Alamos Gold Inc. Q1 2026 Earnings Call - Record Margins and Island Gold Expansion Drive Capital Allocation Shift

Operator: Good morning. I’ll now turn the call over to Scott Parsons, sorry, Alamos Senior Vice President of Corporate Development and Investor Relations. Please go ahead.

Fahad Tariq, Analyst, Jefferies0: Thank you, operator, and thanks to everybody for attending Alamos’ 1st quarter 2026 conference call. In addition to myself, we have on the line today John McCluskey, President and Chief Executive Officer, Greg Fisher, Chief Financial Officer, and Luc Guimond, Chief Operating Officer. We will be referring to a presentation during the conference call that is available through the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a Q&A session. As we will be making forward-looking statements during the call, please refer to the cautionary notes included in the presentation, news release in MD&A, as well as the risk factors set out in our annual information form. Technical information in this presentation has been reviewed and approved by Chris Bostwick, our Senior Vice President, Technical Services and a qualified person.

Also, please bear in mind that all the dollar amounts mentioned in this conference call are in US dollars unless otherwise noted. Now John will provide you with an overview of the quarter.

John McCluskey, President and Chief Executive Officer, Alamos Gold Inc.: Thank you, Scott. I’m gonna start with slide 3. First quarter production was 124,000 ounces, in line with quarterly guidance, with a strong performance from the Island Gold District offsetting lower than planned production at Young-Davidson. The Island Gold District had a solid overall quarter with the shaft and larger mill expansion advancing, underground mining rates increasing to a new record of over 1,400 tons per day, and a significant improvement in Magino’s milling rates over the past six weeks. The continued ramp-up of underground mining rates at Island Gold, as well as improvements in mining rates and grades at Young-Davidson, are expected to increase our second quarter production by approximately 20%. With the Island Gold District expected to drive further production growth in the second half of the year, we may remain well on track to meeting our full-year production guidance.

With our year-end disclosure in February, we guided to costs for the first quarter being above the first half guidance range. All-in sustaining costs were $1,862 per ounce and are expected to decrease by approximately 5% during the second quarter. A more significant improvement is expected into the second half of the year, reflecting an increase in low-cost production from the Island Gold District. Financially, we had another strong quarter with record revenues and margins. Relative to a year ago, our all-in sustaining cost margins nearly tripled to approximately $3,000 per ounce. This contributed to record cash flow from operations and another solid quarter of free cash flow of $102 million while reinvesting in high return growth. Turning to slide 4.

We had a catalyst-rich first quarter that included releasing highlights of a successful 2025 exploration program across our portfolio. This supported a 32% increase in year-end mineral reserves to 16 million ounces and included a near doubling of reserves at the Island Gold District to over 8 million ounces. This growth was incorporated into the Island Gold District expansion study, which was also released in the first quarter. The study outlined a large, long-life, low-cost operation that is expected to be one of Canada’s most profitable mines. At a $4,500 per ounce gold price, the Island Gold District is expected to generate over $1 billion in annual free cash flow and has a $12 billion after-tax NPV, making it one of the most valuable gold mines in Canada.

Based on the ongoing exploration success we are seeing across the district, we believe there is further upside to come. Toward the end of the first quarter, the shaft sink at Island Gold reached its planned depth, 1,381 meters. We expect to complete the commissioning of the shaft early in 2027, which will be a key catalyst, driving a further increase in production and decrease in costs. With strong ongoing free cash flow generation at current gold prices and significant growth expected ahead, we announced a 60% increase in our dividend in February and will continue evaluating opportunities for additional shareholder returns. Turning to slide 5. We have previously outlined a clear path to 800,000 ounces of annual production by 2028, with costs expected to decrease 18% relative to 2025.

We expect our annual production to continue increasing to 1 million ounces by 2030, with a further decrease in costs. This growth is expected to be internally funded by ongoing free cash flow generation and a strong balance sheet with $1.2 billion in available liquidity. Our team is making strides towards our long-term plans across our asset portfolio. The completion of the Phase 3+ shaft expansion at Island Gold is less than a year away. Our larger Magino mill expansion is well underway. Construction activities are ramping up at Lynn Lake and PDA. These are high return projects, all lower cost and largely de-risked, underpinning one of the best growth profiles in the sector. I’ll now turn the call over to our CFO, Greg Fisher, to review our financial performance. Greg?

