Investing.com — Alamos Gold announced that its gold production for the fourth quarter of 2024 reached 140.2 thousand ounces (koz), slightly below the consensus estimate of 144.2 koz.
The company’s Mulatos mine continues to outperform expectations with production of 38.9 koz. This success helped offset the underperformance of the Magino mine, which produced 16.2 koz.
On an annual basis, Alamos Gold produced 567 koz of gold, reaching approximately the middle of its revised guidance range of 550-590 koz. The company’s updated three-year production forecast calls for a 1% increase for 2025, no change for 2026, and new forecasts for 2027 of 680-730 koz.
This 2027 forecast is slightly lower than BMO’s previous estimate of 784 koz, due to an updated timeline for anticipated production at the Lynn Lake mine.
“Despite the high costs, we continue to see strong upside in the stock with the various near-term catalysts and growth projects underway,” BMO analyst Brian Quast wrote in a note.
The company’s cost forecasts for the near future are mixed. The Total Cash Cost (TCC) and All-Inclusive Sustaining Cost (AISC) forecasts for 2025 and 2026 increased by 9%/4% and 6%/4%, respectively, compared to the revised September forecasts.
Alamos Gold attributes the increase to continued cost inflation and increased contribution from Mulatos residual leach production in 2025. New 2027 forecast for TCC/AISC shows slight year-over-year cost decline compared to 2026 by 3% and 2%.
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