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Alamos Gold reports First Quarter 2021 Results

Apr 29, 2021

“We had a strong start to 2021 with gold production exceeding guidance for the quarter. Our Canadian operations performed particularly well, with Young-Davidson ramping up to record mining rates and yet another quarterly production record at Island Gold,” said John A. McCluskey, President and Chief Executive Officer.

“We also made good progress on our internal growth initiatives while continuing to generate solid free cash flow. Development activities are ramping up at La Yaqui Grande and on the Phase III expansion at Island Gold, and we continue to advance permitting of our Lynn Lake project. All are key components of our strong outlook with approximately 50% production growth at significantly lower costs supporting substantial free cash flow growth over the long-term,” Mr. McCluskey added.

First Quarter 2021

  • Production of 125,800 ounces of gold, above the top end of quarterly guidance, and a 14% increase from the first quarter of 2020, driven by significantly higher production at Young-Davidson and another record quarter at Island Gold
  • Young-Davidson produced 48,000 ounces of gold and generated mine-site free cash flow1 of $22.3 million. The strong performance was driven by record mining rates of 7,791 tonnes per day ("tpd") from the new lower mine infrastructure, exceeding the targeted mining rate of 7,500 tpd
  • Island Gold produced a record 42,200 ounces of gold and generated mine-site free cash flow1 of $26.0 million, net of growth expenditures and capitalized exploration of $16.8 million
  • Generated free cash flow1 of $9.9 million, net of $16.8 million of capital advances for the La Yaqui Grande project and the Phase III expansion at Island Gold, and $18.2 million in cash taxes paid in Mexico, primarily related to 2020
  • Sold 126,482 ounces of gold at an average realized price of $1,798 per ounce for record revenues of $227.4 million
  • Generated cash flow from operating activities of $99.3 million ($119.6 million, or $0.30 per share, before changes in working capital1), a 75% increase compared to the first quarter of 2020
  • Consolidated total cash costs1 of $757 per ounce, all-in sustaining costs ("AISC")1 of $1,030 per ounce and cost of sales of $1,101 per ounce were all in line with annual guidance, despite the impact of the stronger than budgeted Canadian dollar
  • Realized adjusted net earnings1 of $49.1 million, or $0.13 per share1, which includes adjustments for unrealized foreign exchange gains of $2.3 million, recorded within deferred taxes and foreign exchange, and other one-time losses of $0.2 million. Adjusted net earnings increased 67% compared to the first quarter of 2020
  • Recorded net earnings of $51.2 million, or $0.13 per share
  • Ended the quarter with cash and cash equivalents of $238.2 million and equity securities of $26.7 million. During the quarter, the Company generated $20.7 million in cash on the liquidation of certain equity securities and realized an after-tax gain of $9.3 million (recorded within equity)
  • Paid a quarterly dividend of $9.8 million, or US$0.025 per share (annualized rate of US$0.10 per share), representing a 25% increase from the previous quarter
  • Repurchased 200,262 common shares at a cost of $1.5 million, or $7.35 per share, under the Company's Normal Course Issuer Bid ("NCIB")
  • Reported year end 2020 Mineral Reserves of 9.9 million ounces, up from 9.7 million ounces at the end of 2019 with additions at Island Gold, Young-Davidson and Lynn Lake more than offsetting mining depletion. This included an 8% increase in Mineral Reserves, as well as a 40% increase in Inferred Mineral Resources at Island Gold, for a combined increase of 1.0 million ounces
  • Appointed John Fitzgerald as Vice President, Projects with Mr. Fitzgerald to lead all engineering, procurement and construction activities for the Company’s development projects
  • Advanced development of La Yaqui Grande, with pre-stripping rates ramping up to 48,000 tpd by the end of March and the project on track to achieve commercial production in the third quarter of 2022
  • Subsequent to quarter-end, the Company announced it will file a $1 billion investment treaty claim against the Republic of Turkey for expropriation and unfair and inequitable treatment, among other things, with respect to its Turkish projects

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