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: Thank you, John. Moving to slide 6. We sold 122,000 ounces of gold in the first quarter at an average realized price of $4,829 per ounce for record quarterly revenues of $597 million. Total cash costs were $1,230 per ounce, and All-in sustaining costs were $1,862 per ounce.

As previously disclosed, first quarter costs were expected to be above the first half guidance range. We are continuing to monitor the impact of ongoing inflationary pressures across our cost structure, including higher labor, contractor, diesel, and electricity costs. We expect to manage any cost pressures with ongoing productivity improvements through the year, which are expected to drive costs lower and significant margin expansion at current gold prices. Operating cash flow before changes in non-cash working capital increased to a record $338 million in the first quarter, or $0.80 per share. This included a reduction of $43 million, or $0.10 per share, for cash utilized to buy out an additional 15,000 ounces of the legacy Argonaut Gold hedges prior to maturity. Our reported net earnings were $191 million in the first quarter, or $0.46 per share.

This included after-tax losses on commodity hedge derivatives of $20 million, adjustments for unrealized foreign exchange losses of $19 million, and other adjustments of $1 million. Excluding these items, our adjusted net earnings were $232 million, or $0.55 per share. Capital spending in the quarter totaled $184 million and included $45 million of sustaining capital, $127 million of growth capital, and $11 million of capitalized exploration. We continue to fund our high return growth internally while generating strong free cash flow. This included $102 million of free cash flow generated in the first quarter, net of $82 million in cash taxes paid. In the first quarter, we repurchased and eliminated an additional 15,000 ounces of gold forward contracts ahead of their maturity in the second half of 2026.

These hedges were inherited as part of the Argonaut Gold acquisition in 2024. Existing cash of $43 million was used to eliminate these hedges, providing further upside to higher gold prices. To date, we have eliminated 245,000 out of the 330,000 ounces that were hedged by Argonaut prior to maturity. We will continue to monitor opportunities to repurchase and eliminate the remaining contracts, which total 85,000 ounces across the second half of 2026 and first half of 2027. Our ongoing free cash flow drove a further increase in our cash position to $660 million at the end of the first quarter. We expect growing production and declining costs to drive stronger free cash flow through the remainder of the year and into the next several years while continuing to self-fund our organic growth plans.

I’ll now turn the call over to our COO, Luc Guimond, to provide an overview of our operations. Luc?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Thank you, Greg. Over to slide seven. First quarter production from the Island Gold District totaled 61,200 ounces, in line with plan and an improvement from the previous quarter. Underground mining rates averaged a record 1,423 tons per day, a 23% increase from the fourth quarter and in line with our ramp-up schedule. Grades mined of 9.4 grams per ton were also consistent with guidance. We expect a gradual ramp-up of mining rates to 2,000 tons per day by the end of 2026 and higher grades into the second half of the year to drive growing production through the rest of 2026. Open pit operations continued to perform well with mining rates averaging 50,000 tons per day, including nearly 12,000 tons per day of ore mined during the quarter.

Grades mined and milled were in line with guidance. Total milling rates from the Island Gold District averaged close to 8,800 tons per day in the first quarter, with the Magino Mill averaging 7,500 tons per day and the Island Gold Mill averaging 1,260 tons per day. Magino’s milling rates are expected to increase in the second quarter and through the second half of the year, driven by recent improvements to the crushing circuit. Total cash costs and mine site All-in sustaining costs were above annual guidance, but expected to decrease significantly in the second half of the year. This is expected to be driven by higher mill throughput at Magino, as well as an increase in underground mining rates and grades at Island Gold.

The Island Gold District generated mine site free cash flow of $58 million in the first quarter, net of the significant capital investment related to the Phase 3+ shaft project, larger Magino Mill expansion, and exploration. At current gold prices, the Island Gold District is expected to continue generating strong free cash flow while funding its expansion plans and a large exploration program. Moving to slide 8. In the latter part of February, a temporary crusher was added to the Magino Mill, providing supplementary crushed ore feed into the processing plant. The addition of the crusher has contributed to a substantial improvement in milling rates, which averaged 9,200 tons per day over the past six weeks. Milling rates are expected to remain at similar levels in the second quarter, with the SAG and ball mill liner changes and conveyor replacements scheduled for the quarter.

