Alamos Gold Reports First Quarter 2025 Results
Alamos Gold Inc.
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823 Toronto, Ontario M5J 2T3 Telephone: (416) 368-9932 or 1 (866) 788-8801
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Reports First Quarter 2025 Results
Toronto, Ontario (April 30, 2025) - Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended March 31, 2025.
“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. McCluskey, President and Chief Executive Officer.
“We expect this improvement to continue over the next several years through our portfolio of high-return, low-cost growth projects. 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. Longer-term, we see excellent potential to grow production to one million ounces per year through a further expansion of the Island Gold District. Nearly all of this growth is in Canada, it’s all lower cost, and it’s all fully funded providing one of the strongest outlooks in our sector,” Mr. McCluskey added.
First Quarter 2025 Operational and Financial Highlights
- Produced 125,000 ounces of gold, consistent with the low end of the range of quarterly guidance with a solid quarter at Island Gold offsetting lower production from Young-Davidson and Magino. With stronger production expected in the second quarter and through the remainder of the year, the Company remains on track to achieve full year production guidance
- Sold 117,583 ounces of gold at an average realized price of $2,802 per ounce, generating quarterly revenues of $333 million. 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 was below the London PM Fix price, reflecting the delivery of 12,346 ounces into the gold prepayment facility executed in July 2024 based on the prepaid price of $2,524 per ounce
- Total cash costs1 of $1,193 per ounce and all-in sustaining costs ("AISC"1) of $1,805 per ounce were above the top end of guidance for the first half of 2025, driven by higher share-based compensation costs and higher costs per ounce at Young-Davidson and Magino. Given the 45% increase in the share price during the quarter, the revaluation of previously issued share-based compensation increased AISC by approximately $230 per ounce compared to guidance
- Total cash costs and AISC are expected to decrease significantly into the second quarter and through the second half of the year
- Cost of sales were $195.2 million or $1,660 per ounce
- Cash flow from operating activities totaled $79.6 million (including $131.4 million before changes in working capital and taxes paid1, or $0.31 per share). Free cash flow was negative $20.1 million and was impacted by $52.8 million of cash taxes primarily related to 2024 year-end mining and income taxes, settlement of 25% of the gold prepayment obligation, and annual share-based compensation payments. The Company expects stronger free cash flow through the remainder of the year reflecting higher production, lower costs, and lower cash tax payments
- Adjusted net earnings1 were $59.8 million, or $0.14 per share. Adjusted net earnings includes adjustments for unrealized losses on commodity hedge derivatives, net of tax, of $46.3 million, adjustments for unrealized foreign exchange gains recorded within deferred taxes and foreign exchange gain totaling $2.5 million, and other adjustments of $0.8 million
- Cash and cash equivalents were $289.5 million at March 31, 2025, down from $327.2 million at the end of 2024 due to timing of gold sales and the 2024 year-end cash tax payment, paid in the first quarter. The Company remains in a net cash position with $250 million drawn on its credit facility (the "Facility"), and is well-positioned to internally fund all its growth initiatives with strong ongoing free cash flow and $789.5 million of total liquidity
- Paid dividends of $10.4 million, or $0.025 per share for the quarter
- Announced a construction decision on the Lynn Lake project in January 2025 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, Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year, and drive a further decrease in costs
- Entered into an Impact Benefit Agreement ("IBA") with Mathias Colomb Cree Nation ("MCCN"). Concurrently, MCCN's 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 were both withdrawn by MCCN. The Company now has IBA's in place with both of the First Nation communities proximate to the Lynn Lake Project
