Alamos Gold Inc. (TSX: AGI; NYSE: AGI) is targeting 600,000 oz of production in 2026 after weather and mill challenges weighed on output in late 2025, even as the company generated record free cash flow last year. Speaking with Kitco Mining at PDAC 2026 in Toronto, President and CEO John McCluskey said 2025 all-in sustaining costs averaged $1,524 per oz, with margins approaching 60% at prevailing gold prices. Fourth-quarter results were affected by issues at the Magino mill and what he described as “one of the worst Canadian winters we've probably seen in 40 years.”

“We're absolutely back on track, and we're looking towards 600,000 ounces of production in, in 2026,” McCluskey said. In February 2026, Alamos announced an integration plan combining Island Gold and Magino, targeting roughly 540,000 oz annually at about a $1,250 AISC. Combined reserves now total about 8Moz, supporting long-term production as the company works toward 1Moz annually by 2030. Exploration spending is also rising. “Last year, we spent $72 million on expiration. This year we're going to spend close to a hundred million dollars in expiration.”

McCluskey also discusses:
• Record 2025 free cash flow and capital discipline
• Island Gold–Magino integration and cost reductions
• $900M Lynn Lake development in Manitoba
• Dividend increase and shareholder returns
• Capital discipline across gold sector M&A

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00:20 - 2025 Results, Record Free Cash Flow and Production Dip
00:41 - Canadian Winter Challenges and 2026 Production Outlook
01:49 - Island Gold Expansion and Shaft Development Plan
04:10 - Island–Magino Integration Strategy and Synergies
05:24 - Reserves Growth to 8Moz and Long Mine Life
06:22 - Alamos Capital Allocation Strategy Explained
10:10 - Exploration Spending Rising to $100M
11:29 - Dividends, Share Buybacks and Shareholder Returns
13:23 - CEO Turnover Across the Mining Sector
15:30 - Talent Shortage and M&A Drivers in Mining
16:53 - Capital Discipline in Gold Sector M&A
20:11 - Alamos Path to 1Moz Production and Deal Outlook
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Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.

Alamos Targets 600K oz Production in 2026 as Expansion Advances

Kitco MINING

Alamos Targets 600K oz Production in 2026 as Expansion Advances