure
• Island West Hanging Wall and Footwall Zones
NS2 Zone: expanding a new structure parallel and 200 m east of NS1 Zone
Other Hanging Wall and Footwall intersections within yet to be defined zones (Unknown Zones): drilling continues to intersect high-grade mineralization beyond currently defined zones and in proximity to existing underground infrastructure
This includes drill hole 890-461-42 (584.20 g/t Au over 6.80 m)
located 10 m north of the main C-Zone in Island West
These are part of more than 2,000 intersections above 3 g/t Au outside of existing Mineral Reserves and Resources in the hanging wall and footwall
there is excellent potential to define additional new zones supporting significant growth in near-mine Mineral Reserves and Resources
1 All reported composite intervals are calculated true width of the mineralized zones
Drillhole composite intervals reported as “cut” may include higher grade samples which have been cut to: Island West and Island Main (C-zone) @ 225 g/t Au; Island Main and East (E1E Zone) @ 185 g/t Au; E1D Zone @ 100 g/t; B-Zone
E1D1 and NS1 @ 90 g/t Au; NTH3 @ 60 g/t; D1 and G1 @ 45 g/t Au
NS2 and NTH zones @ 35 g/t Au.2 All reported composite intervals are core length
Total exploration expenditures during the fourth quarter of 2024 were $2.9 million
exploration expenditures totaled $8.9 million of which $5.9 million was capitalized
The majority of the underground exploration drilling program was focused on extending mineralization within the Young-Davidson syenite
which hosts the majority of Mineral Reserves and Resources
Drilling also tested the hanging wall and footwall of the deposit where higher grades have been previously intersected
24,296 m of underground exploration drilling was completed in 55 holes
which intersected a new style of higher-grade gold mineralization in zones within the hanging wall of the Young-Davidson deposit
These zones are located between 10 and up to 200 m south of existing infrastructure and are in close proximity to already defined Mineral Reserves and Resources
highlighting the upside potential with grades intersected well above the current Mineral Reserve grade of 2.26 g/t of gold
400 m of underground exploration development is planned to establish a hanging wall exploration drift to the south
This will allow for drill platforms with more optimal locations and orientations to test the higher-grade mineralization discovered in the hanging wall in 2024
Regional exploration drilling was undertaken during the year
with 3,454 m of surface drilling completed in 11 holes to test near-surface targets within the 5,900 hectare Young-Davidson Property that could potentially provide future supplemental mill feed
Total exploration expenditures during the fourth quarter of 2024 were $4.0 million
exploration expenditures totaled $20.6 million
46,224 m of near-mine drilling was completed in 168 holes
and 18,430 m of regional drilling was completed in 54 holes
The 2024 surface exploration drilling program focused on defining higher-grade mineralization at PDA and Cerro Pelon
Drilling at Cerro Pelon followed up on wide
high-grade underground oxide and sulphide intersections previously drilled below the Cerro Pelon open pit
surface drilling was successful at extending higher-grade mineralization across multiple zones within the PDA area
This drove a 9% increase in Mineral Reserves at PDA within the 2024 year-end update to 1.1 million ounces
the 2024 program was successful in defining an initial Measured and Indicated Mineral Resource at Cerro Pelon totaling 104,000 ounces grading 4.49 g/t Au
exploration activities continued at PDA and the near-mine area with 7,764 m of drilling completed in 28 holes
Drilling was focused on infill drilling the GAP-Victor portion of the Mineral Resource
drilling continued to evaluate the high-grade sulphide potential to the north of the historical open pit with a total of 2,872 m completed in eleven holes
1,395 m in four holes were drilled targeting sulphide mineralization
Regional drilling was also initiated at the Halcon Project in the fourth quarter with three drill holes for a total of 633 m
located approximately three kilometres northwest of the La Yaqui Grande Mine
is being evaluated for sulphide mineralization potential
Exploration spending totaled $1.2 million in the fourth quarter and $7.4 million for 2024
2024 exploration was primarily focused on the conversion of Mineral Resources to Mineral Reserves at the Burnt Timber and Linkwood deposits
and to also evaluate the potential for Mineral Resources at Maynard
16,134 m of drilling were completed in 87 holes and was focused on converting Mineral Resources to Mineral Reserves at Burnt Timber and Linkwood as well as extending mineralization at Maynard
The program was successful with an initial Mineral Reserve of 0.9 million ounces grading 0.95 g/t Au (30.7 mt) declared at Burnt Timber and Linkwood
This drove a 42% increase in total Mineral Reserves within the Lynn Lake District to 3.3 million ounces grading 1.29 g/t Au (80.1 mt)
the Company completed the acquisition of Orford Mining
acquiring a 100% interest in the Qiqavik gold project
Qiqavik is a camp scale property covering 438 square kilometres in the Cape Smith Greenstone Belt in Nunavik
