Alamos Gold Reports First Quarter 2025 Results

All amounts are in United States dollars, unless otherwise stated.

TORONTO, April 30, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) ("Alamos” or the "Company”) today reported its financial results for the quarter ended March 31, 2025.

"We produced 125,000 ounces in the first quarter, meeting the low end of quarterly guidance with a solid performance from Island Gold offset by a slower ramp up of the Magino mill, as well as lower production from Young-Davidson. Both operations have demonstrated a significant improvement in April and we expect this to contribute to stronger production and lower costs in the second quarter. With a further increase in production and decrease in costs expected in the second half of the year, we remain on track to achieve our full year production guidance,” said John A. McCluskey, President and Chief Executive Officer.

"We expect this improvement to continue over the next several years through our portfolio of high-return, low-cost growth projects. The Phase 3+ Expansion continues to track well for completion in 2026, and with construction activities ramping up on Lynn Lake and PDA this year, we expect steady growth over the next several years towards a run rate of 900,000 ounces per year. Longer-term, we see excellent potential to grow production to one million ounces per year through a further expansion of the Island Gold District. Nearly all of this growth is in Canada, it's all lower cost, and it's all fully funded providing one of the strongest outlooks in our sector,” Mr. McCluskey added.

First Quarter 2025 Operational and Financial Highlights

• Produced 125,000 ounces of gold, consistent with the low end of the range of quarterly guidance with a solid quarter at Island Gold offsetting lower production from Young-Davidson and Magino. With stronger production expected in the second quarter and through the remainder of the year, the Company remains on track to achieve full year production guidance
• Sold 117,583 ounces of gold at an average realized price of $2,802 per ounce, generating quarterly revenues of $333 million. Ounces sold were 6% lower than production in the quarter due to timing, with the sale of these ounces to benefit future quarters. The average realized gold price was below the London PM Fix price, reflecting the delivery of 12,346 ounces into the gold prepayment facility executed in July 2024 based on the prepaid price of $2,524 per ounce
• Total cash costs¹ of $1,193 per ounce and all-in sustaining costs ("AISC"¹) of $1,805 per ounce were above the top end of guidance for the first half of 2025, driven by higher share-based compensation costs and higher costs per ounce at Young-Davidson and Magino. Given the 45% increase in the share price during the quarter, the revaluation of previously issued share-based compensation increased AISC by approximately $230 per ounce compared to guidance
• Total cash costs and AISC are expected to decrease significantly into the second quarter and through the second half of the year
• Cost of sales were $195.2 million or $1,660 per ounce
• Cash flow from operating activities totaled $79.6 million (including $131.4 million before changes in working capital and taxes paid¹, or $0.31 per share). Free cash flow was negative $20.1 million and was impacted by $52.8 million of cash taxes primarily related to 2024 year-end mining and income taxes, settlement of 25% of the gold prepayment obligation, and annual share-based compensation payments. The Company expects stronger free cash flow through the remainder of the year reflecting higher production, lower costs, and lower cash tax payments
• Adjusted net earnings¹ were $59.8 million, or $0.14 per share. Adjusted net earnings includes adjustments for unrealized losses on commodity hedge derivatives, net of tax, of $46.3 million, adjustments for unrealized foreign exchange gains recorded within deferred taxes and foreign exchange gain totaling $2.5 million, and other adjustments of $0.8 million
• Cash and cash equivalents were $289.5 million at March 31, 2025, down from $327.2 million at the end of 2024 due to timing of gold sales and the 2024 year-end cash tax payment, paid in the first quarter. The Company remains in a net cash position with $250 million drawn on its credit facility (the "Facility"), and is well-positioned to internally fund all its growth initiatives with strong ongoing free cash flow and $789.5 million of total liquidity
• Paid dividends of $10.4 million, or $0.025 per share for the quarter
• Announced a construction decision on the Lynn Lake project in January 2025 with initial production expected during the first half of 2028. With average annual production of 176,000 ounces over its first ten years at first quartile mine-site AISC, Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year, and drive a further decrease in costs
• Entered into an Impact Benefit Agreement ("IBA") with Mathias Colomb Cree Nation ("MCCN"). Concurrently, MCCN's application for judicial review of the positive Decision Statement issued by the Minister of Environment and Climate Change Canada in respect of the Lynn Lake Project and its corresponding internal appeal of the Environment Act Licenses issued by the Province of Manitoba were both withdrawn by MCCN. The Company now has IBA's in place with both of the First Nation communities proximate to the Lynn Lake Project
• Received approval of an amendment to the existing environmental impact assessment (Manifestación de Impacto Ambiental "MIA") by Mexico's Secretariat of Environment and Natural Resources ("SEMARNAT”) in January 2025, allowing for the start of construction on the PDA project within the Mulatos District
• Reported year-end 2024 Mineral Reserves of 14.0 million ounces of gold (298 million tonnes ("mt")) grading 1.45 grams per tonne of gold ("g/t Au”), a 31% increase from 2023 reflecting the acquisition of Magino in 2024, continued high-grade additions at Island Gold, and an initial Mineral Reserve at Burnt Timber and Linkwood. This marked the sixth consecutive year Mineral Reserves have grown for a cumulative increase of 44%. Additionally, Measured and Indicated Mineral Resources increased 50% to 6.6 million ounces, while Inferred Mineral Resources decreased 2% to 7.1 million ounces
• Announced a binding agreement to sell the option to earn 100% interest in the non-core Quartz Mountain Gold Project ("Quartz Mountain”), located in Oregon, to Q-Gold Resources Ltd. (TSXV:QGR) ("Q-Gold”) for total consideration of up to $21 million and a 9.9% equity interest in Q-Gold in April 2025. The transaction is expected to close in the second quarter of 2025

