6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of February, 2018

Commission File Number: 001-35783

Alamos Gold Inc.

(Translation of registrant’s name into English)

181 Bay Street, Suite 3910

Toronto, Ontario, Canada

M5J 2T3

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  o           Form 40-F  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  o             No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-            .

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Annual Audited Consolidated Financial Statements for the Year Ended December 31, 2017, including Consolidated Statements of Financial Position as at December 31, 2017 and December 31, 2016 and Consolidated Statements of Comprehensive Loss, Changes in Equity and Cash Flows for the Years Ended December 31, 2017 and December 31, 2016 and Related Notes, together with the auditors’ report thereon and the auditors’ report on the effectiveness of internal control over financial reporting as of December 31, 2017, contained therein
99.2	Management’s Discussion and Analysis for the Year Ended December 31, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Alamos Gold Inc.
Date: February 27, 2018
	By:	/s/ Scott Parsons
	Name:	Scott Parsons
	Title:	Vice President, Investor Relations

EX-99.1

ALAMOS GOLD INC.

2017 FINANCIAL REPORT

December 31, 2017 and 2016

(Prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and stated in millions of United States dollars, unless otherwise indicated)

INDEX

Management's Responsibility for Financial Reporting

Independent Auditor's Report of Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm

Consolidated Financial Statements

▪Consolidated Statements of Financial Position

▪Consolidated Statements of Comprehensive Loss

▪Consolidated Statements of Changes in Equity

▪Consolidated Statements of Cash Flows

▪Notes to Consolidated Financial Statements

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The accompanying consolidated financial statements of Alamos Gold Inc. (the “Company”) and the information in these annual financial statements are the responsibility of management and have been reviewed and approved by the Company’s board of directors (the “Board of Directors”). The consolidated financial statements have been prepared by management in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. In the preparation of these consolidated financial statements, estimates are sometimes necessary when transactions affecting the current accounting period cannot be finalized with certainty until future periods. Management believes that such estimates, which have been properly reflected in the accompanying consolidated financial statements, are based on the best estimates and judgements of management. Management has prepared the financial information presented elsewhere in the annual financial statements and has ensured that it is consistent with that in the consolidated financial statements.

To discharge its responsibilities for financial reporting and safeguarding of assets, management depends on the Company’s systems of internal control over financial reporting. These systems are designed to provide reasonable assurance that the financial records are reliable and form a proper basis for the timely and accurate preparation of financial statements. The Chief Executive Officer and Chief Financial Officer have assessed and concluded on the design and operating effectiveness of internal control over financial reporting.

The Board of Directors oversees management’s responsibilities for the consolidated financial statements primarily through the activities of its Audit Committee, which is composed solely of directors who are neither officers nor employees of the Company. This Committee meets with management and the Company’s independent auditors, KPMG LLP, to ensure that management is properly fulfilling its financial reporting responsibilities, review the consolidated financial statements, and recommend approval by the Board of Directors. The Audit Committee provides full and unrestricted access to the independent auditors and also meets with the independent auditors, without the presence of management, to discuss the scope and results of their audit, the adequacy of internal control over financial reporting, and the quality of financial reporting.

The consolidated financial statements have been audited by KPMG LLP, an independent registered public accounting firm, in accordance with Canadian generally accepted auditing standards and in accordance with the standards of the Public Company Accounting Oversight Board (United States).

"John A. McCluskey"

John A. McCluskey

President and Chief Executive Officer

"James R. Porter"

James R. Porter, CPA, CA, CPA (Illinois)

Chief Financial Officer

KPMG LLP Bay Adelaide Centre 333 Bay Street Suite 4600 Toronto ON M5H 2S5 Canada Telephone (416) 777-8500 Fax (416) 777-8818 Internet www.kpmg.ca

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Alamos Gold Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Alamos Gold Inc. (the “Entity”), which comprise the consolidated statements of financial position as at December 31, 2017 and December 31, 2016, the consolidated statements of comprehensive income (loss), changes in equity and cash flows for the years then ended, and the related notes, comprising a summary of significant accounting policies and other explanatory information (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Entity as at December 31, 2017 and December 31, 2016, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Change in Accounting Principle

Without modifying our opinion on the consolidated financial statements, we draw attention to Note 3 to the consolidated financial statements, which indicates that the Entity has changed its method of accounting for financial instruments in the year ended December 31, 2017 due to the adoption of IFRS 9 - Financial Instruments.

Report on Internal Control Over Financial Reporting

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Entity’s internal control over financial reporting as of December 31, 2017, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 21, 2018 expressed an unqualified (unmodified) opinion on the effectiveness of the Entity’s internal control over financial reporting.

Basis for Opinion

A - Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

B - Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, whether due to error or fraud. Those standards also require that we comply with ethical requirements, including independence. We are required to be independent with respect to the Entity in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada, the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We are a public accounting firm registered with the PCAOB.

An audit includes performing procedures to assess the risks of material misstatements of the consolidated financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included obtaining and examining, on a test basis, audit evidence regarding the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidatedfinancial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of accounting policies and principles used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a reasonable basis for our audit opinion.

"KPMG LLP"

Chartered Professional Accountants, Licensed Public Accountants

We have served as the Entity's auditor since 2005.

Toronto, Canada

February 21, 2018

KPMG LLP Bay Adelaide Centre 333 Bay Street Suite 4600 Toronto ON M5H 2S5 Canada Telephone (416) 777-8500 Fax (416) 777-8818 Internet www.kpmg.ca

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Alamos Gold Inc.

Opinion on Internal Control Over Financial Reporting

We have audited Alamos Gold Inc.’s (the “Company”) internal control over financial reporting as of December 31, 2017, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

The Company acquired Richmont Mines Inc. during 2017, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2017, Richmont Mines Inc.’s internal control over financial reporting associated with total assets of $849,600,000 and total revenues of $14,900,000 included in the consolidated financial statements of the Company as of and for the year ended December 31, 2017. Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of Richmont Mines Inc.

Report on the Consolidated Financial Statements

We also have audited, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company, which comprise the consolidated statements of financial position as at December 31, 2017 and December 31, 2016, the consolidated statements of comprehensive income (loss), changes in equity and cash flows for the years then ended, and the related notes, comprising a summary of significant accounting policies and other explanatory information (collectively referred to as the “consolidated financial statements”), and our report dated February 21, 2018 expressed an unmodified (unqualified) opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting appearing under the heading Internal Control over Financial Reporting in Management’s Discussion and Analysis for the year ended December 31, 2017. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB and in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

"KPMG LLP"

Chartered Professional Accountants, Licensed Public Accountants

Toronto, Canada

February 21, 2018

2017 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Financial Position

(Stated in millions of United States dollars)

	December 31, 2017			December 31, 2016
A S S E T S
Current Assets
Cash and cash equivalents		$200.8			$252.2
Equity securities	35.8			14.1
Amounts receivable (note 6)	34.5			44.9
Inventory (note 7)	161.2			131.7
Other current assets	14.4			11.6
Total Current Assets	446.7			454.5
Non-Current Assets
Long-term inventory (note 7)	68.7			75.8
Mineral property, plant and equipment (note 8)	2,753.4			1,918.2
Other non-current assets	45.0			43.7
Total Assets	$3,313.8			$2,492.2
L I A B I L I T I E S
Current Liabilities
Accounts payable and accrued liabilities (note 9)		$96.8			$94.5
Current portion of financing obligations (note 10)	4.2			3.6
Income taxes payable	5.7			1.5
Total Current Liabilities	106.7			99.6
Non-Current Liabilities
Deferred income taxes (note 12)	477.0			291.0
Decommissioning liabilities (note 11)	44.6			39.6
Debt and financing obligations (note 10)	3.3			301.3
Other non-current liabilities	1.0			1.3
Total Liabilities	632.6			732.8
E Q U I T Y
Share capital (note 13)		$3,691.7			$2,822.2
Contributed surplus	89.5			70.9
Warrants	4.0			3.5
Accumulated other comprehensive income	13.0			0.4
Deficit	(1,117.0		)	(1,137.6		)
Total Equity	2,681.2			1,759.4
Total Liabilities and Equity		$3,313.8			$2,492.2

Commitments (note 20)

Subsequent event (note 21)

The accompanying notes form an integral part of these consolidated financial statements.

"John A. McCluskey""Paul J. Murphy"

John A. McCluskey                    Paul J. Murphy

President and Chief Executive Officer            Chairman

5 Alamos Gold Inc.

2017 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Comprehensive Income (Loss)

For the years ended December 31, 2017 and 2016

(Stated in millions of United States dollars, except share and per share amounts)

	December 31,			December 31,
	2017			2016
OPERATING REVENUES		$542.8			$482.2
COST OF SALES
Mining and processing	315.6			297.0
Royalties (note 20)	15.6			13.3
Amortization	125.6			119.0
	456.8			429.3
EXPENSES
Exploration	8.3			5.1
Corporate and administrative	15.5			16.3
Share-based compensation (note 13)	6.2			10.2
	486.8			460.9
EARNINGS FROM OPERATIONS	56.0			21.3
OTHER EXPENSES
Finance expense	(9.1		)	(24.0		)
Foreign exchange gain (loss)	5.0			(12.5		)
Other (loss) gain (note 14)	(0.6		)	7.6
Loss on redemption of senior secured notes (note 10)	(29.1		)	—
EARNINGS (LOSS) BEFORE INCOME TAXES		$22.2			($7.6	)
INCOME TAXES (note 12)
Current income tax expense	(11.9		)	(3.8		)
Deferred income tax recovery (expense)	16.3			(6.5		)
NET EARNINGS (LOSS)	$26.6			($17.9		)
Items that may be subsequently reclassified to net earnings:
Realized disposition on equity securities, reclassified to net loss	—			(0.3		)
Unrealized gain on equity securities, net of taxes	—			5.1
Gain on currency hedging instruments, net of taxes	6.0			—
Items that will not be reclassified to net earnings:
Unrealized gains on equity securities, net of taxes	6.6			—
Total other comprehensive income	$12.6			$4.8
COMPREHENSIVE INCOME (LOSS)	$39.2			($13.1		)
EARNINGS (LOSS) PER SHARE (note 13)
– basic	$0.09			($0.07		)
– diluted	$0.09			($0.07		)
Weighted average number of common shares outstanding (000's)
– basic	305,521			265,234
– diluted	309,021			265,234

The accompanying notes form an integral part of these consolidated financial statements.

6 Alamos Gold Inc.

2017 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Changes in Equity

For the years ended December 31, 2017 and 2016

(Stated in millions of United States dollars)

	December 31,		December 31,
	2017		2016
SHARE CAPITAL (note 13)
Balance, beginning of the year	$2,822.2		$2,773.7
Issuance of shares related to Richmont acquisition (note 5)	615.3		—
Issuance of shares through bought deal financing, net of issuance costs and deferred taxes	241.8		—
Issuance of shares related to Carlisle acquisition	—		17.5
Issuance of shares related to share-based compensation	2.3		7.4
Issuance of shares related to exercise of warrants	0.5		1.2
Issuance of shares through flow-through share agreements	8.4		20.1
Fair value of share-based compensation redeemed	1.2		2.3
Balance, end of year	$3,691.7		$2,822.2
CONTRIBUTED SURPLUS
Balance, beginning of the year	$70.9		$69.2
Share-based compensation	6.4		4.4
Fair value of share-based compensation redeemed	(1.2	)	(3.1	)
Equity settled share-based payments related to Carlisle acquisition	—		0.4
Equity settled share-based payments related to Richmont acquisition (note 5)	12.1		—
Share-based compensation charges related to the Richmont replacement options (note 5)	1.3		—
Balance, end of year	$89.5		$70.9
WARRANTS
Balance, beginning of the year	$3.5		—
Issuance of warrants related to Carlisle acquisition	—		2.8
Issuance of warrants, pursuant to the exercise of Carlisle equity instruments	0.5		0.7
Balance, end of year	$4.0		$3.5
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of the year on equity securities	$0.4		($4.4	)
Realized disposition of equity securities, reclassified to net earnings	—		(0.3	)
Unrealized gains on equity securities, net of taxes	6.6		5.1
Balance, end of year	$7.0		$0.4
Balance, beginning of the year on currency hedging instruments	—		—
Unrealized gain on currency hedging instruments, net of taxes	6.0		—
Balance, end of year	$6.0		—
Balance, end of year	$13.0		$0.4
DEFICIT
Balance, beginning of the year	($1,137.6	)	($1,114.3	)
Dividends (note13(f))	(6.0	)	(5.4	)
Net earnings (loss)	26.6		(17.9	)
Balance, end of year	($1,117.0	)	($1,137.6	)
TOTAL EQUITY	$2,681.2		$1,759.4

The accompanying notes form an integral part of these consolidated financial statements.

7 Alamos Gold Inc.

2017 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Cash Flows

For the years ended December 31, 2017 and 2016

(Stated in millions of United States dollars)

	December 31,		December 31,
	2017		2016
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net earnings (loss) for the period	$26.6		($17.9	)
Adjustments for items not involving cash:
Amortization	125.6		119.0
Foreign exchange (gain) loss	(5.0	)	12.5
Current income tax expense	11.9		3.8
Deferred income tax (recovery) expense	(16.3	)	6.5
Share-based compensation	6.2		10.2
Finance expense	9.1		24.0
Loss on redemption of senior secured notes	29.1		—
Other items (note 15)	(3.9	)	(10.1	)
Changes in working capital and taxes received or paid (note 15)	(19.8	)	(12.3	)
	163.5		135.7
INVESTING ACTIVITIES
Mineral property, plant and equipment	(162.5	)	(146.5	)
Cash received from the acquisition of Richmont (note 5)	46.2		—
Purchase of Lynn Lake gold project royalty (note 8)	(6.7	)	—
Other	3.6		(5.0	)
	(119.4	)	(151.5	)
FINANCING ACTIVITIES
Net proceeds from bought deal financing (note 13)	239.1		—
Repayment of senior secured notes (note 10)	(327.2	)	—
Repayment of debt and equipment financing obligations	(4.4	)	(9.7	)
Interest paid	(12.2	)	(24.4	)
Credit facility transaction fees (note 10)	(2.1	)	(1.1	)
Proceeds received from the exercise of stock options and warrants	3.5		7.4
Dividends paid	(6.0	)	(5.4	)
Proceeds from issuance of flow-through shares	11.7		20.4
	(97.6	)	(12.8	)
Effect of exchange rates on cash and cash equivalents	2.1		(2.1	)
Decrease in cash and cash equivalents	(51.4	)	(30.7	)
Cash and cash equivalents - beginning of year	252.2		282.9
CASH AND CASH EQUIVALENTS - END OF YEAR	$200.8		$252.2

The accompanying notes form an integral part of these consolidated financial statements.

