Alamos Gold (NYSE: AGI) trims 2026 guidance but boosts gold leverage
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Alamos Gold Inc. reports operational challenges at its Young-Davidson mine that are forcing a cut to short-term guidance. Two seismic events damaged infrastructure and restricted access to higher-grade stopes, while storm-related power outages caused three days of unplanned downtime and lower mining rates.
The company now expects second quarter production of 130,000–135,000 ounces, about 12% below prior guidance at the midpoint, and anticipates higher second quarter costs. Consolidated 2026 production is expected to fall below the low end of full-year guidance, with costs above prior full-year cost guidance.
In contrast, the Island Gold District is performing well, with underground mining exceeding 1,500 tpd and Magino mill throughput averaging nearly 9,800 tpd in June, targeting 10,000 tpd by the third quarter. Alamos repurchased 35,000 ounces of legacy gold forward contracts for $92.3 million and has now retired 279,000 of 329,000 ounces. It also bought back 753,600 shares for $30.0 million under its NCIB.
Positive
- Hedge elimination strengthens leverage to gold prices: Alamos repurchased 35,000 ounces of forward sale contracts for $92.3 million and has now retired 279,000 of 329,000 inherited hedged ounces, materially reducing pre-sold production.
- Capital returns via share buybacks: The company repurchased 753,600 shares for $30.0 million at $39.84 per share under its Normal Course Issuer Bid in May 2026, signaling willingness to return cash to shareholders.
- Island Gold District ramp-up progressing well: Underground mining rates exceeded 1,500 tpd in Q2 2026 and Magino mill throughput averaged nearly 9,800 tpd in June, targeting 10,000 tpd by Q3 2026, supporting expected second-half production growth at lower all-in sustaining costs.
Negative
- Q2 production guidance cut by 12%: Second quarter production is now guided to 130,000–135,000 ounces, a 12% reduction at the midpoint versus previous guidance, due mainly to issues at Young-Davidson.
- Full-year 2026 outlook downgraded: Management expects consolidated 2026 production to fall below the low end of prior guidance, with costs above full-year cost guidance, weakening the near-term operating outlook.
- Operational disruptions at Young-Davidson: Two seismic events damaged infrastructure and limited access to higher-grade stopes, while three days of power-related downtime reduced mining rates, pressuring both production and unit costs.
Insights
Alamos cuts 2026 production outlook amid Young-Davidson issues but boosts leverage to gold and buys back shares.
Alamos Gold is facing meaningful operational headwinds at Young-Davidson. Seismic events and power outages reduced access to higher-grade stopes and lowered mining rates, leading to revised Q2 production guidance of 130,000–135,000 ounces, a 12% cut versus prior guidance. Management now expects 2026 output below the low end of earlier guidance and costs above full-year cost guidance.
At the same time, the Island Gold District is ramping well. Underground mining has exceeded 1,500 tpd, and Magino mill throughput has improved to nearly 9,800 tpd in June, targeting 10,000 tpd by Q3 2026. The company indicates this area should drive production growth in the second half of the year at lower all-in sustaining costs.
Strategically, Alamos is increasing exposure to spot gold prices and returning capital. It repurchased 35,000 ounces of legacy forward sale contracts for $92.3 million, bringing total retired hedges to 279,000 of 329,000 ounces, and bought back 753,600 shares for $30.0 million under its Normal Course Issuer Bid in May 2026. The net impact is negative near-term on volumes and unit costs, partly offset by stronger long-term leverage to gold and shareholder returns.
Key Figures
Q2 2026 production guidance: 130,000–135,000 ounces
Guidance reduction: 12% decrease
Young-Davidson mining rate: 5,000 tonnes per day
+5 more
8 metrics
Q2 2026 production guidance
130,000–135,000 ounces
Revised second quarter 2026 gold production range
Guidance reduction
12% decrease
Drop in Q2 production guidance versus prior midpoint
Young-Davidson mining rate
5,000 tonnes per day
Expected average mining rate for remainder of 2026
Forward contracts eliminated in Q2
35,000 ounces; $92.3 million
Legacy Argonaut forward sales repurchased in Q2 2026
Total hedges retired
279,000 of 329,000 ounces
Forward contracts eliminated prior to maturity
Share buyback in May 2026
753,600 shares; $30.0 million
Normal Course Issuer Bid repurchases at $39.84 per share
Island Gold underground rate
More than 1,500 tpd
Average underground mining rate to date in Q2 2026
Magino mill throughput
Nearly 9,800 tpd
Average throughput to date in June 2026
Key Terms
all-in sustaining costs, Normal Course Issuer Bid, forward sale contracts, free cash flow, +2 more
6 terms
all-in sustaining costs financial
"expected to contribute substantial production growth into the second half of 2026 at lower all-in sustaining costs."
