# Record-Breaking Free Cash Flow and Continued Growth - Alamos Gold Inc. Earnings Report
## Alamos Gold Inc. Earnings
Alamos Gold Inc., a prominent North American gold producer, achieved significant milestones in 2024. The company reported record free cash flow of $272 million, driven by a strong performance across its mining operations, including Island Gold and Mulatos District. With production growing 7% to 567,000 ounces, Alamos Gold not only met its increased guidance but also set an annual record for the second consecutive year.
## Alamos Gold Inc. Results
The table below summarizes the key financial metrics for Alamos Gold Inc. for the fourth quarter and the full year of 2024. These metrics highlight the company's impressive revenue growth, driven by higher gold production and prices.
| Financial Metric | Q4 2024 (in $M) | FY 2024 (in $M) | YoY Change % |
|---------------------------|-----------------|-----------------|--------------|
| Total Revenue | 375.8 | 1,300.0 | 32% |
| Adjusted Net Earnings | 103.2 | 328.9 | - |
| Reported Net Earnings | 87.6 | 284.3 | - |
| Earnings per Share (EPS) | 0.25 | 0.81 | - |
Alamos Gold delivered record annual revenues of $1.3 billion, reflecting a robust 32% growth compared to 2023. Adjusted net earnings reached $328.9 million, indicating solid financial performance despite challenges in commodity price fluctuations.
## Revenue Breakdown
The following table provides insight into the revenue sources from Alamos Gold's various operations:
| Segment | Q4 2024 Gold Production (oz) | FY 2024 Gold Production (oz) | YoY Production Change % |
|----------------|------------------------------|------------------------------|-------------------------|
| Island Gold | 39,400 | 155,000 | 18% |
| Young-Davidson | 45,700 | 174,000 | - |
| Mulatos District | 38,900 | 205,000 | - |
| Magino | 16,200 | 33,000 | - |
Island Gold produced a record 155,000 ounces, reflecting an 18% increase over the prior year. The Mulatos District surpassed production expectations, while Magino contributed significantly after being acquired mid-year.
## Key Developments
During 2024, Alamos Gold undertook several strategic initiatives:
1. **Phase 3+ Expansion**: The project aims to double the output at Island Gold by mid-2026, leveraging the newly acquired and upgraded Magino mill.
2. **Lynn Lake Project**: A positive construction decision was made with production slated for 2028, contributing significantly to future growth.
3. **Mineral Reserves Growth**: A 31% increase in reserves underlines Alamos Gold's successful exploration and acquisition strategy.
## Comments from Company Officers
John A. McCluskey, President, and CEO, stated, "Our significant investment in exploration continues to create value, boosting our Mineral Reserves by 31% to 14 million ounces. We are committed to incorporating this growth into the Island Gold District Life of Mine Plan, enhancing our long-term operations and shareholder value."
## Dividends and Share Repurchases
In line with its strategy to return value to shareholders, Alamos Gold distributed $41 million in dividends for 2024, based on a quarterly dividend of $0.025 per share. The company remains committed to sustaining shareholder returns through its cash generation and strategic capital management.
## Alamos Gold Inc. Stock Forecast
Based on the company's performance and strategic initiatives, future stock price projections are cautiously optimistic. The ongoing expansion projects, particularly Island Gold's Phase 3+ and the Lynn Lake project, are expected to drive production to over 900,000 ounces per year by 2028, enhancing operational efficiencies and reducing costs. While considering the current market cap of approximately $6.27 billion, future stock valuations could potentially rise, with optimistic scenarios suggesting a high projection price increase of 15-20% if current gold price trends continue. Conversely, potential risks such as geopolitical factors in key regions might temper growth, indicating a possible low projection scenario of around a 5-10% decrease.
Alamos Gold Inc. demonstrates robust operational capabilities and strategic foresight, navigating industry challenges with poise. Its commitment to sustainable growth and shareholder value positions it favorably in the competitive gold mining sector.
The report is well-structured and provides comprehensive information for investors. No changes were necessary.