8 Alamos Gold Inc.

2017 FINANCIAL REPORT

ALAMOS GOLD INC.

Notes to Consolidated Financial Statements

December 31, 2017 and 2016

(In United States dollars, unless otherwise indicated, tables stated in millions of United States dollars)

1. NATURE OF OPERATIONS

Alamos Gold Inc. ("Alamos"), a company incorporated under the Business Corporation Act (Ontario), and its wholly-owned subsidiaries (collectively the “Company”) are engaged in the acquisition, exploration, development and extraction of precious metals. The Company owns and operates the Young-Davidson and Island Gold mines in Canada, as well as the Mulatos and El Chanate mines in Mexico. In addition, the Company owns the Ağı Dağı, Kirazlı and Çamyurt gold development projects in Turkey, the Lynn Lake gold project in Canada, the Esperanza gold project in Mexico, as well as an option to acquire a 100% interest in the Quartz Mountain gold project in Oregon, USA.

Alamos is a publicly traded company with common shares listed on the Toronto Stock Exchange (TSX: AGI) and the New York Stock Exchange (NYSE: AGI).

The Company’s registered office is located at 181 Bay St, Suite 3910, Toronto, Ontario, M5J 2T3.

2. BASIS OF PREPARATION

These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements have been prepared using the historical cost convention, other than for certain financial instruments, which are measured in accordance with the policy disclosed in note 3.

The consolidated financial statements were authorized for issue by the Board of Directors on February 21, 2018.

9 Alamos Gold Inc.

2017 FINANCIAL REPORT

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of consolidation

These consolidated financial statements include the accounts of the Company and the following subsidiaries:

Company	Principal activity	Country of incorporation
AuRico Gold Chihuahua, S.A. de C.V., SOFOM E.N.R.	Administrative services	Mexico
AuRico Gold Holdings Inc.	Holding company	Canada
AuRico Gold (USA), Inc.	Administrative services	United States of America
Capital Gold Corporation	Holding company	United States of America
Leadville Mining & Milling Holding Corporation	Holding company	United States of America
Minera Santa Rita, S. de R.L. de C.V.	Gold and silver mining	Mexico
Nayarit Gold Inc.	Holding company	Canada
Oro de Altar, S.A. de C.V.	Holding company	Mexico
0975828 B.C. LTD.	Holding company	Canada
Orsa Ventures Corp.	Holding company	Canada
Esperanza Resources (Cayman)	Holding company	Cayman Islands
Esperanza Exploration (BVI) Inc.	Holding company	British Virgin Islands
Minas de Oro Nacional, S.A. de C.V.	Gold and silver mining	Mexico
Operason S.A. de C.V.	Administrative services	Mexico
Sonora Gerencial S.A. de C.V.	Administrative services	Mexico
Esperanza Silver de Mexico SA de CV	Gold and silver mining	Mexico
Servicios Mineros Tetlama S.A. de C.V.	Administrative services	Mexico
Esperanza Silver Peru SAC	Gold and silver mining	Peru
Dogu Biga Madencilik Sanayi Ticaret AS	Gold and silver mining	Turkey
Esperanza Services Inc.	Holding company	USA
Quartz Mountain Gold Ltd.	Gold and silver mining	USA
Carlisle Goldfields Ltd.	Holding company	Canada
Richmont Mines Ltd.	Gold and silver mining	Canada

These subsidiaries are controlled by the Company, and are wholly-owned. Control exists when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

The Company also consolidates the accounts of Caborca Industrial S.A. de C.V., a related party entity, which provides mining support services to the Company’s El Chanate mine. This entity is consolidated in accordance with IFRS 10, Consolidated Financial Statements.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

(b) Investments in associates and joint ventures

The Company accounts for investments in associates and joint ventures using the equity method of accounting. The carrying value of the Company’s investments in associates and joint ventures represents the cost of the investment, including the Company’s share of retained earnings and losses subsequent to formation. At the end of each reporting period, the Company assesses its investments for any indicators of impairment.

(c) Foreign currency

Functional and presentation currency

These consolidated financial statements are presented in United States dollars (“US dollars”), which is the functional currency of the Company and all its subsidiaries.

10 Alamos Gold Inc.

2017 FINANCIAL REPORT

Translation of transactions and balances into the functional currency

Transactions in currencies other than the Company's or a subsidiary's functional currency (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at that date. Foreign currency non-monetary items that are measured in terms of historical cost are not retranslated.

Exchange differences are recognized in net earnings (loss) in the period in which they arise. Exchange differences on deferred foreign tax assets and liabilities are presented as deferred income tax (recovery) expense on the Consolidated Statements of Comprehensive Income (Loss).

(d) Revenue recognition

Revenue from the sale of gold, including refined metal, dore and gold concentrate, is recognized when persuasive evidence of a sale arrangement exists, the risks and rewards of ownership pass to the purchaser, including title risk, the selling price is measurable, and collectability is probable. The risks and rewards of ownership are considered to have been transferred when title passes to the customer. Revenue is measured at the fair value of the consideration received or receivable, and may be subject to adjustment once final prices, weights and assays are determined.

Costs incurred or premium income related to forward sales or option contracts are recognized in revenue when the related contract is settled. Changes in the fair value of outstanding forward sales or option contracts are recognized in earnings or loss.

(e) Cash and cash equivalents

The Company considers deposits in banks, certificates of deposits, and short-term investments with original maturities of three months or less from the acquisition date as cash and cash equivalents.

(f) Inventories

Parts and supplies inventory

Supplies inventory consists of mining supplies and consumables used in the operation of the mines, and is valued at the lower of average cost and net realizable value. Provisions are recorded to reflect present intentions for the use of slow moving and obsolete parts and supplies inventory.

Stockpile inventory

Stockpiles represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to stockpiles based on the current mining cost per tonne incurred up to the point of stockpiling the ore, including applicable overhead, depletion and amortization relating to mining operations, to the extent determined recoverable, and are removed at the average cost per tonne. Stockpile inventory is measured at the lower of cost and net realizable value.

In-process inventory

The recovery of gold is achieved through milling and heap leaching processes. Costs are added to ore on leach pads and in the mill based on the current stockpiled mining cost and current processing cost, including applicable overhead, depletion and amortization relating to mining and processing operations. Costs are removed from ore on leach pads and in the mill as ounces are recovered, based on the average cost per recoverable ounce of gold in-process inventory. In-process inventory is measured at the lower of cost and net realizable value.

Finished goods inventory

Finished goods inventory consists of dore bars and gold concentrate containing predominantly gold by value which are generally refined off-site to return saleable metals. Dore and gold concentrate inventory is valued at the lower of cost to produce and net realizable value.

For all classes of gold inventory, net realizable value is calculated as the difference between the estimated future metal revenue based on prevailing and/or long-term metal prices as appropriate, and estimated costs to complete production into a saleable form.

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(g) Long-lived assets

Mineral property, plant and equipment

Mineral property, plant and equipment is recorded at cost less accumulated amortization and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of any reclamation obligation, and for qualifying assets, borrowing costs. The purchase price or construction cost is the fair value of consideration given to acquire the asset. The capitalized value of a finance lease is also included within property, plant and equipment, and is measured at the lower of the present value of the minimum lease payments and the fair value of the leased asset. Subsequent costs are included in the asset’s carrying amount when it is probable that future economic benefits associated with the asset will flow to the Company, and the costs can be measured reliably. This would include costs related to the refurbishment or replacement of major components of an asset, when the refurbishment results in a significant extension in the physical life of the component. All other repairs and maintenance costs are recognized in net earnings (loss) as incurred.

The cost of property, plant and equipment, less any applicable residual value, is allocated over the estimated useful life of the asset on a straight-line basis, or on a unit-of-production basis if that method is more reflective of the allocation of benefits among periods. Amortization commences on an asset when it has been fully commissioned and is available for use. Amortization rates applicable to each category of property, plant and equipment, with the exception of land, are as follows:

Asset	Useful life
Leasehold improvements	3 years
Mobile equipment	2-10 years
Other equipment	2-20 years
Processing plant	2-20 years
Shaft, underground infrastructure and mineral properties	Unit-of-production
Vehicles	3-6 years
Buildings	7-20 years
Office equipment	2-8 years

When components of an item of property, plant and equipment have different useful lives than those noted above, they are accounted for as separate items of property, plant and equipment. Each asset or component’s estimated useful life is determined considering its physical life limitations; however, this physical life cannot exceed the remaining life of the mine at which the asset is utilized. Estimates of remaining useful lives and residual values are reviewed annually. Any changes in estimates of useful lives are accounted for prospectively from the date of the change.

Exploration and evaluation assets

Expenditures incurred prior to the Company obtaining the right to explore are expensed in the period in which they are incurred.

Exploration and evaluation expenditures include costs such as exploratory drilling, sample testing, costs of pre-feasibility studies, and for qualifying assets, borrowing costs. Subsequent to obtaining the legal right to explore, these costs are capitalized on a project-by-project basis pending determination of the technical feasibility and commercial viability of the project. All capitalized exploration and evaluation expenditures are monitored for indications of impairment, to ensure that exploration activities related to the property are continuing and/or planned for the future. If an exploration property does not prove viable, an impairment loss is recognized in net earnings (loss) as the excess of the carrying amount over the recoverable amount in the period in which that determination is made.

Exploration and evaluation expenditures are initially capitalized as exploration and evaluation assets and are subsequently reclassified to mine development costs upon determining that the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. The demonstration of the technical feasibility and commercial viability is the point at which management determines that it will develop the project. This typically includes, but is not limited to, the completion of an economic feasibility study; the establishment of mineral reserves; and the receipt of the applicable construction and operating permits for the project. Upon demonstrating the technical feasibility and commercial viability of establishing a mineral reserve, the Company performs an impairment test, based on the recoverable amount, prior to reclassification of exploration and evaluation assets to mine development costs in accordance with IFRS 6, Exploration for and evaluation of Mineral Resources. In addition, the carrying values of exploration and evaluation assets are reviewed periodically, when impairment indicators exist, for possible impairment, based on the recoverable amount.

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Mining interests and mine development costs

The Company may hold interests in mineral properties in various forms, including prospecting licenses, exploration and exploitation concessions, mineral leases and surface rights. The Company capitalizes payments made in the process of acquiring legal title to these properties.

Property acquisition and mine development costs are recorded at cost. Mine development costs incurred to expand operating capacity, develop new ore bodies or develop mine areas in advance of current production are capitalized. Mine development costs related to current period production are recorded in inventory. Pre-production expenditures incurred prior to the mine being capable of operating in the manner intended by management are capitalized. Borrowing costs for qualifying assets are capitalized to mine development costs while construction and development activities at the property are in progress. Any proceeds from the sale of metals during the development and commissioning phase of a project are netted against the expenditures being capitalized. The development and commissioning phase ceases upon the commencement of commercial production.

Subsequent to the commencement of commercial production, further development expenditures incurred with respect to a mining interest are capitalized as part of the mining interest, when it is probable that additional future economic benefits associated with the expenditure will flow to the Company. Otherwise, such expenditures are classified as mining and processing costs.

Upon commencement of commercial production, mining interests are depleted over the life of the mine using the unit-of-production method based on estimated proven and probable mineral reserves of the mine and the portion of mineralization from measured, indicated and inferred resources expected to be classified as reserves, in applicable mines. The Company determines the portion of mineralization expected to be classified as reserves by considering the degree of confidence in the economic extraction of the resource, which is affected by long-term metal price assumptions, cut-off grade assumptions, and drilling results. These assessments are made on a mine-by-mine basis.

The expected useful lives used in depletion calculations are determined based on the facts and circumstances associated with the mining interest. Any changes in estimates of useful lives are accounted for prospectively from the date of the change.

Commercial production

Commercial production is reached when an open pit or underground mine is in the condition necessary for it to be capable of operating in the manner intended by management. The Company considers a range of factors when determining whether commercial production has been reached, which may include the completion of all required major capital expenditures, the demonstration of continuous production near the level required by the design capacity of the processing facilities, and the demonstration of continuous throughput levels at or above a target percentage of the design capacity. The Company assesses the ability to sustain production and throughput over a certain period, depending on the complexity of the operation, prior to declaring that commercial production has been reached.

Capitalized stripping costs

Pre-production stripping costs are capitalized as part of the cost of constructing a mine.

Mining costs associated with stripping activities during the production phase of a mine are capitalized only if the Company can identify the component of the ore body for which access is obtained, the costs associated with the related stripping activities can be measured reliably, and the activities represent a future benefit to the mining interest, in that access is gained to sources of reserves and resources that will be produced in future periods that would otherwise not have been accessible. Production stripping costs are allocated between inventory and capital based on the expected volume of waste extracted for a given volume of ore production. The expected volume of waste to be allocated to inventory is determined with reference to the life of mine stripping ratio of a particular mine or deposit, with the remaining amount allocated to capital. The amount of waste capitalized is calculated by multiplying the stripping tonnes mined during the period by the current mining cost per tonne in the open pit.

Capitalized stripping costs are depleted over the expected reserves and resources benefiting from the stripping activity using the unit-of-production method based on estimated proven and probable reserves, and the portion of mineralization expected to be classified as reserves.

Investment tax credits

Investment tax credits are earned as a result of incurring eligible exploration and development expenses prior to commercial production. Investment tax credits are accounted for as a reduction to property, plant and equipment or mining interests.

Investment tax credits also arise as a result of incurring eligible research and development expenses and these credits are recorded as a reduction to the related expenses.

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Derecognition

Upon replacement of a major component, or upon disposal or abandonment of a long-lived asset, the carrying amounts of the assets are derecognized with any associated gains or losses recognized in the Consolidated Statements of Comprehensive Loss.

(h) Intangible assets

Identifiable intangible assets are recorded at fair value on the date of acquisition. Subsequent to initial recognition, they are recorded at cost less accumulated amortization and accumulated impairment losses. Identifiable intangible assets with a finite useful life are amortized on a straight-line basis over their expected useful life, unless another method represents a more accurate allocation of the expense over their useful life. Amortization expense resulting from intangible assets, is included in amortization expense in the Consolidated Statements of Comprehensive Income (Loss).

