All amounts are in United States dollars, unless otherwise stated. TORONTO, April 24, 2024 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI, NYSE:AGI) ("Alamos" or the "Company") today reported its financial results for the quarter ended March 31, 2024. "We delivered another strong start to the year across a number of fronts, following a record performance in 2023. Costs were in line with guidance for the quarter and production exceeded guidance led by record production from La Yaqui Grande. With the solid first quarter, we are on track to achieve our full year production and cost guidance. We also continued to demonstrate our long-term track record of value creation through exploration and M&A. Our Mineral Reserves increased for the fifth consecutive year, and we expect to unlock significant value through our acquisition of the Magino mine and its integration with Island Gold. We expect the combination to create one of Canada's largest and lowest cost gold mines, drive significant synergies, and solidify our unique positioning as a Canadian focused intermediate gold producer, with growing production and declining costs," said John A. McCluskey, President and Chief Executive Officer. First Quarter 2024 Operational and Financial Highlights Produced 135,700 ounces of gold, exceeding quarterly guidance and representing a 6% increase from the first quarter of 2023. This was driven by another strong performance from the Mulatos District, including record quarterly production from La Yaqui Grande Sold 132,849 ounces of gold at an average realized price of $2,069 per ounce, generating record quarterly revenue of $277.6 million, a 10% increase from the first quarter of 2023 Total cash costs1 were $910 per ounce, all-in sustaining costs ("AISC"1) were $1,265 per ounce, and cost of sales were $1,307 per ounce. As previously guided, costs were above full year guidance in the first quarter, with AISC also impacted by an increase in share-based compensation reflecting the Company's higher share price in the quarter. Costs are expected to decrease through the remainder of the year to be consistent with full year guidance Strong ongoing free cash flow1 generation of $24.4 million, while funding the Phase 3+ Expansion at Island Gold, and net of $45.3 million of cash tax payments in Mexico Cash flow from operating activities of $108.9 million (including $134.9 million, or $0.34 per share before changes in working capital1) Realized adjusted net earnings1 for the first quarter of $51.2 million, or $0.13 per share1. Adjusted net earnings includes adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign exchange of $4.5 million, and other adjustments, net of taxes totaling $4.6 million. Reported net earnings were $42.1 million, or $0.11 per share Cash and cash equivalents increased 7% from the end of 2023 to $240.2 million, with no debt and $16.3 million in equity securities Paid dividends of $9.8 million, or $0.025 per share for the quarter Reported year-end 2023 Mineral Reserves of 10.7 million ounces of gold, a 2% increase from 2022, with grades also increasing 1%. This marked the fifth consecutive year Mineral Reserves have grown for a combined increase of 10% with grades also increasing 9% over that time frame. Additionally, Measured and Indicated Mineral Resources increased 12% to 4.4 million ounces, with grades increasing 9%, and Inferred Mineral Resources increased 3% to 7.3 million ounces, at 1% higher grades Announced a definitive agreement to acquire Argonaut Gold Inc. ("Argonaut") and its Magino mine, located adjacent to the Company's Island Gold mine in Ontario, Canada. The integration of the two operations is expected to create one of the largest and lowest cost gold mines in Canada and unlock significant value with pre-tax synergies expected to total $515 million2 through the use of shared infrastructure On April 4, 2024, announced the closing of the previously announced non-brokered private placement for common shares of Argonaut, representing approximately 13.8% of Argonaut's outstanding common shares for CAD $50 million Completed the acquisition of Orford Mining Corporation ("Orford") on April 3, 2024, through which the Company consolidated its existing ownership of Orford shares and added the highly prospective Qiqavik Gold Project, located in Quebec, Canada (1)  Refer to the "Non-GAAP Measures and Additional GAAP Measures" disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.