All-in sustaining costs (AISC) is a per-unit measure used mainly in the mining sector that captures the full ongoing cost to produce a unit of metal, including operating expenses, sustaining capital (maintenance of current operations), and a share of corporate overhead and site-level costs. Investors use AISC to judge whether production generates real profit and sustainable cash flow—think of it as the total monthly household cost to keep a home running, not just the utility bill.
Normal Course Issuer Bid financial
"repurchased 753,600 shares at a cost of $30.0 million, or $39.84 per share, under its Normal Course Issuer Bid"
A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.
forward sale contracts financial
"repurchased and eliminated all remaining forward sale contracts that were set to mature in the second half of 2026."
A forward sale contract is an agreement to sell a specific asset at a fixed price on a future date, locking in the terms today while the actual transfer happens later. For investors, forward sales matter because they remove uncertainty about future price and cash flow—like agreeing now to sell a car next month at a set price—so they can plan around known proceeds but may miss out if market prices move favorably before settlement.
free cash flow financial
"With growing free cash flow and one of the strongest outlooks in the sector, the Company will continue to evaluate opportunities to repurchase shares"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Material Change Report regulatory
"Alamos Gold Material Change Report, June 22, 2026"
A material change report is a public notice that a company must file and share whenever new information or an event is significant enough to likely influence an investor’s decision. Think of it like an urgent update board that tells shareholders about big shifts—such as major deals, leadership changes, sudden losses, or legal issues—so investors can reassess risk and value with the same facts everyone else has.
non-GAAP performance measure financial
"“Cash flow from operating activities before changes in non-cash working capital” is a non-GAAP performance measure"
FAQ
What material change did Alamos Gold (AGI) report in June 2026?
Alamos Gold reported operational disruptions at its Young-Davidson mine that reduced mining rates and production. As a result, it cut second quarter 2026 production guidance and warned that full-year 2026 output will fall below previous guidance while costs run above earlier cost guidance.
How did Alamos Gold revise its Q2 2026 production guidance?
Alamos revised its second quarter 2026 production guidance to 130,000–135,000 ounces of gold. This updated range reflects lower-than-expected production at Young-Davidson and timing of recoveries at La Yaqui Grande, representing a 12% reduction from the prior guidance midpoint.
What is the impact of Young-Davidson’s seismic events on Alamos Gold (AGI)?
Two seismic events at Young-Davidson damaged infrastructure and limited access to two higher-grade stopes. Combined with power outages, this lowered mining rates, pushed Q2 production below prior expectations, and contributed to Alamos cutting 2026 production guidance and indicating higher-than-guided costs.
How are Alamos Gold’s Island Gold District operations performing in 2026?
Island Gold District operations are performing well and remain on track to meet full-year guidance. Underground mining rates surpassed 1,500 tonnes per day and Magino mill throughput averaged nearly 9,800 tonnes per day in June, targeting 10,000 tonnes per day by the third quarter of 2026.
What hedging actions has Alamos Gold taken on Argonaut legacy contracts?
During the second quarter, Alamos repurchased and eliminated 35,000 ounces of forward sale contracts at an average price of $1,821 per ounce for $92.3 million. In total, it has now retired 279,000 of 329,000 inherited hedged ounces, leaving 50,000 ounces maturing in the first half of 2027.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of June, 2026
Commission File Number: 001-35783
Alamos Gold Inc.