(i) Goodwill

Goodwill represents the difference between the consideration transferred in a business combination and the fair value of the identifiable net assets acquired, and is not amortized. Goodwill, if identified upon acquisition, is allocated to the cash-generating unit (“CGU”) or group of CGUs expected to benefit from the related business combination for the purposes of impairment testing. A CGU is defined as the smallest identifiable group of assets that generates cash inflows, which are largely independent of the cash inflows from other assets.

(j) Impairment of non-financial assets

The carrying amounts of non-financial assets, excluding inventories and deferred income tax assets, are reviewed for impairment at each reporting date, or whenever events or changes in circumstances indicate the carrying amounts may not be recoverable. If there are indicators of impairment, a review is undertaken to determine whether the carrying amounts are in excess of their recoverable amounts. Reviews are undertaken on an asset-by-asset basis, except where the recoverable amount for an individual asset cannot be determined, in which case the review is undertaken at the CGU level.

If applicable, on an annual basis, the Company evaluates the carrying amount of CGUs to which goodwill has been allocated to determine whether such carrying amount may be impaired. To accomplish this, the Company compares the recoverable amount of a CGU to its carrying amount. This evaluation is performed more frequently if there is an indication that a CGU may be impaired.

If the carrying amount of a CGU or non-financial asset exceeds the recoverable amount, being the higher of its fair value less costs to sell and its value-in-use, an impairment loss is recognized in net loss as the excess of the carrying amount over the recoverable amount. With respect to CGUs, impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGUs, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis.

Where the recoverable amount is assessed using discounted cash flow techniques, the estimates are based on detailed mine or production plans. The mine plan is the basis for forecasting production output in each future year and for forecasting production costs. For value-in-use calculations, production costs and output in the mine plan may be revised to reflect the continued use of the asset in its present form.

Non-financial assets that have previously been impaired are tested for a possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed, or may have partially reversed. In these instances, the impairment loss is reversed to the recoverable amount but not beyond the carrying amount, net of amortization, that would have arisen if the prior impairment loss had not been recognized. Goodwill impairments are not reversed.

(k) Impairment of financial assets

The Company adopted IFRS 9, Financial Instruments ("IFRS 9"), with an initial application date of January 1, 2017 (note 3 (r)).

Policy applicable from January 1, 2017:

For financial assets measured at amortized cost, the impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"). Under the impairment approach in IFRS 9, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, the Company recognizes loss allowances for expected credit losses and changes in those expected credit losses. At each reporting date, financial assets carried at amortized cost are assessed to determine whether they are credit-impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. The gross carrying amount of a financial asset is written off to the extent that there is no realistic prospect of recovery.

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Policy applicable prior to January 1, 2017:

Financial assets, other than those at fair value through profit or loss, were assessed for indicators for impairment at the end of each reporting period. Financial assets were considered to be impaired when there was objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows had been affected.

For financial assets measured at amortized cost, an impairment loss was calculated as the difference between an asset’s carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses were recognized in profit or loss and reflected in an allowance account. When the Company considered that there were no realistic prospects of recovery of the asset, the relevant amounts were written off. If the amount of impairment loss subsequently decreased and the decrease was related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss was reversed through profit or loss.

Impairment losses on available-for-sale financial assets were recognized by reclassifying the losses accumulated in the fair value reserve to profit or loss. The amount reclassified was the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss previously recognized in profit or loss. If the fair value of an impaired available-for-sale debt security subsequently increased and the increase was related objectively to an event occurring after the impairment loss was recognized, then the impairment loss was reversed through profit or loss. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale were not reversed through profit or loss.

(l) Flow-through shares

The Company may issue flow-through common shares to finance its Canadian exploration program or qualifying Canadian underground development. Pursuant to the Canadian Income Tax Act and the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. Proceeds received from flow-through share agreements are separated into a liability and share capital. The liability, which represents the obligation to renounce flow-through exploration and/or development expenditures, is calculated as the excess of cash consideration received over the market price of the Company’s shares on the agreement’s closing date. Upon qualifying exploration and/or development expenditures being incurred, the Company derecognizes the liability and recognizes it as other income. The related deferred tax expense is also recognized at the time the expenditures are incurred.

The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced, in accordance with the Canadian Income Tax Act flow-through regulations. When applicable, the estimated tax payable is accrued until paid.

(m) Uncertain tax positions

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective subsidiary’s country of domicile.

(n) Provisions

Decommissioning liabilities

The Company’s mining and exploration activities are subject to various governmental laws and regulations relating to the protection of the environment. These environmental regulations are continually changing, and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. The timing of these expenditures is dependent upon a number of factors including the life of the mine, the operating licence conditions, and the laws, regulations, and environment in which the mine operates.

Decommissioning liabilities are recognized at the time an environmental disturbance occurs and are measured at the Company’s best estimate of the expected future cash flows required to reclaim the disturbance for each mine operation, which are adjusted to reflect inflation, and discounted to their present value. The inflation rate used is determined based on external forecasts for inflation in the country in which the related mine operates. Expected future cash flows reflect the risks and probabilities that alternative estimates of cash flows could be required to settle the obligation. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money specific to the currency in which the cash flows are expected to be paid. The discount rate does not reflect risks for which the cash flows have been adjusted. Significant estimates are involved in forming expectations of

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future activities and the amount and timing of the associated cash flows. Those expectations are based on existing environmental and regulatory requirements or, if more stringent, Company policies that give rise to a constructive obligation.

Upon initial recognition of a decommissioning liability, the corresponding cost is capitalized as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The capitalized cost is recognized in mineral property and amortized in accordance with the Company's policy for the related asset.

The provision is progressively increased over the life of the operation as the effect of discounting unwinds, creating an expense included in finance expense on the Consolidated Statements of Comprehensive Income (Loss).

Decommissioning liabilities are adjusted for changes in estimates. Such adjustments, which are not the result of the current production of inventory, are accounted for as a change in the corresponding capitalized cost, except where a reduction in the provision is greater than the unamortized capitalized cost of the related assets. In instances where the capitalized cost of the related assets is nil, or will be reduced to nil, the remaining adjustment is recognized in earnings or loss. If reclamation and restoration costs are incurred as a consequence of the production of inventory, the costs are recognized as a cost of that inventory. Factors influencing such changes in estimates include revisions to estimated reserves, resources and lives of mines; developments in technologies; regulatory requirements and environmental management strategies; changes in estimated costs of anticipated activities, including the effects of inflation; and movements in interest rates affecting the discount rate applied.

Other provisions

Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

(o) Share-based compensation

The Company measures all equity-settled share-based awards made to employees and others providing similar services (collectively, “employees”) based on the fair value of the options or units on the date of grant.

The grant date fair value of options is estimated using an option pricing model and is recognized as compensation expense over the vesting period, based on the number of options that are expected to vest. A corresponding increase is recognized in equity. The grant date fair values of the Company’s equity-settled deferred share units, performance share units, and restricted share units are determined using an option pricing model and is recognized as compensation expense over the vesting period.

The Company awards cash-settled share-based compensation to certain employees and directors in the form of deferred share units, restricted share units and stock appreciation rights. In accounting for these awards, the Company recognizes the fair value of the amount payable to employees, using the Black-Scholes option pricing model for certain units, as they are earned based on the estimated number of units that are expected to vest. Based on the plan some units are initially measured at fair value and recognized as an obligation at the grant date using the Company's share price. The corresponding liability is re-measured at fair value on each reporting date and upon settlement, with changes in fair value recognized in net loss for the period. The fair value of restricted share units is determined by reference to the Company’s share price when the units are awarded or re-measured.

The Company also maintains an employee share purchase plan. Under this plan, contributions by the Company’s employees are matched to a specific percentage by the Company and are recognized as an expense when the Company’s obligation to contribute arises.

Share-based arrangements in which the Company receives goods or services as consideration for its own equity instruments are accounted for as equity-settled share-based payment transactions regardless of how the equity instruments are obtained by the Company. These share-based arrangements are measured at the fair value of goods or services received unless the fair value of the goods or services cannot be reliably measured, in which case they are measured at the fair value of the equity instruments issued.

(p) Income taxes

Income tax expense is comprised of current and deferred income tax. Current and deferred income taxes are recognized in earnings or loss except to the extent that they relate to a business combination, or to items recognized directly in equity or other comprehensive income ("OCI").

Current income taxes

Current income tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with respect of previous years.

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Deferred income taxes

Deferred tax assets and liabilities are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following do not result in deferred tax assets or liabilities:

• temporary differences arising from the initial recognition of assets or liabilities, not arising in a business combination, that does not affect accounting or taxable profit;

• taxable temporary differences arising from the initial recognition of goodwill; and

• taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements where the timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings or loss in the period that substantive enactment occurs except to the extent it relates to items recognized directly in equity or in other comprehensive income.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced to its recoverable amount.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when they relate to the same taxable entity and income taxes levied by the same taxation authority and the Company intends to settle its tax assets and liabilities on a net basis.

(q) Earnings (Loss) per share

Basic loss per share is calculated based on the weighted average number of common shares and common share equivalents outstanding for the period. Diluted loss per share is calculated using the treasury method, except when assessing the dilution impact of convertible senior notes, equity-settled restricted share units, deferred share units and performance shares units, where the if converted method is used. The treasury method assumes that outstanding stock options and share purchase warrants with an average exercise price below the market price of the underlying shares, are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. The if converted method assumes that all convertible senior notes, restricted share units, and performance share units have been converted in determining fully diluted loss per share if they are in-the-money, except where such conversion would be antidilutive.

(r) Financial instruments

The Company has adopted IFRS 9, with an initial application date of January 1, 2017. The approach in IFRS 9 is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial asset. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial application (note 3(k)).

The adoption of the expected credit loss impairment model had no impact on the Company’s financial statements. The Company's financial instruments are accounted for as follows under IFRS 9 as compared to the Company's previous policy in accordance with IAS 39:

Asset / Liability	IAS 39	IFRS 9
Cash and cash equivalents	Fair value through profit or loss	Amortized cost
Equity securities	Available-for-sale	Fair value through OCI
Amounts receivable	Loans and receivable	Amortized cost
Prepayment option embedded derivative	Fair value through profit or loss	Fair value through profit or loss
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Debt and financing obligations	Amortized cost	Amortized cost
Non-hedged derivatives	Fair value through profit or loss	Fair value through profit or loss
Hedging Derivatives	Fair value through OCI	Fair value through OCI

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The Company has adopted the standard retroactively effective January 1, 2017 and elected not to retroactively restate comparative periods. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements, but resulted in certain additional disclosures. There was no impact on carrying values and equity as at January 1, 2017 as a result of the adoption of the standard and no measurement differences as a result of adopting IFRS 9.

As a result of the adoption of IFRS 9, the Company's accounting policy for financial instruments has been updated as follows:

Financial assets

Financial assets are classified as either financial assets at fair value through profit or loss, amortized cost, or fair value through other comprehensive income ("OCI"). The Company determines the classification of its financial assets at initial recognition.

i. Financial assets recorded at fair value through profit or loss

Financial assets are classified at fair value if they are acquired for the purpose of selling in the near term. Gains or losses on these items are recognized in net earnings or loss.

ii. Amortized cost

Financial assets are classified at amortized cost if both of the following criteria are met and the financial assets are not designated as at fair value through profit and loss: 1) the object of the Company’s business model for these financial assets is to collect their contractual cash flows and 2) the asset’s contractual cash flows represent ‘solely payments of principal and interest’. The Company’s amounts receivable are recorded at amortized cost as they meet the required criteria.

iii. Fair value through other comprehensive income ("OCI")

For equity securities that are not held for trading, the Company can make an irrevocable election at initial recognition to classify the instruments at fair value through other comprehensive income ("FVOCI"), with all subsequent changes in fair value being recognized in other comprehensive income. This election is available for each separate investment. Under this new FVOCI category, fair value changes are recognized in OCI while dividends are recognized in profit or loss. On disposal of the investment the cumulative change in fair value remains in OCI and is not recycled to profit or loss.

iv. Reclassifications

Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Company changes its business model for managing financial assets.

Financial liabilities

For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company does not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact the Company's accounting policies for financial liabilities. Accounts payable and accrued liabilities, as well as debt and financing obligations are accounted for at amortized cost.

Transaction costs associated with financial instruments, carried at fair value through profit or loss, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The amortization of debt issue costs is calculated using the effective interest method.

Derivative financial instruments

The Company may hold derivative financial instruments to hedge its risk exposure to fluctuations in commodity prices, including the Company’s final product, consumables and other currencies compared to the USD. Derivative financial instruments are measured at fair value at each reporting period.

Non-hedged derivative financial instruments

All derivative instruments not designated in a hedge relationship that qualifies for hedge accounting are classified as financial instruments at fair value through profit or loss. Changes in fair value of non-hedged derivative financial instruments are included in net earnings or loss as non-hedged derivative gains or losses.

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Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(s) Hedges

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivative hedging instruments to forecasted transactions. Hedge effectiveness is assessed based on the degree to which the cash flows from the derivative contracts are expected to offset the cash flows of the underlying transaction being hedged.

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in fair value is recognized in other comprehensive income. For hedged items other than the purchase of non-financial assets, the amounts accumulated in other comprehensive income are reclassified to the consolidated statement of other comprehensive income when the underlying hedged transaction, identified at contract inception, affects profit or loss. When hedging a forecasted transaction that results in the recognition of a non-financial asset, the amounts accumulated in other comprehensive income are removed and added to the carrying amount of the non-financial asset.

Any ineffective portion of a hedge relationship is recognized immediately in net earnings or loss. When derivative contracts designated as cash flow hedges are terminated, expired, sold or no longer qualify for hedge accounting, hedge accounting is discontinued prospectively. Any amounts recorded in other comprehensive income up until the time the contracts do not qualify for hedge accounting remain in other comprehensive income.

Gains or losses arising subsequent to the derivative contracts not qualifying for hedge accounting are recognized in the period incurred and are recorded in net earnings or loss. If the forecasted transaction is no longer expected to occur, then the amounts accumulated in other comprehensive income are reclassified to net earnings or loss immediately.

(t) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer. The Company’s operating segments, before aggregation, have been identified as the Company’s individual operating mines. Aggregation of one or more operating segment into a single operating segment is permitted if aggregation is consistent with the core principle of the standard, the operating segments have similar economic characteristics, and the operating segments have a number of other similarities, including similarities in the nature of their products, production processes, and regulatory environment. The Company’s reportable segments are consistent with the identified operating segments.

(u) New Standards issued and adopted

The Company adopted the following amendments to accounting standards, effective January 1, 2017:

The Company adopted IFRS 9 (2014), Financial Instruments (“IFRS 9”). This standard replaces the guidance in IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”) on the classification and measurement of financial assets and financial liabilities. IFRS 9 provides a new model for the classification and measurement of financial assets. The Company has included the impact of the adoption in note 2(r).