- Received approval of an amendment to the existing environmental impact assessment (Manifestación de Impacto Ambiental “MIA") by Mexico’s Secretariat of Environment and Natural Resources (“SEMARNAT”) in January 2025, allowing for the start of construction on the PDA project within the Mulatos District
- Reported year-end 2024 Mineral Reserves of 14.0 million ounces of gold (298 million tonnes ("mt")) grading 1.45 grams per tonne of gold (“g/t Au”), a 31% increase from 2023 reflecting the acquisition of Magino in 2024, continued high-grade additions at Island Gold, and an initial Mineral Reserve at Burnt Timber and Linkwood. This marked the sixth consecutive year Mineral Reserves have grown for a cumulative increase of 44%. Additionally, Measured and Indicated Mineral Resources increased 50% to 6.6 million ounces, while Inferred Mineral Resources decreased 2% to 7.1 million ounces
- Announced a binding agreement to sell the option to earn 100% interest in the non-core Quartz Mountain Gold Project (“Quartz Mountain”), located in Oregon, to Q-Gold Resources Ltd. (TSXV:QGR) (“Q-Gold”) for total consideration of up to $21 million and a 9.9% equity interest in Q-Gold in April 2025. The transaction is expected to close in the second quarter of 2025
(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
2 | Alamos Gold Inc
Highlight Summary
| Three Months Ended March 31, | |
|---|---|
| 2025 | 2024 |
Financial Results (in millions)
| Operating revenues | $333.0 | $277.6 |
| Cost of sales(1) | $195.2 | $173.6 |
| Earnings from operations | $94.7 | $81.4 |
| Earnings before income taxes | $25.7 | $75.6 |
| Net earnings | $15.2 | $42.1 |
| Adjusted net earnings(2) | $59.8 | $51.2 |
Adjusted earnings before interest, taxes, depreciation and $145.4 $127.2 amortization (2)
| Cash provided by operating activities before changes in working capital and taxes paid(2) | $131.4 | $135.4 |
| Cash provided by operating activities | $79.6 | $109.4 |
| Capital expenditures (sustaining)(2) | $26.8 | $26.5 |
| Sustaining finance leases(3) | $4.3 | $— |
| Capital expenditures (growth)(2) | $66.3 | $51.6 |
| Capital expenditures (capitalized exploration) | $6.6 | $6.4 |
| Free cash flow(2)(3) | ($20.1) | $24.9 |
Operating Results
125,000 135,700 Gold production (ounces)
117,583 132,849 Gold sales (ounces)
Per Ounce Data
Average realized gold price (5) $2,802 $2,069 Average spot gold price (London PM Fix) $2,859 $2,070 Cost of sales per ounce of gold sold $1,660 $1,307 (includes amortization) (1)
Total cash costs per ounce of gold sold (2) $1,193 $910 All-in sustaining costs per ounce of gold sold (2) $1,805 $1,265
Share Data
| Earnings per share, basic | $0.04 | $0.11 |
| Earnings per share, diluted | $0.04 | $0.11 |
| Adjusted earnings per share, basic(2) | $0.14 | $0.13 |
| Weighted average common shares outstanding (basic) (000’s) | 420,415 | 396,817 |
Financial Position (in millions)
$289.5 $327.2 Cash and cash equivalents (4)
(1) Cost of sales includes mining and processing costs, royalties, 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) 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, 2024.
3 | Alamos Gold Inc
| Three Months Ended March 31, | |
|---|---|
| 2025 | 2024 |
Gold production (ounces)
| Island Gold District(7) | 59,200 | 33,400 |
| Young-Davidson | 35,400 | 40,100 |
| Mulatos District(8) | 30,400 | 62,200 |
Gold sales (ounces)
| Island Gold District(7) | 53,388 | 34,130 |
| Young-Davidson | 35,475 | 39,810 |
| Mulatos District(8) | 28,720 | 58,909 |
Cost of sales (in millions) (1)
| Island Gold District(7) | $79.5 | $33.4 |
| Young-Davidson | $65.1 | $65.4 |
| Mulatos District(8) | $50.6 | $74.8 |
Cost of sales per ounce of gold sold (includes amortization) (1)
| Island Gold District(7) | $1,489 | $979 |
| Young-Davidson | $1,835 | $1,643 |
| Mulatos District(8) | $1,762 | $1,270 |
Total cash costs per ounce of gold sold (2)
| Island Gold District(7) | $1,068 | $706 |
| Young-Davidson | $1,350 | $1,188 |
| Mulatos District(8) | $1,233 | $840 |
Mine-site all-in sustaining costs per ounce of gold sold (2)(3)
| Island Gold District(7) | $1,446 | $1,105 |
| Young-Davidson | $1,655 | $1,482 |
| Mulatos District(8) | $1,320 | $905 |
Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2)
| Island Gold District(4)(7)(9) | $72.3 | $54.6 |
| Young-Davidson(5) | $18.8 | $20.2 |
| Mulatos District(6)(8) | $4.0 | $3.9 |
| Other | $8.9 | $5.8 |
(1) Cost of sales includes mining and processing costs, royalties, 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
(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, 2024).
