Alamos Gold Inc. (NYSE:AGI) Q2 2022 Results Conference Call July 28, 2022 10:00 AM ET

Company Participants

John McCluskey - President, Chief Executive Officer and Director

James Porter - Chief Financial Officer

Peter MacPhail - Chief Operating Officer

Conference Call Participants

Trevor Turnbull - Scotiabank

Fahad Tariq - Credit Suisse

Lawson Winder - Bank of America Securities

Kerry Smith - Haywood Securities

Operator

Good morning. I would like to turn the meeting over to Mr. Jamie Porter, Chief Financial Officer.

James Porter

Thank you, operator, and thanks, everyone, for attending Alamos' Second Quarter 2022 Conference Call. In addition to myself, we have on the line today both John McCluskey, President and CEO; and Peter MacPhail, 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 and 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 of Technical Services and a qualified person. Also, please bear in mind that all the dollar amounts mentioned in this conference call are in U.S. dollars unless otherwise noted.

Now I'll turn it over to John to provide an overview of the quarter.

John McCluskey

Thank you, Jamie, and welcome, everyone, to the call.

Starting with Slide 3. We had a good second quarter on multiple fronts, meeting our short-term operational targets while also delivering on 2 key growth initiatives, including achieving first production at La Yaqui Grande and announcing a larger and more profitable Phase III expansion of Island Gold. Both have solidified our strong outlook supporting growing production and declining costs. At the same time, as we are growing our production, we also expect to reduce our total greenhouse gas emissions as we detailed in June with a 30% reduction targeted by 2030.

Our second quarter production of 104,000 ounces of gold was in line with guidance, while total cash costs of $895 per ounce and all-in sustaining costs of $1,170 per ounce were well below quarterly guidance and substantially an improvement over the first quarter. This reflected solid performances from our Canadian operations, including a significant increase in production and decreasing costs at Island Gold as well as a strong start from La Yaqui Grande.