Alamos Gold Reports Third Quarter 2024 Results Record production and revenue support strong ongoing free cash flow while funding growth
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 Third Quarter 2024 Results
Record production and revenue support strong ongoing free cash flow while funding growth
Toronto, Ontario ( November 06, 2024) - Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”)
today reported its financial results for the quarter ended September 30, 2024.
“We achieved a number of operational and financial records in the third quarter. Production increased to a record
152,000 ounces reflecting the addition of Magino and continued strong performances from Island Gold and Mulatos .
With growing gold production and record gold prices, we generated record revenue and cash flow from operations
before working capital, supporting strong ongoing free cash flow while funding our high -return growth initiatives,”
said John A. McCluskey, President and Chief Executive Officer.
“The addition of Magino has enhanced our strong outlook, increasing our near -term production rate by
approximately 20%, and providing longer -term growth opportunities through expansions of the Island Gold District.
We are making excellent progress on our growth projects with the Phase 3+ Expansion more than halfway
complete, and the recently announced development plan for PDA outlining another low -cost, high-return project that
will triple the mine life of Mulatos. Both projects are key drivers of our strong outlook, supporting growing production
at declining costs over the coming years,” Mr. McCluskey added.
Third Quarter 2024 Operational and Financial Highlights
• Produced a record 152,000 ounces of gold, in -line with quarterly guidance and a 9% increase from the
second quarter. This reflected the inclusion of the recently acquired Magino mine as well as strong ongoing
performances from Island Gold and the Mulatos District. The acquisition of Argonaut Gold Inc. ("Argonaut")
was completed on July 12, 2024
• Increased 2024 production guidance to between 550,000 and 590,000 ounces in September 2024. This
represented a 13% increase from original guidance (based on the mid -point), reflecting the inclusion of the
Magino mine from July 12, 2024 onward, as well as increased guidance for the Mulatos District
• Sold a record 145,204 ounces of gold at an average realized price of $2,458 per ounce, generating record
quarterly revenues of $360.9 million. This represented a 41% increase from the third quarter of 2023 and
marks the third consecutive quarter of record revenue. Ounces sold were 4% lower than production in the
quarter due to timing, with the sale of these ounces to benefit future quarters
• Generated strong ongoing free cash flow 1 of $87.5 million while continuing to fund high -return growth
initiatives including a record exploration budget, and the Phase 3+ Expansion at Island Gold. Reported free
cash flow excludes $28.8 million of one -time payments related to the Argonaut acquisition, including
transaction costs and overdue payables at Magino incurred by Argonaut but paid by Alamos post-close
• Solid consolidated free cash flow performance was led by the Mulatos District which generated $66.9
million of mine-site free cash flow in the quarter, and $186.5 million year-to-date
• Cash flow from operating activities was $165.5 million, including a record $192.8 million before changes in
working capital 1 ($0.46 per share). Cash flow from operating activities was impacted by working capital
adjustments and transaction costs incurred on the acquisition of Argonaut
• Cost of sales were $204.0 million or $1,405 per ounce
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2 | Alamos Gold Inc
• Total cash costs 1 of $984 per ounce and all -in sustaining costs ("AISC" 1) of $1,425 per ounce increased
from the second quarter of 2024 , reflecting the contribution of higher -cost ounces from Magino with the
operation undergoing downtime to implement a number of improvements to the mill. Excluding Magino, total
cash costs and AISC for the third quarter would have been $118 and $184 per ounce lower, respectively.
