Alamos raises production guidance for next three years
Adjustments follow the Magino acquisition earlier this year
Alamos Gold updated its production and operating guidance, significantly raising its output expectations following the acquisition of the Magino mine earlier this year.
After including the contribution from the Magino mine, Alamos upped its production guidance for 2024 by 13% from 485,000-525,000oz to 550,000-590,000oz.
The production guidance for 2025 and 2025 was increased by more than 20%, to 575,000-625,000oz and 630,000-680,000oz, respectively.
The all-in sustaining cost guidance, meanwhile, increased an average of 11% over the next three years due to Magino's relatively higher costs. However, chief executive John McCluskey said the company-wide AISC is expected to remain well below the industry average.
"The addition of Magino has enhanced our already strong growth profile, and its integration with Island Gold is expected to drive significant synergies and open up longer-term opportunities," he said, adding that in the long term, Alamos' production is expected to grow to around 900,000ozpa.
"Through growing production and declining costs, we expect to deliver substantial free cash flow growth in the years ahead."
Alamos acquired Magino as part of a takeover of Argonaut Gold for US$276 million. The Magino mine is adjacent to Alamos' Island gold mine in Ontario, Canada, with the company planning to integrate the operations to create one of Canada's largest gold mines.
Increased production at the Mulatos district also contributed to the increased guidance, while the capital guidance also took the development of the Puerto Del Aire project and the revised capital estimate for the Island Gold expansion into account.
Excluding Magino, the consolidated production for existing operations in 2024 increased 4%, while the 2025 and 2026 production guidance remained unchanged.
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