The Qiqavik Property covers 40 kilometres of strike along the Qiqavik Break
a major crustal-scale structure controlling gold mineralization within the belt
Early-stage exploration completed to date indicates that high-grade gold occurrences are controlled by structural splays off the Qiqavik Break
Exploration spending totaled $0.8 million in the fourth quarter and $3.7 million for 2024
Exploration activities completed in Q3 2024 were focused on the evaluation of targets with the objective of identifying the highest-priority areas to drill in 2025
and Quaternary field investigations to determine glacial dispersal direction and transport distances
A 500 km2 high-resolution Lidar survey with photo imagery
and a 25 m line-spacing drone magnetic survey
was also flown over four prospective areas
Review of Fourth Quarter Financial Results
the Company sold 141,258 ounces of gold for record operating revenues of $375.8 million
representing a 48% increase from the prior year period
The increase was due to higher realized gold prices
and higher sales volumes due to the inclusion of ounces from Magino
The average realized gold price in the fourth quarter was $2,632 per ounce
and $31 per ounce less the London PM Fix price
The Company's realized gold price in the fourth quarter was impacted slightly by hedges entered into earlier in the year
and amortization) were $200.9 million in the fourth quarter
primarily due to higher cost ounces from Magino with the operation undergoing downtime to implement a number of improvements to the mill
cost of sales were $165.5 million which was 1% lower than the prior year period
Mining and processing costs were $137.9 million
mining and processing costs were $111.6 million
The decrease was driven by the weaker Mexican peso and Canadian Dollar
and lower ounces sold at the Mulatos District
Total cash costs of $981 per ounce and AISC of $1,333 per ounce were higher than the prior year period driven by the inclusion of the higher cost Magino ounces
total cash costs and AISC for the fourth quarter would have been $10 and $74 per ounce lower
The decreases were driven by higher grades mined and lower sustaining capital expenditure at Island Gold
partially offset by inflation and lower grades stacked at La Yaqui Grande
Royalty expense was $4.7 million in the fourth quarter
higher than the prior year period of $2.7 million
and higher number of ounces sold with inclusion of ounces from Magino
Amortization of $58.3 million in the fourth quarter was higher than the prior year period due to the higher number of ounces sold and the inclusion of amortization from the Magino mine in the current period
amortization of $413 per ounce was higher than the prior year period due to the higher depletion base of the leased assets inherited from Magino
The Company recognized earnings from operations of $158.4 million in the fourth quarter
ensure an average forward price of $1,821 per ounce
the Company held certain gold option contracts which matured monthly in 2024
The Company recognized unrealized gains on these gold option and forward contracts of $5.9 million driven by the movement in gold price in the quarter
The Company recognized unrealized losses of $2.0 million on gold option contracts in the prior year period
The Company reported net earnings of $87.6 million in the fourth quarter
compared to $47.1 million in the prior year period
which included adjustments for unrealized gains on commodity hedge derivatives
adjusted earnings reflect unrealized net foreign exchange losses recorded within deferred taxes and foreign exchange of $19.6 million and other adjustments totaling $0.4 million
the Company sold 560,234 ounces for record operating revenues of $1.3 billion
primarily driven by a higher average realized gold price
and higher sale volumes including Magino ounces from the date of acquisition
and amortization) for the full year were $751.1 million
an 18% increase compared to the prior year
Key drivers of cost of sales changes as compared to the prior year were as follows:
Mining and processing costs increased to $518.9 million from $437.3 million in the prior year
mining and processing costs would have been $463.1 million
This increase was driven by inflationary pressures across the Company's operations
and the inclusion of silver sales as an offset to mining and processing costs in the prior year
Total cash costs of $927 per ounce and AISC of $1,281 per ounce in 2024 were both higher than the prior year due to the inclusion of the higher-cost ounces from Magino subsequent to the date of acquisition and the impact of inflation
both metrics were affected by lower grades milled at Young-Davidson; partially offset by higher grades processed at Island Gold
a 35% increase compared to $10.2 million in the prior year
due to the higher average realized gold price and higher number of ounces sold
Amortization of $218.4 million or $390 per ounce sold
amortization was higher than the prior year due to the higher depletion base of the leased assets inherited from Magino
There was a reversal of impairment losses for mineral properties
plant and equipment recorded during 2024 related to the Young-Davidson mine
