It’s been a rough start to 2025.The truth is there hasn’t been much working in the current market environment. But under the surface, a few key areas are showing strength.We’ve experienced a rotation into defensive areas such as consumer staples and health care. We’ve also seen mining companies thrive as metals prices reach historic highs. Gold, for example, is pressing up against $3,000 per ounce for the first time ever.Historically viewed as a hedge against inflation and currency devaluation, precious met ...

Core Insights - Alamos Gold Inc. (AGI) reported adjusted earnings of 25 cents per share for Q4 2024, surpassing the Zacks Consensus Estimate of 21 cents, and up from 12 cents in the same quarter last year [1][2] - The company achieved record revenues of $376 million in Q4 2024, a 47.6% increase year over year, driven by higher gold prices and sales volumes [2][3] - Gross profit increased by 99% year over year to $175 million, with a gross margin of 46.5%, up from 34.5% in the prior year [3] Financial Performance - For the full year 2024, AGI posted adjusted earnings of 81 cents per share, exceeding the Zacks Consensus Estimate of 80 cents, compared to 53 cents in 2023 [5] - Total revenues for 2024 reached $1.35 billion, a 31.6% increase year over year, beating the Zacks Consensus Estimate of $1.34 billion [6] - Net cash from operating activities was a record $661 million in 2024, up from $473 million in the previous year, with cash and cash equivalents increasing to $327 million as of December 31, 2024 [4] Production Outlook - AGI expects gold production for 2025 to be between 580,000 and 630,000 ounces, indicating a 7% increase at the midpoint from 2024 [7] - For Q1 2025, the company anticipates gold production between 125,000 and 140,000 ounces, with expectations of increased production and lower expenses in the second quarter [8] Stock Performance - AGI's shares have increased by 102.1% over the past year, outperforming the industry growth of 59.2% [9] Peer Comparisons - Royal Gold, Inc. (RGLD) reported adjusted earnings of $1.63 per share for Q4 2024, a 72% year-over-year increase, with revenues of $203 million, up 32.7% [12][13] - Barrick Gold Corporation (GOLD) recorded adjusted earnings of 46 cents per share, with total revenues of $3.64 billion, a 19.2% increase year over year [14][15]

Company Performance - Alamos Gold (AGI) has outperformed the Basic Materials sector with a year-to-date return of approximately 25.4%, compared to the sector average of 6.8% [4] - The Zacks Consensus Estimate for AGI's full-year earnings has increased by 15% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] Industry Context - Alamos Gold is part of the Mining - Gold industry, which consists of 40 companies and currently ranks 51 in the Zacks Industry Rank. This industry has seen an average gain of 19.9% year-to-date, with AGI performing better than this average [5] - Another stock in the same industry, DRDGOLD (DRD), has also outperformed the sector with a year-to-date return of 31.8% and a consensus EPS estimate increase of 41.3% over the past three months [4][5] Zacks Rank - Alamos Gold holds a Zacks Rank of 2 (Buy), suggesting it is positioned to outperform the broader market in the near term [3] - The Zacks Rank system evaluates stocks based on earnings estimates and revisions, highlighting potential outperformers in the market [3]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Alamos Gold (AGI) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 16%, with projected EPS growth of 60.8% this year, significantly surpassing the industry average of 20.3% [5] Group 2: Financial Metrics - Alamos Gold's year-over-year cash flow growth is 37.3%, well above the industry average of 8.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 17.1%, compared to the industry average of 14% [7] Group 3: Earnings Estimates - The current-year earnings estimates for Alamos Gold have increased by 7.3% over the past month, indicating a positive trend in earnings estimate revisions [8] - Alamos Gold has achieved a Growth Score of B and a Zacks Rank 2 due to these positive earnings estimate revisions [10]

Core Viewpoint - Alamos Gold (AGI) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - For the fiscal year ending December 2025, Alamos Gold is projected to earn $1.29 per share, reflecting a 61.3% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Alamos Gold has risen by 15% [8]. Institutional Investor Influence - Institutional investors often base their valuation models on earnings estimates, leading to significant stock transactions that can drive price movements [4][5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Alamos Gold's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Fourth Quarter & Year-End 2024 Results Presentation February 20, 2025 Cautionary notes All resource and reserve estimates included in this Presentation have been prepared in accordance with Canadian National Instrument 43-101 -Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") –CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). NI 43-101 is a rule ...