Consistent with guidance, milling rates are expected to increase to steady-state levels of 10,000 tons per day by the third quarter. Combined with the Island Gold Mill, the district is expected to process in excess of 11,000 tons per day of ore in the second half of the year and into 2027. Over the long term, a number of initiatives currently underway are expected to support higher milling rates and greater operational consistency. Connecting the Magino Mill to grid power will provide a more reliable source of power at substantially lower costs into 2027.

Additionally, the construction of a gyratory crusher, new truck dump configuration, and ore bins will greatly improve the performance of the existing circuit by reducing rehandling of ore and ensuring a more consistent flow of ore into the mill. All of these improvements will be in place by early 2028 as part of the larger mill expansion to 20,000 tons per day. Moving to slide 9, growth capital for the Phase 3+ shaft expansion has been largely all spent or committed. Shaft sinking to a planned depth of 1,381 meters was completed in the first quarter, and paste plant construction is on track for completion in the second quarter. Commissioning of the shaft and other surface infrastructure is expected to be completed by early 2027.

This is an important catalyst to increase underground mining rates to 2,400 tons per day in 2027 and ultimately 3,000 tons per day in 2029. Over to slide 10. In February, we announced the results of the larger Island Gold District expansion study. The study included an expansion of the Magino Mill to 20,000 tons per day, accelerated underground development to support mining rates of 3,000 tons per day, and other infrastructure investments. The larger expansion is well underway with 11% of the growth capital spent or committed, primarily related to the expansion of the Magino Mill to 20,000 tons per day. As shown on the slide, construction of the mill building is well advanced, including structural steel and exterior cladding, and all 8 leach tanks erected.

With all the earthworks, concrete foundations, and steel erected, the key elements of the larger expansions have been significantly de-risked. The expansion remains on track for completion in early 2028 and will be a game changer for the operation, with production expected to increase to average 534,000 ounces per year at $1,025 per ounce all-in sustaining costs starting in 2028. The Island Gold District is expected to evolve into one of Canada’s largest, lowest cost, and most profitable gold mines. Over to slide 11. Young-Davidson produced 30,000 ounces in the first quarter, lower than planned, primarily due to lower mining and milling rates. Milling rates of 6,800 tons per day were below guidance, reflecting longer than anticipated downtime to complete scheduled maintenance, as well as an unscheduled repair to a transformer in the mill.

Underground mining rates were also 5% lower than planned due to longer than expected timeline to complete rehabilitation work on one of the 3 ore passes, as well as delays in commissioning a newly constructed pass. This resulted in more rehandling of ore, reducing productivity during the quarter. With 2 passes now fully operational, the total number of active ore passes has increased to 4. This is expected to provide greater operational flexibility and support increased mining and milling rates of approximately 8,000 tons per day in the second quarter and through the remainder of the year. Mine grades were also below the low end of annual guidance, reflecting higher than planned mining dilution.

Grades are expected to return to guided levels in the second quarter and combined with higher milling rates, we expect a substantial improvement in both production and costs through the rest of the year. Young-Davidson continues to deliver strong mine site free cash flow with $72 million generated in the first quarter. At current gold prices, higher production and lower costs are expected to drive further free cash flow growth through the rest of the year. Over to slide 12. Production from the Mulatos District totaled 32,700 ounces, including nearly 27,000 ounces from Yaqui Grande. Costs were at the low end of annual guidance, reflecting the higher grade stock. Grades stocked are expected to decrease in the second and third quarters towards the lower end of guidance, and costs increase through the remainder of the year to be consistent with annual guidance.

The Mulatos District generated strong mine site free cash flow of $61 million while funding the construction of the PDA project, a robust exploration program, and paying $51 million in cash taxes during the quarter. Over to slide 13. Construction activities on the PDA project are well underway. Earthworks on key surface infrastructure is now substantially complete. The mill foundation work is progressing. Last week we called out the portals and will continue underground development through the rest of the year. The PDA project remains on budget and on schedule for first production at mid-2027. PDA is the future of the Mulatos operation. Based on the PDA deposit alone, this is a low-cost, high-return project which will extend the Mulatos mine life by at least 9 years.