(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, 2025. Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 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.
4 | Alamos Gold Inc
Environment, Social and Governance Summary Performance
Health and Safety
- Total recordable injury frequency rate1 of 1.49 in the first quarter, a 34% decrease from 2.25 in the fourth quarter of 2024
- Lost time injury frequency rate1 of 0.09 in the first quarter, consistent with the fourth quarter of 2024
- During the first quarter, Alamos had 17 recordable injuries across its sites and one lost time injury
Alamos strives to maintain a safe, healthy working environment for all, 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.
Environment
- Zero significant environmental incidents and two minor reportable spills in the first quarter
- Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits
Two minor reportable events occurred during the first quarter. At Young-Davidson, 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.
Community
Ongoing donations, medical support and infrastructure investments were provided to local communities, including:
- Significant donations to support the needs of two hospitals in the Algoma region, including contributions for the purchase of new medical imaging equipment. Additionally, donated CAD$66,000 to fund the acquisition of an SCBA Filling Station for the Matachewan Fire Department
- Committed CAD$300,000 over three years to the Museum of Northern History in Kirkland Lake, Ontario, to support its reopening and continued operation
- Delivered continuous health services to the local community near the Mulatos District, offering dental services, medical consultations and essential medications to residents
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, health care, education, cultural and community programs remain a focus of the Company.
Governance and Disclosure
- Completed annual fieldwork and assurance of Alamos’ compliance with the World Gold Council’s Responsible Gold Mining Principles ("RGMPs"). Alamos will publish its 2024 RGMP Report in the second quarter of 2025
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.
5 | Alamos Gold Inc
Outlook and Strategy
| 2025 Guidance | |||||
| Island Gold | Young- | Mulatos | Lynn Lake | ||
| District | Davidson | District | Total |
Gold production (000's ounces) 275 - 300 175 - 190 130 - 140 — 580 - 630 Cost of sales, including amortization (in millions)(3) $805 Cost of sales, including amortization ($ per ounce)(3) $1,330 Total cash costs ($ per ounce)(1) $725 - $775 $1,075 - $1,125 $925 -$975 — $875- $925 All-in sustaining costs ($ per ounce)(1) $1,250 - $1,300 Mine-site all-in sustaining costs ($ per ounce)(1)(2) $1,100 - $1,150 $1,390 - $1,440 $1,025 - $1,075 — Capital expenditures (in millions)
| Sustaining capital(1) | $80 - $85 | $55 - $60 | $3 - $5 | — | $138 - $150 | |
| Growth capital(1) | $270 - $300 | $15 - $20 | $37 - $40 | $100 - $120 | $422- $480 | |
| Total Sustaining and Growth Capital(1) | $350 - $385 | $70 - $80 | $40 - $45 | $100 - $120 | $560 - $630 | |
| Capitalized exploration(1) | $20 | $9 | $6 | $4 | $39 | |
| Total capital expenditures and capitalized exploration(1) | $370 - $405 | $79 - $89 | $46 - $51 | $104 - $124 | $599 - $699 |
(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, royalties, and amortization expense, 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, through growing production, expanding margins, and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while reinvesting in high-return internal growth opportunities and supporting higher returns to shareholders.
In January 2025, 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 threeyear production, cost and capital outlook. 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, including labour and contractors. 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, and early 2025, 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, and increasing grades at La Yaqui Grande. 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. Excluding the impact of these variables, the Company remains confident with its full year cost guidance.
6 | Alamos Gold Inc
The Company's pipeline of high-return organic growth projects, including the Phase 3+ Expansion, 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, a 24% increase from 2024, at 8% lower AISC, 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.
Longer-term, 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. In 2027, capital spending is expected to decrease 27% relative to 2026 driven by significantly lower capital at the Island Gold District, and the completion of construction of PDA. 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, as well as the addition of Magino. Mineral Reserves have now increased for six consecutive years for a cumulative increase of 44% over that time frame.
As previously guided, 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, with proceeds already received in 2024. 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, and $789.5 million of total liquidity. At current gold prices, 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, PDA in 2027, and Lynn Lake in 2028.
