Alamos closes sale of development projects in Turkey

On October 27, 2025, Alamos Gold announced it has closed the previously announced sale of its Turkish development projects. The assets, including the Kirazlı, Ağı Dağı, and Çamyurt projects, were sold for a total consideration of $470 million USD. The payment structure consists of $160 million received upon closing, with two subsequent payments of $160 million and $150 million due on the first and second anniversaries of the closing, respectively. These deferred payments are secured by bank guarantees from investment-grade international financial institutions.

The closing of this transaction is a material and positive event for Alamos Gold. While the market was aware of the deal since its announcement on September 15, 2025, the finalization removes any closing risk and immediately strengthens the company's balance sheet with an injection of $160 million in cash.

This strategic move accomplishes several key objectives: - De-risking: It eliminates the significant geopolitical and permitting risks associated with the Turkish assets, which have been a long-standing issue for the company, including a suspended arbitration case against the Republic of Turkey. - Strengthened Balance Sheet: The initial cash payment represents a nearly 46% increase to the company's June 30, 2025 cash position of $344.9 million. This provides substantial liquidity to fund its aggressive growth capital program without needing to access capital markets. - Strategic Focus: Management can now fully concentrate on its high-return, long-life assets in the politically stable jurisdictions of Canada and Mexico. Proceeds are earmarked for the development of the Island Gold Phase 3+ expansion, the Lynn Lake project, and the Puerto Del Aire (PDA) project. - Value Crystallization: The sale realizes significant value from assets that were stalled and generating ongoing care and maintenance costs. The $470 million valuation is a strong outcome.

The progression of this deal from the initial announcement in September to the closing in October demonstrates management's ability to execute on its strategy. The company has successfully divested a problematic asset and repurposed the capital towards a very clear and robust growth pipeline in North America. The only remaining risk is counterparty risk on the deferred payments, which is significantly mitigated by investment-grade bank guarantees.

Alamos Gold is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America: the Young-Davidson and Island Gold mines in northern Ontario, Canada, and the Mulatos mine in Sonora State, Mexico. The company's flagship growth project is the Island Gold District, which integrates the high-grade underground Island Gold mine with the adjacent large-scale, open-pit Magino mine. The strategy is to leverage a single, expanded mill at Magino to process ore from both operations, creating what the company projects to be one of Canada's largest and lowest-cost gold mines. The Island Gold Phase 3+ Expansion is a key component, involving the construction of a new shaft to significantly increase mining rates. The company also has a robust pipeline of other growth projects, including the recently approved Lynn Lake project in Manitoba and the PDA project in Mexico.