Alamos Gold Inc (NYSE:AGI) Q3 2024 Results Conference Call November 7, 2024 11:00 AM ET

Company Participants

Scott Parsons - Senior Vice President of Investor Relations
John McCluskey - President & Chief Executive Officer
Greg Fisher - Chief Financial Officer
Luc Guimond - Chief Operating Officer
Scott Parsons - Vice President, Exploration

Conference Call Participants

Cosmos Chiu - CIBC

Operator

Good morning. I'll now turn the call over to Scott Parsons, Alamos Senior Vice President of Investor Relations. Please go ahead.

Scott Parsons

Thank you, operator, and thanks to everybody for attending Alamos' Third Quarter 2024 Conference Call. In addition to myself, we have on the line today, John McCluskey, President and Chief Executive Officer; Greg Fisher, Chief Financial Officer; Luc Guimond, Chief Operating Officer; and Scott R.G. Parsons, Vice President of Exploration.

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 VP, Technical Services and a qualified person. Also, please bear in mind that all the dollar amounts mentioned in the conference call are in U.S. dollars, unless otherwise noted.

Now John will provide you with an overview.

John McCluskey

Thank you, Scott. The third quarter marks the first quarter with Magino mine under our ownership, having completed the acquisition of Argonaut Gold in July, reflecting the addition of Magino as well as strong performances from Island Gold and the Mulatos District, we delivered record production in the quarter of 152,000 ounces of gold. As guided, all-in sustaining costs of $1,425 per ounce, increased from earlier in the year, reflecting the inclusion of higher cost production from Magino with the operation undergoing a transition period. With year-to-date production of 427,000 ounces, we remain on track to achieve our full year production guidance, which was increased by 13% in September, reflecting the inclusion of Magino and outperformance of Mulatos.

We are also on track to meet our full year cost guidance with a marginal decrease in costs expected in the fourth quarter. We achieved a number of new financial records in the third quarter, driven by record production and gold prices. This included our third consecutive quarter of record revenue as well as record cash flow from operations before working capital of $193 million. We continue to generate strong ongoing free cash flow, including $88 million in the quarter and $219 million year-to-date, while funding our high-growth, high-return initiatives. These include our latest exploration -- largest exploration budget ever, and the Phase III expansion at Island Gold, which will be a driver of significant free cash flow in the years ahead.