Company Performance - Alamos Gold (AGI) has outperformed the Basic Materials sector with a year-to-date return of approximately 25.4%, compared to the sector average of 6.8% [4] - The Zacks Consensus Estimate for AGI's full-year earnings has increased by 15% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Context - Alamos Gold is part of the Mining - Gold industry, which consists of 40 companies and currently ranks 51 in the Zacks Industry Rank. This industry has seen an average gain of 19.9% year-to-date, with AGI performing better than this average [5] - Another stock in the same industry, DRDGOLD (DRD), has also outperformed the sector with a year-to-date return of 31.8% and a consensus EPS estimate increase of 41.3% over the past three months [4][5] Zacks Rank - Alamos Gold holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] - The Zacks Rank system evaluates stocks based on earnings estimates and revisions, highlighting potential outperformers in the market [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Alamos Gold (AGI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 16%, with projected EPS growth of 60.8% this year, significantly surpassing the industry average of 20.3% [5] Group 2: Financial Metrics - Alamos Gold's year-over-year cash flow growth is 37.3%, well above the industry average of 8.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 14% [7] Group 3: Earnings Estimates - The current-year earnings estimates for Alamos Gold have increased by 7.3% over the past month, indicating a positive trend in earnings estimate revisions [8] - Alamos Gold has achieved a Growth Score of B and a Zacks Rank 2 due to these positive earnings estimate revisions [10]

Core Viewpoint - Alamos Gold (AGI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Alamos Gold is projected to earn $1.29 per share, reflecting a 61.3% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Alamos Gold has risen by 15% [8]. Institutional Investor Influence - Institutional investors often base their valuation models on earnings estimates, leading to significant stock transactions that can drive price movements [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Alamos Gold's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Fourth Quarter & Year-End 2024 Results Presentation February 20, 2025 Cautionary notes All resource and reserve estimates included in this Presentation 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, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule ...

Financial Data and Key Metrics Changes - Alamos Gold Inc. achieved record revenues of just over $1.3 billion for the full year, up 32% from 2023, driven by record production and higher realized gold prices [19] - The company reported net earnings of $88 million in Q4, or $0.21 per share, with adjusted net earnings of $103 million, or $0.25 per share [21] - Free cash flow reached a record $272 million for the full year, net of all spending on the Phase Three expansion and the largest exploration program to date [22] Business Line Data and Key Metrics Changes - The Island Gold mine produced a record 155,000 ounces for the year, achieving the top end of 2024 guidance [26] - Young Davidson mine produced 45,700 ounces in Q4, with total production for the year at 174,000 ounces, slightly below guidance due to lower grades mined [40][46] - The Mulatos District produced 205,000 ounces for the full year, exceeding guidance and generating record mine site free cash flow of $240 million [48] Market Data and Key Metrics Changes - The average realized gold price was $2,632 per ounce in Q4 and $2,379 per ounce for the full year [19] - Total cash costs were $981 per ounce in Q4 and $927 per ounce for the full year, while all-in sustaining costs were $1,333 per ounce in Q4 and $1,281 per ounce for the full year [20] Company Strategy and Development Direction - The company plans to achieve 7% production growth in 2025, targeting approximately 605,000 ounces, with further growth expected to 700,000 ounces in 2026 and 900,000 ounces by 2028 [11][12] - Alamos Gold is focused on low-cost growth and has significant ongoing projects, including the Phase Three expansion at Island Gold and the Lynn Lake project [12][13] - The company is also exploring opportunities in Mexico, noting a positive change in the regulatory environment and the potential for further investment [95][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth profile, highlighting strong free cash flow and the ability to fund growth initiatives internally [11][75] - The management noted that the operational and financial performance in 2024 was exceptional, with a strong outlook for the coming years [75] - The company anticipates a seamless transition from open-pit to underground production at the Milatos project, with expected production changes in 2027 [99] Other Important Information - The company reported a 31% increase in global reserves to 14 million ounces, marking the sixth consecutive year of growth [16] - Alamos Gold amended and upsized its credit facility from $500 million to $750 million, enhancing its financial capacity [24] Q&A Session Summary Question: Synergies from Island Gold and Magino combination - The company realized about $100 million of capital synergies in 2024 and 2025, with the majority of operating synergies expected to ramp up starting in 2026 [81][84] Question: Tax implications and cash taxes - The deferral of cash taxes is expected to last about two years, with significant cash taxes anticipated to start around 2027 [86] Question: Young Davidson grades and future expectations - The lower grades in 2024 were due to slight variances in the mining sequence, but the company expects to meet guidance in 2025 [87][90] Question: Cost drivers and inflationary pressures - The increase in costs is driven by inflation, lower grades, and timing of sustaining capital [92] Question: Investment opportunities in Mexico - Management noted a positive change in the regulatory environment in Mexico and indicated potential for further investment in the Milatos district [95][102] Question: Dividend policy reconsideration - The company is focused on aggressive growth initiatives and does not plan to increase dividends in the near future [114]