The Company adopted amendments to IAS 12, Income Taxes. The amendments clarify that the existence of a deductible temporary difference depends solely on a comparison of the carrying amount of an asset and its tax base at the end of the reporting period,

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and is not affected by possible future changes in the carrying amount or expected manner of recovery of the asset. The amendments also clarify the methodology to determine the future taxable profits used for assessing the utilization of deductible temporary differences. The amendments had no impact on the consolidated financial statements.

(v) Standards issued but not yet adopted

Standards issued, but not yet adopted include:

	Effective
IFRS 15, Revenue from Contracts with Customers	January 1, 2018
IFRS 16, Leases	January 1, 2019
IFRIC 22, Foreign Currency Transactions and Advance Consideration	January 1, 2018

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), outlines a single comprehensive model with guidance for entities to use in accounting for revenue arising from contracts with its customers. IFRS 15 uses a control based approach to recognize revenue which is a change from the risk and reward approach under the current standard. This standard replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. The Company will adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRS 15, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRS 16, Leases, specifies the methodology to recognize, measure, present and disclose leases. This standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. This standard substantially carries forward the lessor accounting requirements of IAS 17, while requiring enhanced disclosures to be provided by lessors. Other areas of the lease accounting model have been impacted, including the definition of a lease. Transitional provisions have been provided. The Company intends to adopt IFRS 16 in its financial statements for the annual period beginning on January 1, 2019. The Company has not yet determined the impact of adopting IFRS 16 on its consolidated financial statements.

IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration, clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Interpretation is applicable for annual periods beginning on or after January 1, 2018. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRIC 22, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRIC 23, Uncertainty over Income Tax Treatments, provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019. Earlier application is permitted. The Interpretation requires: (a) an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution; (b) an entity to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and (c) if it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The extent of the impact of adoption of the Interpretation has not yet been determined.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Many of the amounts included in the Consolidated Statements of Financial Position require management to make estimates and judgements. Accounting estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

Critical accounting estimates

The following is a list of the accounting estimates that the Company believes are critical, due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liabilities, revenue or expense being reported. Actual results may differ from these estimates.

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• The Company accounts for its ore stockpiles and in-process precious metals inventory using a process flow for applicable costs appropriate to the physical transformation of ore through the mining, crushing, leaching from heap leach operations, milling and gold recovery process. The Company estimates the expected ultimate recovery based on laboratory tests and ongoing analysis of leach pad kinetics in order to estimate the recoverable metals at the end of each accounting period. If the Company determines at any time that the ultimate recovery should be adjusted downward, then the Company will adjust the average carrying value of a unit of metal content in the in-process inventory and adjust upward on a prospective basis the unit cost of subsequent production. The Company estimates concentrate production based on assays and moisture samples taken and tested in laboratories, as well as weights using a calibrated scale. Final weights and assays are taken on settlement with the buyer, which are reconciled to production. Should an upward adjustment in the average carrying value of a unit of metal result in the carrying value exceeding the realizable value of the metal, the Company would write down the carrying value to the realizable value.

• The Company values inventory at the lower of cost and net realizable value. The calculation of net realizable value relies on forecasted gold prices, estimated grades of ore on stockpiles, concentrate and heap leach pads, forecasted exchange rates, and estimated costs to complete the processing of ore inventory.

• The Company makes estimates of the quantities of proven and probable reserves of the mine and the portion of mineralization expected to be classified as reserves. The estimation of quantities of reserves and resources is complex, requiring significant subjective assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Reserve estimates are used in the calculation of depletion expense and to calculate the recoverable amount of a CGU, and to forecast the life of the mine.

• The Company forecasts prices of commodities, exchange rates, production costs, discount rates, and recovery rates. These estimates may change the economic status of reserves and may result in reserves and resources being revised. In addition, these estimates are used to calculate the recoverable amount of a CGU for the purpose of impairment testing.

• The Company amortizes its property, plant and equipment, net of residual value, over the estimated useful life of each asset, not to exceed the life of the mine at which the asset is utilized. The Company uses estimated proven and probable mineral reserves, and an estimate of mineral resources as the basis for amortizing certain mineral property, plant and equipment. The physical life of these assets, and related components, may differ from the Company’s estimate, which would impact amortization and depletion expense.

• The Company makes estimates of the likelihood of whether or not all or some portion of each deferred income tax asset and investment tax credits will be realized, which is impacted by interpretation of tax laws and regulations, historic and future expected levels of taxable income, timing of reversals of taxable temporary timing differences, and tax planning initiatives. Levels of future taxable income are affected by, among other things, market gold prices, production costs, quantities of proven and probable gold reserves, interest rates, and foreign currency exchange rates.

• The Company makes estimates of the timing and amount of expenditures required to settle the Company’s decommissioning liabilities. The principal factors that can cause expected future expenditures to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics that ultimately impact the environment; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. In general, as the end of the mine life nears, the reliability of expected cash flows increases, but earlier in the mine life, the estimation of a decommissioning liability is inherently more subjective.

Critical accounting judgements

The following are critical judgements that management has made in the process of applying accounting policies that may have a significant impact on the amounts recognized in the consolidated financial statements.

• The Company makes judgements about whether or not indicators of impairment, or indicators of a reversal of impairment, exist at each reporting period. This determination impacts whether or not a detailed impairment assessment is performed at the reporting date. These judgements did not impact cash generating units at December 31, 2017, or for December 31, 2016.

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5. ACQUISITION OF RICHMONT MINES INC.

On November 23, 2017, the Company completed a plan of arrangement (the "Arrangement") whereby all of the issued and outstanding common shares of Richmont Mines Inc. ("Richmont") were exchanged on the basis of 1.385 Alamos common shares for each Richmont common share (the "Exchange Ratio"). Richmont owned and operated the Island Gold mine in Ontario, Canada. The Island Gold Mine acquisition provides the Company with further diversification of operations and provides the Company with a long-life, underground mine with exploration potential and the opportunity for production growth and operating synergies with the Company’s other operations.

Under the Arrangement, all of the outstanding Richmont stock options vested and were replaced and converted to Alamos options expiring on November 23, 2018. Richmont restricted share units were exchanged for awards of Alamos and continue to vest according to original plan terms.

The Company determined that the acquisition was a business combination in accordance with the definition in IFRS 3, Business Combinations, and as such has accounted for it in accordance with the standard, with Alamos being the accounting acquirer on November 23, 2017.

Upon closing of the Arrangement, Alamos issued 88,398,804 common shares pursuant to the Arrangement with a fair value of $615.3 million to the former Richmont shareholders.

The Company used a discounted cash flow model to estimate the fair value of the Island Gold mine, Richmont's primary asset. Expected future cash flows are based on estimates of future production and commodity prices, operating costs and forecast capital expenditures based on the life of mine plan as at the acquisition date.

Transaction costs of $3.8 million relating to the arrangement have been expensed in accordance with IFRS 3, Business Combinations, and have beenincluded within Other loss.

In addition, in accordance with IFRS 3,the Company is required to calculate the fair value of the options acquired, as well as the fair value of the replacement options granted. Under IFRS 3, Companies must value the pre-combination service value of the acquired options as well as the fair value of the replacement options using the new terms of the options. Any difference between the two values should be expensed in the post-close period under the new terms. Therefore, the Company recorded an expense of $1.3 million within Other loss, related to the additional share-based compensation of the replacement awards.

The following table summarizes the fair value of the total consideration transferred from the Company and the preliminary fair value of identified assets acquired and liabilities assumed, based on the calculated fair value estimates. Final valuations of assets and liabilities are not yet complete due to the timing of the acquisition and the inherent complexity associated with the valuations. The Company expects to finalize the determination of the fair values of the assets and liabilities acquired and deferred taxes within 12 months of the acquisition date, which could result in material differences from the preliminary values presented in these financial statements.

Consideration transferred
Common shares issued		$615.3
Replacement of long-term incentive instruments	12.1
	$627.4
Net assets acquired
Cash and cash equivalents		$46.2
Equity securities	11.7
Current assets, excluding cash and cash equivalents and equity securities	22.5
Mineral property, plant and equipment	774.3
Current liabilities	(21.2		)
Long-term liabilities	(4.6		)
Deferred income taxes	(201.5		)
	$627.4

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These consolidated financial statements include Richmont’s results from November 23, 2017 to December 31, 2017. Revenues of $14.9 million were generated and net earnings of $1.5 million have been included in the Consolidated Statement of Comprehensive Income for that period. Had the acquisition occurred on January 1, 2017, Richmont would have contributed revenues of $125.3 million and net earnings of $12.0 million to the consolidated statement of comprehensive income.

6. AMOUNTS RECEIVABLE

	December 31, 2017	December 31, 2016
Sales tax receivables
Canada	$6.4	$2.3
Mexico	20.0	36.2
Other	0.9	0.5
Concentrate receivable	3.2	2.2
Other receivables	4.0	3.7
	$34.5	$44.9

Sales tax receivables are mainly related to value-added taxes at the Company's Mexican and Canadian operations. The Company expects that these receivables will be collected within the next year.

7. INVENTORY

	December 31, 2017		December 31, 2016
In-process precious metals	$131.6		$120.7
Ore in stockpiles	44.1		37.6
Parts and supplies	41.5		35.7
Dore, refined precious metals and gold in concentrate	12.7		13.5
	229.9		207.5
Less: Long-term inventory	(68.7	)	(75.8	)
	$161.2		$131.7

Long term inventory consists of heap leach and long-term stockpiles of $68.7 million at December 31, 2017 (December 31, 2016 - $75.8 million) and are expected to be recovered after one year.

The amount of inventories recognized in mining and processing costs for the year ended December 31, 2017 was $323.3 million (December 31, 2016 - $304.1 million). The amount of inventories recognized in amortization costs for the year ended December 31, 2017 was $125.6 million (December 31, 2016 - $119.0 million).

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8. MINERAL PROPERTY, PLANT AND EQUIPMENT

			Mineral property
	Plant and equipment		Depletable	Non-depletable	Exploration and evaluation	Total
Cost
At December 31, 2015	$922.9		$1,286.7	$48.4	$244.3	$2,502.3
Additions	67.4		56.3	17.8	16.9	158.4
Acquisition of Carlisle Goldfields	—		—	—	19.9	19.9
Transfer from other assets	—		—	—	4.2	4.2
Disposals	(6.7	)	—	—	—	(6.7	)
At December 31, 2016	$983.6		$1,343.0	$66.2	$285.3	$2,678.1
Additions	66.4		56.7	14.3	41.6	179.0
Acquisition of Richmont Mines (note 5)	55.7		718.6	—	—	774.3
Disposals	(2.7	)	—	—	—	(2.7	)
At December 31, 2017	$1,103.0		$2,118.3	$80.5	$326.9	$3,628.7
Accumulated amortization and impairment charges
At December 31, 2015	$206.5		$425.2	$5.1	$6.3	$643.1
Amortization	69.0		49.9	—	—	118.9
Disposals	(2.1	)	—	—	—	(2.1	)
At December 31, 2016	$273.4		$475.1	$5.1	$6.3	$759.9
Amortization	61.6		54.9	—	—	116.5
Disposals	(1.1	)	—	—	—	(1.1	)
At December 31, 2017	$333.9		$530.0	$5.1	$6.3	$875.3
Net carrying value
At December 31, 2016	$710.2		$867.9	$61.1	$279.0	$1,918.2
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6	$2,753.4

The net carrying values by segment (note 16) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$589.5	$767.1	$75.4	—	$1,432.0
Mulatos	112.9	99.1	—	—	212.0
Island Gold	54.8	720.1	—	—	774.9
El Chanate	4.1	2.0	—	—	6.1
Corporate and other	7.8	—	—	320.6	328.4
At December 31, 2017	$769.1	$1,588.3	$75.4	$320.6	$2,753.4
Young-Davidson	$580.7	$789.2	$61.1	—	$1,431.0
Mulatos	121.6	76.9	—	—	198.5
El Chanate	2.6	1.8	—	—	4.4
Corporate and other	5.3	—	—	279.0	284.3
At December 31, 2016	$710.2	$867.9	$61.1	$279.0	$1,918.2

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2017 FINANCIAL REPORT

Other

The carrying value of construction in progress at December 31, 2017 was $64.4 million (December 31, 2016 - $52.5 million).

During the year ended December 31, 2017, the Company capitalized $2.0 million of interest to capital projects (year ended December 31, 2016 - $6.6 million). The applicable capitalization rate for general borrowings was 8.62% (2016 - 8.62%)

In the second quarter of 2017, the Company purchased an outstanding royalty on the Lynn Lake gold project for $6.7 million, which has been capitalized to mineral property, plant and equipment.

9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31, 2017		December 31, 2016
Trade accounts payable and accrued liabilities	$87.3		$75.6
Royalties payable	4.9		3.6
Interest payable	—		6.1
Share-based compensation liability	4.5		6.8
Derivative liabilities (note 17)	0.1		2.4
		$96.8		$94.5

10. FINANCING OBLIGATIONS

	December 31, 2017		December 31, 2016
Revolving credit facility (a)	—		—
Senior secured notes (b)	—		$297.6
Equipment financing obligations	$7.5		$7.3
	$7.5		$304.9
Less: Current portion of financing obligations	($4.2	)	($3.6	)
	$3.3		$301.3

(a) Revolving credit facility

On September 21, 2017, the Company amended and increased its existing undrawn revolving credit facility (the "Facility") from $150.0 million to $400.0 million. The maturity date of the Facility has been extended to September 20, 2021. The amended Facility bears interest at an interest rate of Libor plus 2.00% to 3.125% on drawn amounts and stand-by fees of 0.45% to 0.70% on undrawn amounts, based on the Company's net leverage ratio, as defined in the agreement.

The Facility is secured against all of the material present and future assets, property and undertakings of the Company. The Facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. It contains financial covenant tests that include (a) a minimum interest coverage ratio of 3.0:1.0 and (b) a maximum net leverage ratio of 3.5:1.0, both as defined in the agreement. As at December 31, 2017, the Company is in compliance with the covenants and the Facility is fully undrawn.

During the year ended December 31, 2017, the Company incurred costs of $2.1 million to amend the Facility. These costs will be amortized into net earnings over the term of the Facility.

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2017 FINANCIAL REPORT

(b) Senior secured notes

On March 27, 2014, the Company completed an offering of $315.0 million senior secured notes. The secured notes were sold at 96.524% of par, resulting in total proceeds of $304.1 million.

