ExxonMobil for gold.

• Gold: Alamos Gold extracts and sells gold from its various mining operations.
• Silver: The company also explores for and extracts silver as a precious metal byproduct or primary product.

Alamos Gold Inc. (AGI) operates in the precious metals mining sector, primarily extracting gold and silver. As such, its product is a raw or semi-processed commodity (typically in the form of doré bars or concentrates).

Due to the fungible nature of commodities and the liquid global market for precious metals, gold mining companies like Alamos Gold Inc. generally do not publicly disclose the names of their specific major customers. Instead, they sell their output into the market at prevailing prices to a range of specialized entities within the precious metals supply chain.

The primary categories of customers that Alamos Gold Inc. would typically sell its gold and silver to are:

1. Precious Metal Refiners: Companies that specialize in purifying raw or semi-processed precious metals (like doré bars) into high-purity bullion suitable for investment, industrial, and jewelry manufacturing purposes.
2. Bullion Banks and Financial Institutions: Large banks and financial firms that act as intermediaries in the physical precious metals market, often buying from miners for their own trading operations or for resale to other clients.
3. Commodity Trading Houses: Firms that specialize in the large-scale buying, selling, and logistics of raw materials, including precious metals, on a global scale.

The key risks to Alamos Gold Inc.'s business (AGI) are primarily tied to commodity price fluctuations, operational challenges including the execution of expansion projects and weather-related disruptions, and jurisdictional and regulatory changes.

1. Gold Price Volatility: The price of gold is the most significant factor affecting Alamos Gold's profitability. Significant declines in gold prices could quickly compress profit margins, directly impacting the company's revenue and financial performance.
2. Operational Risks: This category encompasses several critical factors. The successful execution of large mining expansion projects, such as the Island Gold expansion, is vital for the company's growth, but these projects inherently carry risks of cost overruns, delays, and technical issues. Furthermore, mining operations are exposed to inherent geological uncertainties, equipment failures, safety risks, and production disruptions. Specifically, operations in northern climates, like Canada, face challenges from extreme weather conditions that can lead to production shortfalls, as experienced in 2025 at the Island Gold and Young-Davidson mines due to severe winter weather and other operational issues. The geographic concentration of a significant portion of the company's production from a single asset, such as the Island Gold District, also amplifies the impact of any operational disruptions at that site.
3. Jurisdictional and Regulatory Risks: Although Alamos Gold operates primarily in politically stable jurisdictions like Canada and Mexico, the company remains subject to various governmental, regulatory, and environmental risks. Changes in national and local legislation, environmental requirements, or tax policies could negatively affect operations. The ability to obtain and maintain necessary licenses, permits, and authorizations for its development-stage and operating assets is also a continuous risk.

The emergence and increasing adoption of digital assets, particularly cryptocurrencies like Bitcoin, as an alternative store of value. These digital assets are often touted as "digital gold" and compete with physical gold for investor capital seeking a hedge against inflation or a non-sovereign asset. A significant long-term shift of investment demand from physical gold to digital alternatives could reduce the overall market demand for gold, impacting gold prices and the profitability of gold mining operations.

Addressable Markets for Alamos Gold (AGI)

Alamos Gold Inc. primarily explores for and extracts gold and silver. The addressable markets for these precious metals are global.

Gold Market

The global gold market size is estimated to be 4,890.0 tons in 2025. It is projected to grow from 5,118.1 tons in 2026 to 7,424.4 tons by 2034, with a compound annual growth rate (CAGR) of 4.70% during this forecast period. In terms of value, the global gold market was estimated at USD 291.68 billion in 2024 and is projected to reach USD 400 billion by the end of 2030, growing at a CAGR of 6.51% from 2025-2030.

Silver Market

The global silver market size is expected to reach 37.78 kilotons in 2025. This market is forecast to grow to 49.54 kilotons by 2031, with a CAGR of 4.62% between 2026 and 2031. The global silver market was valued at USD 87.12 billion in 2024 and is projected to grow to USD 202.07 billion by 2033, exhibiting a CAGR of 9.86% during the forecast period (2025-2033).

1. Island Gold District Expansion: A significant driver of revenue growth is the multi-phase expansion of the Island Gold District in Ontario, Canada, which includes the Island Gold underground mine and the Magino open-pit mine. This expansion is projected to nearly double the district's value and lead to a substantial increase in annual gold production to an average of 534,000 ounces over the initial 10 years post-2028, representing a 113% increase from 2025 production. Key aspects of this expansion involve doubling mill capacity to 20,000 tonnes per day and increasing underground mining rates.
2. Increased Production at Young-Davidson Mine: The Young-Davidson mine, located in Northern Ontario, Canada, is anticipated to contribute to revenue growth through higher underground mining rates. Production at Young-Davidson is expected to increase by approximately 8% in 2026 relative to 2025, driven by improved ore pass availability and capacity.
3. Commencement of Production from the PDA Project: The PDA (Palo Duro) project in Mexico, part of the Mulatos District, is slated to begin initial production by mid-2027. This new source of gold production will add to Alamos Gold's overall output and, consequently, its revenue.
4. Ongoing Exploration Success and Reserve Growth: Alamos Gold's consistent investment in exploration, particularly within the Island Gold District, has resulted in significant increases in mineral reserves. The company reported a 32% increase in year-end mineral reserves to 16 million ounces in 2025, marking the seventh consecutive year of growth. This expansion of the reserve base underpins longer mine lives and provides the foundation for sustained future production.
5. Exposure to Higher Realized Gold Prices: While subject to market dynamics, Alamos Gold has strategically increased its exposure to gold prices by reducing hedges inherited from past transactions. Higher realized gold prices have historically boosted the company's revenue, and with increased unhedged production from its growth projects, the company is positioned to benefit further from favorable gold market conditions.

Share Repurchases

• Alamos Gold received approval to repurchase up to 18.58 million Class A common shares (approximately 4.4% of total outstanding shares) between December 24, 2025, and December 23, 2026.
• In the previous program, ending December 2025, Alamos repurchased 1.33 million shares for C$54.4 million (approximately $38.8 million).
• The company renewed its Normal Course Issuer Bid to repurchase up to 18,605,661 Class A Common Shares from December 24, 2024, to December 23, 2025, with the aim of enhancing shareholder value.

Inbound Investments

• Van ECK Associates Corp significantly increased its stake in Alamos Gold by 35.3% in Q3, acquiring 11,876,324 shares to hold a total of 45,544,137 shares, valued at approximately $1.59 billion, representing 10.83% of the company.
• Several other major institutions, including Vanguard, CIBC Asset Management, Mackenzie, and Geode, also increased their positions, while Norges Bank initiated a new stake, contributing to institutional investors owning roughly 64.33% of Alamos Gold's stock.

Outbound Investments

• In April 2024, Alamos Gold acquired Orford Mining Corporation and its wholly-owned Qiqavik Gold Project in Nunavik, Quebec.

Capital Expenditures

• Capital spending is projected to increase to between $850 and $940 million in 2026 (excluding capitalized exploration), primarily due to the Island Gold District (IGD) Expansion, accelerated spending at Canadian mine sites, and ongoing inflation.
• From 2022 to 2024, total capital expenditures exceeded $1.1 billion, reflecting significant investments in exploration and mine development.
• A primary focus of capital expenditures is the Island Gold District Expansion, with an expected $355 million to $385 million in growth capital for 2026, alongside investments in the Lynn Lake project and PDA development.