AISC were also impacted by higher share-based compensation driven by an increase in the Company's
share price during the quarter
• Costs are expected to decrease slightly in the fourth quarter. The Company remains on track to achieve full
year cost guidance
• Adjusted net earnings 1 for the third quarter were $78.1 million, or $0.19 per share 1. Adjusted net earnings
include adjustments for an impairment reversal on Young Davidson of $38.6 million, net of tax; unrealized
losses on hedge derivatives of $21.2 million, net of tax, net unrealized foreign exchange losses recorded
within deferred taxes and foreign exchange of $1.8 million ; and other adjustments, net of taxes totaling
$9.2 million. Reported net earnings for the quarter were $84.5 million, or $0.20 per share
• Cash and cash equivalents were $291.6 million at September 30, 2024. The Company withdrew $250
million on its credit facility during the quarter, which w as used to retire the credit facility, term loan, and gold
prepay inherited from Argonaut. Additionally, $57.5 million of convertible notes inherited from Argonaut were
retired during the quarter, resulting in a net cash outflow of $308.3 million related to Argonaut. The
Company remains well positioned to fund its growth initiatives with strong ongoing free cash flow and $542
million of total liquidity
• On July 15, the Company entered into a gold sale prepayment agreement for total consideration of $116
million in exchange for the delivery of 49,384 ounces in 2025. The proceeds of the gold prepayment were
used to eliminate gold forward sale contracts, previously entered into by Argonaut, totaling 179,417 ounces
in 2024 and 2025 with an average price of $1,838 per ounce. The transaction eliminated more than half of
the Argonaut hedge book and associated mark-to-market liability
• Paid dividends of $10.5 million in the quarter, or $0.025 per share
• Released a development plan for the Puerto Del Aire (“PDA”) project located within the Mulatos District,
outlining a high -return project with an after -tax internal rate of return ("IRR") of 46% at a base case gold
price assumption of $1,950 per ounce. PDA is expected to nearly triple the mine life of the Mulatos District,
extending production into 2035
• Outlined exploration upside to the PDA project, with high -grade mineralization extended at PDA, which is
expected to support further growth in Mineral Reserves and Resources, and multiple new high -grade zones
defined at Cerro Pelon
• Provided a comprehensive exploration update at Island Gold, with high -grade gold mineralization extended
across the Island Gold Deposit, as well as within several hanging wall and footwall structures. The ongoing
success is expected to drive further growth in high -grade Mineral Reserves and Resources with the 2024
year-end update
• Alamos was recognized as a TSX30, 2024 winner by the Toronto Stock Exchange. The annual ranking
recognizes the 30 top performing stocks over a three-year period. Alamos’ share price increased 134% over
the trailing three-year period
• Announced a significant contribution to The Princess Margaret Cancer Foundation to create the new
Alamos Gold Chair in Gastrointestinal Surgical Oncology. The Company will contribute $2 million to support
the new Chair in making a meaningful impact on cancer research aimed at better understanding,
diagnosing, and treating gastrointestinal cancers
• Announced the appointment of Tony Giardini to its Board of Directors , in September, as well as the
appointment of Scott K. Parsons as Senior Vice President, Corporate Development and Investor Relations,
and Khalid Elhaj as Vice President, Business Development and Investor Relations. Nils F. Engelstad, Senior
Vice President, General Counsel, is departing the Company effective November 8, 2024 to pursue other
opportunities.
(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
calculation of these measures.
TRADING SYMBOL: TSX:AGI NYSE:AGI
3 | Alamos Gold Inc
Highlight Summary
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Financial Results (in millions)
Operating revenues $360.9 $256.2 $971.1 $768.7
Cost of sales (1) $204.0 $158.0 $550.2 $471.0
Earnings from operations $183.3 $82.6 $403.5 $246.2
Earnings before income taxes $141.2 $78.2 $345.0 $242.5
Net earnings $84.5 $39.4 $196.7 $162.9
Adjusted net earnings (2) $78.1 $54.5 $225.7 $159.2
Adjusted earnings before interest, taxes, depreciation and
amortization (2) $176.2 $125.4 $484.3 $383.7
Cash provided by operations before working capital and taxes
paid (2) $192.8 $133.2 $518.3 $398.7
Cash provided by operating activities $165.5 $112.5 $468.9 $348.6
Capital expenditures (sustaining) (2) (3) $38.1 $27.3 $85.5 $77.6
Capital expenditures (growth) (2) $67.9 $41.9 $178.3 $143.7
Capital expenditures (capitalized exploration) $6.2 $6.0 $20.5 $17.9
Free cash flow (2) $87.5 $37.3 $218.8 $109.4
Operating Results
Gold production (ounces) 152,000 135,400 426,800 399,800
Gold sales (ounces) 145,204 132,633 418,976 397,253
Per Ounce Data
Average realized gold price $2,458 $1,932 $2,294 $1,935
Average spot gold price (London PM Fix) $2,475 $1,928 $2,296 $1,931
Cost of sales per ounce of gold sold
(includes amortization) (1) $1,405 $1,191 $1,313 $1,186
Total cash costs per ounce of gold sold (2) $984 $835 $909 $834
All-in sustaining costs per ounce of gold sold (2) $1,425 $1,121 $1,263 $1,136
Share Data
Earnings per share, basic $0.20 $0.10 $0.49 $0.41
Earnings per share, diluted $0.20 $0.10 $0.48 $0.41
Adjusted earnings per share, basic (2) $0.19 $0.14 $0.56 $0.40
Weighted average common shares outstanding (basic) (000’s) 417,147 396,117 404,127 395,149
Financial Position (in millions)
Cash and cash equivalents $291.6 $224.8
(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
calculation of these measures.
