Alamos Gold (AGI) - 2023 Q4 - Annual Report

Production and Sales Performance - Alamos Gold produced a record 529,300 ounces of gold in 2023, a 15% increase from 2022, with fourth quarter production of 129,500 ounces[13]. - Full year gold sales totaled 526,258 ounces at an average realized price of $1,944 per ounce, generating record revenue of$1.0 billion, a 25% increase from 2022[13]. - Gold production for the full year 2023 was 529,300 ounces, up from 460,400 ounces in 2022, representing a 15% increase[121]. - Gold ounces sold in 2023 totaled 526,258, a significant increase from 456,574 ounces sold in 2022, representing a 15.2% growth[197]. - Young-Davidson produced 185,100 ounces of gold in 2023, achieving the low end of annual guidance[46]. - Island Gold produced 31,600 ounces in Q4 2023, a 22% decrease from the prior year, with full-year production totaling 131,400 ounces, achieving the mid-point of guidance[58]. - The Mulatos District produced 48,100 ounces in Q4 2023, a 2% decrease year-over-year, with full-year production totaling 212,800 ounces, exceeding the top end of guidance by 15%[69]. Financial Performance - Cash flow from operating activities reached a record $472.7 million in 2023, a 58$210.0 million for 2023, a significant increase from $37.1 million in the prior year, reflecting record operating performance and margin expansion[135]. - Operating revenues for the year ended December 31, 2023, were$1.0 billion, a 25% increase compared to the prior year, driven by increased production and higher average realized gold prices[129]. - Cash flow provided by operating activities for 2023 was $472.7 million, compared to$298.5 million in the prior year, driven by a 15% increase in ounces sold and higher operating margins[158]. - Operating revenues for Q4 2023 were $254.6 million, a 10$231.9 million in Q4 2022[122]. - The company realized net gains of $7.1 million on foreign currency contracts in 2023, a turnaround from net losses of$1.1 million in 2022[172]. Costs and Expenses - Total cash costs for 2023 were $850 per ounce, with all-in sustaining costs (AISC) at$1,160 per ounce, consistent with guidance[13]. - Total cash costs per ounce for Q4 2023 were $900, an increase of 11.1$810 in Q4 2022[197]. - All-in sustaining costs per ounce for Q4 2023 were $1,233, up from$1,138 in Q4 2022, indicating an 8.3% increase[197]. - Total cash costs for the Mulatos District were $957 per ounce in Q4 2023, with mine-site AISC at$1,030 per ounce, both higher than the prior year due to inflationary pressures[74]. - The company’s total cash costs for 2024 are expected to range from $825 to$875 per ounce, with mine-site AISC projected between $1,125 and$1,175 per ounce[29]. Capital Expenditures and Investments - The company continued to self-fund the majority of $178.1 million of growth capital invested in the Phase 3+ Expansion at Island Gold[13]. - The company’s total capital expenditures for 2024 are projected to be between$391 million and $431 million, including sustaining and growth capital[29]. - For the year ended December 31, 2023, the Company invested$348.9 million in capital expenditures, an increase of 11.5% from $313.7 million in the prior year[160]. - Capital expenditures for Young-Davidson totaled$67.2 million for the full year, a 6% decrease from the prior year[52]. - The company expects capital spending on the Lynn Lake project to total $25 million in 2024, focusing on site access upgrades and detailed engineering[89]. Exploration and Reserves - Year-end 2023 Mineral Reserves were reported at 10.7 million ounces of gold, a 2$14.8 million in 2023, with a 16% increase in total Mineral Reserves and Resources to 6.1 million ounces[96][97]. - The updated Feasibility Study for the Lynn Lake project indicates a 44% larger Mineral Reserve totaling 2.3 million ounces, with a 23% increase in average annual gold production over the first 10 years[86]. Dividends and Shareholder Returns - Alamos paid dividends of $39.4 million, or$0.10 per share, for the full year[13]. - The Company declared a dividend of $0.025 per share in Q4 2023, totaling$39.4 million in dividends paid for the year, with $35.3 million paid in cash[161]. Future Guidance - The company issued three-year guidance on January 10, 2024, with increased production guidance for 2024 of between 485,000 and 525,000 ounces, expecting a 7$62 million, a 19% increase from $52 million in 2023[41].