(Translation of registrant’s name into English)
Brookfield Place, 181 Bay Street, Suite 3910
Toronto, Ontario, Canada
M5J 2T3
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F o Form 40-F x
EXHIBIT INDEX
EXHIBIT NO. | DESCRIPTION | |||||||
99.1 | Alamos Gold Material Change Report, June 22, 2026 | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Alamos Gold Inc. | ||||||||||||||||||||
Date: June 23, 2026 | ||||||||||||||||||||
By: | /s/ E.A. (Ward) Sellers | |||||||||||||||||||
Name: | E.A. (Ward) Sellers | |||||||||||||||||||
Title: | Vice President, General Counsel | |||||||||||||||||||
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1: Name and Address of Company
Alamos Gold Inc. (“Alamos”)
Brookfield Place
181 Bay Street, Suite 3910
Toronto, Ontario M5J 2T3
Item 2: Date of Material Change
June 18, 2026
Item 3: News Release
A news release was disseminated on June 18, 2026 via GlobeNewswire and a copy was subsequently filed on SEDAR+.
Item 4: Summary of Material Change
On June 18, 2026, Alamos announced operational updates at its Young-Davidson and Island Gold District operations, as well as revised its second quarter production and cost guidance.
Production from Young-Davidson in the second quarter has been impacted by recent events. During the week ended June 12, 2026, the Young-Davidson operation experienced two seismic events, with one occurring at an active mining front. No injuries were sustained; however, infrastructure was damaged limiting access to two higher grade stopes that were scheduled to be mined during the second quarter. The mining sequence is consistently reviewed and monitored to manage seismicity, and based on these recent events, Alamos expects mining rates to average approximately 5,000 tonnes per day for the remainder of the year. Alamos will be optimizing the mining sequence and implementing additional ground support measures through the second half of the year, which is expected to support higher mining rates beyond 2026.
Additionally, the operation experienced power outages due to storm related damage to the regional power line in late May. The remote location of the power line along the route between the town of Kirkland Lake and Young-Davidson contributed to longer response time from the utility company. This resulted in a total of three days of unplanned downtime which impacted mining rates and production for the quarter.
Given the seismic events at Young-Davidson, the unplanned downtime for power loss in May, and lower grades mined, Alamos expects Young-Davidson production to be lower than anticipated for the second quarter and in-line with the first quarter. Alamos is revising its second quarter production guidance to between 130,000 and 135,000 ounces,
-2-
reflecting the shortfall at Young-Davidson, as well as the timing of recovery of ounces at La Yaqui Grande. Island Gold production for the second quarter is expected to be in line with plan for the quarter. Updated quarterly production guidance represents a 12% decrease from previous guidance based on the mid-point. Second quarter costs are also expected to be higher than previously guided, reflecting the lower production at Young-Davidson.
Given lower first half production and lower mining rates expected from Young-Davidson through the second half of the year, Alamos expects consolidated production will be below the low end of 2026 guidance, and costs above full year guidance. The Company will provide revised 2026 consolidated production and cost guidance with the release of its second quarter financial results in late July.
Item 5: Full Description of Material Change
5.1 Full Description of Material Change
For a full description of the material change, please see the news release of Alamos attached as Schedule “A” hereto.
5.2 Disclosure for Restructuring Transactions
Not applicable.
Item 6: Reliance on subsection 7.1(2) or (3) of National Instrument 51-102
Not applicable.
Item 7: Omitted Information
Not applicable.
Item 8: Executive Officer
E.A. (Ward) Sellers
Vice President, General Counsel
(416) 368-9932
notice@alamosgold.com
Item 9: Date of Report
June 22, 2026
Schedule “A”
PRESS RELEASE
TRADING SYMBOL: TSX:AGI NYSE:AGI
 | Alamos Gold Inc. | |||||||
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823 | ||||||||
Toronto, Ontario M5J 2T3 | ||||||||
Telephone: (416) 368-9932 or 1 (866) 788-8801 | ||||||||
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Provides Operational Update Across Canadian Operations
Toronto, Ontario (June 18, 2026) – Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today provided operational updates at its Young-Davidson and Island Gold District operations, as well as revised its second quarter production and cost guidance.
