Alamos Gold Reports Fourth Quarter and Year-End 2024 Results

2025-02-19

TSX - Toronto Stock Exchange · Gold · Canada

Record production and strong margin expansion drive record free cash flow of $272 million while funding high-return growth

All amounts are in United States dollars, unless otherwise stated.

TORONTO, Feb. 19, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter and year ended December 31, 2024.

“We delivered another record year operationally and financially driven by strong performances across our operations. Production grew 7% to 567,000 ounces, meeting our increased guidance and achieving a new annual record for the second consecutive year. Full year costs were in line with guidance and combined with the rising gold price, we set a number of financial records. This included record free cash flow of $272 million while funding additional high-return growth, including the Phase 3+ Expansion and our largest exploration budget ever,” said John A. McCluskey, President and Chief Executive Officer.

“Our significant investment in exploration continues to create value with global Mineral Reserves increasing 31% to 14 million ounces, including another substantial increase in higher-grade Reserves and Resources at Island Gold. We will be incorporating this growth into the Island Gold District Life of Mine Plan and Expansion Study to be released later this year that we expect will outline a larger, and more valuable operation,” Mr. McCluskey added.

Fourth Quarter and Full Year 2024 Highlights

Operational and Financial Highlights

Produced a record 567,000 ounces of gold in 2024, in-line with the mid-point of the revised guidance and a 7% increase from 2023. This reflected the inclusion of the Magino mine after the acquisition of Argonaut Gold Inc. ("Argonaut"), as well as strong performances from the Mulatos District and Island Gold. Fourth quarter production was 140,200 ounces, in-line with quarterly guidance The Mulatos District produced 205,000 ounces of gold in 2024, exceeding the top end of increased guidance by 5% reflecting another outstanding performance from La Yaqui Grande. This contributed to record mine-site free cash flow 1 of $239.9 million in 2024, including $53.4 million in the fourth quarter Island Gold produced 155,000 ounces of gold in 2024, meeting the high-end of the annual guidance range and self-funding all Phase 3+ Expansion capital and exploration initiatives during the year Young-Davidson produced 174,000 ounces of gold in 2024 while generating record mine-site free cash flow 1 of $140.9 million, including a record $50.3 million in the fourth quarter Cost of sales were $751.1 million or $1,341 per ounce in 2024, and $200.9 million, or $1,422 per ounce in the fourth quarter Total cash costs 1 of $927 per ounce and all-in sustaining costs ("AISC" 1 ) of $1,281 per ounce for the full year were in-line with revised annual guidance. Total cash costs of $981 per ounce and AISC of $1,333 per ounce for the fourth quarter decreased from the third quarter of 2024, as previously guided reflecting lower costs at Young-Davidson and Magino Record financial performance achieved across all key metrics. This included record free cash flow 1 of $272.3 million in 2024 while continuing to fund high-return growth initiatives including the Phase 3+ Expansion at Island Gold and a record exploration program. Fourth quarter free cash flow was $53.5 million Full year sales totaled 560,234 ounces of gold at an average realized price of $2,379 per ounce, generating record annual revenues of $1.3 billion, a 32% increase from 2023. This included fourth quarter sales of 141,258 ounces of gold at an average realized price of $2,632 per ounce, generating quarterly revenues of $375.8 million, inclusive of silver sales. This represented a 48% increase from the fourth quarter of 2023 and marked the fourth consecutive quarter of record revenues Record annual cash flow from operating activities of $661.1 million (including $726.2 million before changes in working capital and taxes paid 1 , or $1.78 per share), a 40% increase from 2023. Fourth quarter cash flow from operating activities was $192.2 million (including $207.9 million before changes in working capital and taxes paid 1 , or $0.49 per share). Working capital in the fourth quarter was impacted by a temporary buildup of sales tax receivables in Canada, of which $14.1 million was collected in January 2025 Adjusted net earnings 1 were $328.9 million in 2024, or $0.81 per share 1 . Reported net earnings were $284.3 million in 2024, or $0.70 per share. Adjusted net earnings includes adjustments for unrealized losses on commodity derivatives, an impairment reversal on Young-Davidson, a net unrealized foreign exchange loss recorded within deferred taxes and foreign exchange, and other losses including transaction and integration costs on the acquisition of Argonaut Adjusted net earnings 1 for the fourth quarter were $103.2 million, or $0.25 per share. Adjusted net earnings includes adjustments for unrealized gains on commodity hedge derivatives, net of tax, of $4.4 million, adjustments for unrealized net foreign exchange losses recorded within deferred taxes and foreign exchange of $19.6 million, and other adjustments totaling $0.4 million. Reported net earnings for the fourth quarter were $87.6 million, or $0.21 per share Cash and cash equivalents were $327.2 million at December 31, 2024, up from $224.8 million at the end of 2023. The Company remains in a net cash position with $250 million drawn on its credit facility (the "Facility"), the proceeds of which were used to retire debt inherited from Argonaut in the third quarter. The Company remains well-positioned to internally fund all its growth initiatives with strong ongoing free cash flow and $827.2 million of total liquidity. Amended and upsized the Facility from $500.0 million to $750.0 million on February 18, 2025, increasing financial capacity on more attractive terms, reflecting the growth of the Company Paid dividends of $41 million for the full year, based on a quarterly dividend of $0.025 per share