(2)  Synergies are pre-tax and undiscounted. On a discounted basis, this represents an after-tax net present value of $250 million Highlight Summary   Three Months Ended March 31,     2024   2023 Financial Results (in millions)     Operating revenues $277.6 $251.5 Cost of sales (1) $173.6 $155.2 Earnings from operations $81.4 $75.0 Earnings before income taxes $75.6 $72.2 Net earnings $42.1 $48.4 Adjusted net earnings (2) $51.2 $45.4 Earnings before interest, taxes, depreciation and amortization (2) $125.7 $119.9 Cash provided by operations before working capital and taxes paid (2) $134.9 $127.2 Cash provided by operating activities $108.9 $94.3 Capital expenditures (sustaining) (2) $26.5 $26.9 Capital expenditures (growth) (2) $51.6 $52.0 Capital expenditures (capitalized exploration) $6.4 $4.9 Free cash flow (2) $24.4 $10.5 Operating Results     Gold production (ounces)   135,700   128,400 Gold sales (ounces)   132,849   132,668 Per Ounce Data     Average realized gold price $2,069 $1,896 Average spot gold price (London PM Fix) $2,070 $1,890 Cost of sales per ounce of gold sold (includes amortization) (1) $1,307 $1,170 Total cash costs per ounce of gold sold (2) $910 $821 All-in sustaining costs per ounce of gold sold (2) $1,265 $1,176 Share Data     Earnings per share, basic and diluted $0.11 $0.12 Adjusted earnings per share, basic (2) $0.13 $0.12 Weighted average common shares outstanding (basic) (000's)   396,817   393,960 Financial Position (in millions)     Cash and cash equivalents $240.2 $224.8 (1)  Cost of sales includes mining and processing costs, royalties, and amortization expense. (2)  Refer to the "Non-GAAP Measures and Additional GAAP Measures" disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.   Three Months Ended March 31,     2024   2023 Gold production (ounces)     Young-Davidson   40,100   45,000 Island Gold   33,400   32,900 Mulatos District (7)   62,200   50,500 Gold sales (ounces)     Young-Davidson   39,810   45,676 Island Gold   34,130   33,727 Mulatos District   58,909   53,265 Cost of sales (in millions) (1)     Young-Davidson $65.4 $61.9 Island Gold $33.4 $30.9 Mulatos District $74.8 $62.4 Cost of sales per ounce of gold sold (includes amortization) (1)     Young-Davidson $1,643 $1,355 Island Gold $979 $916 Mulatos District $1,270 $1,172 Total cash costs per ounce of gold sold (2)     Young-Davidson $1,188 $941 Island Gold $706 $629 Mulatos District $840 $839 Mine-site all-in sustaining costs per ounce of gold sold (2),(3)     Young-Davidson $1,482 $1,233 Island Gold $1,105 $970 Mulatos District $905 $914 Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2)   Young-Davidson (4) $20.2 $17.4 Island Gold (5) $54.6 $57.0 Mulatos District (6) $3.9 $5.7 Other $5.8 $3.7 (1)  Cost of sales includes mining and processing costs, royalties, and amortization expense.(2)  Refer to the "Non-GAAP Measures and Additional GAAP Measures" disclosure at the end of this press release and associated MD&A for a description and calculation of these measures.(3)  For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses.(4)  Includes capitalized exploration at Young-Davidson of $1.0 million for the three months ended March 31, 2024 ($1.4 million for the three months ended March 31, 2023).(5)  Includes capitalized exploration at Island Gold of $3.5 million for the three months ended March 31, 2024 ($2.4 million for the three months ended March 31, 2023). (6)  Includes capitalized exploration at Mulatos District of $1.9 million for the three months ended March, 2024 ($1.1 million for the three months ended March 31, 2023).(7)  The Mulatos District includes the Mulatos pit and La Yaqui Grande. Environment, Social and Governance Summary Performance Health and Safety Total recordable injury frequency rate1 ("TRIFR") of 1.79 in the first quarter of 2024, an increase from 1.45 in the fourth quarter of 2023 Lost time injury frequency rate1 ("LTIFR") of nil, a decrease from 0.10 in the fourth quarter of 2023 La Yaqui Grande Mine celebrated four million hours without a lost time injury Alamos' Home Safe Every Day safety leadership training was implemented at the Island Gold Mine, where it will be delivered to all employees as part of the site's safety training. This program is now available at all Alamos operations During the first quarter of 2024, Alamos had 18 recordable injuries across its sites and zero lost time injuries Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company's overarching commitment is to have all employees and contractors return Home Safe Every Day. Environment Zero significant environmental incidents and zero reportable spills in the first quarter of 2024 One externally reportable non-compliance in the first quarter that resulted in a fine. At Young-Davidson, environmental testing of treated mine water determined a toxicity failure for Daphnia magna (water fleas), resulting in an environmental penalty of $14,000. The investigation determined the cause of the failure to be algae build-up in the mine water discharge pond and remediation measures were taken. Water treatment and discharge were not impacted and the mine has been in full compliance subsequent to the event Finalized a fish habitat compensation project for Davidson Creek at Young-Davidson Reclamation work underway at Mulatos focused on the closed Cerro Pelon, El Victor and San Carlos pits The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects. This includes investing in new initiatives to reduce our environmental