About this episode
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&ADon’t forget to subscribe to the Kitco Mining & Kitco News YouTube channels to stay up to date on the latest industry news and interviews.Special thanks to our sponsors, GoldMining Inc., U.S. Gold Mining Inc., UEC & URC for making this coverage possible.To learn more, visit:https://www.goldmining.com/https://www.usgoldmining.us/https://www.uraniumenergy.com/https://www.uraniumroyalty.com/00:20 - 2025 Results, Record Free Cash Flow and Production Dip00:41 - Canadian Winter Challenges and 2026 Production Outlook01:49 - Island Gold Expansion and Shaft Development Plan04:10 - Island–Magino Integration Strategy and Synergies05:24 - Reserves Growth to 8Moz and Long Mine Life06:22 - Alamos Capital Allocation Strategy Explained10:10 - Exploration Spending Rising to $100M11:29 - Dividends, Share Buybacks and Shareholder Returns13:23 - CEO Turnover Across the Mining Sector15:30 - Talent Shortage and M&A Drivers in Mining16:53 - Capital Discipline in Gold Sector M&A20:11 - Alamos Path to 1Moz Production and Deal Outlook__________________________________________________________________Kitco Mining is dedicated to reporting on the mining industry. Our mandate is to be the top resource for all mining information and news, offering a clear perspective on where the industry is going through breaking news coverage, mining trends, and in-depth reporting, presented with precious, rare earth, base metals, and industry stock prices.