On April 3, 2017, the Company redeemed the senior secured notes on the first available prepayment date at 103.875% of face value for $327.2 million, plus accrued interest to the date of redemption of $12.2 million. In connection with the redemption of the notes, the Company recorded a pre-tax loss of $29.1 million, being the difference between the carrying amount of the senior secured notes, inclusive of the prepayment option embedded derivative, and the redemption amount. In addition, the Company recorded a deferred tax recovery of $7.3 million on the redemption.

11. DECOMMISSIONING LIABILITIES

A decommissioning liability is recognized in the period in which it is incurred, on a discounted cash flow basis, if a reasonable estimate can be made. The liability accretes to its full value over time through charges to earnings or loss. In addition, the discounted value is added to the carrying amount of mineral property, plant and equipment, and is amortized on a units-of-production basis over the life of the mine. A continuity of the decommissioning liability is as follows:

	Total
Balance – December 31, 2015	$37.2
Reclamation expenditures	(0.3	)
Accretion expense	2.1
Revisions to expected discounted cash flows	0.6
Balance – December 31, 2016	$39.6
Liability assumed on acquisition	2.4
Reclamation expenditures	(0.1	)
Accretion expense	2.6
Revisions to expected discounted cash flows	0.1
Balance – December 31, 2017	$44.6

The majority of the expenditures are expected to occur between 2023 and 2036. The discount rates used in discounting the estimated reclamation and closure cost obligations were between 2.3% and 7.6% for the year ended December 31, 2017 (2016 – 2.3% and 7.4%), and the inflation rate used was between 2.0% and 4.0% for the year ended December 31, 2017 (2016 – 2.0% and 4.0%).

The total undiscounted value of the decommissioning liabilities at December 31, 2017 was $53.2 million (2016 - $51.3 million).

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12. INCOME TAXES

The following table represents the major components of income tax expense (recovery) recognized in net loss for the years ended December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Current income tax expense	$11.9		$3.8
Deferred income tax (recovery) expense	(16.3	)	6.5
Income tax (recovery) expense recognized in net loss	($4.4	)	$10.3

The statutory tax rate for 2017 was 25.0% (2016 – 25.0%). The following table reconciles the expected income tax recovery at the Canadian combined statutory income tax rate to the amounts recognized in net loss for the years ended December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Earnings (loss) before income taxes	$22.2		($7.6	)
Statutory tax rate	25.0	%	25.0	%
Expected income tax expense (recovery) based on above rates	$5.6		($1.9	)
Effect of higher tax rates in foreign jurisdictions	0.3		0.3
Non-deductible expenses	4.9		4.1
Impact of local mining taxes	2.2		5.9
Impact of foreign exchange	(22.5	)	(5.1	)
Impact of renouncement of flow through share expenditures	2.6		5.3
Withholding tax	1.3		1.1
Change in unrecognized temporary differences	2.6		0.1
Other	(1.4	)	0.5
Income tax (recovery) expense	($4.4	)	$10.3

The following table reflects the change in deferred income tax liability at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016
Balance, beginning of year	$291.0		$284.1
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	201.5		—
Deferred income tax (recovery) expense recognized in net earnings (loss)	(16.3	)	6.5
Deferred income tax expense recognized in OCI	3.5		0.4
Deferred income tax recovery recognized in equity	(2.7	)	—
Balance, end of year	$477.0		$291.0

The following reflects the deferred income tax liability at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016
Accounting value of mineral property, plant and equipment in excess of tax value	$409.0		$270.8
Accounting value of inventories in excess of tax value	34.7		36.8
Other taxable temporary differences	58.6		18.1
Non-capital losses carried forward	(25.3	)	(34.7	)
Deferred income tax liability	$477.0		$291.0

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2017 FINANCIAL REPORT

The Company has Canadian tax losses of $80.8 million expiring between 2024 and 2036, Mexican tax losses of $43.6 million expiring between 2018 and 2027, United States tax losses of $20.3 million expiring between 2028 and 2035, as well as Turkish losses of $7.1 million expiring between 2018 and 2022.

The Company has unrecognized deferred income tax assets at December 31, 2017 in respect of aggregate loss carryforwards, deductible temporary differences and unused tax credits. The unrecognized loss carryforwards, deductible temporary differences and unused tax credits are $77.8 million (December 31, 2016 -$100.7 million).

At December 31, 2017, the Company has unrecognized deferred income tax liabilities on taxable temporary differences of $6.1 million (December 31, 2016 - $24.2 million) for taxes that would be payable on the unremitted earnings of certain subsidiaries of the Company.

13. SHARE CAPITAL

a) Authorized share capital of the Company consists of an unlimited number of fully paid Class A common shares without par value.

	Number of Shares	Amount
Outstanding at December 31, 2015	257,070,005		$2,773.7
Shares issued through:
Acquisition of Carlisle Goldfields	4,788,039	17.5
Share-based compensation plans	1,457,872	9.7
Exercise of warrants	432,191	1.2
Flow-through share financing	3,328,388	20.1
Outstanding at December 31, 2016	267,076,495	$2,822.2
Shares issued through:
Acquisition of Richmont Mines Ltd (note 5)	88,398,804	615.3
Equity financing (i)	31,450,000	241.8
Share-based compensation plans	542,250	3.5
Exercise of warrants	332,466	0.5
Flow-through share financing (ii)	1,301,535	8.4
Outstanding at December 31, 2017	389,101,550	$3,691.7

(i)     Equity financing

On February 9, 2017, the Company completed an equity financing with a syndicate of underwriters, pursuant to which, on a bought deal basis, 31,450,000 common shares of the Company were issued at a price of $7.95 per common share, for aggregate gross proceeds to the Company of $250.0 million. Transaction costs related to equity financing were $10.9 million, and the Company recognized a corresponding deferred tax asset of $2.7 million.

(ii)     Flow-through share financing

During the year, the Company completed a Canadian Development Expense ("CDE") flow-through financing for gross proceeds of CAD $12.0 million (at a price per share of CAD $10.87) and Canadian Exploration Expense ("CEE") flow-through financing for gross proceeds of CAD $3.0 million (at a price per share of CAD $15.15), both at premiums to the share price on the date of issuance.

b) Employee long-term incentive plan and share purchase plan

The Company has a long-term incentive plan under which share-based compensation, including stock options, deferred share units ("DSUs"), performance share units ("PSUs"), restricted share units ("RSUs") and stock appreciation rights ("SARs") may be granted to directors, officers, employees, and consultants of the Company. The incentive plan was approved by shareholders in 2016. The Company also has an Employee Share Purchase Plan which enables employees to purchase Class A common shares through payroll deduction. Employees can contribute up to 10% of their annual base salary, and the Company will match 75% of

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2017 FINANCIAL REPORT

the employees’ contributions. The Class A common shares can be issued from treasury based on the volume weighted average closing price of the last five days prior to the end of the quarter. At the option of the Company, the shares may be purchased for plan participants in the open market. The maximum number of Class A common shares that may be reserved and set aside for issuance under the long-term incentive plan is 6.5% of the Class A common shares outstanding at the time of granting the award (on a non-diluted basis) inclusive of 0.2% of the issued and outstanding shares (on a non-diluted basis) specifically allocated to the employee share purchase plan.

c) Stock options

The following is a continuity of the changes in the number of stock options outstanding:

	Number		Weighted average exercise price (CAD$)
Outstanding at December 31, 2015	10,237,362		$12.15
Granted	1,620,000		3.75
Conversion of Carlisle options to Alamos	462,954		9.69
Exercised	(1,099,749	)	7.63
Expired	(1,708,931	)	13.56
Outstanding at December 31, 2016	9,511,636		$10.87
Granted	578,490		9.62
Conversion of Richmont options to Alamos options (note 5)	2,863,146		3.53
Exercised	(510,673	)	6.23
Expired	(2,013,254	)	16.42
Outstanding at December 31, 2017	10,429,345		$7.94

During the year ended December 31, 2017, the weighted average share price at the date of exercise for stock options exercised was CAD $9.99 per share (for the year ended December 31, 2016: CAD $11.37 per share).

(i) Stock options granted

During the year ended December 31, 2017, the Company granted 578,490 stock options (year ended December 31, 2016 - 1,620,000). The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation:

For options granted in the year ended:	December 31, 2017		December 31, 2016
Weighted average share price at grant date (CAD$)	$9.62		$3.75
Risk-free rate	0.91% - 1.35%		0.32% - 0.92%
Expected dividend yield	0.70	%	0.70	%
Expected stock price volatility (based on historical volatility)	57	%	49	%
Expected life of option (months)	36 - 84		42 - 84
Weighted average per share fair value of stock options granted (CAD$)	$4.27		$1.52

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2017 FINANCIAL REPORT

As part of the Richmont Mines acquisition (note 5), the Company issued 2,863,146 replacement stock options to ex-Richmont employees. The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation:

Replacement options granted:	November 23, 2017
Weighted average share price at grant date (CAD$)	$3.53
Risk-free rate	1.43	%
Expected dividend yield	0.70	%
Expected stock price volatility (based on historical volatility)	53	%
Expected life of option (months)	12
Weighted average per share fair value of stock options granted (CAD$)	$5.45

Stock options outstanding and exercisable as at December 31, 2017:

	Outstanding			Exercisable
Range of exercise prices (CAD$)	Number of options	Weighted average exercise price (CAD$)	Weighted average remaining contractual life (years)	Number of options	Weighted average exercise price (CAD$)
$0.82 - $3.00	1,770,508	2.04	0.90	1,770,508	2.04
$3.01 - $7.00	2,119,866	3.91	3.97	1,039,866	4.07
$7.01 - $11.00	4,234,349	8.07	2.21	3,375,194	7.88
$11.01 - $15.00	985,311	14.11	0.65	985,311	14.11
$15.01 - $19.00	1,112,425	16.59	0.81	1,112,425	16.59
$19.01 - $23.00	206,886	20.88	0.66	206,886	20.88
	10,429,345	$7.94	2.02	8,490,190	$8.53

d) Other employee long-term incentives

The following is a continuity of the changes in the number of other long-term incentive plans ("LTI") outstanding for the years ended December 31, 2017 and 2016:

	Restricted share units ("RSU")		Stock appreciation rights ("SAR")		Deferred share units ("DSU")		Performance share units ("PSU")
Outstanding units, December 31, 2015	1,404,325		2,471,462		276,930		273,363
Granted	574,088		—		130,009		340,188
Forfeited	(257,345	)	(729,816	)	(15,313	)	(102,156	)
Settled	(310,876	)	(252,071	)	(13,281	)	(87,142	)
Outstanding units, December 31, 2016	1,410,192		1,489,575		378,345		424,253
Granted	499,560		—		102,260		269,780
Conversion of Richmont units to Alamos units (note 5)	112,774		—		—		—
Forfeited	(171,452	)	(316,074	)	—		(65,451	)
Settled	(350,140	)	(117,976	)	—		(28,877	)
Outstanding units, December 31, 2017	1,500,934		1,055,525		480,605		599,705

The settlement of LTI is either cash or equity based on the feature of the LTI. The settlement of SARs is in cash, and RSUs, DSUs and PSUs are either cash or equity settled.

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e) Earnings (loss) per share

Basic earnings or loss per share amounts are calculated by dividing earnings or loss for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated based on the weighted average number of common shares outstanding during the period, including the effects of dilutive common share equivalents.

	For the years ended December 31,
	2017		2016
Net earnings (loss)	$26.6		($17.9		)
Weighted average number of common shares outstanding (in thousands)	305,521		265,234
Basic earnings (loss) per share		$0.09		($0.07	)
Dilutive effect of potential common share equivalents (in thousands)	3,500		—
Diluted weighted average number of common shares outstanding (in thousands)	309,021		265,234
Diluted earnings (loss) per share		$0.09		($0.07	)

The following table lists the equity securities excluded from the computation of diluted loss per share. The securities were excluded as the exercise price relating to the particular security exceeded the average market price of the Company's common shares of CAD $9.40 for the year ended December 31, 2017 (2016 - CAD $8.78), or the inclusion of the equity securities had an anti-dilutive effect on net loss.

For the periods in which the Company records a loss, diluted loss per share is calculated using the basic weighted average number of shares outstanding, as using the diluted weighted average number of shares outstanding in the calculation would be anti-dilutive.

	For the years ended December 31,
(in thousands)	2017	2016
Stock options	2,920	9,512
Equity settled LTI	—	369
Warrants	12,232	11,310
	15,152	21,191

(f)    Dividends

On April 28, 2017, the Company paid a dividend of $3.0 million or $0.01 per share.

On October 31, 2017, the Company paid a dividend of $3.0 million or $0.01 per share.

(g)    Share purchase warrants

The Company has the following share purchase warrants ("Warrants"), outstanding as at December 31, 2017 related to past acquisitions:

	Number of warrants	Common shares issuable	Exercise price	Expiry date
	(000s)	(000s)	CAD
AGI.WT	7,167	7,167	$28.46	August 30, 2018
AGI.WT.A	5,065	5,065	$10.00	January 7, 2019
	12,232	12,232

The AGI.WT warrants issued in relation to the Esperanza acquisition in 2013 are classified as a derivative liability recorded at fair value through profit or loss, due to the currency of the exercise price of the warrants. The warrants are priced in Canadian dollars, which is not the functional currency of the Company. Therefore the warrants are fair valued using the market price with gains or losses recorded in net loss. The Company recorded a gain of $2.3 million recorded in other gains for the year ended December 31, 2017 (2016 - a loss of 1.6 million).

