Alamos Gold, Inc. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Acknowledged that 2025 has been far from a typical production year with downtime, but long-term outlook remains strong.
• Third quarter production totaled 141,700 ounces, a 3% increase from the second quarter, driven by stronger performances from Mulatos and Island Gold District. Record revenue, cash flow from operations, and free cash flow of $130 million in the quarter.
• Revised 2025 production guidance to between 560,000 and 580,000 ounces, a 6% decrease from original guidance, due to unplanned downtime at Magino mill and seismic event at Island Gold.
• Operational updates: Magino mill had 1 week of unplanned downtime in late September; Island Gold had a seismic event in mid-October causing temporary delay in mining access; mills restarted to capitalize on higher gold prices; Phase 3+ expansion at Island Gold progressing well with shaft sink at 1,350-meter level; Lynn Lake project initial production expected in 2029.
• Sold Turkish development project for $470 million, cash balance increased to over $600 million, with plans to reduce debt and consider share buybacks.

Segment Performance

• Island Gold District: Third quarter production totaled 66,800 ounces, a 4% increase from the previous quarter. Full year production guidance revised to between 260,000 and 270,000 ounces. Fourth quarter expected significant increase in production driven by higher combined milling rates.
• Young-Davidson: Produced 37,900 ounces in the third quarter, similar to the second quarter. Production guidance revised to between 160,000 and 165,000 ounces. Fourth quarter expected stronger with higher production and lower costs. Generated $62 million in free cash flow in the quarter.
• Mulatos District: Third quarter production totaled 37,000 ounces, a 9% increase quarter-over-quarter. Full year production guidance increased to between 140,000 and 145,000 ounces. Fourth quarter expected further increase in production as it benefits from recovery of higher grade ore stock in previous quarters.

Guidance

• Revised 2025 production guidance to between 560,000 and 580,000 ounces, a 6% decrease from original guidance.
• Fourth quarter expected significant improvement in production and costs, driving new financial records at current gold prices.
• Lynn Lake project initial production expected in 2029, aiming to reach 900,000 ounces of lower-cost annual production by the end of the decade.
• Island Gold District expansion study expected to outline further upside, potentially increasing consolidated production to 1 million ounces per year within a similar time frame.

Risks

• Unplanned downtime at Magino mill and seismic event at Island Gold impacting production timelines and guidance.
• Capacitor failure at Magino mill leading to 1 week of unplanned downtime in late September, requiring repairs and component replacements.
• Seismic activity at Island Gold causing temporary delay in mining access to higher-grade stopes, affecting fourth quarter mine grades.
• Potential inflation impact on Lynn Lake CapEx due to wildfire delays in 2025, pushing initial production to 2029.

Question and Answer

Q: On Q4 production range, factors affecting higher end?

A: Luc Guimond mentions Young-Davidson grade at the high end of guided grades, Mulatos benefiting from recovery of higher grade ore stock in previous quarters, and Island Gold maintaining similar guided mining rates.

Q: Seismic activity at Island Gold?

A: Luc Guimond explains it's a natural occurrence, escapeway rehabilitation needed, expected to resume mining in the affected area early December with no long-term impacts.

Q: Magino mill throughput target?

A: Luc Guimond states aiming for 11,200 tonnes per day by end of 2025, with plans to reach 12,400 tonnes per day in 2026 through mill expansion and equipment upgrades.