Alamos Gold (NYSE: AGI) reported its fourth-quarter gold production for 2024 at 140.2 thousand ounces (koz), slightly below the consensus estimate of 144.2 koz. However, the results were in line with the company’s production guidance for the quarter.
The company’s Mulatos mine exceeded expectations, producing 38.9 koz, while the Magino mine underperformed, with a production of 16.2 koz. Despite the shortfall at Magino, the performance of Mulatos helped balance the overall production results.
On an annual basis, Alamos Gold produced 567 koz of gold, which was near the midpoint of its revised annual guidance range of 550-590 koz. The company has provided updated three-year production guidance, projecting a 1% increase in gold output for 2025, with production remaining stable in 2026. For 2027, Alamos anticipates production between 680-730 koz, lower than BMO’s previous estimate of 784 koz, reflecting a revised timeline for the Lynn Lake mine.
BMO analyst Brian Quast commented on the company’s outlook, stating, “Despite elevated costs, we continue to see strong potential in the stock, with various near-term catalysts and growth projects in progress.”
The company’s cost guidance for the coming years reflects mixed projections. For 2025 and 2026, Alamos has raised its Total Cash Cost (TCC) and All-In Sustaining Cost (AISC) guidance by 9%/4% and 6%/4%, respectively, compared to the revised guidance from September. Alamos attributes these increases to ongoing cost inflation and a higher contribution of production from Mulatos, which will involve residual leaching in 2025. However, the new 2027 guidance for TCC/AISC anticipates a slight year-over-year decrease of 3% and 2%, respectively, compared to 2026.
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