footprint with the goal of minimizing the environmental impacts of our activities and offsetting any impacts that cannot be fully mitigated or rehabilitated. Community Ongoing donations, medical support and infrastructure investments were provided to local communities, including: Various sponsorships to support local youth sports teams and community events, and donations to local charities and organizations around the Company's mines Partnered with a local foundation (Fundación Vamos Juntos a Ganar) to organize an entrepreneurship workshop for residents of Matarachi to increase their capacity for opening or improving local businesses Provided ongoing health services to local community members around the Mulatos Mine. During the quarter, free dental services, vaccinations, and Pap tests were provided to residents Upgraded public lighting in Matarachi with the installation of 96 solar street lights throughout the town Completed the annual Mi Matarachi evaluation and planning meeting with residents of Matarachi, working together to develop actions that promote education, health and infrastructure that improve the quality of life for residents The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company. Governance and Disclosure Completed annual fieldwork and assurance of Alamos' compliance with the World Gold Council's Responsible Gold Mining Principles (RGMPs). Alamos will publish its 2023 RGMP Report in the second quarter of 2024 Prepared Alamos' inaugural Modern Slavery Report in accordance with Canada's Fighting Against Forced Labour and Child Labour in Supply Chains Act. Alamos will publish its 2023 Modern Slavery Report in May 2024 The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company's commitment to sustainable development. (1) Frequency rate is calculated as incidents per 200,000 hours worked. Outlook and Strategy 2024 Guidance (4)   Young-Davidson Island Gold Mulatos Lynn Lake Total Gold production (000's ounces) 180 - 195 145 - 160 160 - 170   485 - 525 Cost of sales, including amortization (in millions)(3)         $620 Cost of sales, including amortization ($ per ounce)(3)         $1,225 Total cash costs ($ per ounce)(1) $950 - $1,000 $550 - $600 $925 - $975 — $825 - $875 All-in sustaining costs ($ per ounce)(1)         $1,125 - $1,175 Mine-site all-in sustaining costs ($ per ounce)(1)(2) $1,175 - $1,225 $875 - $925 $1,000 - $1,050 —   Capital expenditures (in millions)           Sustaining capital(1) $40 - $45 $50 - $55 $3 - $5 — $93 - $105 Growth capital(1) $20 - $25 $210 - $230 $2 - $5 — $232 - $260 Total Sustaining and Growth Capital (1) - producing mines $60 - $70 $260 - $285 $5 - $10 — $325 - $365 Growth capital - development projects       $25 $25 Capitalized exploration(1) $10 $13 $9 $9 $41 Total capital expenditures and capitalized exploration(1) $70 - $80 $273 - $298 $14 - $19 $34 $391 - $431 (1) Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this press release and associated MD&A for a description of these measures.(2) For the purposes of calculating mine-site all-in sustaining costs at individual mine sites, the Company does not include an allocation of corporate and administrative and share based compensation expenses to the mine sites. (3) Cost of sales includes mining and processing costs, royalties, and amortization expense, and is calculated based on the mid-point of total cash cost guidance. (4)  2024 Guidance does not reflect the proposed acquisition of the Magino Mine and will be updated following close of the transaction The Company's objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term, through growing production, expanding margins, and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while re-investing in high-return internal growth opportunities, and supporting higher returns to shareholders. Following a record operational and financial performance in 2023, the Company continued to deliver across multiple fronts in the first quarter of 2024. Production of 135,700 ounces exceeded quarterly guidance, reflecting another strong performance from Mulatos driven by record quarterly production from La Yaqui Grande. Costs were in line with quarterly guidance and expected to decrease through the rest of the year to be consistent with annual guidance. With the strong operational performance, and higher gold prices, the Company generated record quarterly revenues, and solid ongoing free cash flow of $24.4 million while funding the Phase 3+ Expansion at Island Gold, and net of $45.3 million of cash tax payments in Mexico. The Phase 3+ Expansion remains on track for completion during the first half of 2026 and will be a key driver of the Company's growing production base and declining cost profile over the next several years. Work on the expansion continues to advance with shaft sinking well underway and reaching a depth of 185 metres by the end of March. Additionally, the Company continued to demonstrate its long-term track record of value creation