(Kitco News) - Alamos Gold is riding high after a "stellar year" marked by record production and a significant surge in its share price, according to President and CEO John McCluskey.
Speaking at the 2025 BMO Global Metals, Mining & Critical Minerals Conference, McCluskey told Kitco Mining that the company exceeded its revised production guidance, reaching 568,000 ounces of gold.
"It's always a great achievement to exceed your production guidance. We exceeded the high end of our revised guidance," McCluskey said.
He also highlighted the company's ability to maintain costs in an inflationary environment as a "significant achievement."
A key driver of the company's success was the acquisition of Argonaut Gold, which brought in the Magino project.
McCluskey noted the unusual positive market reaction to the deal, stating, "this was one of the few acquisitions that frankly anybody's seen where the acquirer of an asset saw its share price go up in value after the announced spend of the acquisition."
He attributed this to the "obvious" synergies between the assets, particularly the proximity of Magino to Alamos Gold's Island Gold Mine.
Furthermore, the acquisition provided valuable permits for mill and tailings expansion, removing potential constraints on future growth.
Alamos Gold's share price has gained about 100% year-on-year, reflecting investor confidence in the company's performance and strategy.
McCluskey pointed to the company's early diversification into Canada as a prescient move, citing the country as the "best place to be" due to its safe political jurisdiction and the longevity of its gold deposits. "We decided to diversify away from Mexico over a decade ago and get into Canada," he explained. "Safe political jurisdictions, that is very much resonating with the market."
Looking ahead, Alamos Gold is focused on organic growth, particularly the expansion of its Island Gold Mine in Canada. McCluskey expressed excitement about the mine's potential, noting that its reserves and resources have grown from under 2 million ounces to just under 7 million ounces since acquisition, with a finding cost of only $13 per ounce.
The company anticipates a significant increase in production, aiming to go from 500,000 ounces to a potential million ounces by the end of the 2020s, all driven by organic expansion.
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