Mineral Reserves and Resources, Growth Projects, Acquisitions, and Other Highlights

Issued three-year guidance on January 13, 2025, with production expected to increase 7% in 2025 to between 580,000 and 630,000 ounces, and 24% by 2027 to 680,000 to 730,000 ounces. AISC are expected to decrease 8% over that time frame, relative to 2024, driven by low-cost growth from Island Gold following the completion of the Phase 3+ Expansion in the first half of 2026 Announced a construction decision on the Lynn Lake project in January 2025 with initial production expected during the first half of 2028. With average annual production of 176,000 ounces over its first ten years at first quartile mine-site AISC, Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year and provide additional free cash flow growth The Closure Plan for the MacLellan Site (the “Closure Plan”) was approved by the province of Manitoba in January 2025 and the required permitting and pre-construction conditions have been met allowing for the start of construction on the Lynn Lake project Received approval of an amendment to the existing MIA by Mexico’s Secretariat of Environment and Natural Resources (“SEMARNAT”) in January 2025, allowing for the start of construction on the PDA project within the Mulatos District Reported year-end 2024 Mineral Reserves of 14.0 million ounces of gold (298 million tonnes ("mt")) grading 1.45 grams per tonne of gold (“g/t Au”), a 31% increase from 2023 reflecting the acquisition of Magino in 2024, continued high-grade additions at Island Gold, and an initial Mineral Reserve at Burnt Timber and Linkwood. This marked the sixth consecutive year Mineral Reserves have grown for a cumulative increase of 44%. Additionally, Measured and Indicated Mineral Resources increased 50% to 6.6 million ounces, while Inferred Mineral Resources decreased 2% to 7.1 million ounces Island Gold continues to be a significant driver of growth with its combined Mineral Reserve and Resources increasing 9% to 6.7 million ounces at substantially higher grades. This includes an 11% increase in Mineral Reserve grades to 11.40 g/t Au, and 13% increase in Inferred Mineral Resource grades to 16.52 g/t Au Completed the acquisition of Argonaut in July 2024 through which the Company acquired the Magino mine, located adjacent to its Island Gold mine Completed the acquisition of Orford Mining Corporation ("Orford") in April 2024, consolidating its existing ownership of Orford and adding the highly prospective Qiqavik Gold Project, located in Quebec, Canada Announced a significant contribution to The Princess Margaret Cancer Foundation in September 2024 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 Alamos was recognized as a TSX30 2024 winner by the Toronto Stock Exchange in September 2024. 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 the appointment of J. Robert S. Prichard as Chairman of the Board of Directors in January 2025

(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.