through exploration and M&A during the quarter. Global Mineral Reserves increased to 10.7 million ounces of gold (202 mt grading 1.65 g/t Au), a 2% increase from 2022, with a further 1% increase in grades. This marked the fifth consecutive year of growth in Mineral Reserves for a combined increase of 10% over that time frame. Grades have also increased 9% over the same timeframe as Mineral Reserves continue to grow both in size and quality. The increase in 2023 was driven by higher-grade additions at Island Gold and PDA, as well as growth at Lynn Lake. The acquisition of Argonaut's Magino mine is expected to unlock significant value given its proximity to Island Gold. The integration of the two operations is expected to create one of the largest and lowest cost gold mines in Canada and drive pre-tax synergies of approximately $515 million through the use of shared infrastructure. This includes immediate capital savings with the mill and tailings expansions at Island Gold no longer required, and significant ongoing operating savings through the use of the larger and more efficient Magino mill. This not only de-risks the Phase 3+ Expansion, but also creates opportunities for further expansions of the combined Island Gold and Magino operations. The addition of Magino is expected to increase company-wide gold production to over 600,000 ounces per year with longer term production potential of over 900,000 ounces per year. The transaction is expected to close in July 2024. Additionally, the Company continues to invest in its longer-term portfolio of growth projects with the acquisition of Orford, adding the highly prospective Qiqavik Gold Project, located in Quebec, Canada. The Company provided three-year production and operating guidance in January 2024 (excluding Magino), which outlined growing production at declining costs over the next three years. Refer to the Company's January 10, 2024 guidance press release for a summary of the key assumptions and related risks associated with the comprehensive 2024 guidance and three-year production, cost and capital outlook. Gold production in 2024 is expected to range between 485,000 and 525,000 ounces. Total cash costs and AISC are expected to be consistent with 2023. Production is expected to be slightly higher during the first half of 2024, reflecting higher grades at La Yaqui Grande and stronger rates of production through residual leaching at Mulatos. Second quarter gold production is expected to be between 123,000 and 133,000 ounces with costs decreasing slightly from the first quarter driven by lower costs at both Island Gold and Young-Davidson. Consistent with annual guidance, costs are expected to decrease through the remainder of the year reflecting a declining contribution of higher cost production from residual leaching at Mulatos. Production is expected to increase 7% by 2026 to between 520,000 and 560,000 ounces, with AISC decreasing 11% to between $975 and $1,075 per ounce reflecting low-cost production growth from Island Gold with the completion of the Phase 3+ Expansion. The three year guidance excludes the higher grade PDA project which represents potential production upside at Mulatos as early as 2026. This upside is expected to be outlined in a development plan for PDA to be released during the second quarter of 2024. Looking beyond 2026, the Lynn Lake project is expected to support further potential growth as early as the end of 2027. The majority of capital spending in 2024 remains focused on advancing the Phase 3+ Expansion at Island Gold. Following the closing of the acquisition of Argonaut in July, the Company will revise its 2024 capital guidance to reflect the addition of Magino and lower planned capital spending on the mill and tailings expansions at Island Gold. Other areas of focus in 2024 include a larger capital budget for Lynn Lake and increased capitalized exploration. Spending at Lynn Lake will be focused on upgrades to site access and infrastructure, including early work on the power line upgrade, in advance of a construction decision anticipated in 2025. Additionally, a portion of the 2024 exploration program will be focused on converting Mineral Resources at the Burnt Timber and Linkwood satellite deposits into a smaller, higher quality Mineral Reserve. A study incorporating these deposits into the Lynn Lake project is expected to be competed in the fourth quarter of 2024, and represents potential production and economic upside to the 2023 Feasibility Study. Given the strong profitability of the Mulatos operation in 2023, the Company expects to pay significantly higher cash tax payments in Mexico in 2024. This included $45.3 million of cash tax payments made in the first quarter, the majority of which related to the 2023 year-end tax payment. Cash tax payments in Mexico are expected to decrease to approximately $10 million in the second quarter and remain at similar levels through the remainder of the year. The Company expects