Alamos Gold Investor Day: Targets 1M Ounces/Year as Island Gold Expansion, $97M Drill Plan Unveiled

Key Points

• Alamos is targeting 1 million ounces per year by the end of the decade, leveraging the integration of Island Gold and Magino and a record $97 million exploration program (240,000 m) to grow reserves and production capacity.
• The updated Island Gold expansion study raises district reserves to 8.3 million ounces, plans to twin the Magino mill to 20,000 tpd and boost underground rates, and shows strong economics (after‑tax NPV of $12.2 billion at $4,500/oz) with key permits in place and a production shaft nearly complete.
• Near‑term guidance calls for 2026 production of 570–650k oz at an AISC of about $1,550/oz with roughly $900 million capex, followed by “stairstep” growth to 650–730k oz (2027) and 755–835k oz (2028) with declining AISC and an expected ~$1.3 billion cumulative free cash flow by 2028 at $4,500 gold.

Alamos Gold NYSE: AGI used its 2026 Investor Day in Toronto to outline updated three-year guidance, a new expansion study for the Island Gold District, and a record exploration budget aimed at underpinning a long-term production target of 1 million ounces annually by the end of the decade.

Management frames growth plan and reserve gains

President and CEO John McCluskey said the company has been working on the Investor Day material for more than a year, describing today’s plans as an outgrowth of the Richmont Mines acquisition and the later addition of Magino. McCluskey highlighted the “optionality” created by integrating a low-grade open pit (Magino) with a high-grade underground operation (Island Gold), noting key permits are already in hand for higher throughput and tailings capacity.

McCluskey said the company is pursuing growth in production while reducing costs, emphasizing long-life assets and continued reserve growth driven by exploration. He stated Alamos has added about 8 million ounces over roughly the last six years at an average finding cost of about $31 per ounce and said the company now sits at just over 16 million ounces of reserves. He also cited a $97 million exploration budget and discussed a free cash flow outlook that assumes $4,500 gold, including an expectation of about $1.3 billion in free cash flow by 2028 once expansion work is complete.

Updated guidance: higher production, heavy capex, and cost headwinds

CFO Greg Fisher recapped 2025 performance, reporting fourth-quarter production of 142,000 ounces and full-year production of 545,000 ounces, which he said was below expectations due to operational challenges. Despite that, Fisher said Alamos generated a record financial year with $350 million in free cash flow, ended the year with more than $600 million in cash and more than $400 million in net cash, and used proceeds from a Turkey-related settlement and asset sale to fund buybacks and debt reduction.

For 2026, Fisher guided to production of 570,000 to 650,000 ounces at an all-in sustaining cost (AISC) of about $1,550 per ounce, with roughly $900 million in capital spending. He said 2026 production will be second-half weighted as Island Gold underground mining rates ramp, with costs expected to fall from about $1,675 per ounce in the first half to about $1,450 per ounce in the second half. Fisher attributed the higher 2026 AISC versus prior guidance to several factors, including higher royalties from a higher gold price, inflation impacts (which he estimated at about $60 per ounce), and increased labor and contractor spending to support ramp-up.

For 2027 and 2028, Fisher presented “stairstep” growth in production and lower costs:

• 2027 production: 650,000 to 730,000 ounces; AISC: about $1,375 per ounce; capital: about $850 million.
• 2028 production: 755,000 to 835,000 ounces; AISC: about $1,250 per ounce; capital: about $650 million.

He said a key driver of the improving cost profile is additional low-cost, high-grade underground production at Island Gold and the start of PDA production in Mexico in the second half of 2027. He also said the company’s 2027–2028 guidance does not include inflation, and was based on flat assumptions for FX and gold price at $0.74 USD/CAD, 18 MXN/USD, and $2,400 gold.

Operational updates: Island Gold, Young-Davidson, Mulatos/PDA, and Lynn Lake

COO Luc Guimond detailed operational issues and improvement initiatives. At the Island Gold District, he said fourth-quarter production was impacted by extreme weather-related supply chain interruptions, an October seismic event requiring rehabilitation work, and an unscheduled liner change at the Magino mill. Guimond said the company expects to connect Magino to grid power by the end of 2026, which he quantified as a savings of about $4–$5 per tonne versus compressed natural gas, alongside improved reliability. He also said Alamos expects to implement a supplementary crusher feed arrangement by mid-February to help maintain throughput, and expects more consistent 10,000 tonnes-per-day processing beginning in the second quarter (excluding scheduled liner work).

