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Alamos Gold Provides Updated Three-Year Production, Operating & Capital Guidance

Alamos Gold Inc. has released an updated three-year production and operating guidance incorporating the recently completed acquisition of the Magino mine, as well as increased 2024 production guidance for the Mulatos District. Capital guidance has also been updated to include the development of the Puerto Del Aire (“PDA”) project and a revised initial capital estimate for the Phase 3+ Expansion at Island Gold.

Consolidated 2024 production guidance for existing operations (pre-Magino acquisition) has increased 4% reflecting the outperformance of La Yaqui Grande, while 2025 and 2026 production guidance (excluding Magino) remains unchanged from previous guidance issued in January 2024. Consolidated cost guidance for existing operations remains largely unchanged with a slight increase in 2024 cost guidance and no changes across 2025 and 2026.

The inclusion of Magino contributed to a 13% increase in consolidated production guidance in 2024, and more than 20% increase in both 2025 and 2026, enhancing the Company’s strong growth profile. All-in sustaining cost (“AISC”) guidance has increased 11% on average across the three years reflecting Magino’s relatively higher costs. Company-wide AISC is expected to remain well below industry average and continue decreasing over the longer-term driven by low-cost production growth at Island Gold, and continued improvements at the Magino operation.

“The addition of Magino has enhanced our already strong growth profile, and its integration with Island Gold is expected to drive significant synergies and open up longer-term opportunities. Our near-term rate of production has increased by more than 20%. Longer-term we have the capacity to grow company-wide production to approximately 900,000 ounces per year, with further upside potential through future expansions of the Island Gold District,” said John A. McCluskey, President and Chief Executive Officer. “Our costs remain well below the industry average and are expected to decrease significantly over the next several years as we deliver on our low-cost growth initiatives. Through growing production and declining costs, we expect to deliver substantial free cash flow growth in the years ahead.”

Three Year Guidance Overview: Operating Mines

2024 2025 2026
  Current Previous(1) Current Previous(1) Current Previous(1)
     
Gold Production – ex Magino (000 oz) 510 – 540 485 – 525 470 – 510 470 – 510 520 – 560 520 – 560
Consolidated Gold Production (000 oz) 550 – 590 485 – 525 575 – 625 470 – 510 630 – 680 520 – 560
Total Cash Costs(2) – ex Magino ($/oz) $840 – 890 $825 – 875 $700 – 800 $700 – 800 $675 – 775 $675 – 775
Consolidated Total Cash Costs ($/oz) $890 – 940 $825 – 875 $775 – 875 $700 – 800 $750 – 850 $675 – 775
All-in Sustaining Costs(2),(3)   – ex Magino ($/oz) $1,150 -1,200 $1,125 – 1,175 $1,050 – 1,150 $1,050 – 1,150 $975 – 1,075 $975 – 1,075
Consolidated All-in Sustaining Costs(2),(3) ($/oz) $1,250 – 1,300 $1,125 – $1,175 $1,175 – 1,275 $1,050 – 1,150 $1,100 – 1,200 $975 – 1,075

(1)  Previous guidance was issued on January 10, 2024 and related to Young-Davidson, Island Gold and Mulatos District only.
(2)  Refer to the “Non-GAAP Measures and Additional GAAP” disclosure at the end of this press release for a description of these measures.
(3)  All-in sustaining cost guidance for 2025 and 2026 includes similar assumptions for G&A and stock based compensation as included in 2024.