Young-Davidson operational update
Production from Young-Davidson in the second quarter has been impacted by recent events. Last week, the operation experienced two seismic events, with one occurring at an active mining front. No injuries were sustained; however, infrastructure was damaged limiting access to two higher grade stopes that were scheduled to be mined during the second quarter. The mining sequence is consistently reviewed and monitored to manage seismicity, and based on these recent events, the Company expects mining rates to average approximately 5,000 tonnes per day (“tpd”) for the remainder of the year. The Company will be optimizing the mining sequence and implementing additional ground support measures through the second half of the year, which is expected to support higher mining rates beyond 2026. A further update on the near-term outlook for Young-Davidson will be provided with the release of second quarter financial results in late July.
Additionally, the operation experienced power outages due to storm related damage to the regional power line in late May. The remote location of the power line along the route between the town of Kirkland Lake and Young-Davidson contributed to longer response time from the utility company. This resulted in a total of three days of unplanned downtime which impacted mining rates and production for the quarter.
Impact on second quarter and full year guidance
Given the seismic events at Young-Davidson, the unplanned downtime for power loss in May, and lower grades mined, the Company expects Young-Davidson production to be lower than anticipated for the second quarter and in-line with the first quarter. The Company is revising its second quarter production guidance to between 130,000 and 135,000 ounces, reflecting the shortfall at Young-Davidson, as well as the timing of recovery of ounces at La Yaqui Grande. Island Gold production for the second quarter is expected to be in line with plan for the quarter. Updated quarterly production guidance represents a 12% decrease from previous guidance based on the mid-point. Second quarter costs are also expected to be higher than previously guided, reflecting the lower production at Young-Davidson.
Given lower first half production and lower mining rates expected from Young-Davidson through the second half of the year, the Company expects consolidated production will be below the low end of 2026 guidance, and costs above full year guidance. The Company will provide revised 2026 consolidated production and cost guidance with the release of its second quarter financial results in late July.
TRADING SYMBOL: TSX:AGI NYSE:AGI
“We are disappointed with the operational challenges at Young-Davidson, and are working diligently to review and optimize the mining sequence to support higher mining rates going forward. The first half has been challenging, but we expect stronger production into the second half of this year. The key driver of this expected improvement is the Island Gold District. The ramp up of the operation continues to track well, as does work on the shaft and larger mill expansion, which are expected to be significant drivers of growth over the next several years,” said John A. McCluskey, President and Chief Executive Officer.
Island Gold operational update
Island Gold District operations continue to perform well, and remain on track to achieve full year guidance with significant production growth expected through the remainder of the year. Underground mining rates have increased to average a new record of more than 1,500 tpd to date in the second quarter, and are on track to increase to 2,000 tpd by the end of 2026. Underground grades mined in the second quarter continue to perform well and are expected to be consistent with the first quarter, as previously guided. Open pit grades mined are also performing well and remain consistent with full year guidance.
Magino mill throughput rates have demonstrated a significant improvement, averaging nearly 9,800 tpd to date in June. The improved performance follows the scheduled replacement of conveyor belts, as well as the ball and SAG mill liners during the last week of May. Throughput rates within the Magino mill are ramping up as planned and are expected to increase to average 10,000 tpd by the third quarter. Combined with increasing underground mining rates and higher grades, the Island Gold District is expected to contribute substantial production growth into the second half of 2026 at lower all-in sustaining costs.
All remaining 2026 legacy Argonaut gold hedges eliminated
During the second quarter, the Company repurchased and eliminated all remaining forward sale contracts that were set to mature in the second half of 2026. These contracts totaled 35,000 ounces at an average price of $1,821 per ounce. The cost to eliminate the 35,000 ounces was $92.3 million of cash, for an effective price of approximately $4,458 per ounce, providing further upside to higher gold prices.
This followed the repurchase and elimination of forward contracts in the first quarter covering 15,000 ounces scheduled to mature in the second half of 2026. The Company has now retired 279,000 ounces, or 85% of the 329,000 ounces of forward contracts inherited from Argonaut Gold in July 2024, prior to maturity, and will continue to explore opportunities to retire the remaining 50,000 ounces which are set to mature during the first half of 2027.
$30 million of shares repurchased under share buyback in May
As previously disclosed, the Company repurchased 753,600 shares at a cost of $30.0 million, or $39.84 per share, under its Normal Course Issuer Bid (“NCIB”) in May 2026. With growing free cash flow and one of the strongest outlooks in the sector, the Company will continue to evaluate opportunities to repurchase shares and expects to be active over the coming months.