(3) Sustaining capital expenditures include sustaining capital lease expenditures at Magino, which are not included as additions to mineral property, plant and
equipment in cash flows used from investing activities.
TRADING SYMBOL: TSX:AGI NYSE:AGI
4 | Alamos Gold Inc
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Gold production (ounces)
Young-Davidson 44,200 45,100 128,300 135,300
Island Gold 40,500 36,400 115,600 99,800
Magino (8) 16,800 — 16,800 —
Mulatos District (7) 50,500 53,900 166,100 164,700
Gold sales (ounces)
Young-Davidson 42,966 45,498 127,833 134,744
Island Gold 38,679 35,255 112,575 97,165
Magino (8) 14,766 — 14,766 —
Mulatos District 48,793 51,880 163,802 165,344
Cost of sales (in millions) (1)
Young-Davidson $63.9 $62.4 $196.0 $183.6
Island Gold $33.4 $31.3 $97.5 $89.8
Magino (8) $38.5 — $38.5 —
Mulatos District $68.2 $64.3 $218.2 $197.6
Cost of sales per ounce of gold sold (includes amortization) (1)
Young-Davidson $1,487 $1,371 $1,533 $1,363
Island Gold $864 $888 $866 $924
Magino (8) $2,607 — $2,607 —
Mulatos District $1,398 $1,239 $1,332 $1,195
Total cash costs per ounce of gold sold (2)
Young-Davidson $1,033 $939 $1,080 $945
Island Gold $592 $610 $592 $636
Magino (8) $2,025 — $2,025 —
Mulatos District $937 $898 $892 $861
Mine-site all-in sustaining costs per ounce of gold sold (2),(3)
Young-Davidson $1,406 $1,178 $1,358 $1,207
Island Gold $794 $916 $892 $980
Magino (8) $3,007 — $3,007 —
Mulatos District $1,002 $1,045 $954 $948
Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2)
Young-Davidson (4) $25.6 $12.3 $64.8 $43.2
Island Gold (5) $62.6 $47.5 $173.3 $159.2
Magino (8)(9) $13.9 — $13.9 —
Mulatos District (6) $3.1 $9.8 $14.8 $22.0
Other $7.0 $5.6 $17.5 $14.8
(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
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 and share-based
compensation expenses.
(4) Includes capitalized exploration at Young-Davidson of $1.5 million and $3.9 million for the three and nine months ended September 30, 2024 ($1.2 million and $3.8
million for the three and nine months ended September 30, 2023).
(5) Includes capitalized exploration at Island Gold of $3.8 million and $10.7 million for the three and nine months ended September 30, 2024 ($2.4 million and $7.8
million for the three and nine months ended September 30, 2023).
(6) Includes capitalized exploration at Mulatos District of $0.9 million and $5.9 million for the three and nine months ended September 30, 2024 ($2.4 million and $6.3
million for the three and nine months ended September 30, 2023).
(7) The Mulatos District includes La Yaqui Grande and Mulatos.
(8) The results for Magino are for Alamos’ ownership period from July 12, 2024 to September 30, 2024.
(9) Sustaining capital expenditures for Magino include certain finance leases classified as sustaining.
