Alamos Gold, Inc. Q4 FY2025 earnings call

1. Production: 2025 production was 545,000 ounces, below guidance because of severe weather in late December and other challenges at Canadian operations. Looking ahead to 2026, expecting a 12% increase in production driven by ramp-up of mining rates at Island Gold and Young-Davidson. 2. Financial: Delivered financial records with revenue of $1.8 billion in 2025 and record free cash flow over $350 million. Doubled shareholder returns, strengthened balance sheet by reducing debt and eliminated more Argonaut Gold hedges. 3. Dividend: Announced a 60% increase in dividend commencing this quarter. 4. Exploration: 2025 mineral reserves increased 32% to 16 million ounces, seventh consecutive year of growth. Exploration budget for 2026 increased to nearly $100 million, 37% higher than 2025. 5. Operations: Island Gold District Phase 3+ Expansion ramping up, Magino mill has improvement initiatives, Young-Davidson had rehabilitation work, Mulatos District production in line with guidance.

Production for 2025 was 545,000 ounces, below guidance due to Canadian operations challenges. Costs were above annual guidance. Annual revenue in 2025 was $1.8 billion. Q4 2025 sold 142,000 ounces of gold with average realized price $3,998 per ounce, generating quarterly revenues of $575 million. Full year 2025 sold 531,000 ounces at realized price $3,372 per ounce, total annual revenues $1.8 billion. Full year 2025 total cash cost $1,077 per ounce, all-in sustaining costs $1,524 per ounce. Island Gold District: Q4 2025 mine site free cash flow $61 million, full year $205 million. Young-Davidson: Q4 2025 produced 41,400 ounces, full year 153,400 ounces. Mulatos District: Q4 2025 produced 40,100 ounces, full year 141,600 ounces.

1. 2026 expects a meaningful improvement in operational performance to drive a 12% increase in production. 2. By 2028, expect a 46% increase in production at approximately 20% lower all-in sustaining costs. 3. Longer-term outlook is to nearly double annual production to over 1 million ounces a year at lower costs by the end of the decade, with Island Gold District expansion by 2028 and Lynn Lake in production by 2029.

1. Canadian operations faced challenges like severe weather in late December and other issues at Canadian operations which impacted 2025 production and costs. 2. Still need to eliminate the remaining 100,000 ounces of hedges inherited from the Argonaut Gold transaction by 2027, exposure to gold price fluctuations. 3. Mill throughput was low at Magino and mining rates were affected at Island Gold, which led to costs being above guidance in 2025.

Q: About exploration at Young-Davidson, are new targets associated with cyanide intrusive rock or others, and why higher grade?

A: Hanging wall mineralization includes conglomerates, volcanics and cyanides, with higher grades in conglomerates. The South cyanide is a similar lithology offset 300 meters south, and locally higher grades are seen there.

Q: Key deliverables for PDA in 2026?

A: Commission portals this year, start development work for mid-2027 initial production, earthworks for processing plant are mostly completed, long lead items for processing plant are procured.

Q: Dividend, feeling rewarded by market and capital return strategy?

A: Dividend has been paid since 2010, a combination of dividends and share buybacks. There is room for further dividend growth despite capital spending, and expect more dividends as free cash flow grows.