Alamos Gold updates three-year production, operating and capital guidance

Alamos Gold provided 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 project and a revised initial capital estimate for the Phase 3+ Expansion at Island Gold. Consolidated 2024 production guidance for existing operations 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. 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. All-in sustaining cost 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. 2024 production guidance increased 13% to 550K-590K ounces. 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 630K-680K ounces, representing 30% production growth vs. mid-point of previous 2024 guidance at 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. AISC is expected to decrease to $1,100-$1,200 per ounce in 2026. Beyond 2026, AISC is expected to decrease below $1,100 per ounce, reflecting additional low-cost growth from Island Gold and Lynn Lake. 2024 capital guidance range was increased slightly to $330M-$375M. Updated capital is now expected to total $796M, with $415 million remaining to be spent as of June 30, 2024. The company generated $131M 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.