Alamos Gold Charts Ambitious Path to 1 Million Ounces, Unveils Major Island Gold Expansion and Near-$100M Exploration Drive

TORONTO – Alamos Gold Inc. (NYSE: AGI) presented investors with a bold vision to transform into a million-ounce producer, detailing a multi-pronged strategy centered on expanding its cornerstone Island Gold operation and deploying one of its largest-ever exploration budgets.

During the Toronto event, President and CEO John McCluskey framed the updated three-year guidance and new expansion study as the culmination of a strategic build-out following the acquisitions of Richmont Mines and, later, the Magino project. "We've created unique optionality by pairing a high-grade underground asset with a large, low-grade open pit," McCluskey stated, noting key permits for increased throughput are already secured. "This isn't just incremental growth; it's about building a Tier One Canadian mining district."

The company's financial outlook, while acknowledging recent operational hiccups, struck an optimistic tone on future cash generation. CFO Greg Fisher reported record annual free cash flow of $350 million for 2025, despite production falling short of targets. For 2026, guidance calls for 570,000 to 650,000 ounces at an all-in sustaining cost (AISC) of approximately $1,550 per ounce. Costs are expected to decline in the year's second half as underground mining rates ramp up at Island Gold.

Island Gold Expansion: The Core Engine

The centerpiece of the day was an updated expansion study for the integrated Island Gold District. The plan aims to boost underground mining rates at Island Gold, increase open-pit ore mining from the Magino pit, and effectively "twin" the Magino mill to reach 20,000 tonnes per day. The study outlines a 19-year operation with the first decade averaging 534,000 ounces annually at an AISC of roughly $1,025 per ounce.

Chris Bostwick, SVP of Technical Services, emphasized the project's de-risked status, citing existing permits, a nearly complete production shaft, and significant capital already spent. CFO Fisher presented robust economics, with an after-tax net present value (NPV) of $8.2 billion at a $3,200/oz gold price, soaring to $12.2 billion at $4,500/oz.

Portfolio-Wide Momentum

Operational updates across the portfolio highlighted both challenges and progress. In Mexico, the permitted PDA underground project and a new sulfide plant are on track for a 2027 commissioning, expected to add low-cost ounces. At the Lynn Lake development project in Manitoba, updated capital costs rose to ~$937 million, reflecting inflation and scope changes, with first gold now targeted for 2029.

Exploration is set to receive a major boost. VP Exploration Scott Parsons outlined a $97 million budget for 2026, funding 240,000 meters of drilling aimed at resource growth across all sites, particularly targeting high-grade extensions at Island Gold and regional opportunities.

Analyst & Investor Reactions

The detailed plans sparked immediate discussion among attendees.

"The scale of the Island District expansion is compelling. The NPV figures at conservative gold prices justify the capital, and having permits in hand is a huge advantage in this environment," said Eleanor Vance, a portfolio manager with Horizon Capital. "This transitions Alamos from a mid-tier story to a senior growth narrative."

"They're betting the farm on Island Gold, and the capital cost creep at Lynn Lake is concerning," countered Marcus Thorne, an independent mining analyst known for his skeptical stance. "Promising 'Tier One' assets is easy. Delivering them on budget while gold prices cooperate is another story. This feels like a lot of hope priced in."

"As a long-term shareholder, I'm encouraged by the focus on free cash flow growth post-2028," commented David Chen, a private investor from Vancouver. "The strategy to fund exploration internally and return capital as big spends wind down aligns with what we've been waiting for."

In closing, CEO McCluskey positioned the company at an inflection point, prioritizing investments to drive down the cost curve and significantly increase production, with shareholder returns poised to grow as major capital commitments taper off.

Alamos Gold is an intermediate gold producer with operating mines in Canada (Young-Davidson, Island Gold) and Mexico (Mulatos), and advanced development projects in Manitoba and Quebec.