driven by an increase in long-term gold price assumptions and consistent with the assumptions utilized by the Company in its valuation of the Magino mine
The recoverable amount was determined to be greater than the carrying amount which resulted in an impairment reversal of $57.1 million ($38.6 million
plant and equipment and an intangible asset
The Company recognized earnings from operations of $561.9 million
a 77% increase from $318.1 million in the prior year
as a result of higher production and realized gold prices
and a reversal of impairment of $57.1 million related to Young-Davidson
The Company recognized unrealized losses on the gold option and forward contracts of $24.2 million
compared to unrealized losses of $0.9 million in the prior year
primarily due to the hedge book inherited from Argonaut
The Company reported net earnings of $284.3 million compared to $210.0 million in the prior year
Included in net earnings was a reversal of impairment of $38.6 million
offset by $24.2 million of unrealized losses on commodity hedge derivatives
which included adjustments for the reversal of impairment
and unrealized losses on commodity hedge derivatives
adjusted earnings reflects unrealized foreign exchange losses recorded in deferred taxes of $49.7 million
Argonaut transaction and integration costs of $9.3 million
and other adjustments totaling $6.0 million
Reminder of Fourth Quarter and Year-End 2024 Results Conference Call
2025 at 11:00 am ET to discuss the fourth quarter and year-end 2024 results
A playback will be available until March 22, 2025 by dialling (905) 694-9451 or (800) 408-3053 within Canada and the United States. The pass code is 4604832#. The webcast will be archived at www.alamosgold.com
Cautionary Note Regarding Forward-Looking Statements This press contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S
estimates and projections as at the date of this press release
Forward looking statements in this release include
milling and production rates; gold grades; gold prices; foreign exchange rates; free cash flow
NPV; total liquidity; returns to stakeholders; impacts of inflation; and the implementation of any tariffs; mine plans; mine life; Mineral Reserve life; Mineral Reserves and Resources; exploration potential
expanding margins and increases in profitability; as well as other general information as to strategy
but are not limited to: changes to current estimates of mineral reserves and resources; changes to production estimates (which assume accuracy of projected ore grade
and electricity; changes in foreign exchange rates (particularly the Canadian Dollar
dollar and Turkish lira); the impact of inflation and any tariffs
2021 against the Republic of Türkiye by the Company’s wholly-owned Netherlands subsidiaries
and/or the development or updating of mine plans; changes with respect to the intended method of accessing and mining the deposit at PDA and changes related to the intended method of processing any ore from the deposit of PDA; risks associated with the start-up of new mines; the risk that the Company’s mines may not perform as planned; uncertainty with the Company’s ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development
The investment treaty claim described in this press release may have an impact on foreign direct investment in the Republic of Türkiye which may result in changes to the Turkish economy
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release are set out in the Company's latest 40-F/Annual Information Form and MD&A under the heading “Risk Factors”
risk factors and assumptions found in this press release
Indicated and Inferred Resources: All resource and reserve estimates included in this press release and documents referenced in this press release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining
International Financial Reporting Standards: The consolidated financial statements of the Company have been prepared by management in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board (note 2 and 3 to the consolidated financial statements for the year ended December 31
The Company has included certain non-GAAP financial measures to supplement its Consolidated Financial Statements
“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings (loss):
for the group of costs in “other loss” on the consolidated statement of comprehensive income
Transactions within this grouping are: the fair value changes on non-hedged derivatives; loss on disposal of assets; Turkish Projects care and maintenance and arbitration costs; and transaction and integration costs associated with the Argonaut acquisition
The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings
and is calculated by adding back the change in working capital and taxes received to “Cash provided by (used in) operating activities” as presented on the Company’s consolidated statements of cash flows
“Cash flow from operating activities before changes in working capital” is a non-GAAP financial measure with no standard meaning under IFRS
The following table reconciles the non-GAAP measure to the consolidated statements of cash flows
“Company-wide free cash flow" is a non-GAAP performance measure calculated from the consolidated operating cash flow