2 | ALAMOS GOLD INC
TRADING SYMBOL: TSX:AGI NYSE:AGI
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America. This includes the Island Gold District and Young-Davidson mine in northern Ontario, Canada, and the Mulatos District in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth projects including the IGD Expansion, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 2,400 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| Scott K. Parsons | |||||
| Senior Vice President, Corporate Development & Investor Relations | |||||
| (416) 368-9932 x 5439 | |||||
| Khalid Elhaj | |||||
| Vice President, Business Development & Investor Relations | |||||
| (416) 368-9932 x 5427 | |||||
ir@alamosgold.com | |||||
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note
This press release contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S. securities laws. All statements, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed to be, forward-looking statements and are generally, but not always, identified by the use of forward-looking terminology such as "expect", “assume”, “estimate”, “potential”, “outlook”, “on track”, “continue”, “ongoing”, "will", “believe”, “anticipate”, "intend", "estimate", "forecast", "budget", “target”, “plan” or variations of such words and phrases and similar expressions or statements that certain actions, events or results “may", “could”, “would”, "might" or "will" be taken, occur or be achieved or the negative connotation of such terms. Forward-looking statements contained in this press release are based on expectations, estimates and projections as of the date of this press release.
Forward-looking statements in this press release include, but may not be limited to, information, expectations and guidance as to strategy, plans, future financial and operating performance, such as mining, milling and throughput rates; production rates and potential; free cash flow; costs, including all-in sustaining costs; forthcoming updates to 2026 production and cost guidance as well as an update to the near and medium term outlook for the Young-Davidson mine with the release of second quarter financial results; planned re-evaluation and optimization of the mine plan sequence and the implementation of additional ground support measures at the Young-Davidson mine; gold grades; gold prices; planned and potential exploration; status and anticipated effects of completion of the Island Gold District Expansion and the Phase 3+ Expansion Project; value of operation, growth prospects and strong sector outlook; intent and ability to improve employee attraction and retention; continued approach to forward sale contracts inherited from Argonaut Gold; share repurchases under the Company’s NCIB; and other statements or information that express management's expectations or estimates of future performance, operational, geological or financial results.
The Company cautions that forward-looking statements are necessarily based upon several factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, technical, legal, political and competitive uncertainties and contingencies. Known and
3 | ALAMOS GOLD INC
TRADING SYMBOL: TSX:AGI NYSE:AGI
unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information.
Such factors and assumptions underlying the forward-looking statements in this press release, include (without limitation): the actual results of current exploration activities; changes to current estimates of mineral reserves and mineral resources; conclusions of economic and geological evaluations; changes in project parameters as plans continue to be refined; operations may be exposed to illness, disease, epidemic or pandemic which may impact, among other things, the broader market; state and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in Canada, Mexico and other jurisdictions in which the Company does or may conduct business; the duration of regulatory responses to any illness, disease, epidemic or pandemic; changes in national and local government legislation, controls or regulations; failure to comply with environmental and health and safety laws and regulations; labour and contractor availability (and being able to secure the same on favourable terms); ability to sell or deliver gold doré bars; disruptions in the maintenance or provision of required infrastructure and information technology systems; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance); changes in foreign exchange rates (particularly the Canadian dollar, U.S. dollar, and Mexican peso); the impact of inflation; the potential impact of any tariffs, trade barriers and/or regulatory costs; employee and community relations; litigation and administrative proceedings; disruptions affecting operations; risks associated with the startup of new mines; availability of and increased costs associated with mining inputs and labour; delays in the development or updating of mine plans; delays in or impediments to construction and improvement initiatives, including, without limitation, the Phase 3+ Expansion, the Island Gold District Expansion, construction of the 115kV powerline, expansion of the Magino mill, paste plant construction project, and construction of the Lynn Lake Project, and the PDA project; inherent risks and hazards associated with mining and mineral processing including industrial accidents; environmental hazards including, without limitation, fires, floods, seismic activity, unusual or unexpected formations, pressures and cave-ins; the risk that the Company’s mines may not perform as planned; uncertainty with the Company's ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, risks in obtaining and maintaining necessary licenses, permits and authorizations, contests over title to properties; expropriation or nationalization of property; political or economic developments in Canada or Mexico and other jurisdictions in which the Company does or may carry on business in the future; increased costs and risks related to the potential impact of climate change; the costs and timing of exploration, construction and development of new deposits; risk of loss due to sabotage, protests and other civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; and business opportunities that may be pursued by the Company.
