Alamos Gold Updates Production Guidance to 1 Million Ounces Annually by 2030
Alamos Gold provided updated three-year production and operating guidance. The Company also outlined longer term production guidance of approximately one million ounces per year by 2030 through the larger expansion of the Island Gold District and initial production from Lynn Lake. "Our operational performance over the past year was not up to our standards and not reflective of our long-term track record. We expect to deliver a stronger performance in 2026, particularly into the second half of the year as production ramps up and costs decrease with the completion of the shaft expansion at Island Gold," said John A. McCluskey, President and CEO. "As demonstrated by our three-year guidance and tremendous exploration success across our asset base, we continue to make excellent progress on our growth initiatives providing one of the strongest outlooks in the sector. We expect to deliver 46% production growth by 2028, and nearly 20% decrease in AISC. This trend is expected to continue with production expected to increase to one million ounces annually by 2030 driven by the multi phased expansion of the Island Gold District and start up of Lynn Lake. All of this growth is in Canada, its all lower cost, and we can fund it internally while generating growing free cash flow," McCluskey added. Production guidance for 2026 decreased relative to the previous guidance1 provided in January 2025, with slightly lower production from Canadian operations partially offset by an increase at the Mulatos District. Production guidance for 2027 is largely in-line with Previous Guidance and represents a 13% increase from 2026. A further 15% increase is expected in 2028, driven by the completion of the Island Gold District Expansion for a cumulative 46% increase in production relative to 2025.
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- Expansion Plans: Alamos Gold is set to expand its Island Gold District operation in Ontario to 20,000 metric tons per day, positioning it as one of Canada's largest and lowest-cost gold mines, which is expected to significantly enhance its market competitiveness.
- Increased Reserves: The expansion study builds on the life-of-mine plan published in June 2025, incorporating a 30% increase in mineral reserves to 8.3 million ounces, ensuring sustainable production and profitability for the future.
- Enhanced Processing Capacity: The expansion of the Magino mill will support increased processing rates of 3,000 tons per day of high-grade underground ore and 17,000 tons per day from the Magino open pit, with expected annual production exceeding 530,000 ounces, further boosting the company's overall value.
- Long-Term Goals: Alamos has lowered its 2026 gold production forecast to 570,000-650,000 ounces, yet it aims to achieve an annual output of 1 million ounces by 2030, demonstrating the company's strong confidence in future growth.
- Production Growth Outlook: Alamos Gold Inc. anticipates a 46% increase in gold production by 2028, reaching between 755,000 and 835,000 ounces, primarily driven by the expansion of the Island Gold District and the startup of the Lynn Lake project, thereby enhancing the company's competitive position in the gold market.
- Cost Control Strategy: Total cash costs and all-in sustaining costs are expected to decrease by 24% and 18%, respectively, by 2028, achieved through low-cost growth from the Island Gold District and initial production from Lynn Lake, further improving the company's profitability.
- Capital Expenditure Plan: Capital expenditures for 2026 are projected to range from $850 million to $940 million, primarily allocated for the expansion of the Island Gold District and the construction of the Lynn Lake project, providing necessary funding for future production growth.
- Free Cash Flow Growth: Free cash flow is expected to exceed $500 million in 2026, supporting increased shareholder returns, reflecting the company's strong financial performance amid ongoing investments and growth projects.
- Increased Mineral Reserves: Alamos Gold's Expansion Study at the Island Gold District in Ontario reveals a 30% increase in Mineral Reserves to 8.3 million ounces, expected to drive annual production above 534,000 ounces, positioning it as one of Canada's most profitable gold operations.
- Reduced Production Costs: The average cash cost post-expansion is projected at $682 per ounce, representing a 31% decrease from 2025, which will significantly enhance profit margins and strengthen the company's competitive position in the gold market.
- Capital Expenditure Plans: Total capital expenditure for the IGD Expansion is estimated at $704 million, with $542 million allocated for the Magino mill expansion, expected to be completed over the next three years, further enhancing production capacity.
- Reduced Environmental Impact: The connection to the power grid is expected to reduce greenhouse gas emissions intensity by 56%, aligning with sustainability goals and improving the company's image among environmentally conscious investors.
- Reserve Growth: Alamos Gold has reported a 12-year consecutive increase in underground mineral reserves at the Island Gold Mine, with expectations of a substantial increase to be included in the upcoming expansion study, supporting a larger and more profitable operation.
- High-Grade Mineralization Extension: Exploration drilling at the Cline-Pick mines has intersected high-grade gold mineralization of 178.07 g/t, indicating the potential for these areas to evolve into additional sources of higher-grade ore, thereby enhancing the company's resource base.
- Increased Exploration Investment: In 2025, Alamos allocated $24 million for exploration at the Island Gold District, up from $20 million in 2024, reflecting the company's confidence and commitment to future resource development.
- Regional Exploration Success: A total of 9,911 meters of drilling was completed in the regional exploration of the Cline-Pick and Edwards mines, successfully extending high-grade gold mineralization, which is expected to provide additional high-grade mill feed for the Magino mill.
- High-Grade Gold Discovery: Alamos Gold's drilling in the South Syenite Zone at Young-Davidson intersected high-grade gold mineralization at 285 meters depth, with grades up to 16.36 g/t, indicating significant potential for resource expansion and future revenue enhancement.
- Increased Exploration Spending: In 2025, Alamos allocated $13.1 million for exploration at Young-Davidson, completing 34,080 meters of drilling, reflecting the company's confidence in the long-term development of the mine and the potential for resource growth.
- New Zone Development: The newly discovered hanging wall zone from 2024 has extended high-grade gold mineralization, with results showing up to 10.12 g/t, located near existing infrastructure, which reduces development costs and enhances economic viability.
- Resource Expansion Potential: Ongoing expansion drilling continues to reveal gold mineralization in the Young-Davidson Syenite, with recent highlights showing 4.50 g/t over 15.65 meters, suggesting an extended mine life and strengthening the company's competitive position in the market.








