Alamos Gold at John Tumazos conference: growth plan targets 1 million ounces

Alamos Gold (AGI) presented a growth plan at the John Tumazos Very Independent Research Virtual Conference that could double production by 2030. The company aims to increase annual output from over 500,000 to around 1 million ounces during this period. Costs are expected to drop from $1,825 per ounce in 2025 to about $1,250 by 2028.

Alamos highlighted its focus on three main growth projects: Island Gold District in Ontario, Lynn Lake project in Manitoba, and the PDA project in Mexico. About 90% of the company's net asset value and reserves are concentrated in Canadian jurisdictions, reducing political risk. Management acknowledged a setback at Young-Davidson due to a seismic event in June 2025 but stated the issue is temporary and does not affect the long-term outlook.

Alamos emphasized a strong balance sheet, rising dividends, share buybacks, and a plan to retire inherited hedges. The company generated $250 million in free cash flow in the first half of 2025, with expectations of a significant increase as new projects come online. Management projects 2028 all-in sustaining costs at around $1,250 per ounce and free cash flow exceeding $1.5 billion annually by then, assuming gold prices remain at about $4,100 per ounce.

Alamos maintains a clean balance sheet with minimal debt and has increased dividends by 60% in the first quarter of 2025 and conducted $50 million in share buybacks in the first half of 2025.