Alamos Gold Stock Price, News & Analysis

Alamos Gold (AGI) reported a 31% increase in Global Mineral Reserves to 14.0 million ounces of gold, primarily driven by the Magino acquisition and growth at Island Gold. Island Gold's Mineral Reserves increased 32% to 2.3 million ounces with grades rising 11% to 11.40 g/t Au.

Key highlights include an initial Mineral Reserve at Burnt Timber and Linkwood of 0.9 million ounces, and Magino's Mineral Reserve of 2.0 million ounces. Global Measured and Indicated Mineral Resources increased 50% to 6.6 million ounces, while Inferred Mineral Resources decreased slightly to 7.1 million ounces.

The company plans to release an Island Gold District Life of Mine plan in mid-2025, followed by an Expansion Study in Q4, incorporating significant growth since the Phase 3+ Study. The 2025 global exploration budget is set at $72 million, the largest in company history.

Alamos Gold has announced positive results from an internal economic study of its Burnt Timber and Linkwood satellite deposits near the Lynn Lake project in Manitoba, Canada. These deposits will extend Lynn Lake's mine life from 17 to 27 years, starting production in year 12 with average annual gold production of 83,000 ounces over a 10-year period.

Key highlights include: total cash costs of $1,140 per ounce, low initial capital of $67 million, and a high after-tax Internal Rate of Return of 54% at $2,200/oz gold price (increasing to 83% at $2,800/oz). The project features a 40% increase in combined Mineral Reserves to 3.3 million ounces, with Burnt Timber and Linkwood contributing 940,000 ounces at 0.95 g/t Au grade.

The deposits will utilize existing Lynn Lake infrastructure and processing facilities, with ore being transported 28km to the MacLellan mill. Mining will employ conventional open-pit methods with a waste-to-ore ratio of 2.8:1 and expected gold recovery of 92.7%.

Alamos Gold has received approval for an environmental permit amendment from Mexico's SEMARNAT to begin construction on the Puerto Del Aire (PDA) project in the Mulatos District. The project requires an initial capital investment of $165 million, with $37-40 million allocated for 2025. Production is expected to begin mid-2027.

PDA is projected to produce an average of 127,000 ounces of gold annually in the first four years, and 104,000 ounces over its eight-year mine life. The project boasts mine-site all-in sustaining costs of $1,003 per payable ounce. At a base gold price of $1,950 per ounce, PDA has an after-tax NPV of $269 million and an IRR of 46%. At $2,500 per ounce, these figures increase to $492 million and 73% respectively.

The project shows exploration potential, with PDA open in multiple directions and higher-grade mineralization discovered below the former Cerro Pelon open pit, which could extend production beyond the initial plan.

Alamos Gold (TSX:AGI; NYSE:AGI) has announced it will release its fourth quarter and year-end 2024 financial results after market close on Wednesday, February 19, 2025. The company will host a conference call with senior management on Thursday, February 20, 2025, at 11:00 am ET to discuss the results.

Participants can join via webcast at www.alamosgold.com or through dial-in numbers: (416) 406-0743 for Toronto and International callers, or toll-free (800) 898-3989 for Canada and US callers, using participant passcode 7495836#.

A playback option will be available until March 22, 2025, accessible by dialing (905) 694-9451 or (800) 408-3053 within Canada and the United States, using passcode 4604832#. The webcast will be archived on the company's website.

Alamos Gold reported record annual gold production of 567,000 ounces in 2024, a 7% increase from 2023, meeting their revised guidance. The company projects a 24% production growth by 2027, with costs expected to decrease approximately 10% to between $1,125 and $1,225 per ounce.

The company announced construction of the Lynn Lake project in Manitoba, expected to start production in early 2028, adding approximately 176,000 ounces annually. Fourth quarter 2024 production was 140,200 ounces, with total 2024 revenue reaching a record $1.3 billion from sales of 560,234 ounces at an average price of $2,379 per ounce.

Alamos ended 2024 with approximately $325 million in cash, up from $225 million at the end of 2023. The company maintains a net cash position with $250 million drawn on its credit facility.

Alamos Gold reported new drilling results from its Island Gold Mine, showing high-grade gold mineralization extensions across the deposit. The exploration program, with a $19 million budget in 2024, completed 50,416m of underground exploration drilling and 9,849m of surface drilling.

Notable high-grade intersections include 67.68 g/t Au over 3.61m in Island West and 55.50 g/t Au over 3.87m in Island East. Delineation drilling revealed significant zones including 31.42 g/t Au over 17.87m.

The company expects these results to drive another year of growth in Mineral Reserves and Resources, marking the ninth consecutive year of expansion. The deposit remains open laterally and down-plunge, with new high-grade discoveries in hanging wall and footwall zones suggesting further growth potential near existing infrastructure.

Alamos Gold (TSX:AGI; NYSE:AGI) has appointed J. Robert S. Prichard as Chair of the Board of Directors, effective January 8, 2025. Prichard succeeds Paul Murphy, who passed away in December 2024 after serving on the Board for over 14 years, including nine years as Chairman.

Prichard, who joined the Alamos Board in May 2019, brings significant experience as the non-executive Chairman of Torys LLP and former Chair of BMO Financial Group. He currently serves as Director of Onex , Wittington Investments , Chair of VIA HFR, and Vice Chair of the Rideau Hall Foundation. His background includes leadership roles in academia as President Emeritus of the University of Toronto and corporate positions as President and CEO of Torstar and Metrolinx.

Alamos Gold (TSX:AGI; NYSE:AGI) has announced the renewal of its Normal Course Issuer Bid program, allowing the company to repurchase up to 18,605,661 Class A Common Shares, representing 5% of its public float and 4.4% of total issued shares as of December 13, 2024. The buyback program will run from December 24, 2024, to December 23, 2025, with purchases to be made through the TSX, alternative Canadian trading systems, and NYSE.

The daily purchase limit on TSX is set at 191,171 shares. The company believes its shares are trading at a discount to their underlying value, making the buyback advantageous for shareholders. Under its previous program ending December 23, 2024, which allowed for up to 34,485,405 shares, no purchases were made.

Alamos Gold (TSX:AGI; NYSE:AGI) has announced the passing of Chairman Paul J. Murphy, who served on the Board for over 14 years, including nine years as Chairman. Murphy joined as a Director in 2010 and became Chair in 2015, overseeing significant company growth. Prior to Alamos, he was a Partner at PricewaterhouseCoopers from 1981 to 2010, serving as National Mining Leader from 2004 to 2010. His career focused primarily on the resource sector, working with major international oil and gas and mining companies.