Alamos Gold Announces Receipt of Environmental Permit Amendment Allowing for the Start of Construction on the Puerto Del Aire Project in Mexico
ALAMOS GOLD INC.
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823
Toronto, Ontario, Canada M5J 2T3
Telephone: (416) 368-9932 or 1 (866) 788-8801
All amounts are in United States dollars, unless otherwise stated.
F O R I M M E D I A T E R E L E A S E
W E B S I T E : w w w . a l a m o s g o l d . c o m T R A D I N G S Y M B O L : T S X : A G I N Y S E : A G I
Alamos Gold Announces Receipt of Environmental Permit Amendment Allowing
for the Start of Construction on the Puerto Del Aire Project in Mexico
Toronto, Ontario (January 29, 2025) – Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or
the “Company”) today announced it has been granted approval of an amendment to its existing
environmental impact assessment ( Manifestación de Impacto Ambiental “MIA") by Mexico’s
Secretariat of Environment and Natural Resources (“SEMARNAT”), allowing for the start of
construction on the Puerto Del Aire (“PDA”) project located within the Mulatos District.
“Mulatos is our founding operation and a steady producer since 2005. Through a long -track
record of exploration success, we have discovered and developed a number of high -return
projects that have continued to extend the mine life of the Mulatos District. Having achieved this
key permitting milestone through long -standing community, state , and federal government
support, PDA is expected to significantly extend the mine life of the District , as our next high -
return project with significant exploration upside. With an initial Mineral Reserve and Resource
declared on PDA at the end of 2021, the transition from discovery to construction has been rapid
and exemplifies the exploration upside within the District,” said John A. McCluskey, President
and Chief Executive Officer.
As outlined earlier this month, 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 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 a n
attractive, low-cost, high-return project. Annual gold production is expected to average 127,000
ounces over the first four years, and 104,000 ounces over an eight-year mine life based on
Mineral Reserves at the end of 2023. Mine-site all-in sustaining costs are expected to average
$1,003 per payable ounce.
Combined with a low capital inten sity, PDA has an estimated after-tax Net Present Value
(“NPV”) (5%) of $269 million, and after-tax Internal Rate of Return (“IRR”) of 46%, using a base
case gold price of $1,950 per ounce and MXN/USD foreign exchange rate of 18:1. At a $2,500
per ounce gold price, PDA has an estimated after-tax NPV (5%) of $492 million and an after-
tax IRR of 73%.
The project contains significant exploration upside with PDA open in multiple directions and
higher grade mineralization intersected below the past producing Cerro Pelon open pit. This is
expected to support an initial underground Mineral Resource at Cerro Pelon with the 2024 year-
end update to be released in February 2025. Cerro Pelon represents upside as a potential
source of additional feed to the PDA sulphide mill that could extend the higher rates of
production beyond the first four years of the current mine plan.
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About Alamos
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, Canada, and the Mulatos District in Sonora State, Mexico. Additionally, the
Company has a strong portfolio of growth projects, including the Phase 3+ Expansion at Island
Gold, and the Lynn Lake project in Manitoba, Canada. 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”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Scott K. Parsons
Senior Vice President, Corporate Development & Investor Relations
(416) 368-9932 x 5439
Khalid Elhaj
Vice President, Business Development & Investor Relations
(416) 368-9932 x 5427
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 news release contains or incorporates by reference “forward -looking statements” and “forward -looking
information” as defined under applicable Canadian and U.S. securities laws. All statements in this news release,
other than statements of historical fact, which address events, results, outcomes or developments that the Company
expects to occur are, or may be deemed to be, forward -looking statements and are generally, but not always,
identified by the use of forward -looking terminology such as "expect", “anticipate”, “potential”, “o pportunity”,
“estimate”, “continue”, “budget”, or variations of such words and phrases and similar expressions or statements that
certain actions, events or results “may", “could”, “would”, "might" or "will" be taken, occur or be achieved or the
negative c onnotation of such terms. Forward -looking statements contained in this news release are based on
information, expectations, estimates and projections as of the date of this news release.
Forward-looking statements in this news release include, but may not be limited to, information as to strategy, plans,
expectations or future financial or operating performance pertaining to, or anticipated to result from, the PDA
development project, such as expectations, assumptions and estimations regarding: the project and its attractive
economics and significant exploration upside; construction and development of the project; timing of construction
activities; development focusses; initial underground Mineral Resource at Cerro Pelon; mine life; mine plan;
exploration potential; anticipated production; gold grades; mineralization; budget allocation for PDA development;
initial capital estimates and anticipated spending; operating costs including mine -site all-in sustaining costs; cash
costs; economic analysis including after -tax net present value and internal rate of return; gold price, other metal
prices and foreign exchange rates; the nature and stability of relationships with the Mexican authorities a nd
administration; community support; and other statements that express management's expectations or estimates of
future performance, operational, geological or financial results.
The Company cautions that forward-looking statements are necessarily based upon several factors and assumptions
that, while considered reasonable by management at the time of making such statements, are inherently subject to
significant business, economic, technical, legal, 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.