Highlight Summary

| | Three Months Ended December 31, | Years Ended December 31, | | | | | 2024 | 2023 | 2024 | 2023 | | Financial Results (in millions) | | | | | | Operating revenues | $375.8 | $254.6 | $1,346.9 | $1,023.3 | | Cost of sales (1) | $200.9 | $166.7 | $751.1 | $637.7 | | Earnings from operations | $158.4 | $71.9 | $561.9 | $318.1 | | Earnings before income taxes | $157.2 | $51.2 | $502.2 | $293.7 | | Net earnings | $87.6 | $47.1 | $284.3 | $210.0 | | Adjusted net earnings (2) | $103.2 | $49.2 | $328.9 | $208.4 | | Adjusted earnings before interest, taxes, depreciation and amortization (2) | $207.2 | $103.6 | $691.5 | $487.3 | | Cash provided by operations before working capital and taxes paid (2) | $207.9 | $120.2 | $726.2 | $518.9 | | Cash provided by operating activities | $192.2 | $124.1 | $661.1 | $472.7 | | Capital expenditures (sustaining) (2)(3) | $30.0 | $26.6 | $110.1 | $104.2 | | Sustaining finance leases | $5.2 | $— | $10.6 | $— | | Capital expenditures (growth) (2) | $101.2 | $73.0 | $279.5 | $216.7 | | Capital expenditures (capitalized exploration) | $7.5 | $10.1 | $28.0 | $28.0 | | Free cash flow (2) | $53.5 | $14.4 | $272.3 | $123.8 | | Operating Results | | | | | | Gold production (ounces) | 140,200 | 129,500 | 567,000 | 529,300 | | Gold sales (ounces) | 141,258 | 129,005 | 560,234 | 526,258 | | Per Ounce Data | | | | | | Average realized gold price | $2,632 | $1,974 | $2,379 | $1,944 | | Average spot gold price (London PM Fix) | $2,663 | $1,971 | $2,386 | $1,941 | | Cost of sales per ounce of gold sold (includes amortization) (1) | $1,422 | $1,292 | $1,341 | $1,212 | | Total cash costs per ounce of gold sold (2) | $981 | $900 | $927 | $850 | | All-in sustaining costs per ounce of gold sold (2) | $1,333 | $1,233 | $1,281 | $1,160 | | Share Data | | | | | | Earnings per share, basic | $0.21 | $0.12 | $0.70 | $0.53 | | Earnings per share, diluted | $0.21 | $0.12 | $0.69 | $0.53 | | Adjusted earnings per share, basic (2) | $0.25 | $0.12 | $0.81 | $0.53 | | Weighted average common shares outstanding (basic) (000’s) | 420,192 | 396,577 | 408,165 | 395,509 | | Financial Position (in millions) | | | | | | Cash and cash equivalents | | | $327.2 | $224.8 | | | | | | |

| | Three Months Ended December 31, | Years Ended December 31, | | | | | 2024 | 2023 | 2024 | 2023 | | Gold production (ounces) | | | | | | Young-Davidson | 45,700 | 49,800 | 174,000 | 185,100 | | Island Gold | 39,400 | 31,600 | 155,000 | 131,400 | | Magino (9) | 16,200 | — | 33,000 | — | | Mulatos District (8) | 38,900 | 48,100 | 205,000 | 212,800 | | Gold sales (ounces) | | | | | | Young-Davidson | 45,441 | 48,052 | 173,274 | 182,796 | | Island Gold | 39,595 | 30,464 | 152,170 | 127,629 | | Magino (9) | 16,505 | — | 31,271 | — | | Mulatos District (8) | 39,717 | 50,489 | 203,519 | 215,833 | | Cost of sales (in millions) (1) | | | | | | Young-Davidson | $65.9 | $64.6 | $261.9 | $248.2 | | Island Gold | $34.7 | $33.8 | $132.2 | $123.6 | | Magino (9) | $35.4 | — | $73.9 | — | | Mulatos District (8) | $64.9 | $68.3 | $283.1 | $265.9 | | Cost of sales per ounce of gold sold (includes amortization) (1) | | | | | | Young-Davidson | $1,450 | $1,344 | $1,511 | $1,358 | | Island Gold | $876 | $1,110 | $869 | $968 | | Magino (9) | $2,145 | — | $2,363 | — | | Mulatos District (8) | $1,634 | $1,353 | $1,391 | $1,232 | | Total cash costs per ounce of gold sold (2) | | | | | | Young-Davidson | $955 | $920 | $1,047 | $938 | | Island Gold | $594 | $775 | $592 | $669 | | Magino (9) | $1,672 | — | $1,836 | — | | Mulatos District (8) | $1,113 | $957 | $935 | $883 | | Mine-site all-in sustaining costs per ounce of gold sold (2)(3) | | | | | | Young-Davidson | $1,191 | $1,211 | $1,314 | $1,208 | | Island Gold | $791 | $1,136 | $865 | $1,017 | | Magino (9) | $2,666 | — | $2,824 | — | | Mulatos District (8) | $1,198 | $1,030 | $1,001 | $967 | | Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2) | | | | | | Young-Davidson (4) | $21.3 | $24.0 | $86.1 | $67.2 | | Island Gold (5) | $83.7 | $73.9 | $257.0 | $233.1 | | Magino (7)(9)(10) | $24.7 | — | $38.6 | — | | Mulatos District (6)(8) | $5.3 | $8.4 | $20.1 | $30.4 | | Other | $8.9 | $3.4 | $26.4 | $18.2 | | | | | | |