  • 2024 production guidance increased 13%: to between 550,000 and 590,000 ounces. This reflects increased production guidance from the Mulatos District driven by the outperformance of La Yaqui Grande (relative to previous guidance issued in January 2024), and the inclusion of Magino. Production from Magino has been included post completion of the Argonaut Gold acquisition on July 12, 2024, representing slightly less than half a year of production
  • 2025 and 2026 production guidance increased by over 20%: reflecting the inclusion of Magino for full years and the operation at planned capacity. This includes a 22% increase in 2025 production guidance, and 21% increase in 2026 guidance to between 630,000 and 680,000 ounces. This represents 30% production growth relative to the mid-point of previous 2024 guidance issued at the start of the year
  • Longer-term production potential of 900,000+ oz per year: through the development of PDA, with initial production expected mid-2027, and growth from Lynn Lake with first production as early as the second half of 2027. An evaluation of a longer-term expansion of the Magino mill to 15,000 to 20,000 tonnes per day (“tpd”) is also underway which could support additional growth bringing production closer to one million ounces per year
  • AISC guidance increased 11% on average between 2024 and 2026: reflecting the inclusion of relatively higher cost Magino production. Costs remain well below the industry average with steady improvements expected through 2026 driven by low-cost production growth
  • Declining cost profile with AISC expected to decrease 10% by 2026 compared to 2024: AISC is expected to decrease to between $1,100 and $1,200 per ounce in 2026 driven by low-cost growth at Island Gold and improving costs at Magino. Beyond 2026, AISC is expected to decrease below $1,100 per ounce, reflecting additional low-cost growth from Island Gold and Lynn Lake

Three Year Guidance Overview: Capital

2024 2025 2026
                      ($ millions) Current Previous(2) Current Previous(2) Current Previous(2)
     
Sustaining & Growth Capital (operating mines, ex. Exploration & Lynn Lake)(1) $325 – 365 $325 – 365 $310 – 350 $310 – 350 $175 – 200 $175 – 200
Addition of PDA – $20 $90 – 95
Addition of Magino $35 – 40 $55 – 60 $55 – 60
Changes to Phase 3+ Expansion ($30) $40 – 45 $25 – 35
Total Capital (operating mines, ex. Exploration & Lynn Lake)(1) $330 – 375 $325 – 365 $425 – 475 $310 – 350 $345 – 390 $175 – 200

(1)  Refer to the “Non-GAAP Measures and Additional GAAP” disclosure at the end of this press release for a description of these measures.
(2)  Previous guidance was issued on January 10, 2024 and related to Young-Davidson, Island Gold and Mulatos District only.

  • Capital spending increased in 2025 and 2026 reflecting inclusion of Magino, PDA development, and updated Phase 3+ Expansion capital:
    • The main driver of the increase in capital spending over the next three years is the inclusion of growth and sustaining capital for the newly acquired Magino operation, as well as growth capital for the development of PDA. Both are in support of high-return, lower-risk organic growth initiatives
    • 2024 capital guidance range was increased slightly to between $330 and $375 million (excluding capitalized exploration), reflecting the inclusion of Magino from July 2024 onward, largely offset by a reduction at Island Gold with the mill expansion and tailings lifts no longer required with the Magino acquisition
    • 2025 and 2026 capital guidance was revised to include:
      • initial capital for the high-return, PDA project as per the recently announced development plan (see September 4, 2024 press release)
      • the inclusion of Magino growth and sustaining capital for the normal course operation, as well as for the completion of the mill optimization and other projects that were deferred by the previous operator
      • additional capital for the completion of the Phase 3+ Expansion
    • Phase 3+ Expansion initial capital has been increased by approximately $40 million with expected completion on track for the first half of 2026. This represents a 5% increase from the initial capital estimate of $756 million provided in the first half of 2022. Updated capital is now expected to total $796 million, with $415 million remaining to be spent as of June 30, 2024. The increase was driven by ongoing inflationary pressures since 2022, and scope changes to the project, partly offset by synergies from the Magino acquisition and the weaker Canadian dollar
  • Strong ongoing free cash flow while funding high-return growth initiatives: the Company generated $131 million in free cash flow in the first half of 2024 and expects to continue generating strong free cash flow at current gold prices while funding the Phase 3+ Expansion at Island Gold, and development of PDA. The completion of Phase 3+ Expansion in 2026 and PDA development in 2027 are expected to drive growing free cash flow generation through higher production, lower costs, and lower capital spending
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