(1) Relates to overdue payables at the Magino mine and transaction costs incurred by Argonaut and paid by Alamos in the third quarter
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from mine-site operating activities
(1) The results for Magino are for Alamos’ ownership period from July 12
(2) Cash flow from operating activities for the period July 12 to December 31
2024 includes payment of overdue payables at Magino
the Company does not include an allocation of corporate and administrative costs and share-based compensation
where the these projects will materially benefit the mine site
Capitalized exploration expenditures are expenditures that meet the IFRS definition for capitalization
and are incurred to further expand the known Mineral Reserve and Resource at existing operations or development projects
It should be not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS
The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS
(1) Corporate and administrative expenses exclude expenses incurred at development properties.(2) Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature
(1) The results for Magino are for Alamos’ ownership period from July 12
The following is a reconciliation of adjusted EBITDA to the consolidated financial statements:
Unaudited Consolidated Statements of Financial Position
ALAMOS GOLD INC.Consolidated Statements of Financial Position(Stated in millions of United States dollars)
Consolidated Statements of Comprehensive Income (Unaudited - stated in millions of United States dollars
Consolidated Statements of Cash Flows (Unaudited - stated in millions of United States dollars)
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2661e31f-eceb-4817-afa6-29384a74670d
https://www.globenewswire.com/NewsRoom/AttachmentNg/b3ba303a-785c-40e9-a4cf-f2a2373819dc
(AGI) reported a robust first quarter with gold production reaching 125,000 ounces
The company is strategically targeting a 20% reduction in all-in sustaining costs (AISC) by the second quarter
This cost-efficiency initiative is expected to bolster performance
Alamos Gold aims to increase its production capacity to 600,000 ounces by 2025 and further to 900,000 ounces by 2028
The consensus among six brokerage firms pegs Alamos Gold Inc's (AGI, Financial) average recommendation at 1.7
signaling an "Outperform" status
This rating is part of a scale ranging from 1 to 5
where 1 denotes a Strong Buy and 5 signifies a Sell
Students work in teams on assigned research projects and are mentored by Los Alamos National Laboratory R&D engineers and scientists
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Students' objective is to perform research that will develop innovative solutions to Laboratory mission-relevant problems defined by their mentors
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(AGI) released its financial results for the first quarter of 2025
reporting a gold production of 125,000 ounces
aligning with the lower end of its quarterly guidance
The company's revenue for the quarter reached $333 million
derived from selling 117,583 ounces of gold at an average realized price of $2,802 per ounce
While these figures presented robust revenue growth compared to the same period last year
the total cash costs per ounce and all-in sustaining costs (AISC) were reported at $1,193 and $1,805
mainly due to increased share-based compensation and operational costs at Young-Davidson and Magino mines
Alamos generated $79.6 million from operations
despite a negative free cash flow of $20.1 million
influenced by cash tax payments and the fulfillment of a gold prepayment obligation
The company ended the quarter with cash and equivalents amounting to $289.5 million
maintaining a strong net cash position in light of $250 million drawn from its credit facility
Alamos Gold made significant strides with its Lynn Lake project
with construction expected to commence soon
aiming for initial production in early 2028
This project decision is anticipated to increase the company’s consolidated annual production to approximately 900,000 ounces
Alamos secured an Impact Benefit Agreement with Mathias Colomb Cree Nation
facilitating the advancement of the Lynn Lake project free from regulatory hurdles
Despite production challenges at certain sites
the company remains optimistic about meeting its full-year guidance
projecting enhanced performance due to operational improvements and strategic expansions
including the ongoing development of the Island Gold District
Alamos Gold (AGI) recently announced its financial results for the first quarter
this figure missed market expectations by $0.05
The company generated $333 million in revenue during this period
underperforming analyst forecasts by a significant $30.26 million
Despite a notable 20% increase in revenue compared to the same quarter last year
these results led to a 7.78% decline in the share price during after-hours trading
According to the consensus from six brokerage firms, Alamos Gold Inc (AGI, Financial) holds an average brokerage recommendation of 1.7
which indicates an "Outperform" status
where 1 signifies a Strong Buy and 5 denotes a Sell
Investors should pay close attention to these recommendations as they reflect analysts' insights into the stock's future performance