stronger company-wide free cash flow starting in the second quarter of 2024 given lower cash tax burden and an expected decrease in costs. The global exploration budget for 2024 is $62 million, a 19% increase from $52 million spent in 2023. The increase reflects expanded budgets across all key assets following up on broad-based exploration success in 2023. Island Gold and the Mulatos District account for approximately 60% of the total budget with $19 million planned for each asset. This is followed by $12 million at Young-Davidson, $9 million at Lynn Lake and $2 million at Golden Arrow. The Company's liquidity position remains strong, ending the quarter with $240.2 million of cash and cash equivalents, $16.3 million in equity securities, and no debt. Additionally, the Company has a $500 million undrawn credit facility, providing total liquidity of $756.5 million. Combined with strong ongoing cash flow generation, the Company remains well positioned to internally fund its organic growth initiatives including the Phase 3+ Expansion, optimization of the Magino mill, and development of PDA and Lynn Lake. First Quarter 2024 Results Young-Davidson Financial and Operational Review   Three Months Ended March 31,     2024     2023   Gold production (ounces)   40,100     45,000   Gold sales (ounces)   39,810     45,676   Financial Review (in millions)     Operating Revenues $82.7   $86.3   Cost of sales (1) $65.4   $61.9   Earnings from operations $16.8   $24.0   Cash provided by operating activities $34.8   $33.7   Capital expenditures (sustaining) (2) $11.6   $13.2   Capital expenditures (growth) (2) $7.6   $2.8   Capital expenditures (capitalized exploration) (2) $1.0   $1.4   Mine-site free cash flow (2) $14.6   $16.3   Cost of sales, including amortization per ounce of gold sold (1) $1,643   $1,355   Total cash costs per ounce of gold sold (2) $1,188   $941   Mine-site all-in sustaining costs per ounce of gold sold (2),(3) $1,482   $1,233   Underground Operations     Tonnes of ore mined   667,062     720,927   Tonnes of ore mined per day   7,330     8,010   Average grade of gold (4)   1.94     2.22   Metres developed   1,914     2,695   Mill Operations     Tonnes of ore processed   665,778     701,954   Tonnes of ore processed per day   7,316     7,799   Average grade of gold (4)   1.94     2.22   Contained ounces milled   41,609     50,212   Average recovery rate   89.4 %   90.0 % (1)  Cost of sales includes mining and processing costs, royalties and amortization.(2)  Refer to the "Non-GAAP Measures and Additional GAAP Measures" disclosure at the end of this press release and associated MD&A for a description and calculation of these measures. (3)  For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses. (4)  Grams per tonne of gold ("g/t Au"). Operational review Young-Davidson produced 40,100 ounces of gold in the first quarter, an 11% decrease compared to the prior year period. Underground mining rates averaged 7,330 tpd in the first quarter, lower than the prior year period reflecting temporary downtime to replace the head ropes in the Northgate shaft, which had previously been scheduled in the second quarter. Additionally, delays in receiving two production scoops also impacted mining rates earlier in the quarter. Following the completion of the head rope change and receipt of two new hybrid production scoops, mining rates returned to design capacity of 8,000 tpd in March and are expected to remain at similar rates through the rest of the year. Milling rates averaged 7,316 tpd in the quarter, as a result of the lower underground mining rates. Grades mined averaged 1.94 g/t Au in the quarter, a 13% decrease from the prior year period, and below the range of full year guidance, due to mine sequencing. Given the lower mining rates, higher grade stopes that had been planned for March were deferred into April. Grades mined are expected to increase to within the range of annual guidance in the second quarter and through the remainder of the year. Mill recoveries averaged 89% in the quarter, at the low end of the range of annual guidance. Financial Review First quarter revenues of $82.7 million were 4% lower than the prior year period, resulting from lower ounces sold, partially offset by a higher realized gold price. Cost of sales of $65.4 million in the first quarter were 6% higher than the prior year period, reflecting inflationary pressures on unit costs. Underground mining costs were CAD $62 per tonne in the first quarter, reflecting the lower tonnes mined. Total cash costs and mine-site AISC were $1,188 per ounce and $1,482 per ounce, respectively, in the first quarter. Both metrics were higher than the prior year period and annual guidance, resulting from the temporary downtime for the hoist rope changeover as well as lower grades. Costs are expected to decrease through the remainder of the year to be consistent with annual guidance, reflecting higher grades and mining rates. Capital expenditures in