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14. OTHER (LOSS) GAIN

Other (loss) gain recorded in net earnings (loss) for the years ended:

	December 31,		December 31,
	2017		2016
Reduction of obligation to renounce flow-through exploration expenditures	$2.3		$1.3
Unrealized (loss) gain on non-hedged derivatives	(0.3	)	1.6
Fair value adjustment on prepayment option embedded derivative	—		9.5
Loss on disposal of assets	(1.9	)	(4.6	)
Interest income	2.5		2.1
Transaction costs related to the Richmont acquisition (note 5)	(3.8	)	—
Share-based compensation related of replacement awards related to Richmont (note 5)	(1.3	)	—
Other	1.9		(2.3	)
	($0.6	)	$7.6

15. SUPPLEMENTAL CASH FLOW INFORMATION

Changes in working capital and income taxes received or paid for the years ended:

	December 31,		December 31,
	2017		2016
Amounts receivable	$14.0		($5.7	)
Inventory	(15.9	)	(16.1	)
Advances and prepaid expenses	(4.3	)	3.8
Accounts payable and accrued liabilities	(12.1	)	(7.5	)
Income taxes (paid) refunded	(1.5	)	13.2
	($19.8	)	($12.3	)
Interest received	$2.5		$2.1

Other items for the years ended:

	December 31,			December 31,
	2017			2016
Unrealized loss (gain) on non-hedged derivatives		$0.3			($1.6	)
Gain on prepayment option fair value adjustment	—			(9.5		)
Reduction of obligation to renounce flow-through exploration expenditures	(2.3		)	(1.3		)
Loss on disposal of assets	1.9			4.6
Payment of transaction costs incurred by Richmont Mines (note 5)	(5.9		)	—
Share-based payments related to Richmont Mines transaction (note 5)	1.3			—
Other non-cash items	0.8			(2.3		)
	($3.9		)	($10.1		)

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16. SEGMENTED INFORMATION

(a) Segment revenues and results

The Company manages its reportable operating segments by operating mines. The Company operates in two principal geographical areas - Canada (country of domicile), and Mexico. The Young-Davidson and Island Gold mines operate in Canada, and the Mulatos and El Chanate mines operate in Sonora, Mexico. The results from operations for these reportable operating segments are summarized in the following tables:

Year ended December 31, 2017
	Young-Davidson	Mulatos	Island Gold	El Chanate		Corporate/other1		Total
Operating revenues	$249.7	$201.4	$14.9	$76.8		—		$542.8
Cost of sales
Mining and processing	125.9	112.9	4.1	72.7		—		315.6
Royalties	4.4	10.6	0.6	—		—		15.6
Amortization	83.1	29.5	8.7	4.3		—		125.6
	213.4	153.0	13.4	77.0		—		456.8
Expenses
Exploration	—	6.7	—	—		1.6		8.3
Corporate and administrative	—	—	—	—		15.5		15.5
Share-based compensation	—	—	—	—		6.2		6.2
Earnings (loss) from operations	$36.3	$41.7	$1.5	($0.2	)	($23.3	)	$56.0
Finance expense								(9.1	)
Foreign exchange gain								5.0
Other loss								(0.6	)
Loss on redemption of senior secured notes								(29.1	)
Earnings before income taxes								$22.2

1. Corporate and other consists of corporate balances and exploration and development projects.

Year ended December 31, 2016
	Young-Davidson	Mulatos	El Chanate	Corporate/other1		Total
Operating revenues	$211.9	$187.3	$83.0	—		$482.2
Cost of sales
Mining and processing	107.4	117.2	72.4	—		297.0
Royalties	3.7	9.6	—	—		13.3
Amortization	72.6	37.8	8.6	—		119.0
	183.7	164.6	81.0	—		429.3
Expenses
Exploration	—	2.0	—	3.1		5.1
Corporate and administrative	—	—	—	16.3		16.3
Share-based compensation	—	—	—	10.2		10.2
Earnings (loss) from operations	$28.2	$20.7	$2.0	($29.6	)	$21.3
Finance expense						(24.0	)
Foreign exchange loss						(12.5	)
Other gains						7.6
Loss before income taxes						($7.6	)

1. Corporate and other consists of corporate balances and exploration and development projects.

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(b) Segment assets and liabilities

The following table presents the segment assets and liabilities:

	Total Assets		Total liabilities
	December 31, 2017	December 31, 2016	December 31, 2017	December 31, 2016
Young-Davidson	$1,580.9	$1,548.9	$243.4	$260.4
Mulatos	350.0	335.5	93.8	88.4
Island Gold	849.6	—	222.5	—
El Chanate	111.4	113.5	24.3	27.8
Corporate/other	421.9	494.3	48.6	356.2
Total assets and liabilities	$3,313.8	$2,492.2	$632.6	$732.8

17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Fair values of financial instruments

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. The Company does not have any non-recurring fair value measurements as at December 31, 2017. Levels 1 to 3 of the fair value hierarchy are defined based on the degree to which fair value inputs are observable or unobservable, as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the net asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable (supported by little or no market activity).

	December 31, 2017			December 31, 2016
	Level 1		Level 2	Level 1		Level 2
Financial assets
Fair value through profit or loss
Prepayment option embedded derivative	—		—	—		9.6
Gold options	—		0.5	—		3.3
Fair value through OCI
Equity securities	35.8		—	14.1		—
Currency hedging derivative instruments	—		5.0	—		—
Financial liabilities
Fair value through profit or loss
Share purchase warrants	(0.1	)	—	(2.4	)	—
Currency derivative instruments	—		—	—		(3.3	)
	$35.7		$5.5	$11.7		$9.6

The methods of measuring financial assets and liabilities has not changed during the year ended December 31, 2017. The Company does not have any financial assets or liabilities measured at fair value based on unobservable inputs (Level 3).

The fair value of option and forwards (gold and currency) contracts are determined using a market approach with reference to observable market prices for identical assets traded in an active market. These are classified within Level 2 of the fair value hierarchy. The use of reasonably possible alternative assumptions would not significantly affect the Company’s results.

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Derivative Instruments

The fair value of derivative instruments is as follows:

	December 31,		December 31,
	2017		2016
Derivatives designated as hedging instruments
Currency hedging derivative instruments	$5.0		—
Derivatives not designated as hedging instruments
Gold option asset	$0.5		$3.3
Currency derivative instruments	—		(3.3	)
Share purchase warrants liability	(0.1	)	(2.4	)
	$0.4		($2.4	)

Currency derivative contracts

The Company enters into option and forward contracts to protect against the risk of an increase in the value of the Canadian dollar and Mexican peso versus the US dollar. These option and forward contracts are for the purchase of local currencies and the sale of US dollars, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing currency risk.

During the year ended December 31, 2017, the Company designated options and forwards as cash flow hedges for the highly probable Canadian dollar and Mexican peso purchases. These derivatives meet the hedge effectiveness criteria and are designated in a hedge accounting relationship as a result of the following factors:

• An economic relationship exists between the hedged item and hedging instrument, as notional amounts match and both the hedged item and hedging instrument fair values move in response to the same risk (foreign exchange rates). There are no significant reasons or causes for the designated hedged item and hedging instrument to be mismatched since the hedging instrument matures during the same month as the expected hedged expenditures is incurred (hedged item). The correlation between the foreign exchange rate of the hedged item and the hedging instrument should be highly correlated and closely aligned as the maturity and the notional amount are the same.

• The hedge ratio is one to one for this hedging relationship, as the hedged item is foreign currency risk that is hedged with a foreign currency hedging instrument.

• Credit risk is not material in the fair value of the hedging instrument.

The Company has identified two sources of potential ineffectiveness: 1) the timing of cash flow differences between the expenditure and the related derivative and 2) the inclusion of credit risk in the fair value of the derivative not replicated in the hedged item. The Company expects the impact of these sources of hedge ineffectiveness to be minimal. The timing of hedge settlements and incurred expenditures are closely aligned, as they are expected to occur within 30 days of each other. As noted above, credit risk is not a material component of the fair value of the Company’s hedging instruments, as all counterparties are reputable Canadian banking institutions and are highly rated.

The effective portion of the changes in fair value of the hedging instrument for the years ended December 31, 2017 and 2016 recorded in accumulated other comprehensive income are:

	December 31,		December 31,
	2017		2016
Balance, beginning of the period	—		—
Gains on currency instruments	11.2		—
Less: realized gains on CAD currency instruments	(2.2	)	—
Less: realized gains on MXN currency instruments	(1.3	)	—
Deferred income tax related to hedging instrument	(1.7	)	—
	$6.0		—

For the year ended December 31, 2017, the Company did not recognize any ineffectiveness on the hedging instruments.

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The open contracts, which settle on a monthly basis, are summarized as at December 31, 2017:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)
2018	Collars and forwards	174.0	1.31	1.36

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2018	Collars and forwards	1,560.0	18.72	20.71

The fair value of these contracts was an asset of $5.0 million at December 31, 2017 (December 31, 2016 - liability of $3.3 million). For the year ended December 31, 2017, the Company realized gains of $4.3 million on the foreign currency contracts (for the year ended December 31, 2016 - realized losses of $1.6 million). Of these gains only $3.5 million were eligible to be recognized in accumulated other comprehensive income under hedge accounting for the year ended December 31, 2017 (for the year ended December 31, 2016 - $nil).

The following table illustrates unrealized gains on foreign currency contracts for the years ended:

	December 31,	December 31,
	2017	2016
Foreign currency hedged contracts
Unrealized gains	$11.2	—
Foreign currency non-hedged contracts
Unrealized gains	2.1	2.3
	$13.3	$2.3

Gold option contracts

As at December 31, 2017, the Company held option contracts to protect against the risk of a decrease in the value of the gold price on a portion of gold sales. These option contracts ensure a minimum average realized gold price of $1,270 per ounce and a maximum average realized gold price of $1,444 per ounce, regardless of the movement in gold prices during 2017.

The following gold collar contracts are outstanding as of December 31, 2017:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2018	50,100	$1,270	$1,444

The fair value of these contracts was an asset of $0.5 million at December 31, 2017 (December 31, 2016 - asset of $3.3 million). The options mature through out 2018.

For the year ended December 31, 2017, the Company realized a loss of $0.6 million related to the settlement of option contracts (for the year ended December 31, 2016 - realized losses of $1.2 million). Total unrealized losses for the year ended December 31, 2017 was $2.6 million (for the year ended December 31, 2016 - unrealized gain of $3.3 million). The Company has elected to not apply hedge accounting to the gold option contracts, with changes in fair value recorded in net earnings.

Risks

In the normal course of operations, the Company is exposed to credit risk, liquidity risk and the following market risks: commodity price, market price, interest rate and foreign currency exchange rate. The Company has developed a risk management process to identify, analyze and assess these and other risks, and has formed a Risk Committee to monitor all significant risks to the Company. The Board of Directors has overall responsibility for the oversight of the Company’s risk management framework, and receives regular reports from the Risk Committee.

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Commodity price risk

The profitability of the Company’s mining operations is significantly affected by changes in the market price for gold. Gold prices fluctuate on a daily basis and are affected by numerous factors beyond the Company’s control. The supply and demand for gold, the level of interest rates, the rate of inflation, investment decisions by large holders of gold, including governmental reserves, and the stability of exchange rates can all cause significant fluctuations in gold prices. Such external economic factors are in turn influenced by changes in international investment patterns and monetary systems, and political developments. From time to time, the Company will enter into zero cost collars or other financial instruments to manage short term commodity price fluctuations.

Market price risk

The Company’s earnings or loss, cash flows and financial condition are subject to price risk due to fluctuations in the market price of gold and silver. Gold prices have historically fluctuated widely and are affected by numerous factors beyond the Company’s control. For the year ended December 31, 2017, the Company’s revenues and cash flows were impacted by gold prices in the range of $1,146 to $1,349 per ounce. Metal price declines could cause the continued development of, and production from, the Company’s properties to be uneconomic. A 10% change in the gold price would impact the Company's net loss before tax for the year ended December 31, 2017 by $54.3 million (2016 - $48.2 million).

The Company is exposed to fluctuations in the fair value of investments made in equity securities. A 10% increase or reduction in each company’s share price at December 31, 2017 would have increased or reduced other comprehensive income (loss) by $3.5 million (2016 - $1.4 million).

Interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. All of the Company’s outstanding debt obligations bear interest at fixed rates and are therefore not exposed to changes in market interest rates. The interest rate on the credit facility (note 10) is variable, however, the Facility was undrawn as at December 31, 2017.

The Company is exposed to interest rate risk on its cash and cash equivalents. The cash and cash equivalent interest earned is based on bank account interest rates which may fluctuate. A 1.0% change in the interest rate would result in an increase or decrease of approximately $2.0 million in interest earned by the Company. The Company has not entered into any derivative contracts to manage this risk.

The fair value of the prepayment option embedded derivative, that was present at December 31, 2016 was also impacted by fluctuations in interest rates.

Foreign currency exchange rate risk

Metal sales revenues for the Company are denominated in US dollars. The Company is exposed to currency fluctuations relative to the US dollar on expenditures that are denominated in Canadian dollars and Mexican pesos. These potential currency fluctuations could have a significant impact on production costs and thereby, the profitability of the Company. The Company is also exposed to the impact of currency fluctuations on its monetary assets and liabilities.

A 10% strengthening of these currencies against the US dollar at each balance sheet date would have resulted in a gain recorded in net loss by the amounts shown below. This analysis assumes that other variables, in particular interest rates, remain constant.

	December 31, 2017	December 31, 2016
Impact of a 10% change in foreign exchange rates
Canadian dollar	$7.8	$2.3
Mexican peso	1.5	0.7

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The currencies of the Company's financial instruments and other foreign currency denominated liabilities based on notional amounts, denominated in U.S dollar equivalents were as follows:

	Canadian Dollars				Mexican Peso
	December 31, 2017		December 31, 2016		December 31, 2017		December 31, 2016
Cash and cash equivalents	$17.2		$22.8		$6.8		$7.3
Equity securities	35.8		14.1		—		—
Amounts receivable	7.4		3.3		22.0		38.2
Accounts payable and accrued liabilities	(56.1	)	(42.7	)	(14.7	)	(16.1	)
Current portion of financing obligations	(4.2	)	(1.5	)	—		—
Financing obligations	(3.3	)	(3.7	)	—		—
Total exposure to currency risk	(3.2	)	(7.7	)	14.1		29.4

Credit risk

Credit risk relates to receivables and other contracts, and arises from the possibility that any counterparty to an instrument fails to perform. For cash and cash equivalents, restricted cash, and receivables, the Company’s credit risk is limited to the carrying amount on the balance sheet. The Company manages credit risk by transacting with highly-rated counterparties and establishing a limit on contingent exposure for each counterparty based on the counterparty’s credit rating. Exposure on receivables is limited as the Company sells its products to a small number of organizations, on which the historical level of defaults is minimal.

The Company's maximum exposure to credit risk is as follows:

	December 31, 2017		December 31, 2016
Cash and cash equivalents		$200.8		$252.2
Trade receivables	4.0		5.9
Total financial instrument exposure to credit risk	$204.8		$258.1

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages this risk through regular monitoring of its cash flow requirements to support ongoing operations and expansionary plans. The Company ensures that there are sufficient committed loan facilities to meet its business requirements, taking into account anticipated cash flows from operations and holdings of cash and cash equivalents.