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Aspen Studio Apartments are one of the two properties Los Alamos County is considering offering as affordable housing through a private/public partnership with 9th Street Apartments
Thunderbird Apartments is the second apartment complex being considered for affordable housing
Affordable housing has been a long-time theme in Los Alamos
It has been investigated and discussed constantly but during the March 11 Los Alamos County Council meeting
a concrete plan was presented to expand the County’s affordable housing options
This plan suggests a public/private partnership to purchase deed restrictions on existing apartment units to provide them to income qualified tenants at below market rates for 20-years
Acting Community Development Director Dan Osborn explained what this partnership would entail
The partnership would include the County and 9th Street Apartments
24 studio apartment units in the Thunderbird Apartments
and 63 units in the Aspen Studio Apartments
would be deed restricted at less than or equal to 45 percent of the area median income (AMI) for 20 years
“This project is to provide affordable housing for income qualified households … (it) provides more diverse housing options for low- and moderate-income households,” Osborn said
The justifications for this project are numerous
Osborn noted that rent prices for existing studios to one-bedroom apartments are steep
“We took a pretty broad look at available units across the community – there’s a pretty wide range – the top is very expensive and there is not very many of them available,” he said
rent for studio and one-bedroom units in the County range from $1,250 to more than $2,900 per month
Osborn said that a recent analysis of 10 multi-family properties with studio and one-bedroom units in proximity to the proposed affordable units indicated rents ranged from $925 to $2,931
this proposal will immediately provide permanently affordable long-term units
Council Chair Theresa Cull asked what the cost would be to construct housing from scratch and Osborn estimated it would range from $250,000 per unit
Not only are the rental prices high but there is low availability and long waiting lists
Osborn reported that the Canyon Walk and The Bluffs housing developments have approximately 100 individuals on their waiting list
There is not only a high demand for rental properties but also for housing vouchers; Osborn said 83 individuals utilize vouchers and there are another 124 on the waiting list
The proposed partnership could alleviate some of the demand and offer affordability
“This public/private partnership which represents a significant opportunity to achieve the council’s goal by leveraging private investment capital with affordable housing grants that will allows us to preserve these units,” he said
Osborn broke down how it would work: For renters making 45 percent AMI or less
rent would be 30 percent of their monthly income
Rents are set for year one through year seven
It would be restricted to approximately 35-40 percent of the AMI for new residents
the average rent for year one would be $900; year two the average rent would be $945
$1,138 in year six and $1,183 in year seven
“I would like to note that those rents are set between that 30
so I think that is a bonus and a plus to the community and to this project and our participation,” he said
Regarding the rents starting year eight through year 20
Osborn reported that “income qualified residents will be restricted to those making at or below 45 percent AMI with the rents then set to 30 percent of the qualified incomes.”
The rent could increase no more than seven percent each year
if a person is making 45 percent of the AMI
it would be 30 percent of their annual income or $1,233 a month
then there are off-ramps for them to pay an appropriate amount in rent and if they make more than 80 percent AMI they would have two years to find alternative housing options
These units also will not be available for short-term or transient housing
Osborn said the plan is to offer six-month or one-year leases
He identified funding sources for this project
which include a $3,480,000 County affordable housing grant for the deed restriction and a $520,000 grant for rehabilitation projects as well as $4,953,950 from private capital
It is expected acquisition costs would be $6,133,700 and capital improvements would total $2,300,250
Osborn said the units are in good condition
despite their approximately 70-year-old age
“I have walked some of the units in the building and I have found them to be in good condition.”
There are obligations the developer is expected to meet
County Manager Anne Laurent commented that the County is not breaking the anti-donation clause by participating in this partnership
“The anti-donation clause has an exemption for affordable housing,” she said
“This is one way where it is very clear that local governments are able to subsized a private development for the purpose of affordable housing
We have done all the steps that we need to do legally by adopting our affordable housing plan … that enables us to have this conversation.”
