Alamos Gold misses Q4 gold production expectations, updates future guidance

Investing.com — Alamos Gold (NYSE:) announced that its gold production for Q4 of 2024 reached 140.2 thousand ounces (koz), falling slightly short of the consensus estimate of 144.2 koz. However, this number came in accordance with the company’s Q4 production guidance.

The company’s Mulatos mine continues to outperform expectations with a production of 38.9 koz. This success helped to balance the underperformance at the Magino mine, which produced 16.2 koz.

On an annual basis, Alamos Gold produced 567 koz of gold, approximately meeting the midpoint of its revised guidance range of 550-590 koz. The company’s updated three-year production guidance predicts a 1% increase for 2025, no change for 2026, and new guidance for 2027 of 680-730 koz.

This 2027 guidance 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 elevated costs, we continue to see strong potential in the stock with the various near term catalysts and growth projects in progress,” BMO analyst Brian Quast wrote in a note.

The company’s cost guidance for the near term is mixed. Total (EPA:) Cash Cost (TCC) and All-In Sustaining Cost (AISC) guidance for 2025 and 2026 has increased by 9%/4% and 6%/4%, respectively, compared to the revised guidance from September.

Alamos Gold attributes this increase to ongoing cost inflation and the increased contribution of production from Mulatos through residual leaching in 2025. The new 2027 guidance for TCC/AISC shows a slight year-over-year decrease in costs from 2026 of 3% and 2%.

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