⁽¹⁾ Refer to the "Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.

Highlight Summary

⁽¹⁾ Cost of sales includes mining and processing costs, royalties, and amortization expense.

⁽²⁾ Refer to the "Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.

⁽³⁾ Sustaining finance leases at Island Gold District are not included as additions to mineral property, plant and equipment in cash flows used in investing activities.

⁽⁴⁾ Cash and cash equivalents in the comparatives reflect the balance as at December 31, 2024.

⁽⁵⁾ Average realized gold price during the first quarter of 2025 included the delivery of ounces into the gold prepayment facility based on the prepaid price of $2,524 per ounce.

⁽⁶⁾ Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.

⁽¹⁾ Cost of sales includes mining and processing costs, royalties, and amortization expense.

⁽²⁾ Refer to the "Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.

⁽³⁾ For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.

⁽⁴⁾ Includes capitalized exploration at Island Gold District of $3.9 million for the three months ended March 31, 2025 ($3.5 million for the three months ended March 31, 2024).

⁽⁵⁾ Includes capitalized exploration at Young-Davidson of $2.0 million for the three months ended March 31, 2025 ($1.0 million for the three months ended March 31, 2024).

⁽⁶⁾ Includes capitalized exploration at Mulatos District of $0.7 million for the three months ended March 31, 2025 ($1.9 million for the three months ended March 31, 2024).

⁽⁷⁾ The Island Gold District includes Island Gold and Magino mines for the three months ended March 31, 2025. Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.

⁽⁸⁾ The Mulatos District includes Mulatos and La Yaqui Grande mines.

⁽⁹⁾ Sustaining capital expenditures for Island Gold District include certain finance leases classified as sustaining.

Environment, Social and Governance Summary Performance

Health and Safety

• Total recordable injury frequency rate¹ of 1.49 in the first quarter, a 34% decrease from 2.25 in the fourth quarter of 2024
• Lost time injury frequency rate¹ of 0.09 in the first quarter, consistent with the fourth quarter of 2024
• During the first quarter, Alamos had 17 recordable injuries across its sites and one lost time injury

Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company's overarching commitment is to have all employees and contractors return Home Safe Every Day.

Environment

• Zero significant environmental incidents and two minor reportable spills in the first quarter
• Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits

Two minor reportable events occurred during the first quarter. At Young-Davidson, a minor spill of process water occurred within the paste plant which was promptly contained and recovered, preventing it from entering the surrounding environment. The second reportable incident involved a supplier's equipment malfunction during the transfer of natural gas tanks. Both incidents were promptly reported to regulators.

The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects. This includes investing in new initiatives to reduce the Company's environmental footprint with the goal of minimizing the impacts of its activities.

Community

Ongoing donations, medical support and infrastructure investments were provided to local communities, including:

• Significant donations to support the needs of two hospitals in the Algoma region, including contributions for the purchase of new medical imaging equipment. Additionally, donated CAD$66,000 to fund the acquisition of an SCBA Filling Station for the Matachewan Fire Department
• Committed CAD$300,000 over three years to the Museum of Northern History in Kirkland Lake, Ontario, to support its reopening and continued operation
• Delivered continuous health services to the local community near the Mulatos District, offering dental services, medical consultations and essential medications to residents

The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company.

Governance and Disclosure

• Completed annual fieldwork and assurance of Alamos' compliance with the World Gold Council's Responsible Gold Mining Principles ("RGMPs"). Alamos will publish its 2024 RGMP Report in the second quarter of 2025

The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company's commitment to sustainable development.

⁽¹⁾ Frequency rate is calculated as incidents per 200,000 hours worked.

Outlook and Strategy