the first quarter included $11.6 million of sustaining capital and $7.6 million of growth capital. Additionally, $1.0 million was invested in capitalized exploration in the quarter. Capital expenditures, inclusive of capitalized exploration, totaled $20.2 million in the first quarter, a 16% increase from the prior year period driven by timing of payments. Young-Davidson continues to demonstrate operational and financial consistency with mine-site free cash flow of $14.6 million in the first quarter, and stronger free cash flow expected through the remainder of the year. Young-Davidson has generated over $100 million in mine-site free cash flow for three consecutive years. The operation is well positioned to generate similar free cash flow in 2024 and over the long-term, with a 15 year Mineral Reserve life. Island Gold Financial and Operational Review   Three Months Ended March 31,     2024     2023   Gold production (ounces)   33,400     32,900   Gold sales (ounces)   34,130     33,727   Financial Review (in millions)     Operating Revenues $71.0   $63.9   Cost of sales (1) $33.4   $30.9   Earnings from operations $36.9   $32.6   Cash provided by operating activities $40.9   $36.5   Capital expenditures (sustaining) (2) $13.5   $11.4   Capital expenditures (growth) (2) $37.6   $43.2   Capital expenditures (capitalized exploration) (2) $3.5   $2.4   Mine-site free cash flow (2) ($13.7 ) ($20.5 ) Cost of sales, including amortization per ounce of gold sold (1) $979   $916   Total cash costs per ounce of gold sold (2) $706   $629   Mine-site all-in sustaining costs per ounce of gold sold (2),(3) $1,105   $970   Underground Operations     Tonnes of ore mined   106,737     108,396   Tonnes of ore mined per day ("tpd")   1,173     1,204   Average grade of gold (4)   10.53     9.56   Metres developed   1,787     2,103   Mill Operations     Tonnes of ore processed   107,215     107,507   Tonnes of ore processed per day   1,178     1,195   Average grade of gold (4)   10.63     9.57   Contained ounces milled   36,651     33,082   Average recovery rate   97.3 %   97.0 % (1)  Cost of sales includes mining and processing costs, royalties, and amortization.(2)  Refer to the "Non-GAAP Measures and Additional GAAP Measures" disclosure at the end of this press release and associated MD&A for a description and calculation of these measures. (3)  For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based compensation expenses. (4)  Grams per tonne of gold ("g/t Au"). Operational review Island Gold produced 33,400 ounces in the first quarter of 2024, consistent with the prior year period. Underground mining rates averaged 1,173 tpd in the first quarter, a 3% decrease from the prior year period and slightly below annual guidance of 1,200 tpd. Grades mined averaged 10.53 g/t Au in the quarter, consistent with annual guidance and 10% higher than in the prior year period. Mill throughput averaged 1,178 tpd for the quarter, slightly lower than the prior year period reflecting mining rates in the quarter. Mill recoveries averaged 97% in the first quarter, consistent with guidance. Financial Review Revenues of $71.0 million in the first quarter were 11% higher than the prior year period, primarily driven by the higher realized gold price. Cost of sales of $33.4 million in the first quarter was 8% higher than the prior year period, driven by inflationary pressures on mining and processing costs, driven mainly by labour and certain consumables. Total cash costs of $706 per ounce and mine-site AISC of $1,105 per ounce in the first quarter were both higher than the prior year period, reflecting inflationary pressures. Costs are expected to decrease through the remainder of the year to be consistent with annual guidance. Total capital expenditures were $54.6 million in the first quarter, including $37.6 million of growth capital and $3.5 million of capitalized exploration. Growth capital spending remained focused on the Phase 3+ Expansion shaft site infrastructure and shaft sinking, with the shaft reaching a depth of 185 metres by the end of the quarter. Additionally, capital spending was focused on lateral development and other surface infrastructure. Certain other capital activities planned for 2024 have been deferred as a result of the planned acquisition of Argonaut. Mine-site free cash flow was negative $13.7 million for the first quarter given the significant capital investment related to the Phase 3+ Expansion. At current gold prices, Island Gold is expected to continue funding the majority of the Phase 3+ Expansion capital. The operation is expected to generate significant free cash flow from 2026 onward with the completion of the expansion. Mulatos District Financial and Operational Review   Three Months Ended March 31,     2024     2023   Gold production (ounces)   62,200     50,500   Gold sales (ounces)   58,909     53,265   Financial Review (in millions)     Operating Revenues $123.9   $101.3   Cost of sales (1) $74.8