Several councilors expressed enthusiasm for the project
“This project to me demonstrates putting your money where your mouth is,” Councilor Beverly Neal-Clinton said
“I don’t have enough words to say how much we need affordable housing and this to me is just smart.”
Councilor Ryn Herrmann said it could be a huge asset to businesses
“I am always concerned about trying to help the small business community and this is a great way we can do that,” she said
“I think that while this is a small project
it still chips at a lot of our strategic goals,” Council Vice Chair Suzie Havemann said
“The benefit to our business community to hopefully help them with recruitment and retention of wage-earning employees
maybe young employees … quality of life enhancements … I think it just makes the town more livable when you can potentially offer homes for seniors
for young people … recently displaced people … that opens housing for other income levels…”
Councilor David Reagor questioned what the savings would be to renters each month
if we are looking at overall numbers for the life of the project
It is about $166 per month (subsidy) over the 20-year life of the project,” Osborn said
it is pretty good bang for our buck … we are buying a deed restriction that will hold those rents below a certain rate
That cost will be $166 over the 240 months that we are a participant in this project.”
Osborn said he plans to return to Council March 25 for a continued conversation and a formal land development agreement for the rehabilitation of the units and the affordable housing component deed restriction
He added the hope is to sign off on the agreement and close on the property in April
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Scene outside the Los Alamos Cantina following a fire this morning at 157 Central Park Square
Scene outside the Los Alamos Cantina following a fire this morning at 157 Central Park Square. Photo by John McHale/ladailypost.com
A fire broke out this morning in a kitchen shared by Los Alamos Cantina at 157 Central Park Square and the Pyramid Cafe at 155 Central Park Square. There were no injuries to firefighters on scene and the building was searched concurrent to fire control assignments and no occupants were found, the building was empty at the time.
The Los Alamos Chamber of Commerce and the MainStreet programs are working with the owner and manager of these eateries to explore ways the community can support them during this difficult time. More information will be shared soon.
A large crowd gathers Wednesday afternoon just outside the Canyon Road tennis courts to celebrate the completion of the Urban Trail. Photo by Kirsten Laskey/ladailypost.com
Los Alamos County Council Chair Theresa Cull speaks at Wednesday’s ribbon cutting ceremony for the new Urban Trail. Photo by Kirsten Laskey/ladailypost.com
Los Alamos County Deputy Manager Juan Rael speaks at Wednesday’s ribbon cutting ceremony for the Urban Trail. Photo by Kirsten Laskey/ladailypost.com
Los Alamos County Public Works Director Eric Martinez speaks at Wednesday’s ribbon cutting ceremony for the Urban Trail. Photo by Kirsten Laskey/ladailypost.com
Trail Project Manager Keith Wilson speaks at Wednesday’s ribbon cutting ceremony for the Urban Trail. Photo by Kirsten Laskey/ladailypost.com
Los Alamos resident Brenda Fleming planted an idea nine years ago for an urban bike path; her suggestion took root, grew and produced the Urban Trail.
After nine years of planning and construction, the community gathered Wednesday afternoon on the Urban Trail boardwalk, the signature feature of the project near the Canyon Road tennis courts, to celebrate the completion of the Urban Trail.
According to the Los Alamos County website, the trail is just shy of a mile long; it runs along 20th Street beginning at the intersection of Trinity Drive, continues through Fuller Lodge’s lawn to the intersection of Ponderosa Street and Spruce Street and through a wooded area near the tennis courts and along Canyon Road to the Aquatic Center. At 10 feet wide, the paved trail is ADA compliant and accommodates all users.
The budget for the project was approximately $6.8 million but was completed under budget near $6.1 million. It was reported during Wednesday’s celebration that most of the funding came from state grants through the New Mexico Department of Transportation.
Los Alamos County Council Chair Theresa Cull said she was pleased with the results.
“This project is years in the making, and it is incredible to see it come to life,” she added.
Public Works Director Eric Martinez offered some background on the project.
“This all started nine years ago … a local resident presented a petition to council … requesting the county of Los Alamos develop an urban bike path through the center of town, past historical places, and connect to the Rim Trail, suitable for strollers, wheelchairs, scooters, bikes, trailers and walkers,” he said. “This path is desired to be a paved two-lane trail, separate from roads and sidewalks where possible. So, I hope we achieved that goal.”
