Alamos Gold: Record Production and Growth Outlook in 2024

Alamos Gold Inc. (TSX:AGI; NYSE:AGI) has reported its fourth quarter and annual 2024 production results, alongside a three-year production and operating guidance update. The company achieved a record production of 567,000 ounces of gold in 2024, marking a 7% increase from the previous year. This figure was in line with the company's revised guidance, which was increased by 13% in September 2024. The record production was driven by the solid performances of all three operating mines: Young-Davidson, Island Gold, and Mulatos District. The acquisition of Argonaut Gold's Magino mine in July 2024 also contributed to the increased production.

Alamos Gold's strong financial performance in 2024 was driven by several key factors. The company achieved a record annual production of 567,000 ounces of gold, marking a 7% increase from 2023. This was made possible by the solid performance of all three operating mines: Young-Davidson, Island Gold, and Mulatos District. The acquisition of Argonaut Gold's Magino mine also contributed to this growth. The average realized gold price in 2024 was $2,379 per ounce, which was higher than the previous year. This, combined with increased production, led to record revenues of $1.3 billion. Despite the increase in production, the company managed to keep its all-in sustaining costs (AISC) at the top end of the revised guidance range at $1,300 per ounce, demonstrating effective cost management and operational efficiency.

Alamos Gold's three-year production and operating guidance aligns with its long-term growth strategy by outlining a significant increase in production, at declining costs, over the next three years. The Company expects its production to grow by 24% by 2027, relative to 2024, driven by the ramp-up of production at Island Gold and a full-year contribution from Magino. This growth is expected to be achieved while reducing all-in sustaining costs (AISC) by 10% to $1,125-1,225 per ounce from the 2024 level of $1,300 per ounce. The Company's investment in growth projects, such as the Phase 3+ Expansion at Island Gold and the development of Lynn Lake, is expected to drive this output increase. Additionally, the Company's exploration budget has been increased to $72 million, the largest in its history, further supporting its long-term growth strategy.




In conclusion, Alamos Gold's record production and strong financial performance in 2024, coupled with its ambitious three-year production and operating guidance, position the company well for future growth. The company's investment in growth projects and exploration, combined with its effective cost management, sets the stage for continued success in the coming years.