We believe this is just the starting point as the operation transitions to processing higher grade sulfide mineralization and expect there’s a significant upside to come. The addition of a mill for PDA is opening up a number of new opportunities for additional higher grade mineralization within the district, such as Cerro Pelon and Halcon, where we are continuing to see strong ongoing exploration results. With that, I will turn the call back to John.

John McCluskey, President and Chief Executive Officer, Alamos Gold Inc.: Thank you, Luc. I’ll now turn the call over to the operator who will open the line for your questions.

Operator: Thank you. Your first question comes from the line of Ovais Habib of Scotiabank. Your line is open.

Ovais Habib, Analyst, Scotiabank: Thanks, operator. Hi, John and Alamos team. Just a couple of questions from me. My first question is on Island Gold. Really great to see mining rates averaging 1,400 tons per day, and those are expected to grow over the next couple of quarters, so looking forward to that. In regards to the area which you had the seismic issue, how much more work is required to completely rehabilitate that area? Second part of that is, do you need this area to achieve the 2,000 tons per day that you’re targeting by the end of the year?

Fahad Tariq, Analyst, Jefferies0: Hi, Ovais. It’s Luc here. Yeah, with regards to the Island Gold mining front that we had to reestablish the escape way, we completed that at the beginning of the year. The escape way is being reestablished, that allows us to actually continue mining in that area. As far as the overall ramp up for this year in 2026 with what we’re expecting, there’s not a lot of production actually coming out of that area. We will see some production starting in the second half of the year, and we’re just continuing with some minor rehabilitation in this area since we’ve completed the escape way, which allows us to continue activities in that region, but not critical to the overall ramp up for 2026 and as we move into 2027.

Ovais Habib, Analyst, Scotiabank: Good stuff. Thanks for that color, Luc. Then just moving to YD, good to hear mining rates are expected to now increase to average around 8,000 tons per day, kind of Q2 onwards, as both ore passes now for the operation. In regards to underground grades, they got hit in Q1 due to some mining dilution. How should we look at grades going to Q2, and then kind of in the second half?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Yeah, as I mentioned, on the read, the issue that we had with Q1 was certainly some dilution from a couple of stops. As we move into the rest of the year, we expect to be within our guidance of that 1.9-2.05 grades from underground. We’re on track as we move forward through certainly into Q2 and as we follow the rest of the mine plan for the rest of the year.

Ovais Habib, Analyst, Scotiabank: grades should be kind of around that 2 gram per ton then, kind of going into Q2?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Yeah, within our guidance that we provided, which was, you know, between 1.9 and 2.05.

Ovais Habib, Analyst, Scotiabank: Perfect. Okay. Then just moving on to exploration, maybe this question is for Scott. Can you give us just kind of a brief overview of where you are currently focused on, and especially if you continue to have any sort of success at Quinn Pick?

Fahad Tariq, Analyst, Jefferies0: Yeah, absolutely. Our 2026 exploration programs are well underway across the board at all sites. We’re just concluding, starting with Lynn Lake, just concluding a program there focused on testing underground potential below the MacLellan and Gordon deposits. That was executed on time, just in time for spring breakup. Hopping over to Island Gold, the focus there is on continued expansion of Island Gold deposits. We’re drilling from surface, extending, focused on extending mineralization to the east end of the west, and then also at depth below the bottom of the reserves and resources, and that program is well underway. The other aspect, as you mentioned, was Quinn Pick.

We’re drilling there and, you know, excited in what we’re seeing as we follow up on some of the results that we had issued earlier in the quarter. And, you know, really looking at some of the controls on mineralization in that system and testing it down plunge and in and around existing mine workings with the intention of having a resource estimate by the end of 2026. We’re, that’s well underway as well. Hopping over to Young-Davidson, the underground program’s focused on continuing to define the Hanging Wall zones that we have really put out some release results on earlier in the quarter.

Both the Mid-Mine Hanging Wall zones and the South Syenite Zone, and that program is well underway, as well as testing from surface some of the regional targets. Looking at, we completed a program at Otisse Northeast, which is the potential opportunity for additional open pit material. We can define a resource there, and that was successful in terms of that program, as well as some of the other regional targets in the district. Mulatos, that program’s well underway. We’re really focused off the start of the year at Halcon and Cerro Pelon. We’re excited about what we’re seeing at Cerro Pelon, including the 200,000 ounces we’ve defined there by the end of 2025.