Group 1 - Alamos Gold is a high-quality gold mining company with most production in Canada and some in Mexico [1] - The company is expected to experience production growth in the coming years [1] Group 2 - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-3 years [2] - The portfolio has achieved a compounded annual growth rate of 26% over the last 6 years [2]

ALAMOS GOLD INC. Management's Discussion and Analysis (in United States dollars, unless otherwise stated) For the Year ended December 31, 2024 ALAMOS GOLD INC. For the Year ended December 31, 2024 Table of Contents | Overview of the Business | 3 | | --- | --- | | Highlight Summary | 4 | | 2024 Highlights | 6 | | Environment, Social and Governance Summary Performance | 8 | | Business Developments | 9 | | Outlook and Strategy | 11 | | Young-Davidson Mine ("Young-Davidson") | 14 | | Island Gold Mine ("Island G ...

Core Viewpoint - Alamos Gold Inc. achieved record operational and financial performance in 2024, with significant increases in production, revenues, and free cash flow, driven by strong operational performances across its mining operations and strategic acquisitions [2][29]. Operational and Financial Highlights - Gold production reached a record 567,000 ounces in 2024, a 7% increase from 2023, meeting revised guidance [4][29]. - Full-year revenues totaled $1.3 billion, a 32% increase from 2023, driven by higher gold prices and production [4][29]. - Record free cash flow of $272 million was generated in 2024, funding high-return growth initiatives [4][29]. - Total cash costs for the year were $927 per ounce, with all-in sustaining costs (AISC) at $1,281 per ounce, both in line with guidance [4][29]. Production Breakdown - The Mulatos District produced 205,000 ounces, exceeding guidance by 5%, contributing to mine-site free cash flow of $239.9 million [4][30]. - Island Gold produced 155,000 ounces, meeting the high end of guidance and self-funding all expansion and exploration initiatives [4][30]. - Young-Davidson produced 174,000 ounces, generating record mine-site free cash flow of $140.9 million [4][30]. Mineral Reserves and Resources - Global Mineral Reserves increased by 31% to 14 million ounces, reflecting the acquisition of Magino and ongoing exploration success [3][36]. - Island Gold's Mineral Reserves and Resources increased by 9% to 6.7 million ounces, with significant improvements in grades [37][38]. Growth Initiatives - The company announced a construction decision on the Lynn Lake project, expected to produce 176,000 ounces annually over its first ten years [8][34]. - The Phase 3+ Expansion at Island Gold is on track for completion in the first half of 2026, expected to drive further free cash flow growth [32][43]. - The exploration budget for 2025 is set at $72 million, a 16% increase from 2024, reflecting the company's commitment to expanding its resource base [45]. Financial Position - Cash and cash equivalents were $327.2 million at year-end 2024, up from $224.8 million at the end of 2023, with total liquidity of approximately $827.2 million [8][47]. - The company paid dividends of $41 million for the full year, maintaining a quarterly dividend of $0.025 per share [8][47]. 2025 Guidance - Production is expected to increase by 7% in 2025, ranging between 580,000 and 630,000 ounces, with AISC projected to decrease by 8% by 2027 [41][43]. - Capital expenditures are expected to increase in 2025 due to development capital for Lynn Lake and PDA projects [44].