Financial Data and Key Metrics Changes - Alamos Gold Inc. achieved record revenues of just over $1.3 billion for the full year, up 32% from 2023, driven by record production and higher realized gold prices [19] - The company reported net earnings of $88 million in Q4, or $0.21 per share, with adjusted net earnings of $103 million, or $0.25 per share [21] - Free cash flow reached a record $272 million for the full year, net of all spending on the Phase Three expansion and the largest exploration program to date [22] Business Line Data and Key Metrics Changes - The Island Gold mine produced a record 155,000 ounces for the year, achieving the top end of 2024 guidance [26] - Young Davidson mine produced 45,700 ounces in Q4, with total production for the year at 174,000 ounces, slightly below guidance due to lower grades mined [40][46] - The Mulatos District produced 205,000 ounces for the full year, exceeding guidance and generating record mine site free cash flow of $240 million [48] Market Data and Key Metrics Changes - The average realized gold price was $2,632 per ounce in Q4 and $2,379 per ounce for the full year [19] - Total cash costs were $981 per ounce in Q4 and $927 per ounce for the full year, while all-in sustaining costs were $1,333 per ounce in Q4 and $1,281 per ounce for the full year [20] Company Strategy and Development Direction - The company plans to achieve 7% production growth in 2025, targeting approximately 605,000 ounces, with further growth expected to 700,000 ounces in 2026 and 900,000 ounces by 2028 [11][12] - Alamos Gold is focused on low-cost growth and has significant ongoing projects, including the Phase Three expansion at Island Gold and the Lynn Lake project [12][13] - The company is also exploring opportunities in Mexico, noting a positive change in the regulatory environment and the potential for further investment [95][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth profile, highlighting strong free cash flow and the ability to fund growth initiatives internally [11][75] - The management noted that the operational and financial performance in 2024 was exceptional, with a strong outlook for the coming years [75] - The company anticipates a seamless transition from open-pit to underground production at the Milatos project, with expected production changes in 2027 [99] Other Important Information - The company reported a 31% increase in global reserves to 14 million ounces, marking the sixth consecutive year of growth [16] - Alamos Gold amended and upsized its credit facility from $500 million to $750 million, enhancing its financial capacity [24] Q&A Session Summary Question: Synergies from Island Gold and Magino combination - The company realized about $100 million of capital synergies in 2024 and 2025, with the majority of operating synergies expected to ramp up starting in 2026 [81][84] Question: Tax implications and cash taxes - The deferral of cash taxes is expected to last about two years, with significant cash taxes anticipated to start around 2027 [86] Question: Young Davidson grades and future expectations - The lower grades in 2024 were due to slight variances in the mining sequence, but the company expects to meet guidance in 2025 [87][90] Question: Cost drivers and inflationary pressures - The increase in costs is driven by inflation, lower grades, and timing of sustaining capital [92] Question: Investment opportunities in Mexico - Management noted a positive change in the regulatory environment in Mexico and indicated potential for further investment in the Milatos district [95][102] Question: Dividend policy reconsideration - The company is focused on aggressive growth initiatives and does not plan to increase dividends in the near future [114]

Group 1 - Alamos Gold is a high-quality gold mining company with most production in Canada and some in Mexico [1] - The company is expected to experience production growth in the coming years [1] Group 2 - The investment strategy focuses on turnarounds in natural resource industries with a typical holding period of 2-3 years [2] - The portfolio has achieved a compounded annual growth rate of 26% over the last 6 years [2]

ALAMOS GOLD INC. Management's Discussion and Analysis (in United States dollars, unless otherwise stated) For the Year ended December 31, 2024 ALAMOS GOLD INC. For the Year ended December 31, 2024 Table of Contents | Overview of the Business | 3 | | --- | --- | | Highlight Summary | 4 | | 2024 Highlights | 6 | | Environment, Social and Governance Summary Performance | 8 | | Business Developments | 9 | | Outlook and Strategy | 11 | | Young-Davidson Mine ("Young-Davidson") | 14 | | Island Gold Mine ("Island G ...

Core Viewpoint - Alamos Gold Inc. achieved record operational and financial performance in 2024, with significant increases in production, revenues, and free cash flow, driven by strong operational performances across its mining operations and strategic acquisitions [2][29]. Operational and Financial Highlights - Gold production reached a record 567,000 ounces in 2024, a 7% increase from 2023, meeting revised guidance [4][29]. - Full-year revenues totaled $1.3 billion, a 32% increase from 2023, driven by higher gold prices and production [4][29]. - Record free cash flow of $272 million was generated in 2024, funding high-return growth initiatives [4][29]. - Total cash costs for the year were $927 per ounce, with all-in sustaining costs (AISC) at $1,281 per ounce, both in line with guidance [4][29]. Production Breakdown - The Mulatos District produced 205,000 ounces, exceeding guidance by 5%, contributing to mine-site free cash flow of $239.9 million [4][30]. - Island Gold produced 155,000 ounces, meeting the high end of guidance and self-funding all expansion and exploration initiatives [4][30]. - Young-Davidson produced 174,000 ounces, generating record mine-site free cash flow of $140.9 million [4][30]. Mineral Reserves and Resources - Global Mineral Reserves increased by 31% to 14 million ounces, reflecting the acquisition of Magino and ongoing exploration success [3][36]. - Island Gold's Mineral Reserves and Resources increased by 9% to 6.7 million ounces, with significant improvements in grades [37][38]. Growth Initiatives - The company announced a construction decision on the Lynn Lake project, expected to produce 176,000 ounces annually over its first ten years [8][34]. - The Phase 3+ Expansion at Island Gold is on track for completion in the first half of 2026, expected to drive further free cash flow growth [32][43]. - The exploration budget for 2025 is set at $72 million, a 16% increase from 2024, reflecting the company's commitment to expanding its resource base [45]. Financial Position - Cash and cash equivalents were $327.2 million at year-end 2024, up from $224.8 million at the end of 2023, with total liquidity of approximately $827.2 million [8][47]. - The company paid dividends of $41 million for the full year, maintaining a quarterly dividend of $0.025 per share [8][47]. 2025 Guidance - Production is expected to increase by 7% in 2025, ranging between 580,000 and 630,000 ounces, with AISC projected to decrease by 8% by 2027 [41][43]. - Capital expenditures are expected to increase in 2025 due to development capital for Lynn Lake and PDA projects [44].