Alamos' Young Davidson mine
Gold miner Alamos Gold has reaffirmed its full-year production guidance of 580 000 oz to 630 000 oz after delivering first-quarter output of 125 000 oz, at the lower end of its forecast range.
The solid performance from Island Gold was offset by lower production from Young-Davidson and a slower-than-expected ramp-up at the Magino mill.
CEO John McCluskey said Young-Davidson and Magino showed marked improvement in April, supporting expectations for stronger production and lower costs in the second quarter and beyond.
“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,” he said.
Alamos sold 117 583 oz of gold in the quarter at an average realised price of $2 802/oz, generating revenue of $333-million. Total cash costs were $1 193/oz and all-in sustaining costs came in at $1 805/oz – above guidance, mainly owing to higher share-based compensation and increased unit costs at Young-Davidson and Magino. However, costs are expected to decline meaningfully in coming quarters.
Cash flow from operations was $79.6-million, while free cash flow was negative $20.1-million owing to timing of tax payments, prepay obligations, and yearly compensation. The company anticipates stronger free cash flow over the balance of the year.
Alamos ended the quarter with $289.5-million in cash and remains in a net cash position, with total liquidity of nearly $790-million.
Looking ahead, the company is progressing several low-cost, fully funded growth projects. Construction is ramping up at Lynn Lake and PDA, while the Phase 3+ expansion of Island Gold remains on track for completion in 2026. These projects are expected to support steady growth toward a production rate of 900 000 oz/y, with long-term potential to reach one-million ounces a year, largely from its Canadian asset base.
Alamos also announced a $21-million divestment of its noncore Quartz Mountain project in Oregon and continues to advance its environmental and permitting milestones, including an amended environmental approval for the PDA project in Mexico and impact benefit agreements for Lynn Lake in Manitoba. 