Alamos Gold Stock Price, News & Analysis

Alamos Gold Inc. (TSX:AGI; NYSE:AGI) has announced key appointments to strengthen its leadership team. Tony Giardini, with over 40 years of financial and senior leadership experience in the mining sector, has been appointed to the Board of Directors. Scott K. Parsons has been promoted to Senior Vice President, Corporate Development and Investor Relations, while Khalid Elhaj has been named Vice President, Business Development and Investor Relations.

Giardini, currently President and CEO of Trilogy Metals Inc., brings extensive experience from roles at Ivanhoe Mines, Kinross Gold, and Placer Dome. Parsons, who joined Alamos in 2013, will lead the Corporate Development function and Business Evaluation Committee. Elhaj, with the company since 2015, will work closely with Parsons in Investor Relations and Corporate Development.

Alamos Gold (TSX:AGI; NYSE:AGI) has announced a development plan for its high-grade Puerto Del Aire (PDA) project in the Mulatos District, Sonora, Mexico. The PDA project is expected to generate significant economic returns, with an after-tax IRR of 46% and an NPV of $269 million at a gold price of $1,950 per ounce. First production is slated for mid-2027, and the project aims to triple the Mulatos District's mine life to 2035. PDA is projected to produce 127,000 ounces of gold annually for the first four years and 104,000 ounces over its eight-year mine life. Initial capital expenditure is estimated at $165 million, to be covered by existing free cash flow.

The project benefits from low operating costs, with total cash costs at $921 per ounce and mine-site all-in sustaining costs at $1,003 per ounce. Potential for further mine life extension exists through ongoing exploration at PDA and Cerro Pelon. The PDA project will utilize existing infrastructure, reducing capital intensity and execution risk, and will not require a tailings dam due to dry stacking.

Alamos Gold Inc. (TSX:AGI; NYSE:AGI) reported new results from ongoing surface exploration drilling in the Mulatos District, focusing on Puerto Del Aire (PDA) and Cerro Pelon. Key highlights include:

1. Cerro Pelon: Drilling identified high-grade feeder structures 45-125m wide and up to 170m vertically, with top portions containing oxide mineralization.

2. PDA: Additional high-grade gold mineralization extended beyond current Mineral Reserves and Resources in GAP-Victor, PDA3, and PDA Extension zones.

3. 2024 Exploration Budget: $19 million allocated for 55,000m of drilling, including 27,000m at PDA and surrounding areas.

4. Mineral Reserves: PDA's reserves increased 33% to 1.0 million ounces at 5.61 g/t Au in 2023.

5. Development Plan: A PDA development plan will be released, outlining a project to nearly triple the current mine life of the Mulatos District.

Alamos Gold Inc. (TSX:AGI; NYSE:AGI) has declared a quarterly dividend of US$0.025 per common share, payable on September 26, 2024, to shareholders of record as of September 12, 2024. This marks the company's 15th consecutive year of dividend payments, with a total of $354 million returned to shareholders through dividends and share buybacks, including $30 million in 2024. Alamos has also implemented a Dividend Reinvestment Plan (DRIP), allowing shareholders to increase their investment by receiving common shares instead of cash dividends at a 3% discount to the prevailing market price. The DRIP enrollment deadline for the September 26 dividend is five business days prior to the September 12 record date.

Alamos Gold reported Q2 2024 results, achieving record production and lower costs. Gold output reached 139,100 ounces, surpassing the guidance of 123,000-133,000 ounces. The company recorded revenue of $332.6 million, a 27% YoY increase, and free cash flow of $106.9 million.

Gold sales: 140,923 ounces at $2,336/ounce.

Cost metrics: Total cash costs: $830/ounce; AISC: $1,096/ounce.

Net earnings: Adjusted: $96.9 million ($0.24/share); Reported: $70.1 million ($0.18/share).

Cash position: $313.6 million, debt-free.

Operational highlights: Integration of Magino mine with Island Gold is underway, expecting long-term synergies and growth. Record cash flow from operations: $194.5 million.

Exploration updates: Positive drilling results at Young-Davidson and Island Gold.

Outlook: On track to meet full-year guidance, with expected Q3 production of 145,000-155,000 ounces and higher costs due to Magino integration.

Alamos Gold (TSX:AGI; NYSE:AGI) announced results from its Island Gold Mine exploration, extending high-grade gold mineralization. Underground and surface drilling revealed significant findings in the Island East and West areas, including 36.54 g/t Au over 7.20m and 56.13 g/t Au over 2.13m. Delineation drilling defined wide, high-grade zones, expected to boost Mineral Reserves and Resources. The North Shear and Webb Lake areas also showed promise, with high-grade intersections like 12.10 g/t Au over 4.32m and 15.52 g/t Au over 5.64m. Alamos plans to spend $19 million on exploration in 2024, targeting new reserves near existing infrastructure. This growth aims to extend the mine's life beyond 20 years, leveraging synergies with the larger Magino mill. The program includes 41,000m of underground drilling and 12,500m of surface drilling, focusing on converting resources to reserves and identifying new high-grade zones. The long-term goal includes integrating Island Gold and Magino for expanded milling capacity.

Alamos Gold has released its 2023 Annual ESG Report, highlighting significant sustainability achievements. The report showcases an 8% reduction in greenhouse gas emissions, a 5% decrease in Total Recordable Injury Frequency Rate, and $2.2 million invested in local community initiatives. Alamos maintained zero significant environmental incidents and continued collaboration with Indigenous communities in Canada.

Other notable achievements include 87,000+ hours of employee training, 99% procurement from in-country suppliers, and the Mulatos mine receiving the Silver Helmet Award for outstanding health and safety performance. The report aligns with SASB, TCFD, and GRI standards, reflecting Alamos Gold's commitment to responsible mining and transparency in its sustainability efforts across operations, projects, and offices.

Alamos Gold Inc. (TSX:AGI; NYSE:AGI) has entered into a gold sale prepayment agreement for $116 million in exchange for delivering 49,384 ounces in 2025. The proceeds were used to eliminate gold forward purchase contracts previously entered by Argonaut Gold, totaling 179,417 ounces in 2024 and 2025 at an average price of $1,838 per ounce. This transaction has eliminated over half of Argonaut's hedge book and associated mark-to-market liability, providing increased exposure to rising gold prices.

Alamos inherited Argonaut's hedge book as part of its recent acquisition, which included contracts for 329,417 ounces between 2024 and 2027. The new agreement closes out all 2024 and 2025 contracts. The remaining hedge book consists of 150,000 ounces in 2026 and 2027, expected to account for less than 12% of total consolidated production during that period.

Alamos Gold has completed the acquisition of all outstanding shares of Argonaut Gold. The transaction, approved by the Ontario Superior Court of Justice and Mexico’s COFECE, includes Argonaut’s Magino mine, which will now be integrated with Alamos’ Island Gold mine. Argonaut’s U.S. and Mexico assets will be spun off into a new company, Florida Canyon Gold. Argonaut shareholders will receive shares in both Alamos and Florida Canyon Gold. Alamos issued 20.4 million Class A shares, bringing its total to 419.7 million. Alamos now owns 19.99% of Florida Canyon Gold after a $10 million private placement. Argonaut shares will be delisted from the TSX on July 16, 2024, while Florida Canyon Gold will start trading on the TSX Venture Exchange under the symbol 'FCGV'. The acquisition is expected to create significant synergies, positioning Alamos as a leading Canadian gold producer with increased production and reduced costs.