Alamos Gold Achieves Increased 2024 Guidance with Record Annual Production; Three-Year Operating Guidance Outlines 24% Production Growth by 2027 at Significantly Lower Costs

Core Viewpoint - Alamos Gold Inc. is set to enhance its low-cost growth trajectory starting in 2028 with the construction decision for the Lynn Lake project, alongside a strong production outlook and financial performance for 2024 [1][3]. Production and Financial Performance - The company achieved a record gold production of 567,000 ounces in 2024, marking a 7% increase from 2023, and met both quarterly and annual production guidance [2][6]. - Revenues reached $1.3 billion for the full year, driven by strong operational performance and higher realized gold prices [6][7]. - The company generated record free cash flow while investing in high-return growth projects [2][7]. Growth Outlook - Alamos Gold expects production to increase by 24% over the next three years, with the Lynn Lake project anticipated to contribute significantly starting in 2028 [3][10]. - The Lynn Lake project is projected to average annual production of 176,000 ounces over its first ten years, increasing consolidated production to approximately 900,000 ounces per year [10][28]. - The company plans to ramp up construction activities for Lynn Lake through 2025, with initial production expected in the first half of 2028 [10][28]. Cost Management - All-in sustaining costs (AISC) for 2024 are expected to be at the top end of the guidance range at $1,300 per ounce, with costs anticipated to decrease slightly in 2025 and further by approximately 10% by 2027 [6][30]. - The company aims to offset inflationary pressures with low-cost production growth, particularly from the Island Gold District following the completion of the Phase 3+ Expansion in 2026 [10][30]. Capital Expenditures - Total capital expenditures for 2025 are projected to range between $560 million and $630 million, reflecting the inclusion of construction capital for Lynn Lake and accelerated spending on other projects [10][21]. - Sustaining capital is expected to be between $138 million and $150 million, while growth capital is projected to be between $422 million and $480 million [10][25]. Exploration and Development - The exploration budget for 2025 has been increased to $72 million, representing a 16% increase from 2024, supporting broad-based success across the company's asset base [10][21]. - An evaluation of the long-term expansion of the Magino mill is underway, which could further enhance production capacity [10][29].