Martinez described Fleming as the person who championed the project. From her work, a sub-committee of citizens and staff was formed at the direction of the Transportation Board, he said. The sub-committee worked to develop a planning map, which would be included in the County’s bike plan. This bike plan, which Martinez said was the first of its kind for Los Alamos, was key in getting the Urban Trail funded and developed.
“I feel it was key to acquiring the millions of dollars of grant funds … that set the stage for everything you see here,” he said.
Project Manager Keith Wilson and Deputy County Manager Juan Rael emphasized it was a team effort to get the trail completed. Individuals including contractors, the design consultant, the New Mexico Department of Transportation staff, past and present councilors, Public Works Department staff, Community Services Department staff all contributed.
Some of those individuals attended the celebration Wednesday, including Fleming, who did the honors of snipping the red ribbon to ceremoniously open the Urban Trail for business.
Looking at the final product of what her petition inspired, Fleming said, “I feel just so grateful to everyone who contributed. It’s a pretty amazing community we live in, here.”
“It just makes me happy,” she explained. “It’s awesome.”
A view of the newly completed Urban Trail. Photo by Kirsten Laskey/ladailypost.com
The newly installed sign for the Urban Trail. Photo by Kirsten Laskey/ladailypost.com
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made a major enhancement to the Laboratory’s ability to achieve its mission
made a significant impact on Laboratory sustainability
or established a major direction for the Laboratory and/or the nation
2024Alan Bishop was recognized for his broad impact on the Laboratory
Brad Meyer was recognized for enabling Los Alamos' mission without nuclear testing
Bette Korber for her extremely innovative and insightful viral evolution and vaccine design efforts for pathogens such as HIV and SARS-CoV-2
Fred Mortensen for his extraordinary efforts deriving certification methodology that became the cornerstone for the Stockpile Stewardship and Advanced Strategic Computing Programs
Pedicini for his work over the last 38 years at the Laboratory as a weapons scientist and designer and a foreign threats assessor
Geoffrey West for his contributions to scaling theory that have changed the course of science in the fields of particle physics
West was named one of Time Magazine’s “100 Most Influential People of 2006.”
Paul Whalen for his role as a primary weapons designer
and a developer and manager of the complex physics computational system that was developed to make a positive impact on national security and the Laboratory’s weapons program
Whalen came to the Laboratory during the Cold War in 1956 to perform weapons simulation on developing designs
Howard Menlove for his innovation and implementation of a series of key sensors and instruments that are still the backbone of the international safeguards systems used by the IAEA to determine nations’ compliance with various treaties and agreements
Scott Cram (Foundations of Human Genome team) for distinct contributions enabling significant progress in the Human Genome Project
Larry Deaven (Foundations of Human Genome team) for distinct contributions enabling significant progress in the Human Genome Project
Robert Moyzis (Foundations of Human Genome team) for distinct contributions enabling significant progress in the Human Genome Project
Walter Goad (Foundations of Human Genome team) for distinct contributions enabling significant progress in the Human Genome Project
Darleane Hoffman for her accomplishments and exceptionally distinguished career in nuclear science
and her pioneering work at the frontier of the periodic table
Wojciech Zurek for his pioneering and seminal contributions to the foundations of quantum mechanics and to quantum information science that have changed the course of this field internationally
2008Robert D. Cowan for his world-recognized contributions to the theory of atomic structure and spectra
Sig Hecker for his many important and signature contributions to scientific research and national policy
promoting the importance of the study of terrorism as an emerging threat
and acting as a senior representative of the nuclear weapons complex in the North Korea nuclear weapons situation
Keith Boyer for being the intellectual force behind Los Alamos’s entry into magnetic fusion
Stirling Colgate for a wide array of outstanding contributions to astrophysics research (nuclear diagnostics
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Francis “Frank” Harlow for his role in spearheading the science field of computational fluid dynamics
Conrad "Connie" Longmire for his key role in developing an understanding of some of the fundamental processes in weapons performance
Nerses “Krik” Krikorian for his lifelong contributions to national security
George Cowan for his pioneering work in radiochemical techniques
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Louis Rosen for his vision
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