(a) Contractual commitments

The following table shows the contractual maturities of debt commitments. The amount presented represents the future undiscounted principal and interest cash flows, and therefore, do not equate to the carrying amounts on the consolidated statements of financial position.

	Less than 1 year	2 - 3 years	4 - 5 years	More than 5 years	Total
Operating and financing leases	5.4	5.6	2.0	2.9	15.9
Accounts payable and accrued liabilities	96.8	—	—	—	96.8
Decommissioning liability	—	—	—	54.8	54.8
Contract mining	47.9	72.0	47.8	38.9	206.6
Flow-through share obligation	0.7	—	—	—	0.7
Capital commitments	21.8	—	—	—	21.8
	$172.6	$77.6	$49.8	$96.6	$396.6

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Contractual obligations exist with respect to royalties (note 20); however gold production subject to royalty cannot be ascertained with certainty and the royalty rate varies with the gold price.

The obligations related to contract mining are based on current mine plans, and are subject to change.

The Company’s future operating cash flow and cash position are highly dependent on gold prices, as well as other factors. Taking into consideration the Company’s current cash position, volatile equity markets, and global uncertainty in the capital markets, the Company is continually reviewing expenditures and assessing business opportunities to enhance liquidity in order to ensure adequate liquidity and flexibility to support its growth strategy, including the development of its projects, while continuing production at its current operations. A period of continuous low gold prices may necessitate the deferral of capital expenditures which may impact the timing of development work and project completion, as well as production from mining operations. In addition, in such a price environment, the Company may be required to adopt one or more alternatives to increase liquidity.

(b) Equity securities

As at December 31, 2017, the Company held shares in AuRico Metals Inc. ("AuRico Metals") valued at $21.8 million, and an investment in Corex Gold Corp. ("Corex") valued at $3.5 million. As part of the Richmont Mines acquisition, the Company acquired Richmont's investment in Monarques Gold Corp. that had a value of $9.4 million. The Company also has other investments valued at $1.1 million.

18. MANAGEMENT OF CAPITAL

The Company defines capital that it manages as its shareholders equity as well as debt and financing obligations. The Company’s objectives when managing capital are to safeguard the Company's ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders. At December 31, 2017, total managed capital was $2,688.7 million (2016 - $2,064.3 million).

	December 31, 2017	December 31, 2016
Shareholder's equity	$2,681.2	$1,759.4
Current portion of debt and financing obligations	4.2	3.6
Long-term debt and financing obligations	3.3	301.3
	$2,688.7	$2,064.3

The Company’s capital structure reflects the requirements of an entity focused on sustaining strong cash flows from its current mining operations and financing both internal and external growth opportunities and development projects. The Company faces lengthy development lead times as well as risks associated with increasing capital costs and project completion timing due to the availability of resources, permits and other factors beyond the Company’s control. The Company’s operations are also significantly affected by the volatility of the market price of gold.

The Company continually assesses its capital structure and makes adjustments to it with reference to changes in economic conditions and risk characteristics associated with its underlying assets. In order to maintain or adjust the capital structure, the Company may issue new shares, pay dividends, sell assets or enter into new debt arrangements.

The Company manages its capital structure by performing the following:

• Maintaining sufficient liquidity in order to address any potential operational disruptions or industry downturns;

• Preparing detailed budgets and cash flow forecasts for each mining operation, exploration project, development project and corporate activities that are approved by the Board of Directors;

• Regular internal reporting and Board of Directors’ meetings to review actual versus budgeted spending and cash flows; and

• Detailed project financial analysis to assess or determine new funding requirements.

There were no changes in the Company’s approach to managing capital during the year.

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19. RELATED PARTY TRANSACTIONS

Remuneration of key management (includes the Company's directors and executive team) for the years ended:

	December 31,	December 31,
Expense by nature:	2017	2016
Short-term employee benefits	8.8	7.8
Share-based payments	4.5	4.2
	$13.3	$12.0

These transactions are in the normal course of operations and all of the transactions are measured at the exchange amount of consideration established and agreed to by the parties.

20. COMMITMENTS

Capital commitments

As of December 31, 2017, the Company has $21.8 million in committed capital purchases (December 31, 2016 - $2.8 million).

Royalties

Production from certain concessions within the Salamandra district, including the Mulatos Mine, is subject to a production royalty payable at a rate of 5% of the value of gold and silver production, less certain deductible refining and transportation costs. Production to a maximum of two million ounces of gold is subject to this royalty. For the year ended December 31, 2017, the royalty was paid or accrued on approximately 1.8 million ounces of applicable gold production. Royalty expense related to the third party royalty was $9.6 million for the year ended December 31, 2017 (2016 - $8.7 million). In addition, royalty expense includes the 0.5% Extraordinary Mining Duty, which totaled $1.0 million for the year ended December 31, 2017, payable to the Mexican government (2016- $0.9 million).

The Company is required to pay a 1.5% net smelter royalty on production from the Young-Davidson mine effective July 2, 2015. For the year ended December 31, 2017, the Company recorded a royalty expense of $3.9 million (2016 - $3.2 million). In addition, other royalties related to production at Young-Davidson totaled $0.5 million for the year ended December 31, 2017 (2016 - $0.5 million).

At the Island Gold mine, the Company is required to pay a 3% net smelter royalty on production from the Lochalsh claims, a 2% net smelter return royalty in addition to a 15% net profit interest royalty per ounce produced from the Goudreau claims, as well, a 4.38% net smelter return royalty and a 10.38% net profit interest royalty per ounce produced from Goudreau Lake property. For the period of ownership, the Company recorded a royalty expense of $0.6 million related to production at Island Gold.

In addition, a third party has a 2% net smelter return royalty on production from a portion of the Company's Turkish projects. The Company has not recorded an accrual for this royalty at December 31, 2017 as the project is not in production. The Company is also subject to a 3% state royalty on production in Turkey based on current gold prices, subject to certain deductions.

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2017 FINANCIAL REPORT

20. SUBSEQUENT EVENT

Subsequent to December 31, 2017, AuRico Metals was acquired by a third party for CAD$1.80 per share. The Company received $22.1 million in proceeds on its investment, resulting in a gain of $13.2 million, based on an average cost of CAD$0.72 per share. In addition, the Company disposed of its position in Corex for $2.6 million or CAD$0.13 per share, resulting in a gain of $0.6 million, based on an average cost of CAD$0.10 per share. These gains will be recorded within equity in the first quarter of 2018.

41 Alamos Gold Inc.

EX-99.2

ALAMOS GOLD INC.

Management’s Discussion and Analysis

(in United States dollars, unless otherwise stated)

For the Year Ended December 31, 2017

ALAMOS GOLD INC.

For the Year Ended December 31, 2017

Table of Contents

Overview of the Business	3
Highlight Summary	4
2017 Highlights	6
Key Business Developments	7
Outlook and Strategy	8
Young-Davidson Mine ("Young-Davidson")	10
Mulatos Mine ("Mulatos")	12
Island Gold Mine ("Island Gold")	14
El Chanate Mine ("El Chanate")	15
Fourth Quarter 2017 Development Activities	16
Fourth Quarter 2017 Exploration Activities	17
Key External Performance Drivers	18
Summarized Financial and Operating Results	19
Review of Fourth Quarter Financial Results	19
Review of 2017 Financial Results	20
Consolidated Expenses and Other	21
Consolidated Income Tax Expense	22
Financial Condition	23
Liquidity and Capital Resources	23
Outstanding Share Data	25
Related Party Transactions	25
Off-Balance Sheet Arrangements	25
Financial Instruments	25
Summary of Quarterly Financial and Operating Results	26
Non-GAAP Measures and Additional GAAP Measures	27
Accounting Estimates, Policies and Changes	33
Internal Control over Financial Reporting	34
Changes in Internal Control over Financial Reporting	35
Disclosure Controls	35
Limitations of Controls and Procedures	35
Risk Factors and Uncertainties	35
Cautionary Note to United States Investors	47
Cautionary Note Regarding Forward-Looking Statements	47

2017Management’s Discussion and Analysis

This Management’s Discussion and Analysis (“MD&A”), dated February 21, 2018, relates to the financial condition and results of the consolidated operations of Alamos Gold Inc. (“Alamos” or the “Company”), and should be read in conjunction with the Company’s consolidated financial statements for the year ended December 31, 2017 and 2016, and notes thereto. The financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS” or “GAAP”). All results are presented in United States dollars (“US dollars” or “$”), unless otherwise stated.

Statements are subject to the risks and uncertainties identified in the Cautionary Note Regarding Forward-Looking Statements section of this document. United States investors are also advised to refer to the section entitled Cautionary Note to United States Investors on page 47.

Overview of the Business

Alamos is a Canadian-based intermediate gold producer with diversified production from four operating mines in North America. The operating mines are: the Young-Davidson and the Island Gold mines in northern Ontario, Canada and the Mulatos and El Chanate mines in Sonora State, Mexico. In addition, Alamos has a significant portfolio of development stage projects in Canada, Mexico, Turkey, and the United States. Alamos employs more than 1,700 people and is committed to the highest standards of sustainable development and ethical business practices.

The Company’s common shares are listed on the Toronto Stock Exchange (TSX: AGI) and the New York Stock Exchange (NYSE: AGI). Further information about Alamos can be found in the Company’s regulatory filings, including the Company's Annual Information Form, available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.alamosgold.com.

3

2017Management’s Discussion and Analysis

Highlight Summary

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017		2016
Financial Results (in millions)
Operating revenues		$161.7			$132.2			$542.8		$482.2
Cost of sales (1)		$136.6			$121.6			$456.8		$429.3
Earnings from operations		$17.1			$3.5			$56.0		$21.3
Net (loss) earnings		($4.7	)		($20.6	)		$26.6		($17.9	)
Cash provided by operations before working capital and cash   taxes(2)		$52.7			$34.0			$183.3		$148.0
Cash provided by operating activities		$48.6			$38.3			$163.5		$135.7
Capital expenditures (sustaining) (2)		$11.5			$12.3			$42.7		$49.2
Capital expenditures (growth) (2),(3)		$27.7			$25.2			$119.8		$97.3
Operating Results
Gold production (ounces) (4)	120,300			105,676			429,400		392,000
Gold sales (ounces)	126,786			107,505			430,115		389,151
Per Ounce Data
Average realized gold price		$1,275			$1,230			$1,262		$1,239
Average spot gold price (London PM Fix)		$1,275			$1,222			$1,257		$1,251
Cost of sales per ounce of gold sold   (includes amortization) (1)		$1,077			$1,131			$1,062		$1,103
Total cash costs per ounce of gold sold (2)		$753			$842			$770		$797
All-in sustaining costs per ounce of gold sold (2)		$902			$1,033			$933		$1,010
Share Data
Earnings per share, basic and diluted		($0.01	)		($0.08	)		$0.09		($0.07	)
Weighted average common shares outstanding (basic)   (000’s)	337,178			267,067			305,521		265,234
Financial Position (in millions)
Cash and cash equivalents								$200.8		$252.2
Total debt and financing obligations								$7.5		$304.9

⁽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 MD&A for a description and calculation of these measures.

⁽³⁾  Includes capitalized exploration and La Yaqui Phase I development.

⁽⁴⁾  Gold production from Island Gold have been included in this table for the period subsequent to November 23, 2017 only. Gold production from Island Gold for the three and twelve months ended December 31, 2017 was 22,100 ounces (2016 - 24,086) and 98,600 ounces (2016 - 83,323), respectively.

4

2017Management’s Discussion and Analysis

	Three Months Ended December 31,				Years Ended December 31,
	2017		2016 (1)		2017		2016 (1)
Gold production (ounces)
Young-Davidson	56,500		44,662		200,000		170,000
Mulatos	42,700		44,900		160,000		154,000
Island Gold (1)	9,000		—		9,000		—
El Chanate	12,100		16,114		60,400		68,000
Gold sales (ounces)
Young-Davidson	52,475		40,934		197,937		168,979
Mulatos	50,006		50,178		159,276		151,337
Island Gold (1)	11,720		—		11,720		—
El Chanate	12,585		16,393		61,182		68,835
Cost of sales (in millions)(2)
Young-Davidson		$58.1		$44.1		$213.4		$183.7
Mulatos		$47.7		$56.8		$153.0		$164.6
Island Gold (1)		$13.4	—			$13.4	—
El Chanate		$17.4		$20.7		$77.0		$81.0
Cost of sales per ounce of gold sold (includes amortization)
Young-Davidson		$1,107		$1,077		$1,078		$1,087
Mulatos		$954		$1,132		$961		$1,088
Island Gold (1)		$1,143	—			$1,143	—
El Chanate		$1,383		$1,263		$1,259		$1,177
Total cash costs per ounce of gold sold (3)
Young-Davidson		$690		$667		$658		$657
Mulatos		$762		$877		$775		$838
Island Gold (1)		$401	—			$401	—
El Chanate		$1,311		$1,171		$1,188		$1,052
Mine-site all-in sustaining costs per ounce of gold sold (3),(4)
Young-Davidson		$859		$926		$834		$897
Mulatos		$798		$931		$835		$916
Island Gold (1)		$546	—			$546	—
El Chanate		$1,335		$1,190		$1,218		$1,069
Capital expenditures (growth and sustaining) (in millions)(3)
Young-Davidson		$17.0		$22.6		$80.3		$94.6
Mulatos(5)		$9.0		$9.5		$43.9		$32.9
Island Gold (1),(5)		$4.8	—			$4.8	—
El Chanate		$0.2		$0.2		$1.4		$0.8
Other		$8.2		$5.2		$32.1		$18.2

⁽¹⁾  Operating and financial results from Island Gold are included in Alamos’ consolidated financial statements for the period subsequent to November 23, 2017. Gold production from Island Gold for the three and twelve months ended December 31, 2017 was 22,100 ounces (2016 - 24,086) and 98,600 ounces (2016 - 83,323), respectively.

⁽²⁾  Cost of sales includes mining and processing costs, royalties and amortization.

⁽³⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this MD&A for a description and calculation of these measures.

⁽⁴⁾  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.

⁽⁵⁾  Includes capitalized exploration.