I think that’ll be just a starting point for that target as we continue stepping out on that sulfide mineralization, both in and around the pods we’ve defined, but also within the broader Cerro Pelon region. Halcon as well, it’s a new discovery in 2025, and we’re still defining the extent of that system. That’s an exciting opportunity as well for additional sulfide mineralization in the Mulatos District. The last point I’ll make, we’re currently ramping up for our Kikivik program, which is our project in Nunavik in northern Quebec, and that’ll be underway later in the second quarter.

Ovais Habib, Analyst, Scotiabank: Good stuff, Scott. There’s a lot going on. Looking forward to some results from these programs. That’s it from me, guys. Again, looking forward to Q2 for improvement in production and costs, looking forward to the site trip in summer as well. Thanks.

Operator: Your next question comes from the line of Fahad Tariq of Jefferies. Your line is open.

Fahad Tariq, Analyst, Jefferies: Hi, thanks for taking my question. There was a comment in the press release talking about managing cost pressures with productivity improvements. Can you talk about what specific productivity improvements there are across the portfolio?

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: Yeah, Fahad, it’s Greg here. That’s referencing what we’ve already identified as part of our plan in 2026 and even moving into 2027. I mean, the critical thing is obviously ramping up our mining rates at Island Gold from 1,400 tons per day, which we achieved in Q1, up to 2,000 tons per day by the end of the year. As we increase our

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Our production from the underground at Island, that is critical for us because it’s our lowest cost structure that we have across our portfolio. That’s obviously a focus. The other piece would be ramping up the Magino Mill, you know, from 7,500 tons per day in Q1 to closer to 10,000 tons through at least the second half of the year. That’s obviously gonna bring down our cost structure in the second half of the year. The last would be the mining rates at Young-Davidson getting back up to 8,000 tons per day. All of those things are items that are going to manage those cost pressures in 2026.

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: As we move into 2027, there’s the obviously moving from ramp mining to shaft mining or skipping up the shaft is going to have a significant impact on our cost structure moving forward. The last is the hooking up to grid power at the Magino Mill, that’s something that we plan to have in place by early 2027 as well. All of those are things that we’ve outlined previously, but they go a long way to managing any inflationary pressures that we’re seeing.

Fahad Tariq, Analyst, Jefferies: Okay, great. Then maybe just to follow up on that, can you just talk about what pressures you’re seeing, I guess April first onwards in terms of diesel? The press release even talked about labor, which might be like a second or third order effect, just what you’re seeing across the board on cost inflation.

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: I mean, you highlighted the 2 kind of primary ones. Diesel, obviously, that’s a cost pressure that the entire industry is seeing. We’re fortunate in that diesel isn’t a big part of our cost structure. It’s about 5%. If you break it down, about two-thirds of that is in Canada and one-third in Mexico. In Mexico, it’s a, you know, a regulated system, you don’t see the same effects of the higher diesel price in Mexico that we do in Canada. Then in Canada, it’s about 20% of our diesel has been hedged at much lower rates than what we’re seeing right now.

All to say, very manageable because it’s a small component of our cost structure and it being less than 5%. On labor, I’d say that the bigger pressure is more on contractor labor. you know, we have put in place our increases for the year, all very manageable, all built into our budget. What we’re seeing a little bit of is pressure from contractors to make sure that they can fill their roles and some increased cost there. Again, something that is manageable, based on our cost guidance that we have for the rest of the year.

Fahad Tariq, Analyst, Jefferies: Got it. Thank you so much.

Operator: Your next question comes from the line of Ralph Profiti of Stifel. Your line is open.

Ralph Profiti, Analyst, Stifel: Yes. Thanks very much. My question is, firstly on Young-Davidson within the context of this strong recovery that we’re going to see through 2026. There is some discussion around stope overbreak leading to a review of the blasting design. Just wondering, is this something new that we’re dealing with? Was this identified as a risk when we encountered some of the headwinds in the back half of 25? Just wondering, you know, is the blasting review part of sort of just where we’re having these stope overbreak issues, or is this part of a broader, you know, all stope encompassing plan?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Yeah. Hi, it’s Luc here. I mean, the drilling and blasting review is always an ongoing process with regards to the, you know, the mining, I guess, close out of the reconciliation of each of our stopes. This is nothing new. We continue to review that on an ongoing basis. I mean, historically, the performance has been good at Young-Davidson, but we’ve been mining there now for, you know, the better part of 13 years. You know, actual results from a grade perspective usually reconcile quite well to the model, and we’ve got a good history of that.