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Such factors include (without limitation): the actual results of current exploration activities; conclusions of economic
and geological evaluations; changes in project parameters as plans continue to be refined; any impacts of any
illnesses, diseases, epidemics or pandemics on operations and the broader market, including the nature and duration
of any regulatory responses; state and federal orders or mandates (including with respect to mining operations
generally or auxiliary businesses or services required for the Company’s operations) in Mexico; changes in national
and local government legislation, controls or regulations; failure to comply with environmental and health and safety
laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms);
ability to sell or deliver gold doré bars; disruptions in the maintenance or provision of required infrastructure and
information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel,
natural gas, and electricity; operating or technical difficulties in connection with mining or development activities,
including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore
grade, min ing rates, recovery timing and recovery rate estimates and may be impacted by unscheduled
maintenance); changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar, and Mexican peso);
the impact of inflation; employee and community rel ations; litigation and administrative proceedings ; disruptions
affecting operations; availability of and increased costs associated with mining inputs and labour; delays in the
development or updating of mine and/or development plans; changes that may be required to the intended method
of accessing and m ining the deposit at Puerto Del Aire and changes related to the intended method of processing
any ore from the deposit at Puerto Del Aire; inherent risks and hazards associated with mining and mineral processing
including environmental hazards, industrial accidents, unusual or unexpected formations, pressures and cave -ins;
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, risks
in obtaining and maintaining necessary licenses, permits and authorizations, contests over title to properties;
expropriation or nationalization of property; politi cal or economic developments in Canada or Mexico and other
jurisdictions in which the Company may carry on business in the future; increased costs and risks related to the
potential impact of climate change; the costs and timing of construction and develop ment of new deposits; 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; and business opportunities that may be
pursued by the Company.
For a more detailed discussion of such risks and other risk factors that may affect the Company's ability to achieve
the expectations set forth in the forward-looking statements contained in this news release, see the Company’s latest
40-F/Annual Information Form and Management’s Discussion and Analysis, each under the heading “Risk Factors”
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 news release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required by applicable law.
Cautionary Note to U.S. Investors
Alamos prepares its disclosure in accordance with the requirements of securities laws in effect in Canada. Unless
otherwise indicated, all Mineral Resource and Mineral Reserve estimates included in this document have been
prepared in accordance with Canadi an 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 C ouncil, as amended (the “CIM Standards”). 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. Mi ning 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, as amended. The U.S. Securities and Exchange Commission (the
“SEC”) has adopt ed 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, 2021. Under Regulation S-K 1300,
the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred
Mineral Resources”. In addition, the SEC has amended its definitions of “Pro ven 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. Accordingly, there is no assurance any mineral
reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral
reserves”, “measured mineral resources”, “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. U.S. investors are also cautioned that while the SEC recognizes
“measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under Regulation S-K
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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. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral
resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable.
Cautionary Note Regarding non-GAAP Measures and Additional GAAP Measures
Note that for purposes of this section, GAAP refers to IFRS. The Company believes that investors use certain non -
GAAP and additional GAAP measures as indicators to assess gold mining companies. They are intended to provide
additional information and should not be considered in isolation or as a substitute for measures of performance
prepared with GAAP.
“Cash flow from operating activities before changes in non -cash working capital” 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 non-cash working capital to “cash provided by (used in) operating activities”
as presented on the Company’s consolidated statements of cash flows. “Cash flow per share” is calculated by dividing
“cash flow from operations before changes in working capital” by the weighted average number of shares outstanding
for the period. “Free cash flow” is a non-GAAP performance measure that is calculated as cash flows from operations
net of cash flows invested in mineral property, plant and equipment and exploration and evaluation assets as
presented on the Company’s consolidated statements of cash flows and that would provide an indication of the
Company’s ability to generate cash flows from its mineral projects. “Mine site free cash flow” is a non-GAAP measure
which includes cash flow from operating activities at, less capital expenditures at each mine site. “Return on equity”
is defined as earnings from continuing operations divided by the average total equity for the current and previous
year. “Mining cost per ton ne of ore” and “cost per tonne of ore” are non -GAAP performance measures that could
provide an indication of the mining and processing efficiency and effectiveness of the mine. These measures are
calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the
period. “Cost per tonne of ore” is usually affected by operating efficiencies and waste -to-ore ratios in the period.
“Total capital expenditures per ounce produced” is a non -GAAP term used to assess the level of capital intensity of
a project and is calculated by taking the total growth and sustaining capital of a project divided by ounces produced
life of mine. “Total cash costs per ounce”, “all -in sustaining costs per ounce”, “mine-site all-in sustaining costs”, and
“all-in costs per ounce” as used in this analysis are non -GAAP terms 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. These non-GAAP terms are also used to assess the ability of a mining company to generate cash
flow from operations. There may be some variation in the method of computation of these metrics as determined by
the Company compared with other mining co mpanies. In this context, “total cash costs” reflects mining and
processing costs allocated from in -process and doré inventory and associated royalties with ounces of gold sold in
the period. Total cash costs per ounce are exclusive of exploration costs. “All-in sustaining costs per ounce” include
total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs.
“Mine-site all-in sustaining costs” include total cash costs, exploration, and sustaining capital costs for the mine-site,
but exclude an allocation of corporate and administrative and share based compensation. “Adjusted net earnings”
and “adjusted earnings per share” are non -GAAP financial measures with no standard meaning under IFRS.
“Adjusted net e arnings” excludes the following from net earnings: foreign exchange gain (loss), items included in
other loss, certain non -reoccurring items, and foreign exchange gain (loss) recorded in deferred tax expense.
“Adjusted earnings per share” is calculated by dividing “adjusted net earnings” by the weighted average number of
shares outstanding for the period.
Additional GAAP measures that are presented on the face of the Company’s consolidated statements of
comprehensive income 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. This includes “Earnings from
operations”, which is intended to provide an indication of the Company’s operating performance and represents the
amount of earnings before net finance income/expense, foreign exchange gain/loss, other income/loss, and income
tax expense. Non -GAAP and additional GAAP measures do not have a standardized meaning prescribed under
IFRS and therefore may not be comparable to similar measures presented by other companies. A reconciliation of
historical non-GAAP and additional GAAP measures are detailed in the Company’s latest Management’s Discussion
and Analysis available online on the SEDAR + website at www.sedarplus.ca or on EDGAR at www.sec.gov and at
www.alamosgold.com.