TRADING SYMBOL: TSX:AGI NYSE:AGI
5 | Alamos Gold Inc
Environment, Social and Governance Summary Performance
Health and Safety
• Total recordable injury frequency rate 1 ("TRIFR") of 2.03 in the third quarter, an increase from 1.76 in the
second quarter of 2024
• Lost time injury frequency rate 1 ("LTIFR") of 0.09 in the third quarter, as compared to 0.20 in the second
quarter of 2024
• Year-to-date TRIFR of 1.87 and LTIFR of 0.09
During the third quarter of 2024, Alamos had 23 recordable injuries across its sites including one lost time injury
("LTI").
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 three minor reportable events in the third quarter of 2024
• Received approval from the Ministry of Mines for the Magino Mine Closure Plan Amendment
• Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits
The three minor reportable events during the third quarter at Young -Davidson, including a 200 litre diesel spill, a
minor spill while containing an excavator fire, and one exceedance of the daily limit of suspended solids. The areas
impacted by the spills were immediately contained and subsequently remediated with no anticipated long -term
effects for either event.
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 our activities .
Community
Ongoing donations, medical support and infrastructure investments were provided to local communities, including:
• A significant contribution to The Princess Margaret Cancer Foundation to create the new Alamos Gold Chair
in Gastrointestinal Surgical Oncology. The Company will contribute $2 million to support the new Chair in
making a meaningful impact on cancer research aimed at better understanding, diagnosing, and treating
gastrointestinal cancers
• Various sponsorships to support local youth sports teams, Women in Mining Canada, community events,
and donations to local charities and organizations around the Company's mines including a donation for the
King-Lebel Fire Department to purchase new protective gear to keep their communities safe
• Continued to provide local community support including road maintenance, dust suppression, and water
distribution to Matarachi and surrounding areas around the Mulatos Mine
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
• Published Alamos' 2023 Environmental, Social and Governance ("ESG") Report, outlining the Company's
progress on its ESG performance across its operations, projects and offices
• Completed Alamos’ annual submission to the Carbon Disclosure Project (“CDP”), S&P’s Corporate
Sustainability Assessment (“CSA”) and MSCI’s One platform, outlining our ESG and climate performance
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.
TRADING SYMBOL: TSX:AGI NYSE:AGI
6 | Alamos Gold Inc
Outlook and Strategy
2024 Guidance(1)
Young-
Davidson Island Gold Magino (1) Mulatos Lynn Lake Total
Total
Previous (5)
Gold production (000's
ounces) 180 - 190 145 - 155 40-50 185 - 195 — 550 - 590 485 - 525
Cost of sales, including
amortization (in millions)(4) $745 $620
Cost of sales, including
amortization ($ per
ounce)(3)
$1,310 $1,225
Total cash costs ($ per
ounce)(1) $1,000 - $1,050 $550 - $600 $1,450 - $1,550 $925 -$975 — $890 - $940 $825 - 875
All-in sustaining costs
($ per ounce)(1) $1,250 - $1,300 $1,125 - 1,175
Mine-site all-in
sustaining costs ($ per
ounce)(2)(3)
$1,225 - $1,275 $875 - $925 $2,250 - $2,350 $1,000 - $1,050 —
Capital expenditures (in
millions)
Sustaining capital(2) $40 - $45 $50 - $55 $35 - $40 $3 - $5 — $128 - $145 $93 - 105
Growth capital(2) $20 - $25 $180 - $200 — $2 - $5 — $202 - $230 $232 - 260
Total Sustaining and
Growth Capital (2) -
producing mines
$60 - $70 $230 - $255 $35 - $40 $5 - $10 — $330 - $375 $325 - 365
Growth capital -
development projects $25 $25 $25
Capitalized exploration(2) $10 $13 $2 $9 $9 $43 $41
Total capital
expenditures and
capitalized
exploration(1)
$70 - $80 $243 - $268 $37 - 42 $14 - $19 $34 $398 - $443 $391 - 431
(1) Guidance has been updated as per press release dated September 12, 2024. The guidance for the Magino mine is for Alamos’ owne rship period from July 12,
2024 to December 31, 2024.
(2) 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.
(3) 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 and share-based compensation expenses to the mine sites.
(4) 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.
(5) Previous guidance was issued on January 10, 2024 and related to Young -Davidson, Island Gold and Mulatos District only.
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 re -
investing in high-return internal growth opportunities and supporting higher returns to shareholders.