In this specific quarter, we did have 2 stopes that underperformed from a dilution aspect, where we typically model around, you know, 10%-12% dilution, and we had some higher dilution on the basis of 2 stopes that we mined in the quarter. Really, the process of closing out the reconciliation is also looking at the drilling and blasting design and seeing if there is some improvements there based on that reconciliation to any modifications that we may need to make. It could be specific to certain regions, maybe some geological structures within those regions that are adding to the dilution. You know, maybe we need to change our drill and blasting patterns as a result of that.

We take all that into consideration and basically do a full analysis, and part of it is certainly the drill and blast design as well.

Ralph Profiti, Analyst, Stifel: Gotcha. Okay. Just as a sort of a minor follow-up, you know, as it stands right now, do you envision the supplementary temporary crushing at Magino to be in place until the 20,000 ton per day expansion is commissioned? Does the existing secondary crusher, once it’s optimized, sort of get you to meet the plan? Do you envision sort of weaning off the temporary?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Yeah. We currently still have it in place. I mean, we commissioned that mid-February, and really, initially, it was to help us to get through, you know, certainly through the winter conditions. Some of the challenges that we have operating in the winter, it provided consistency for more supplemental feed into the mill grinding circuit. We still have it in place currently, we I would say we would rely less on it through the summer months than we need to do in the winter months. When we do have scheduled maintenance, it allows us to continue to provide. You know, if we have scheduled maintenance on the crushing circuit, it allows us to continue to provide mill feed into the grinding circuit. That’s the advantage of it.

You know, periodically, it will get used, continue to get used through the summer months as well. Keep in mind, and I think we’ve discussed this, is once we do complete that larger mill expansion to 20,000 tons per day, we are gonna change some of that crushing circuit. Primarily, adding a gyratory crusher will eliminate some of the winter challenges that we had certainly with regards to the front end of that crushing circuit that we currently operate with. Come 2028, certainly we would not require that. Periodically, we will continue to use it, yes.

Ralph Profiti, Analyst, Stifel: Okay. Helpful answers. Thanks very much.

Operator: Your next question comes from the line of Don DeMarco of National Bank.

Don DeMarco, Analyst, National Bank: Thanks, operator, and good morning, John and team. Great to see the growth trajectory affirmed. First question, going back to the discussion on diesel. You know, we see that costs are expected to decrease by 5% in Q2. Does this assume that diesel prices remain flat?

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: Correct. It’s based on the spot prices that were in place at March 31st. The higher rates that we’re seeing now is what we’ve assumed when we talked about that 5% reduction in cost.

Don DeMarco, Analyst, National Bank: Okay. As Luc was mentioning, the Island mining rates continue higher in Q1 on their way to 2,000 by the end of the year. Are you stockpiling this ore, the delta between the nameplate at Island Gold, or are you putting it through the Magino Mill?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Yeah, no stockpiling that’s occurring there, Don. I mean, the additional tons that come up from Island underground, outside of what can be milled at the Island Mill itself, end up over at the Magino Mill, and we process it through the Magino Mill. We’ll continue that as we move through certainly the rest of the year with the ramp up.

Okay.

tons that cannot be fed into the Island Mill will go into the Magino Mill.

Don DeMarco, Analyst, National Bank: Okay. Finally, do you plan to continue to settle the legacy Argonaut hedges each quarter? Are you looking at it more tactically or kind of, are you thinking maybe the same amount that we saw in Q1 each quarter going forward?

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: I think we’ll be opportunistic based on where we see the gold price going. I think we’ve been tactical all along in taking out 200-

Yeah.

Close to 250,000 out of the 330,000 ounces that we originally inherited. We’ll look to continue to doing that as we approach the remaining 85,000 ounces.

Don DeMarco, Analyst, National Bank: Okay, great. Thanks, Greg. That’s all for me. Good luck with Q2.

Operator: Your next question comes from line of Lauren McConnell of Paradigm Capital. Your line is open.