7 | Alamos Gold Inc
First Quarter 2025 Results
Island Gold District Financial and Operational Review
| Three Months Ended March 31, | |
|---|---|
| 2025 | 2024 |
Gold production (ounces) 59,200 33,400 Gold sales (ounces) 53,388 34,130
Financial Review (in millions)
| Operating Revenues | $152.0 | $71.0 |
| Cost of sales(1) | $79.5 | $33.4 |
| Earnings from operations | $71.4 | $36.9 |
| Cash provided by operating activities | $86.9 | $40.9 |
| Capital expenditures (sustaining)(2) | $15.5 | $13.5 |
| Lease payments (sustaining)(2),(5) | $4.3 | $— |
| Capital expenditures (growth)(2) | $48.6 | $37.6 |
| Capital expenditures (capitalized exploration)(2) | $3.9 | $3.5 |
| Mine-site free cash flow(2),(5) | $18.9 | ($13.7) |
| Cost of sales, including amortization per ounce of gold sold(1) | $1,489 | $979 |
| Total cash costs per ounce of gold sold(2) | $1,068 | $706 |
| Mine-site all-in sustaining costs per ounce of gold sold(2),(3) | $1,446 | $1,105 |
Island Gold Mine Underground Operations
| Tonnes of ore mined | 110,226 | 106,737 |
| Tonnes of ore mined per day | 1,225 | 1,173 |
| Average grade of gold(4) | 11.50 | 10.53 |
| Metres ("m") developed | 2,157 | 1,787 |
Mill Operations
| Tonnes of ore processed | 109,067 | 107,215 |
| Tonnes of ore processed per day | 1,212 | 1,178 |
| Average grade of gold(4) | 11.36 | 10.63 |
| Contained ounces milled | 39,838 | 36,651 |
| Average recovery rate | 98% | 97% |
Magino Mine Open Pit Operations
| Tonnes of ore mined - open pit(7) | 1,064,870 | — |
| Tonnes of ore mined per day | 11,832 | — |
| Total waste mined - open pit(8) | 3,446,128 | — |
| Total tonnes mined - open pit | 4,510,998 | — |
| Waste-to-ore ratio(8) | 3.24 | — |
| Average grade of gold(4) | 0.77 | — |
Mill Operations
| Tonnes of ore processed | 651,153 | — |
| Tonnes of ore processed per day | 7,235 | — |
| Average grade of gold processed(4) | 0.86 | — |
| Contained ounces milled | 17,920 | — |
| Average recovery rate | 92% | — |
(1) Cost of sales includes mining and processing costs, 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, 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, as the acquisition of the Magino mine was completed on July 12, 2024.
(7) Includes ore stockpiled during the quarter.
(8) Total waste mined includes operating waste and capitalized stripping.
8 | Alamos Gold Inc
The Island Gold District produced 59,200 ounces in the first quarter of 2025, a 77% increase from the prior year period, driven by the inclusion of the Magino mine, which was acquired in July 2024, as well as an increase in tonnes and grades processed from Island Gold.
Island Gold Operational Review
Underground mining rates averaged 1,225 tpd in the first quarter, consistent with guidance. 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, consistent with guidance.
Magino Operational Review
Mining rates averaged 50,122 tpd during the first quarter. This included 11,832 tpd of ore, slightly lower than planned for the first quarter. Given lower mill availability, mining rates were focused on waste stripping activities. Mining rates have subsequently improved to average over 15,000 tpd of ore in April, consistent with annual guidance.
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. The batch test was successful, with recoveries in line with expectations.
Reflecting the increased milling rates at Magino, significant improvement in the consistency of the operation, and successful batch test, 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.
Financial Review (Island Gold District)
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. On a per ounce basis, 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, including shaft site infrastructure, paste plant, and shaft sinking. 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. Additionally, 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. At current gold prices, the Island Gold District is expected to continue self funding the Phase 3+ Expansion, exploration and sustaining capital. The operation is expected to generate significant free cash flow from 2026 onward after the completion of the expansion.