The Company delivered another record operational and financial performance in the third quarter of 2024.
Production increased 9% from the second quarter to a record 152,000 ounces, reflecting the inclusion of the
recently acquired Magino mine, and strong performances from Island Gold and the Mulatos District.
Through record production, sales, and gold prices, third quarter revenues increased 9% from the second quarter
and 41% from the prior year to a record $360.9 million. This contributed to strong ongoing operating margins, with
$87.5 million of free cash flow generated in the quarter, and $218.8 million year-to-date while continuing to fund the
Phase 3+ Expansion at Island Gold.
Production in the fourth quarter of 2024 is expected to be between 140,000 and 145,000 ounces at slightly lower
costs, reflecting improved performance at Magino, offset by lower expected production at Mulatos. With a solid
performance through the first nine months of the year, the Company remains well -positioned to achieve its updated
full year production and cost guidance.
The integration of the Magino and Island Gold mines is well -advanced following the completion of the Argonaut
acquisition in July. Given the close proximity of the Magino and Island Gold mines, the integration of the two
operations is expected to create one of the largest and lowest cost gold mines in Canada and drive pre -tax
synergies of approximately $515 million over the life of the mine through the use of shared infrastructure. This
includes immediate capital savings, with the mill and tailings expansions at Island Gold no longer required, and
significant operating savings through the use of the larger and more efficient Magino mill.
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7 | Alamos Gold Inc
The acquisition has also de -risked the Phase 3+ Expansion, which continues to progress well. The shaft sink is
down to a depth of 8 12 metres as of the end of October, more than halfway towards its ultimate planned depth of
1,373 metres. The expansion remains on track to be completed during the first half of 2026, which will be a
significant driver of further free cash flow growth over the longer -term through increasing production and declining
costs.
The integration of Island Gold and Magino has also created opportunities for further growth within the Island Gold
District. Several of these opportunities were highlighted in the Island Gold District exploration update in July.
Underground and surface exploration programs continue to extend high -grade mineralization beyond the extent of
the main Island Gold deposit, as well as within the hanging wall and footwall. This is expected to drive another
increase in high -grade Mineral Reserves and Resources at Island Gold. Near -mine exploration success also
highlighted the longer -term upside opportunities to supply multiple sources of ore through the expanded Magino
mill.
The Company continued to advance its other high -return internal growth opportunities during the quarter including
completing the development plan for the PDA project in September. PDA is an attractive, low -cost, high -return
underground project with an estimated after -tax IRR of 46% at a conservative $1,950 per ounce gold price and
increasing to 73% at $2,500 per ounce. Based on its existing Mineral Reserves, PDA is expected to triple the
Mulatos District mine life to 2035.
As outlined in the Mulatos District exploration update in September, there are excellent opportunities to enhance
already strong economics and further extend the mine life. Drilling at PDA continues to extend high -grade
mineralization and is expected to support further growth in Mineral Reserves and Resources. Additionally, drilling
has defined multiple new high -grade zones below the previously mined Cerro Pelon open pit which represents a
potential source of additional mill feed. An initial underground Mineral Resource at Cerro Pelon is expected with the
year-end 2024 update.
The Company provided updated three -year production, operating and capital guidance in September incorporating
the recently acquired Magino mine, a revised initial capital estimate for the Phase 3+ Expansion at Island Gold and
initial capital estimates for PDA. Production guidance for 2024 was raised to between 550,000 and 590,000 ounces,
a 13% increase from the initial guidance provided in January 2024 (based on the mid -point). The increase was
driven by the inclusion of Magino, as well as increased production guidance for the Mulatos District. AISC guidance
was also increased 11% relative to previous guidance, (based on the mid -point) with nearly all of the increase
attributable to the inclusion of relatively higher cost production from Magino during the ramp up of the operation.
Capital guidance for 2024 increased by 2% relative to previous guidance reflecting the addition of Magino, largely
offset by capital savings at Island Gold through the integration of the two operations.
