Alamos Gold Reports First Quarter 2024 Results

Press Release

Production exceeds guidance driving record quarterly revenues and strong ongoing free cash flow

All amounts are in United States dollars, unless otherwise stated.

TORONTO, April 24, 2024 – Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended March 31, 2024.

“We delivered another strong start to the year across a number of fronts, following a record performance in 2023. Costs were in line with guidance for the quarter and production exceeded guidance led by record production from La Yaqui Grande. With the solid first quarter, we are on track to achieve our full year production and cost guidance. We also continued to demonstrate our long-term track record of value creation through exploration and M&A. Our Mineral Reserves increased for the fifth consecutive year, and we expect to unlock significant value through our acquisition of the Magino mine and its integration with Island Gold. We expect the combination to create one of Canada’s largest and lowest cost gold mines, drive significant synergies, and solidify our unique positioning as a Canadian focused intermediate gold producer, with growing production and declining costs,” said John A. McCluskey, President and Chief Executive Officer.

First Quarter 2024 Operational and Financial Highlights

• Produced 135,700 ounces of gold, exceeding quarterly guidance and representing a 6% increase from the first quarter of 2023. This was driven by another strong performance from the Mulatos District, including record quarterly production from La Yaqui Grande
• Sold 132,849 ounces of gold at an average realized price of $2,069 per ounce, generating record quarterly revenue of $277.6 million, a 10% increase from the first quarter of 2023
• Total cash costs¹ were $910 per ounce, all-in sustaining costs (“AISC”¹) were $1,265 per ounce, and cost of sales were $1,307 per ounce. As previously guided, costs were above full year guidance in the first quarter, with AISC also impacted by an increase in share-based compensation reflecting the Company’s higher share price in the quarter. Costs are expected to decrease through the remainder of the year to be consistent with full year guidance
• Strong ongoing free cash flow¹ generation of $24.4 million, while funding the Phase 3+ Expansion at Island Gold, and net of $45.3 million of cash tax payments in Mexico
• Cash flow from operating activities of $108.9 million (including $134.9 million, or $0.34 per share before changes in working capital¹)
• Realized adjusted net earnings¹ for the first quarter of $51.2 million, or $0.13 per share¹. Adjusted net earnings includes adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange of $4.5 million, and other adjustments, net of taxes totaling $4.6 million.
• Reported net earnings were $42.1 million, or $0.11 per share
• Cash and cash equivalents increased 7% from the end of 2023 to $240.2 million, with no debt and $16.3 million in equity securities
• Paid dividends of $9.8 million, or $0.025 per share for the quarter
• Reported year-end 2023 Mineral Reserves of 10.7 million ounces of gold, a 2% increase from 2022, with grades also increasing 1%. This marked the fifth consecutive year Mineral Reserves have grown for a combined increase of 10% with grades also increasing 9% over that time frame. Additionally, Measured and Indicated Mineral Resources increased 12% to 4.4 million ounces, with grades increasing 9%, and Inferred Mineral Resources increased 3% to 7.3 million ounces, at 1% higher grades
• Announced a definitive agreement to acquire Argonaut Gold Inc. (“Argonaut”) and its Magino mine, located adjacent to the Company’s Island Gold mine in Ontario, Canada. The integration of the two operations is expected to create one of the largest and lowest cost gold mines in Canada and unlock significant value with pre-tax synergies expected to total $515 million² through the use of shared infrastructure
• On April 4, 2024, announced the closing of the previously announced non-brokered private placement for common shares of Argonaut, representing approximately 13.8% of Argonaut’s outstanding common shares for CAD $50 million
• Completed the acquisition of Orford Mining Corporation (“Orford”) on April 3, 2024, through which the Company consolidated its existing ownership of Orford shares and added the highly prospective Qiqavik Gold Project, located in Quebec, Canada

⁽¹⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
⁽²⁾  Synergies are pre-tax and undiscounted. On a discounted basis, this represents an after-tax net present value of $250 million

Highlight Summary

⁽¹⁾  Cost of sales includes mining and processing costs, royalties, and amortization expense.
⁽²⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.