(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 $2.0 million and $5.9 million for the three months and year ended December 31, 2024 ($1.3 million and $5.1 million for the three months and year ended December 31, 2023, respectively). (5) Includes capitalized exploration at Island Gold of $1.7 million and $12.4 million for the three months and year ended December 31, 2024 ($3.3 million and $11.1 million for the three months and year ended December 31, 2023, respectively). (6) Includes capitalized exploration at Mulatos District of $1.6 million and $7.5 million for the three months and year ended December 31, 2024 ($5.5 million and $11.8 million for the three months and year ended December 31, 2023). (7) Includes capitalized exploration at Magino of $2.2 million and $2.2 million for the three months and year ended December 31, 2024. (8) The Mulatos District includes La Yaqui Grande and Mulatos pit. (9) The 2024 full year results for Magino are for Alamos’ ownership period from July 12, 2024 to December 31, 2024. (10) Sustaining capital expenditures for Magino include certain finance leases classified as sustaining.

Environment, Social and Governance Summary Performance

Health and Safety

Total recordable injury frequency rate 1 ("TRIFR") of 2.25 in the fourth quarter, an increase from 2.01 in the third quarter Lost time injury frequency rate 1 ("LTIFR") of 0.09 in the fourth quarter, consistent with the third quarter Full year TRIFR of 1.96 and LTIFR of 0.09

During the fourth quarter of 2024, Alamos had 25 recordable injuries across its sites including one lost time injury ("LTI"). For the full year, Alamos had 84 recordable injuries across its sites including 4 LTIs.

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 in the fourth quarter and full year, and two minor reportable events in the fourth quarter Completed the connection of the Mulatos District to the national electric grid in December 2024. This has eliminated the need for on-site diesel generated power, significantly reducing ongoing greenhouse gas ("GHG") emissions Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits

Two minor reportable events occurred during the fourth quarter. At the Magino mine, an effluent grab sample slightly exceeded the daily limit for phosphorus, which has since been rectified. The other minor reportable event was at Young-Davidson, where minor seepage was identified at the toe of the dam and quickly contained within the tailings management facility with no impact to the surrounding environment.

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:

Charitable donations to shelters, food banks and gift programs to coincide with the holiday season. A CAD$100,000 donation was made to the Lady Dunn Health Center Foundation in Wawa, Ontario to support the purchase of a new ultrasound machine Various sponsorships to support youth sports, mental health programs, and equipment upgrades for local library and elementary schools Continued to provide local community support for student scholarships, health care, community infrastructure and recreation activities In January 2025, the Company committed CAD$300,000 over three years to the Museum of Northern History in Kirkland Lake, Ontario, to reopen and continue operations

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

The Mulatos District was recognized with the Vite Picazo Award from the Sonora chapter of the Association of Mining Engineers, Metallurgists and Geologists of Mexico in recognition of its strong social and environmental practices Mulatos District was also the recipient of Empresa Socialmente Responsible award by the Mexican Center for Philanthropy for the 16th consecutive year

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.

Outlook and Strategy

| 2025 Guidance | | | | | | | | Island Gold District | Young-Davidson | Mulatos | Lynn Lake | Total | | Gold production ( 000's ounces) | 275 - 300 | 175 - 190 | 130 - 140 | — | 580 - 630 | | Cost of sales, including amortization _(in millions) _(3) | | | | | $805 | | Cost of sales, including amortization _($ per ounce) _(3) | | | | | $1,330 | | Total cash costs _($ per ounce) _(1) | $725 - $775 | $1,075 - $1,125 | $925 -$975 | — | $875- $925 | | All-in sustaining costs _($ per ounce) _(1) | | | | | $1,250 - $1,300 | | Mine-site all-in sustaining costs _($ per ounce) _(1)(2) | $1,100 - $1,150 | $1,390 - $1,440 | $1,025 - $1,075 | — | | | Capital expenditures (in millions) | | | | | | | Sustaining capital (1) | $80 - $85 | $55 - $60 | $3 - $5 | — | $138 - $150 | | Growth capital (1) | $270 - $300 | $15 - $20 | $37 - $40 | $100-120 | $422- $480 | | Total Sustaining and Growth Capital (1) | $350 - $385 | $70 - $80 | $40 - $45 | $100-120 | $560 - $630 | | Capitalized exploration (1) | $20 | $9 | $6 | $4 | $39 | | Total capital expenditures and capitalized exploration (1) | $370 - $405 | $79 - $89 | $46 - $51 | $104-124 | $599- $699 | | | | | | | |