Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an estimate of how much of the $515 million synergies from the Island Gold and Mino combination have been realized so far, and how much do you expect to realize in the next year? A: (Gregory Fisher, CFO) We realized about $100 million of capital synergies in 2024 and 2025, mainly from not expanding the Island mill and not completing the tailings lift. The remaining synergies will be realized over the life of the mine, primarily through operating synergies, starting in 2026 when we move to the Mino mill and grid power, with about $25 million per year expected.
Q: Regarding tax synergies, how far can the acquired tax pools defer cash taxes given current gold prices? A: (Gregory Fisher, CFO) The deferral at current gold prices is about two years. We would have been cash taxable starting in 2025, but with the acquisition and use of the pools at Mino, we can defer significant cash taxes until around 2027.
Q: The grade at Young Davidson was lower than guided in 2024. Can you comment on this and the outlook for 2025? A: (Luc Guimond, COO) The variance was due to a slight change in the sequence of the stopes mined. We expect to be within the guidance range of 205,000 to 225,000 ounces for 2025, with higher grades anticipated in 2026 and 2027.
Q: There seems to be inflationary pressure at Young Davidson. What are the cost drivers, and are there risks for other Canadian operations? A: (Gregory Fisher, CFO) The increase is driven by inflation (about 5%), lower grades due to sequencing, and timing of sustaining capital. Inflation is the main factor applicable to other Canadian operations, included in our guidance at 4-5%.
Q: Is the climate in Mexico improving for mining investments, and would Alamos consider further investments there? A: (John McCluskey, CEO) We see a positive change in Mexico, with permits flowing more smoothly. While we are focused on the Mulatos district, we are cautiously optimistic about future opportunities in Mexico, pending clear policy messages from the government.
Q: Given the company's performance and outlook, will there be a reconsideration of the cash dividend policy? A: (John McCluskey, CEO) Our focus is on executing our aggressive growth plan, which includes major expansion projects. We are not considering increasing the dividend at this time, as our priority is funding and executing our growth initiatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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