Alamos Gold Inc. (TSX: AGI) (NYSE: AGI) posted a record third quarter due to the addition of the Magino open-pit mine to its portfolio.
The company posted its financial results for the quarter ending Sept. 30 last week, recording how across its mines in Northern Ontario and Mexico.
The company said that this performance is due to a pair of Dubreuilville-area gold mines, Island Gold and Magino.
The mid-tier miner achieved record revenue of USD$361 million this quarter, marking its third consecutive quarter of revenue growth. Quarterly gold production rose by 12 per cent from the same period in 2023, and net earnings reached USD$84.5 million, a significant increase from USD$39.4 million in the same quarter last year.
Following the acquisition of neighbouring Argonaut Gold in Dubreuilville this July, Alamos has made substantial progress in merging Magino operations with Island Gold. Rather than expanding Island Gold’s existing mill, Alamos chose to expand Magino’s larger, newer mill for processing.
Alamos is also progressing with the Phase 3+ expansion at the Island Gold project. The shaft currently extends to a depth of 800 metres, twice as deep as it was at the end of the last quarter, and halfway to its target depth of 1,373 metres. Alamos plans to complete this expansion in the first half of 2026, projecting that it will bring the annual production rate closer to 700,000 ounces.
Q3 growth also drew support from the Mulatos mine in Mexico, where development and expansion of the Puerto Del Aire project in Sonora continued. Alamos expects this expansion to triple the Mulatos mine’s lifespan, extending its operations to at least 2035.
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Island Gold is advancing through third phase of major expansion
A new haul road is now being constructed to connect the underground portal to the Magino mill, allowing ore processing at the upgraded facility by early 2025.
“We achieved a number of operational and financial records in the third quarter. Production increased to a record 152,000 ounces reflecting the addition of Magino and continued strong performances from Island Gold and Mulatos (in Mexico),” said John McCluskey, Alamos president-CEO.
Island Gold produced 40,500 ounces this quarter, an increase of 11 per cent from last year, while Magino contributed 16,800 ounces under the Alamos banner. Island Gold is currently advancing through the third phase of a major expansion aimed at doubling mining rates from 1,200 to 2,400 tonnes per day.
Upon completion of the USD$796-million project in early 2026, the operation will shift from trucking ore up a ramp to using a new shaft for skipping ore and waste rock to the surface. This change will increase gold production and reduce operating costs. By the end of October, the new shaft had reached 812 metres, over halfway to its planned depth of 1,373 metres.
Alamos views the acquisition of Magino as a strategic growth opportunity in what it has named the Island Gold District. Once the Island Gold expansion is complete, Alamos expects to operate one of Canada’s largest, low-cost mines, with a near-term potential to increase gold production by 20 per cent and a long-term opportunity for further exploration in the area.
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Alamos has engaged with local indigenous communities
The company has also taken steps to minimize its environmental impact by prioritizing sustainability. It also reduced energy consumption by 16 per cent per ounce of gold produced in 2023. Its environmental initiatives include the Ventilation-On-Demand initiative at Young-Davidson and energy efficiency upgrades at Island Gold.
Furthermore, in addition to its sustainability initiatives, Alamos has also engaged with local Indigenous communities, forming agreements that promote mutual benefit and reflect the company’s dedication to social responsibility.
However, Alamos has encountered challenges, particularly with its operations in Turkey. The Kirazli project faced substantial setbacks when construction was halted due to protests over environmental concerns, especially regarding the use of cyanide. Although Alamos has defended its environmental practices, the suspension of the Kirazli project prompted the company to initiate arbitration proceedings against Turkey, seeking over USD$1 billion for alleged expropriation and unfair treatment.
Year after year, an extensive exploration campaign continues to reveal high-grade extensions of gold beyond Island Gold’s main deposit, along with high-grade opportunities beneath the Magino pit.
The Toronto Stock Exchange recognized Alamos as a top performer in the third quarter, including it in the TSX20 in acknowledgment of a 134 per cent increase in its share price over the past three years.
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