Alamos Gold Announces Island Gold District Expansion to 20,000 TPD, Creating One of Canada's Largest and Lowest Cost Gold Mines with Attractive Economics, including 69% After-Tax IRR and $12.2 Billion NPV at $4,500/oz Gold

Core Viewpoint - Alamos Gold Inc. has reported significant advancements in its Island Gold District operation, including a 30% increase in Mineral Reserves and an expansion of the Magino mill to 20,000 tonnes per day, which is expected to enhance production and profitability, positioning it as one of Canada's largest and most profitable gold operations [1][2]. Production and Economic Highlights - The IGD Expansion is projected to increase average annual production to 534,000 ounces over the next 10 years, a 27% increase from the Base Case Life of Mine Plan [3]. - The total gold production is expected to rise from 5,836,000 ounces in the Base Case to 7,963,000 ounces under the Expansion Study [5]. - Average mine-site all-in sustaining costs (AISC) are expected to decrease by approximately 31% to $1,025 per ounce over the initial 10 years post-expansion [3][50]. Mineral Reserves and Resources - The IGD Expansion Study indicates a total Proven and Probable Mineral Reserve of 8.3 million ounces, a 30% increase from the previous estimate of 6.3 million ounces [8][21]. - Underground Mineral Reserves increased by 25% to 5.1 million ounces, while open pit Mineral Reserves rose by 40% to 3.1 million ounces [9][10]. Capital Expenditure and Financial Metrics - Growth capital for the IGD Expansion is estimated at $542 million, with total growth capital, including remaining Phase 3+ Expansion spending, expected to reach $704 million [60]. - The after-tax net present value (NPV) of the project is estimated at $8.2 billion at a long-term gold price of $3,200 per ounce, increasing to $12.2 billion at a price of $4,500 per ounce [14][15]. Environmental Impact - The project aims for a 56% reduction in greenhouse gas emissions per ounce produced, building on a 30% reduction already achieved compared to the industry average [4][38]. Operational Improvements - The expansion includes enhancements to the Magino mill, such as a new parallel circuit with a capacity of 10,000 tpd, which will double the overall capacity to 20,000 tpd [22][48]. - The transition to shaft operations is expected to improve mining efficiency and reduce costs, with underground mining rates projected to increase to 3,000 tpd by 2029 [25][31].