TORONTO, ONTARIO–(Marketwired – Aug. 3, 2017) –

All amounts are in United States dollars, unless otherwise stated.

Alamos Gold Inc. (TSX:AGI)(NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the second quarter ended June 30, 2017 and reviewed its operating, exploration and development activities.

“We made significant gains in the second quarter with record production and lower costs driving the highest combined free cash flow from our operations in years. We expect this trend to continue in the second half of the year with stronger production and lower costs driving strong free cash flow growth from our operations,” said John A. McCluskey, President and Chief Executive Officer.

“We continue to advance one of the strongest portfolios of growth projects in our peer group. La Yaqui Phase I is on track for initial production later this year and we are building out our team in Turkey in preparation for early stage construction activities at Kirazli. We also expect to deliver a feasibility study on Lynn Lake later this quarter, marking our third feasibility study this year. With a strong cash position, no debt and growing cash flow from our operations, we are well positioned to fund this growth,” Mr. McCluskey added.

Second Quarter 2017 Highlights

  • Produced a quarterly record 105,900 ounces at cost of sales of $1,053 per ounce, total cash costs1 of $784 per ounce and all-in sustaining costs (“AISC”)1 of $942per ounce. This included record gold production of 47,300 ounces at Young-Davidson, as well as continued strong performance at Mulatos with production of 41,000 ounces
  • Sold 104,023 ounces of gold at an average realized price of $1,262 per ounce, $5 above the London PM fix, for revenues of $131.3 million
  • Reported net earnings of $2.4 million, or $0.01 per share, which included a one-time pre-tax charge of $29.1 million (after-tax $21.8 million, or $0.07 per share) incurred on the retirement of the senior secured notes (“Notes”), as well as unrealized foreign exchange gains of $10.9 million ($0.04 per share) recorded within both deferred taxes and foreign exchange
  • Stronger operating margins drove cash flow from operating activities to $51.4 million, a 156% increase from the first quarter of 2017
  • Generated $18 million in free cash flow from the mine sites, including $10.7 million at Mulatos (excluding development capital for La Yaqui Phase I)
  • Construction of La Yaqui Phase I continued to advance on budget, with initial production on track for later this year
  • Completed the repurchase of $315 million senior secured notes in April 2017. As at June 30, 2017, the Company is debt-free, with approximately $150 million in cash and cash equivalents and equity securities
  • Paid a semi-annual dividend of $0.01 per share, or $3.0 million in April 2017
  • Purchased and cancelled a 2.0% net smelter return (“NSR”) royalty on certain concessions at the Company’s Lynn Lake project for $6.7 million (CAD $9 million)

Subsequent to the Second Quarter 2017

  • Produced a monthly record of approximately 20,000 ounces of gold in July at Young-Davidson, driven by underground grades averaging in excess of 3.0 grams per tonne of gold (“g/t Au”)
  • Completed a Canadian Development Expense (“CDE”) flow-through financing for gross proceeds of CAD $12.0 million and Canadian Exploration Expense (“CEE”) flow-through financing for gross proceeds of CAD $3.0 million

(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release for a description and calculation of these measures.

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