Core Insights - Alamos Gold Inc. reported a significant 31% increase in global Proven and Probable Mineral Reserves to 14.0 million ounces of gold as of December 31, 2024, driven by the acquisition of the Magino mine and continued high-grade additions at Island Gold [4][7][32] - The company has experienced six consecutive years of growth in Mineral Reserves, with a notable increase in grades at Island Gold, which will support future mine planning and expansion studies [3][9][31] Mineral Reserves - Global Proven and Probable Mineral Reserves increased to 14.0 million ounces, reflecting a 31% rise from 10.7 million ounces at the end of 2023, primarily due to the addition of Magino and high-grade additions at Island Gold [4][7][8] - Excluding Magino, Proven and Probable Reserves increased by 12% to 11.9 million ounces, with a replacement rate of 249% for depletion [4][8] - Island Gold's Mineral Reserves rose 32% to 2.3 million ounces, with grades increasing by 11% to 11.40 g/t Au [4][9][20] Mineral Resources - Global Measured and Indicated Mineral Resources increased by 50% to 6.6 million ounces, primarily due to the acquisition of Magino [15][16] - Excluding Magino, Measured and Indicated Mineral Resources rose 6% to 4.7 million ounces, reflecting successful exploration at Burnt Timber and Linkwood [15][16] - Global Inferred Mineral Resources decreased by 2% to 7.1 million ounces, with grades remaining stable at 1.76 g/t Au [16] Exploration and Future Plans - The company has allocated a record exploration budget of $72 million for 2025, focusing on expanding mineralization across its asset base, particularly at Island Gold and the Qiqavik project [4][15] - A total of 41,500 meters of underground drilling is planned for 2025, targeting new Mineral Reserves and Resources near existing production [25][26] - The updated Island Gold District mine plan and Expansion Study are expected to be released in mid-2025, incorporating significant growth in grades and reserves [31][32] Specific Project Updates - Magino's Mineral Reserve is estimated at 2.0 million ounces with a grade of 0.91 g/t Au, reflecting a decrease from the previous owner's estimate due to more conservative assumptions [10][32] - The Lynn Lake District saw a 42% increase in Mineral Reserves to 3.3 million ounces, driven by successful conversions at Burnt Timber and Linkwood [11][50] - The Mulatos District experienced a slight decrease in Mineral Reserves to 1.4 million ounces, with ongoing exploration success at the PDA deposit [12][38]

Core Viewpoint - Alamos Gold Inc. has reported positive results from an internal economic study on the Burnt Timber and Linkwood satellite deposits, which are expected to significantly extend the mine life of the Lynn Lake project to 27 years and enhance its economics with a low initial capital requirement and a high after-tax Internal Rate of Return (IRR) of 54% [2][3][8]. Economic Analysis - The after-tax IRR for the Burnt Timber and Linkwood project is estimated at 54%, with an after-tax Net Present Value (NPV) of $177 million at a gold price of $2,200 per ounce [6][15]. - At a higher gold price of $2,800 per ounce, the after-tax IRR increases to 83%, and the NPV rises to $292 million [6][15]. - The payback period is less than one year based on the base case gold price [19]. Production and Costs - Average annual gold production is projected at 83,000 ounces over a 10-year mine life, with total cash costs of $1,140 per ounce and all-in sustaining costs of $1,164 per ounce [6][33]. - Initial capital expenditure is estimated at $67 million, with total life of mine capital costs expected to reach $88 million [6][36]. - The total all-in cost per ounce produced is projected to be $1,241 [6]. Mineral Reserves and Resources - The combined Mineral Reserves for the Lynn Lake project, including Burnt Timber and Linkwood, have increased by 40% to 3.3 million ounces of gold [6][10]. - The initial Mineral Reserve at Burnt Timber and Linkwood is 940,000 ounces, grading 0.95 grams per tonne [10][11]. Project Overview - The Burnt Timber and Linkwood deposits will be mined using conventional open pit methods, with mining activities expected to overlap for a combined mine life of 10 years [27][23]. - Ore will be processed at the MacLellan mill, which has a nominal capacity of 8,000 tonnes per day [29][30]. Exploration Potential - There is significant exploration upside at Burnt Timber and Linkwood, with plans for a 2025 drill program to expand mineralization beyond current reserves [43][45]. - The Lynn Lake project covers a large area with multiple regional targets, indicating potential for additional satellite deposits [45][46].