Alamos Gold's Q1 2025: Key Contradictions in Mill Throughput, Grade Variance, and Cost Impacts

Magino Mill Throughput, Young-Davidson Grade Variance, Share-Based Compensation Impact, Exploration at Island Gold, and Magino Ore Blending and Recovery are the key contradictions discussed in Alamos Gold's latest 2025Q1 earnings call.



Production and Cost Performance:
- Alamos Gold produced 125,000 ounces of gold in Q1, consistent with the lower end of quarterly guidance.
- All-in sustaining costs for the quarter were above guidance due to lower production at Young-Davidson and Magino, increased royalties due to the higher gold price, and higher share-based compensation.
- The company expects significant improvements in production and cost reduction through the remainder of the year due to higher mining rates and grades.

Organic Growth Projects:
- Alamos advanced its high-return organic growth projects, with construction activities ramping up for Lynn Lake and a groundbreaking ceremony attended by the Premier of Manitoba.
- The company's mineral reserves increased by 31% to 14 million ounces, thanks to a significant increase in reserves and resources at Island Gold.
- These projects are expected to support production growth and declining costs in the coming years.

Magino Mill Improvements:
- Magino's milling rates improved significantly, reaching 9,500 tonnes per day in late April, after addressing bottlenecks in the crushing and conveying circuit.
- The mill is expected to process a combination of Magino and Island Gold ore, contributing to lower processing costs.
- The Island Gold mill is expected to shut down in early May, with ore being trucked and processed through the Magino mill.

Exploration and Reserve Growth:
- Island Gold experienced a 32% increase in reserve ounces and an 11% increase in grades, contributing to a significant increase in reserve and resources.
- Exploration drilling at Island Gold continues, with encouraging results from the western side, aiming to expand ore resources and support future production growth.