9 | Alamos Gold Inc
Young-Davidson Financial and Operational Review
| Three Months Ended March 31, | |
|---|---|
| 2025 | 2024 |
Gold production (ounces) 35,400 40,100 Gold sales (ounces) 35,475 39,810
Financial Review (in millions)
| Operating Revenues | $101.2 | $82.7 |
| Cost of sales(1) | $65.1 | $65.4 |
| Earnings from operations | $35.1 | $16.8 |
| Cash provided by operating activities | $58.0 | $34.8 |
| Capital expenditures (sustaining)(2) | $10.7 | $11.6 |
| Capital expenditures (growth)(2) | $6.1 | $7.6 |
| Capital expenditures (capitalized exploration)(2) | $2.0 | $1.0 |
| Mine-site free cash flow(2) | $39.2 | $14.6 |
| Cost of sales, including amortization per ounce of gold sold(1) | $1,835 | $1,643 |
| Total cash costs per ounce of gold sold(2) | $1,350 | $1,188 |
| Mine-site all-in sustaining costs per ounce of gold sold(2),(3) | $1,655 | $1,482 |
Underground Operations
| Tonnes of ore mined | 608,601 | 667,062 |
| Tonnes of ore mined per day | 6,762 | 7,330 |
| Average grade of gold(4) | 2.00 | 1.94 |
| Metres developed | 2,132 | 1,914 |
Mill Operations
| Tonnes of ore processed | 599,215 | 665,778 |
| Tonnes of ore processed per day | 6,658 | 7,316 |
| Average grade of gold(4) | 2.01 | 1.94 |
| Contained ounces milled | 38,765 | 41,609 |
| Average recovery rate | 91% | 89% |
(1) Cost of sales includes mining and processing costs, 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
(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").
Operational review
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. During the first quarter, processed grades averaged 2.01 g/t Au, 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, inline with annual guidance.
Financial Review
Revenues increased to $101.2 million in the first quarter, 22% 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.
10 | Alamos Gold Inc
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.
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.
11 | Alamos Gold Inc
Mulatos District Financial and Operational Review
| Three Months Ended March 31, | |
|---|---|
| 2025 | 2024 |
Gold production (ounces) 30,400 62,200 Gold sales (ounces) 28,720 58,909 Financial Review (in millions)
| Operating Revenues | $84.0 | $123.9 |
| Cost of sales(1) | $50.6 | $74.8 |
| Earnings from operations | $31.1 | $45.8 |
| Cash provided by operating activities | $4.6 | $53.6 |
| Capital expenditures (sustaining)(2) | $0.6 | $1.4 |
| Capital expenditures (growth)(2) | $2.7 | $0.6 |
| Capital expenditures (capitalized exploration)(2) | $0.7 | $1.9 |
| Mine-site free cash flow(2) | $0.6 | $49.7 |
| Cost of sales, including amortization per ounce of gold sold(1) | $1,762 | $1,270 |
| Total cash costs per ounce of gold sold(2) | $1,233 | $840 |
| Mine site all-in sustaining costs per ounce of gold sold(2),(3) | $1,320 | $905 |
La Yaqui Grande Mine Open Pit Operations
| Tonnes of ore mined - open pit | 994,813 | 986,214 |
| Total waste mined - open pit | 4,085,874 | 4,076,910 |
| Total tonnes mined - open pit | 5,080,687 | 5,063,125 |
| Waste-to-ore ratio | 4.11 | 4.13 |
Crushing and Heap Leach Operations
| Tonnes of ore stacked | 1,022,583 | 981,740 |
| Average grade of gold processed(4) | 0.75 | 1.31 |
| Contained ounces stacked | 24,610 | 41,398 |
| Average recovery rate | 84% | 121% |
| Ore crushed per day (tonnes) | 11,400 | 10,800 |
(1) Cost of sales includes mining and processing costs, royalties, 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) Grams per tonne of gold ("g/t Au").
Mulatos District Operational Review
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, 59% lower than the prior year period. Grades stacked averaged 0.75 g/t Au for the first quarter, consistent with the low-end of annual guidance. As previously guided, 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, exceeding annual guidance. 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, in-line with expectations. The operation is expected to benefit from ongoing gold production at decreasing rates through the remainder of 2025.
Mulatos District Financial Review
Revenues of $84.0 million in the first quarter were 32% lower than the prior year period, reflecting lower ounces sold, partially offset by higher realized gold prices. Cost of sales decreased to $50.6 million in the first quarter, 32% lower than the prior year period, driven by lower ounces sold.
12 | Alamos Gold Inc