As previously announced, production guidance was also increased 21% for 2025, and 22% for 2026 to between
630,000 and 680,000 ounces reflecting the inclusion of Magino. AISC increased 12% on average but remains well
below the industry average and are expected to decrease 10% from 2024 to between $1,100 and $1,200 per ounce
in 2026. Through the development of Lynn Lake, the Company has the capacity to increase longer -term production
to approximately 900,000 ounces per year with AISC decreasing below $1,100 per ounce. An evaluation of a
longer-term expansion of the Magino mill to 15,000 to 20,000 tonnes per day is also underway which could support
additional growth bringing production closer to one million ounces per year.
The Company remains well positioned to fund this growth internally with $291.6 million of cash and cash
equivalents at the end of the third quarter, $542 million of total liquidity, and strong ongoing free cash flow. Cash and
cash equivalents decreased slightly from the second quarter reflecting one -time expenditures related to the
Argonaut acquisition. Additionally, the Company withdrew $250 million from its credit facility during the third quarter
and used existing cash to repay the term loan, revolving credit facility, convertible debentures and gold prepaid
advances, totaling $308.3 million, all inherited as part of the Argonaut acquisition.
TRADING SYMBOL: TSX:AGI NYSE:AGI
8 | Alamos Gold Inc
Third Quarter 2024 Results
Young-Davidson Financial and Operational Review
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
Gold production (ounces) 44,200 45,100 128,300 135,300
Gold sales (ounces) 42,966 45,498 127,833 134,744
Financial Review (in millions)
Operating Revenues $106.0 $87.9 $294.8 $260.5
Cost of sales (1) $63.9 $62.4 $196.0 $183.6
Earnings from operations $98.4 $24.5 $153.8 $74.4
Cash provided by operating activities $61.5 $43.2 $155.4 $125.8
Capital expenditures (sustaining) (2) $15.8 $10.8 $35.1 $35.1
Capital expenditures (growth) (2) $8.3 $0.3 $25.8 $4.3
Capital expenditures (capitalized exploration) (2) $1.5 $1.2 $3.9 $3.8
Mine-site free cash flow (2) $35.9 $30.9 $90.6 $82.6
Cost of sales, including amortization per ounce of gold sold (1) $1,487 $1,371 $1,533 $1,363
Total cash costs per ounce of gold sold (2) $1,033 $939 $1,080 $945
Mine-site all-in sustaining costs per ounce of gold sold (2),(3) $1,406 $1,178 $1,358 $1,207
Underground Operations
Tonnes of ore mined 663,295 733,413 2,047,922 2,190,418
Tonnes of ore mined per day 7,210 7,972 7,474 8,024
Average grade of gold (4) 2.11 2.06 2.08 2.14
Metres developed 2,220 2,108 6,320 7,041
Mill Operations
Tonnes of ore processed 668,058 754,705 2,059,483 2,153,377
Tonnes of ore processed per day 7,261 8,203 7,516 7,888
Average grade of gold (4) 2.07 2.08 2.07 2.14
Contained ounces milled 44,555 50,393 136,996 148,380
Average recovery rate 92% 90% 91% 90%
(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 and share-based
compensation expenses.
(4) Grams per tonne of gold ("g/t Au").
Operational review
Young-Davidson produced 44,200 ounces of gold in the third quarter, 2% lower than the prior year period due to
lower tonnes processed. Production for the first nine months of the year totaled 128,300 ounces. With higher mining
rates and grades expected to drive stronger production in the fourth quarter, Young-Davidson is expected to achieve
the low-end of full year guidance.
Mining rates averaged 7,210 tonnes per day ("tpd") in the third quarter, 10% lower than the prior year period,
reflecting lower scoop availability, as well as reduced paste availability during mill downtime in July. Mining rates
improved in August and September and returned to guided levels of 8,000 tpd by the end of the quarter. Mining
rates are expected to remain at this level through the rest of the year. Given the lower tonnes mined during the third
quarter, higher-grade stopes planned for later in the quarter were deferred to the fourth quarter. Grades mined are
expected to increase in the fourth quarter to be consistent with annual guidance.
Milling rates averaged 7,261 tpd in the third quarter, consistent with mining rates and 11% lower than the prior year
period. Milling rates were lower in July due to a scheduled liner change and other unscheduled mill maintenance.
Milling rates returned to planned levels in August and September, averaging 8,000 tpd. Mill recoveries averaged
92% in the quarter, consistent with annual guidance and slightly higher than the prior year period.