⁽¹⁾  Cost of sales includes mining and processing costs, royalties, and amortization expense.
⁽²⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.
⁽³⁾  For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.
⁽⁴⁾  Includes capitalized exploration at Young-Davidson of $1.0 million for the three months ended March 31, 2024 ($1.4 million for the three months ended March 31, 2023).
⁽⁵⁾  Includes capitalized exploration at Island Gold of $3.5 million for the three months ended March 31, 2024 ($2.4 million for the three months ended March 31, 2023).
⁽⁶⁾  Includes capitalized exploration at Mulatos District of $1.9 million for the three months ended March, 2024 ($1.1 million for the three months ended March 31, 2023).
⁽⁷⁾  The Mulatos District includes the Mulatos pit and La Yaqui Grande.

Environment, Social and Governance Summary Performance

Health and Safety

• Total recordable injury frequency rate¹ (“TRIFR”) of 1.79 in the first quarter of 2024, an increase from 1.45 in the fourth quarter of 2023
• Lost time injury frequency rate¹ (“LTIFR”) of nil, a decrease from 0.10 in the fourth quarter of 2023
• La Yaqui Grande Mine celebrated four million hours without a lost time injury
• Alamos’ Home Safe Every Day safety leadership training was implemented at the Island Gold Mine, where it will be delivered to all employees as part of the site’s safety training. This program is now available at all Alamos operations
• During the first quarter of 2024, Alamos had 18 recordable injuries across its sites and zero lost time injuries

Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company’s overarching commitment is to have all employees and contractors return Home Safe Every Day.

Environment

• Zero significant environmental incidents and zero reportable spills in the first quarter of 2024
• One externally reportable non-compliance in the first quarter that resulted in a fine. At Young-Davidson, environmental testing of treated mine water determined a toxicity failure for Daphnia magna (water fleas), resulting in an environmental penalty of $14,000. The investigation determined the cause of the failure to be algae build-up in the mine water discharge pond and remediation measures were taken. Water treatment and discharge were not impacted and the mine has been in full compliance subsequent to the event
• Finalized a fish habitat compensation project for Davidson Creek at Young-Davidson
• Reclamation work underway at Mulatos focused on the closed Cerro Pelon, El Victor and San Carlos pits

The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects. This includes investing in new initiatives to reduce our environmental footprint with the goal of minimizing the environmental impacts of our activities and offsetting any impacts that cannot be fully mitigated or rehabilitated.

Community

Ongoing donations, medical support and infrastructure investments were provided to local communities, including:

• Various sponsorships to support local youth sports teams and community events, and donations to local charities and organizations around the Company’s mines
• Partnered with a local foundation (Fundación Vamos Juntos a Ganar) to organize an entrepreneurship workshop for residents of Matarachi to increase their capacity for opening or improving local businesses
• Provided ongoing health services to local community members around the Mulatos Mine. During the quarter, free dental services, vaccinations, and Pap tests were provided to residents
• Upgraded public lighting in Matarachi with the installation of 96 solar street lights throughout the town
• Completed the annual Mi Matarachi evaluation and planning meeting with residents of Matarachi, working together to develop actions that promote education, health and infrastructure that improve the quality of life for residents

The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company.

Governance and Disclosure

• Completed annual fieldwork and assurance of Alamos’ compliance with the World Gold Council’s Responsible Gold Mining Principles (RGMPs). Alamos will publish its 2023 RGMP Report in the second quarter of 2024
• Prepared Alamos’ inaugural Modern Slavery Report in accordance with Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act. Alamos will publish its 2023 Modern Slavery Report in May 2024

The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company’s commitment to sustainable development.

⁽¹⁾ Frequency rate is calculated as incidents per 200,000 hours worked.

Outlook and Strategy

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