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Alamos Gold Reports Record 2024 Production and Expands Growth Outlook

Jan 15, 2025


By Kevin Vincent

Alamos Gold Inc. has announced record production for 2024 and unveiled plans to boost output further through investments in its flagship Canadian assets, including the Young-Davidson and Island Gold Mines in northern Ontario. The Company reported annual production of 567,000 ounces of gold, a 7% increase from 2023, with strong performances at both mines contributing significantly.

“Production at Young-Davidson and Island Gold exceeded expectations, reinforcing their status as cornerstones of Alamos’ portfolio,” said John A. McCluskey, President and CEO. “The ongoing Phase 3+ Expansion at Island Gold and sustained efficiency at Young-Davidson position us to deliver 24% growth in production by 2027 while maintaining our focus on low-cost operations.”

Highlights

Record 2024 production: Achieved 567,000 ounces of gold, hitting the midpoint of revised guidance.

Young-Davidson performance: Delivered consistent production with low costs, supporting record revenues.

Island Gold momentum: Phase 3+ Expansion on track for completion in the first half of 2026, with production expected to increase significantly.

Free cash flow growth: Investments in flagship assets fully funded, with growth set to drive substantial free cash flow from 2026 onward.

Young-Davidson Mine

The Young-Davidson Mine continued its steady contribution to Alamos’ strong results in 2024, producing over 200,000 ounces of gold at one of the lowest cost profiles in the portfolio. Sustaining capital improvements at the mine have ensured its position as a reliable, high-margin operation.

Island Gold Mine

Island Gold, northeast of Wawa, is a focal point of Alamos’ growth strategy. The ongoing Phase 3+ Expansion is designed to nearly double production capacity while lowering costs. The mine’s 2024 exploration success included high-grade intercepts that highlight its long-term potential, with an expanded exploration budget of $72 million planned for 2025.

Outlook

Alamos expects to produce between 735,000 and 820,000 ounces of gold in 2025, with costs anticipated to decrease as Island Gold’s expansion progresses. Capital expenditures will peak over the next two years with the construction of Lynn Lake in Manitoba and PDA development. However, capital spending is expected to decrease by 2027, aligning with a significant increase in free cash flow.

By 2028, Alamos projects annual production will approach 900,000 ounces, driven by the completion of growth projects, including Lynn Lake and expanded operations at Island Gold and Young-Davidson.

The company’s focus on high-return, low-cost Canadian projects has positioned it as a leader in the sector, with a robust pipeline of initiatives ensuring sustained growth and shareholder value.



Tags: Northern Ontario / Operational Updates / Gold / All Articles