Charles Ehidiamhen's questions to Alamos Gold Inc (AGI) leadership • Q4 2024
Question
Charles Ehidiamhen of RBC Capital Markets inquired about the realization timeline for synergies from the Island Gold and Magino combination, the duration of tax deferrals from acquired tax pools, the cause of lower-than-guided grades at Young-Davidson in 2024, and the primary drivers of cost inflation at that operation.
Answer
CFO Greg Fisher explained that capital synergies were realized in 2024-2025, with operating synergies of approximately $25 million per year ramping up from 2026. He also noted that acquired tax pools will defer significant Canadian cash taxes for about two years, likely until 2027. COO Luc Guimond attributed the 2024 grade variance at Young-Davidson to minor stope sequencing changes, expecting grades to normalize in 2025 and rise in subsequent years. Greg Fisher added that cost pressures at Young-Davidson stem from inflation, lower grades due to sequencing, and the timing of sustaining capital.