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Kitco MINING
Alamos Growth Pipeline: PDA Underground, Island Expansion, $72M Exploration
Alamos Gold (TSX: AGI; NYSE: AGI) President and CEO John McCluskey speaks with Kitco Mining at the Mining Forum Americas 2025 after announcing the sale of the company’s Turkish development projects for US$470 million in cash. The deal includes bank-guaranteed installments of US$160 million at close, followed by payments on the first and second anniversaries, and is expected to end Alamos’ BIT claim. “With that first payment, we’ll essentially put it against our US$250 million debt. We’ll reduce debt down to less than $100 million,” McCluskey says.
In Q2, Alamos produced 137,000 ounces at just under US$1,500 per ounce AISC, generating margins above 50%. Growth is led by the Island Gold–Magino complex, where integration shifts ore to a 10,000 tpd mill with phased expansion. The Island shaft project supports higher underground throughput, and McCluskey notes: “On a combined basis, we see that mine going to something like 550,000 ounces of annualized production at around $1000 all in sustaining cost.” Longer term, Island Gold is permitted for up to 35,000 tpd, underscoring significant scalability.
At Mulatos in Mexico, the PDA underground and a new mill are advancing with an investment of around US$125 million, targeting initial output around 140,000 ounces as open-pit production at La Yaqui Grande runs through 2027. Exploration continues to be a major growth driver, with a US$72 million budget this year and 8 million ounces already added through drilling at a discovery cost of just US$30 per ounce.
Stay tuned to Kitco Mining for more coverage from Mining Forum Americas 2025.
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