Alamos Gold banks on Lynn Lake and Island Gold expansion to boost output

Canadian gold miner Alamos Gold (NYSE/TSX: AGI) announced redevelopment plans of two old gold mines east of the town of Lynn Lake earlier this year. Construction is slated to begin later this year, with first production expected in 2028. According to Visible Alpha consensus, analysts expect the mine to yield 136,000 ounces of gold in its first year, peaking at 264,000 ounces in 2029. By then, Lynn Lake is forecast to account for a quarter of Alamos’s total gold revenue, contributing $650 million—double the expected $327 million in 2028. In 2028, Alamos’ total gold production volume is expected to reach 870,000 ounces, and cross the million-ounce threshold in 2029, marking a significant leap from current levels.

In the nearer term, analysts expect the Canadian miner’s production growth to be underpinned by its Island Gold and Magino assets. In 2025, Alamos is forecast to produce 597,000 ounces of gold, up +5% year-on-year, with sales volumes expected to reach 642,000 ounces, a +15% increase. Much of this growth will come from Alamos integrating the Island Gold and Magino mine operations within the “Island Gold District,” where shared infrastructure is expected to improve processing efficiency and reduce costs. Meanwhile, the Young-Davidson mine is set to maintain steady output, though structural challenges are expected to persist at the Mulatos site. Gold revenue is expected to surge +40% in 2025 to $1.9 billion, driven largely by gains from Island Gold.