At Young-Davidson, Guimond cited fourth-quarter production impacts from weather, an ore pass repair, and a paste plug failure. Looking forward, he said the focus is increasing development with contractor support, adding a fourth ore pass in the first quarter, and strengthening critical spares planning.

In Mexico’s Mulatos District, Guimond described a stable three-year outlook, with the district producing 142,000 ounces in 2025 from residual leaching and La Yaqui Grande. He highlighted the permitted PDA underground project and a 2,000-tonne-per-day sulfide plant, which he said is expected to be commissioned in the second quarter of 2027. Guimond said PDA’s first four years are expected to average about 127,000 ounces annually at roughly $1,000 per ounce AISC with capital intensity of about $165 million, most of which is planned for 2026. He also noted the facility is designed to produce a flotation concentrate and dry-stack product, with no cyanide usage and no tailings storage.

For Lynn Lake, Guimond presented updated economics that include expanding the mill to 9,000 tonnes per day, incorporating the Burnt Timber and Linkwood satellite deposits, and reflecting construction inflation since the 2023 feasibility study. He said the updated initial capital is about $937 million, up from $632 million in 2023, driven by inflation, scope changes, and a longer construction timeline. The first 10 years are expected to average about 186,000 ounces annually at about $829 per ounce AISC, with first gold targeted for the second quarter of 2029. He also noted 2025 progress was affected by Manitoba wildfires that led to evacuation during much of the summer construction season.

Island Gold District expansion study: 20,000 tpd and higher underground rates

In the afternoon session, Alamos presented an updated Island Gold District expansion study. Guimond said the plan targets an underground rate increase from 2,400 tonnes per day to 3,000 tonnes per day, open pit ore mining from 10,000 tonnes per day to 17,000 tonnes per day, and a “twinning” of the Magino mill to reach 20,000 tonnes per day. He said the district mineral reserve in the study increased to 8.3 million ounces, up about 30% versus the base case, including a roughly 1.0 million-ounce increase at Island and about 0.9 million ounces at Magino between midyear and year-end figures.

Guimond said the first 10 years of the plan average about 534,000 ounces per year at about $1,025 AISC, with a 19-year reserve life. Chris Bostwick, SVP of Technical Services, emphasized much of the project is de-risked through existing permits (including federal permits allowing higher mill throughput and tailings capacity), progress on Phase 3+ (estimated completion at $835 million with 91% spent or committed), and a production shaft nearing completion. Bostwick said the shaft sinking was 98% complete, with about 30 meters remaining, and is expected to be operational in the fourth quarter of 2026.

CFO Fisher presented project economics, citing an after-tax NPV of $8.2 billion at $3,200 gold and $12.2 billion at $4,500 gold, with returns of 53% and close to 70% respectively. He described the expansion as a “Tier One” Canadian asset and said that, at $4,500 gold, more than 75% of the company’s market capitalization is supported by the Island Gold District based on current information.

Exploration program expands, led by Island Gold drilling

VP of Exploration Scott Parsons outlined a $97 million exploration budget for 2026, including 240,000 meters of drilling, up from 180,000 meters in 2025. He said the company’s strategy is to replace depletion, grow mineral inventory with higher-quality ounces, and leverage underexplored districts across its portfolio.

At the Island Gold District, Parsons described multiple growth avenues, including down-plunge exploration below 1,500 meters, step-outs to the east, and new potential along strike to the west now that land tenure constraints have been removed. He also highlighted regional targets such as the North Shear and the Cline/Edwards area, where the company recently reported high-grade drilling at the Cline-Pick target. Elsewhere, Parsons described exploration efforts aimed at defining higher-grade potential near infrastructure at Young-Davidson, sulfide opportunities at Mulatos as PDA advances, higher-grade opportunities below the pits at Lynn Lake, and follow-up drilling at the Qiqavik greenfields project in Nunavik, Quebec.

In closing remarks, McCluskey said the company is prioritizing exploration and development spending to drive production growth and lower costs, while indicating shareholder returns could increase as major capital spending declines and free cash flow rises.

About Alamos Gold NYSE: AGI

Alamos Gold Inc is a Canadian-based intermediate gold producer engaged in the exploration, development and operation of mining projects in North America. Its principal activities include the acquisition, exploration and development of gold-bearing properties, and the management of operating mines. The company focuses on sustainable production practices and maintains a portfolio that spans both producing assets and advanced-stage development projects.

Alamos Gold operates multiple open pit and underground mines, including the Young-Davidson and Island Gold mines in Ontario, Canada, and the Mulatos mine in Sonora, Mexico.

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