Alamos Gold Inc. (NYSE:AGI) Q1 2022 Earnings Conference Call April 28, 2022 11:00 AM ET

Company Participants

John McCluskey - President, Chief Executive Officer and Director

Jamie Porter - Chief Financial Officer

Peter MacPhail - Chief Operating Officer

Conference Call Participants

Trevor Turnbull - Scotia Bank

Cosmos Chiu - CIBC World Markets

Fahad Tariq - Credit Suisse Securities

Kerry Smith - Haywood Securities Inc

Michael Parkin - National Bank

David Holperin - Stifel

Dalton Baretto - Canaccord Genuity

Operator

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

Jamie Porter

Thank you, operator, and thanks to everyone for attending Alamos’ First Quarter 2022 Conference Call. In addition to myself, we have on the line today, John McCluskey, our President and CEO; Peter MacPhail, Chief Operating Officer. We will be referring to a presentation during the conference call that's available to the webcast and on our website. I would also like to remind everyone that our presentation will be followed by a question-and-answer 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. 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 of the dollar amounts mentioned in this conference call are in US dollars unless otherwise noted.

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

John McCluskey

Thanks very much Jamie and very good morning to everyone. So we'll start with slide 3. We produced 99,000 ounces of gold in the first quarter in line with guidance. Young-Davidson had another solid quarter with average mining rates exceeding the design rate, offsetting planned lower production from Mulatos. As with production, our costs were consistent with first quarter guidance, and both are expected to improve through the year. We expect higher grades from Island gold to contribute to stronger production in the second quarter and by La Yaqui Grand to drive a more significant increase in production and decreasing cost in the second half of the year. We remain well positioned to meet our full year guidance, and with higher production, lower costs and lower capital spending, we expect to transition to positive free cash flow in the second half of 2022.