Lauren McConnell, Analyst, Paradigm Capital: Hi, good morning. Thanks, operator, and thanks, Alamos team for taking our questions. Just on the Phase 3+ expansion, it’s good to see the shaft sink complete, you know, and 100% of the growth capital spends are committed, with commissioning expected, you know, early next year. What are sort of the remaining critical path items? Is it that paste plant that’s, you know, currently on track for completion in Q2? What are sort of the next sort of key milestones that we should continue to watch to make sure we keep seeing that on track for early 2027?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: It’s Luc here. Things are tracking well with regards to the, certainly the Phase 3+ expansion. I mean, the two critical items, I guess, right now is as you mentioned, we’ve completed all of the rock work in the shaft. Now we’re actually, we’re furnishing the shaft. We’re putting all of the structural steel in the shaft, separating the compartments for skipping, you know, personnel travel and services. That will occur over the rest of this year. Timeline is that would be completed early in the first quarter of 2027. Then the second component of that is away from the shaft, which is actually the ore and waste handling infrastructure that’s required to be able to feed the shaft. We’re, we’re well embarked on that as well.

We’re in the process of doing some rock work in relation to one of the large bins for the underground loading pocket, and we’ll be establishing our grizzly station as well as the loading pocket at 1,350. That work is also expected to be completed in early 2027 in the first quarter as well. That will all kind of tie in together. I’d say by mid-Q1, we should have the ore waste handling components commissioned as well as the shaft commissioned to be able to start utilizing the shaft for ore and waste movement and personnel movement as well.

Lauren McConnell, Analyst, Paradigm Capital: Okay, great. That’s really helpful. Just on the overall, you know, larger expansion, I think that it said that about 11% of the growth capital has been spent or committed. Just wondering how much of the, that remaining, I think it was $542 million, is still exposed to sort of inflation and procurement risk and, you know, any kind of scope changes at this point.

Greg Fisher, Chief Financial Officer, Alamos Gold Inc.: Yeah, on that front, I mean, a bunch of that is development. Development is subject to labor inflation, basically. The other piece would be the kind of core components of the mill. We’ve got contracts in place for some of that, but we’re still working through contracts. Technically, there is some inflationary pressure there, although we’re not hearing right now that we’re expecting much from that. I’d say it would be normal course, inflationary pressures of kind, 4%-5%.

Lauren McConnell, Analyst, Paradigm Capital: Okay, great. That’s really helpful. That’s it for me. Thanks, everyone.

Operator: Your last question comes from the line of Sathish Kasinathan of Bank of America. Your line is open. Sathish, perhaps your line is on mute.

Sathish Kasinathan, Analyst, Bank of America: Hi, good morning. Thanks for taking my questions. My first question is on capital allocation. We saw strong free cash flow generation in the first quarter, but there were no share buybacks. Given the free cash flow is expected to improve throughout the remainder of the year, how should we think about the potential for getting more active in buybacks?

John McCluskey, President and Chief Executive Officer, Alamos Gold Inc.: Hi, Sathish. This is John speaking. We’ve always taken a very opportunistic approach to share buybacks. We had, what do you call it? We had a focus in the first quarter on increasing the dividend and the buyback of, we spent $45 million buying back part of the legacy Argonaut hedges. You know, you take an opportunity like you see now with our shares underperforming in the market, probably a good guess would be that we are being opportunistic on that front. We expect to be more active with the share buyback in Q2 and for the remainder of the year.

Sathish Kasinathan, Analyst, Bank of America: Okay. Yeah, thank you for the color. Most of my other questions have been asked and answered. Maybe one on Magino. You expect meaningful cost savings from connecting the Magino mill to the grid power. Can you maybe quantify the $/ounce impact once it is fully online?

Luc Guimond, Chief Operating Officer, Alamos Gold Inc.: Yeah. It’s about $5 a ton, correct? Yeah, it’s $5 a ton.

Sathish Kasinathan, Analyst, Bank of America: Okay. Thank you. Thanks for taking my question.

Operator: There are no further questions at this time. This concludes this morning’s call. If you have any further questions that have not been answered, please feel free to contact Mr. Scott Parsons at 416-368-9932 at extension 5439. That is 416-368-9932, extension 5439. This concludes today’s conference call. You may now disconnect.