For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this press release, see the Company’s latest 40-F/Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2025, each under the heading “Risk Factors” available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information and risk factors and assumptions found in this press release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Cautionary non-GAAP Measures and Additional GAAP Measures
Note that for purposes of this section, GAAP refers to IFRS. The Company believes that investors use certain non-GAAP and additional GAAP measures as indicators to assess gold mining companies. They are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared with GAAP.
“Cash flow from operating activities before changes in non-cash working capital” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations and is calculated by adding back the change in non-cash working capital to “cash provided by (used in) operating activities” as presented on the Company’s consolidated statements of cash flows. “Cash flow per share” is calculated by dividing “cash flow from operations before changes in working capital” by the weighted average number of shares outstanding for the period. “Free cash flow” is a non-GAAP performance measure that is calculated as cash flows from operations net of cash flows invested in mineral property, plant and equipment and exploration and evaluation assets as presented on the Company’s consolidated statements of cash flows and that would provide an indication of the Company’s ability to generate cash flows from its mineral projects. “Mine site free cash flow” is a non-GAAP measure which includes cash flow from operating activities at, less capital expenditures at each mine site. “Return on
4 | ALAMOS GOLD INC
TRADING SYMBOL: TSX:AGI NYSE:AGI
equity” is defined as earnings from continuing operations divided by the average total equity for the current and previous year. “Mining cost per tonne of ore” and “cost per tonne of ore” are non-GAAP performance measures that could provide an indication of the mining and processing efficiency and effectiveness of the mine. These measures are calculated by dividing the relevant mining and processing costs and total costs by the tonnes of ore processed in the period. “Cost per tonne of ore” is usually affected by operating efficiencies and waste-to-ore ratios in the period. “Sustaining capital” are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s development projects. “Growth capital” are expenditures primarily incurred at development projects and costs related to major projects at existing operations, where these projects will materially benefit the mine site. “Capitalized exploration” are expenditures that meet the IFRS definition for capitalization, and are incurred to further expand the known Mineral Reserve and Resource at existing operations or development projects. “Total capital expenditures per ounce produced” is a non-GAAP term used to assess the level of capital intensity of a project and is calculated by taking the total growth and sustaining capital of a project divided by ounces produced life of mine. “Total cash costs per ounce”, “all-in sustaining costs per ounce”, “mine-site all-in sustaining costs”, and “all-in costs per ounce” as used in this analysis are non-GAAP terms typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period.
These non-GAAP terms are also used to assess the ability of a mining company to generate cash flow from operations. There may be some variation in the method of computation of these metrics as determined by the Company compared with other mining companies. In this context, “total cash costs” reflects mining and processing costs allocated from in-process and doré inventory and associated royalties with ounces of gold sold in the period. Total cash costs per ounce are exclusive of exploration costs. “All-in sustaining costs per ounce” include total cash costs, exploration, corporate and administrative, share based compensation and sustaining capital costs. “Mine-site all-in sustaining costs” include total cash costs, exploration, and sustaining capital costs for the mine-site, but exclude an allocation of corporate and administrative and share based compensation. “Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS. “Adjusted net earnings” excludes the following from net earnings: foreign exchange gain (loss), items included in other loss, certain non-reoccurring items and foreign exchange gain (loss) recorded in deferred tax expense. “Adjusted earnings per share” is calculated by dividing “adjusted net earnings” by the weighted average number of shares outstanding for the period. Additional GAAP measures that are presented on the face of the Company’s consolidated statements of comprehensive income and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. This includes “Earnings from operations”, which is intended to provide an indication of the Company’s operating performance, and represents the amount of earnings before net finance income/expense, foreign exchange gain/loss, other income/loss, and income tax expense. Non-GAAP and additional GAAP measures do not have a standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other companies. A reconciliation of historical non-GAAP and additional GAAP measures are available in the Company’s latest Management’s Discussion and Analysis available online on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov and at www.alamosgold.com.
5 | ALAMOS GOLD INC