5

2017Management’s Discussion and Analysis

2017 Highlights

Fourth Quarter 2017

• Completed the acquisition of Richmont Mines Inc. (“Richmont”) and its Island Gold mine, a high-grade, long life asset in Ontario, Canada

• Produced a record 120,300 ounces of gold at cost of sales of $1,077 per ounce, total cash costs¹ of $753 per ounce and all-in sustaining costs ("AISC")¹ of $902 per ounce. This included a record 56,500 ounces from Young-Davidson, 42,700 ounces from Mulatos, 12,100 ounces from El Chanate and 9,000 ounces from Island Gold (following completion of the Richmont acquisition on November 23, 2017)

• Sold 126,786 ounces of gold at an average realized price of $1,275 per ounce for record revenues of $161.7 million

• Reported a net loss of $4.7 million, or $0.01 per share, which was impacted by transaction costs related to the Richmont acquisition of $5.1 million ($0.02 per share), a fair value accounting adjustment on the Island Gold acquisition of $4.1 million net of tax ($0.01 per share) and unrealized foreign exchange losses of $5.1 million ($0.02 per share) recorded within both deferred taxes and foreign exchange

• Generated cash flow from operating activities of $48.6 million ($52.7 million before changes in working capital¹), reflecting lower cash costs and stronger operating margins

• Generated $37.1 million in mine-site free cash flow¹, including a record $16.4 million at Young-Davidson. Company-wide, approximately $19 million of free cash flow¹ was generated excluding transaction costs of $10 million paid related to the Richmont acquisition

• Ended the quarter with no debt and $236.6 million in cash and cash equivalents and equity securities, up from $167.7 million as of September 30, 2017

• Reported a positive feasibility study for the Lynn Lake gold project located in Manitoba, Canada

• Achieved a significant safety milestone of five million hours without a lost-time incident ("LTI") at El Chanate

Full year 2017

• Produced a record 429,400 ounces of gold in 2017 marking a 10% increase from 2016, including approximately one month of production from Island Gold. Gold production was above the mid-point of 2017 production guidance and marked the third consecutive year production guidance has been achieved

• Achieved the top end of production guidance at Island Gold, Mulatos and El Chanate

• Sold 430,115 ounces of gold at an average realized price of $1,262 per ounce for record revenues of $542.8 million

• Cost of sales per ounce of gold sold of $1,062, and total cash costs of $770 both improved relative to 2016

• Significantly improved the Company's cost profile with all-in sustaining costs of $933 per ounce, an 8% reduction compared to 2016

• Realized net earnings of $27.4 million, or $0.09 per share

• Generated positive free cash flow at each of the Company's operations for total mine-site free cash flow of $77.5 million, including record free cash flow at Young-Davidson. Mine-site free cash flow more than doubled from $35.4 million in 2016, reflecting stronger production, lower costs and lower capital spending

• Strengthened the balance sheet with the repurchase and retirement of $315 million senior secured notes in April

• Enhanced liquidity with an amendment to the undrawn revolving credit facility including an increase in the size of the facility to $400 million on peer-leading terms

• Returned $6.0 million in the form of dividends to shareholders

• Completed construction of La Yaqui Phase I on budget and ahead of schedule with the first gold pour in August

• Reported positive feasibility studies for the Kirazlı and Aği Daği projects in Turkey, and the Lynn Lake project in Manitoba Canada, outlining more than 400,000 ounces of combined annual production growth potential

⁽¹⁾ Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this MD&A for a description and calculation of these measures.

6

2017Management’s Discussion and Analysis

2017 Key Business Developments

Senior Secured Note Redemption

On April 3, 2017, the Company completed the redemption of its outstanding $315 million 7.75% Senior Secured Notes ("Notes") due in 2020. The Notes were redeemed at a price of 103.875% of the principal amount (premium of $12.2 million) plus accrued interest to the date of redemption of $12.2 million. The Notes were retired with net proceeds of $239.1 million from the equity financing completed in February 2017 along with existing cash. The Company recorded a pre-tax loss of $29.1 million ($21.8 million after-tax) on redemption. The redemption of the Notes results in annual interest savings of $24.4 million.

Amended Credit Facility

On September 21, 2017, the Company secured amendments to its existing undrawn revolving credit facility (the "Facility") including an increase in the size of the Facility from $150 million to $400 million on peer-leading terms.

Under the amended Facility, the Company benefits from improved pricing at its current leverage ratio including undrawn fees of 0.45% and drawn fees of LIBOR plus 2.00%. This compares to undrawn fees of 0.48% and drawn fees of LIBOR plus 2.125% under the previous credit facility. The Facility remains undrawn and the Company debt free with cash and equity securities of approximately $236 million as of December 31, 2017. The maturity date of the Facility is September 20, 2021.

The amended Facility was joint-led by the Bank of Nova Scotia, BMO Capital Markets, and TD Securities. Additionally, the syndicate includes the Canadian Imperial Bank of Commerce, National Bank of Canada, HSBC Bank Canada, ING Capital LLC, and Export Development Canada.

Acquisition of Richmont

On November 23, 2017, the Company completed the acquisition of Richmont, and its Island Gold mine in northern Ontario. The Island Gold mine is a high-grade, low cost, long-life asset in Canada with significant exploration potential. The acquisition has strengthened and further diversified Alamos’ portfolio of assets through the addition of a third core, long-life producing asset. Island Gold provides near-term production growth while lowering the Company's cost profile.

All of the Richmont issued and outstanding common shares were exchanged on the basis of 1.385 Alamos common shares for each Richmont common share for total consideration of $627 million. Upon completion of the transaction, existing Alamos and Richmont shareholders owned approximately 77% and 23% of the combined company, respectively.

Lynn Lake Feasibility Study

On December 14, 2017, the Company released the results from the positive feasibility study conducted on its Lynn Lake Gold Project (“Lynn Lake”) in northern Manitoba, approximately 820 kilometres ("km") northwest of Winnipeg. The project is comprised of two historical gold mines, MacLellan and Gordon, respectively located approximately 7 km northeast and 37 km east of the Town of Lynn Lake. The two deposits will be mined using conventional open pit mining methods with a centralized processing plant and tailings management facility to be located at MacLellan.

Highlights of the release included the following:

• Declared an initial Proven and Probable mineral reserve of 26.8 million tonnes (“Mt”) grading 1.89 grams per tonne of gold (“g/t Au”), containing 1.6 million ounces of gold

• Average annual gold production of 170,000 ounces over the first six years and 143,000 ounces over the first 10 years with life of mine production of 1.5 million ounces

• Life of mine total cash costs of $645 per ounce of gold and attractive mine-site all-in sustaining costs of $745 per ounce

• Initial capital estimate of $338 million and total life of mine capital, including sustaining capital and reclamation costs, of $486 million

• After-tax net present value (“NPV”) of $123 million at a 5% discount rate and an after-tax internal rate of return (“IRR”) of 12.5%, representing a 4.6 year payback using base case gold and silver price assumptions of $1,250 and $16.00 per ounce, respectively and a USD/CAD foreign exchange rate of $0.75:1

• The Company has also identified a number of opportunities to enhance the overall economics of the project through an evaluation of a smaller, higher grade mine plan, employing contract mining, and incorporating exploration success over the past year which was not factored into the feasibility study

Mineral Reserve and Resource update

On February 21, 2018, the Company reported a global mineral reserve and resource update. Highlights of the release include the following:

• Global Proven and Probable mineral reserves increased 28%, or 2.1 million ounces, to 9.8 million ounces of gold, (203 million tonnes (“mt”) grading 1.50 grams per tonne of gold (“g/t Au”)) net of mining depletion, with grades increasing 16%. The increase reflects the addition of Island Gold (with the acquisition of Richmont Mines closing November 23, 2017), further growth at La Yaqui Grande and the declaration of an initial mineral reserve at Lynn Lake

7

2017Management’s Discussion and Analysis

• Island Gold’s Proven and Probable mineral reserves increased 18% to 887,000 ounces of gold, (2.7 mt grading 10.20 g/t Au) net of mining depletion. Mineral reserve grades also increased 11% to 10.20 g/t Au compared to 9.17 g/t Au at the end of 2016. Since 2014, mineral reserves have increased 383% in terms of ounces and 60% in terms of grade

• Increased Proven and Probable mineral reserves at La Yaqui Grande to 644,000 ounces of gold, (14.3 mt grading 1.40 g/t Au) a 24%, or 123,000 ounce increase.  Including additions within the Mulatos Pit, this offset mining depletion at Mulatos

• Initial Proven and Probable mineral reserve declared at Lynn Lake of 1.6 million ounces of gold (26.8 mt grading 1.89 g/t Au) with the release of the positive feasibility study in December 2017

• Global Measured and Indicated mineral resources decreased 21% to 7.4 million ounces of gold, (207 mt grading 1.1 g/t Au) reflecting the conversion of mineral resources to mineral reserves at Lynn Lake

Outlook and Strategy

	2018 Guidance
	Young-Davidson	Mulatos	Island Gold	El Chanate	Turkey	Other Development (2)	Total
Gold production (000’s ounces)	200-210	150-160	90-100	40-50	—	—	480-520
Cost of sales, including amortization   (in millions)(4)	$220	$147	$112	$57	—	—	$536
Cost of sales, including amortization   ($ per ounce)(4)	$1,075	$950	$1,175	$1,270	—	—	$1,075
Total cash costs ($ per ounce)(1)	$675	$800	$575	$1,200	—	—	$740
All-in sustaining costs   ($ per ounce)(1)					—	—	$950
Mine-site all-in sustaining costs   ($ per ounce)(1),(3)	$850	$900	$825	$1,200	—	—	—
Capital expenditures  (in millions)
Sustaining capital(1)	$35-40	$8-10	$25-27	—	—	—	$68-77
Growth capital(1)	$35-40	$18-20	$25-28	—	$100	$46 (2)	$224-234
Total capital expenditures(1)	$70-80	$26-30	$50-55	—	$100	$46	$292-$311

⁽¹⁾  Refer to the "Non-GAAP Measures and Additional GAAP" disclosure at the end of this MD&A for a description of these measures.

⁽²⁾  Includes capitalized exploration at all operating sites and development projects.

⁽³⁾  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.

⁽⁴⁾  Cost of sales includes mining and processing costs, royalties, and amortization expense

The Company executed on several strategic priorities in 2017, all of which support its objective of increasing cash flow from its operations while advancing its portfolio of low-cost development projects. This included delivering record gold production of 429,400 ounces at an 8% decrease in all-in sustaining costs. This drove mine-site free cash flow to $78 million, up nearly 120% from 2016. Additionally, the Company strengthened its operating base through the acquisition of the Island Gold mine, adding a third core, low-cost, long life operation, which will be a strong driver of free cash flow growth in the years ahead. The Company also made significant progress advancing its development pipeline including the completion of three positive feasibility studies, construction of La Yaqui Phase I ahead of schedule and on budget, and initiating development of Kirazlı.

The strong operational performance is expected to continue into 2018 with gold production expected to increase to a range of 480,000 to 520,000 ounces, a 16% increase over 2017 (based on the mid-point of guidance). All-in sustaining costs are expected to average $950 per ounce, supporting strong ongoing operating margins and mine-site free cash flow. Capital spending at the four operating mines is expected to total between $146 and $165 million. The Company expects stronger gold production, lower costs and a lower rate of capital spending in the second half of 2018, all of which is expected to contribute to higher mine-site free cash flow compared to the first half of the year.

Young-Davidson is expected to produce between 200,000 and 210,000 ounces in 2018 at mine-site all-in sustaining costs of $850 per ounce. Capital spending at Young-Davidson in 2018 is expected to be between $70 and $80 million, including $35 to $40 million of sustaining capital. Capital spending will be focused on ongoing development and lower mine infrastructure. The tie in of the upper and lower mines is expected to be completed in the fourth quarter of 2019 which will temporarily limit underground throughput. Following completion of the tie in, underground mining rates are expected to increase above 7,500 tpd supporting higher production rates and free cash flow in 2020 and beyond.

Island Gold is expected to produce 90,000 to 100,000 ounces in 2018 at mine-site all-in sustaining costs of $825 per ounce, both consistent with the Phase I expansion preliminary economic assessment (“PEA”) released in 2017. With the addition of a second mine in Ontario, the Company is evaluating opportunities to reduce costs through purchasing, tax and other synergies.

8

2017Management’s Discussion and Analysis

The Phase I expansion of the Island Gold mill to 1,100 tpd remains on track and is expected to be completed in the second half of 2018. This is expected to drive strong production growth and lower costs in the fourth quarter and into 2019. Combined with lower capital spending, the Company expects significant free cash flow growth in 2019. In parallel to the Phase I expansion, the Company will continue an aggressive exploration program at Island Gold which has been successful in driving nearly a 400% increase in Mineral Reserves and 60% increase in grade since 2014. Ongoing exploration success will be incorporated into an evaluation of the most effective and economic approach to a Phase II expansion of the operation beyond 1,100 tpd.

Total production from the Mulatos district (including La Yaqui Phase I) is expected to be between 150,000 to 160,000 ounces in 2018 at mine-site all-in sustaining costs of $900 per ounce. Capital spending is expected to total $26 to $30 million, including $8 to $10 million of sustaining capital.

Annual gold production at Mulatos is expected to remain in a similar range of 150,000 to 160,000 ounces per year between 2018 and 2020, at declining costs. The decline will be driven in part by the construction of a power line which will connect the mine to lower cost grid power, and the end of the 5% royalty at Mulatos in 2019. Approximately 200,000 ounces remain subject to the royalty after which costs will decrease by $65 per ounce (assuming spot gold prices of $1,300 per ounce).

El Chanate is expected to produce 40,000 to 50,000 ounces in 2018, down from 2017 reflecting lower mining rates with mining activities expected to cease mid-2018. Given the long leach cycle at El Chanate, the Company expects to benefit from ongoing gold production beyond 2018 through residual leaching. This will be lower cost and higher margin production with mining activities completed and is expected to drive higher mine-site free cash flow from the operation.

The Company expects combined annual gold production of at least 500,000 ounces from its existing operations in 2019 and 2020 with low cost production growth from Island Gold offsetting higher cost production from El Chanate. Consolidated all-in sustaining costs are expected to decrease in 2019 reflecting the completion of the Phase I expansion at Island Gold and end of the 5% royalty at Mulatos, with a further decrease expected in 2020 reflecting higher underground mining rates at Young-Davidson. Similarly, capital spending at existing operations is expected to trend lower in 2019 and 2020 reflecting the completion of the Phase I expansion at Island Gold and lower mine infrastructure at Young-Davidson. Combined with declining operating costs, the Company expects strong free cash flow growth from its operations over the next three years.

Capital spending on development projects, including capitalized exploration, is expected to total $146 million in 2018, of which $100 million relates to construction on the Kirazlı project. The remainder of the spending is comprised of capitalized exploration at Island Gold, Mulatos and Lynn Lake and advancing permitting and development of Cerro Pelon, La Yaqui Grande and Lynn Lake. The Company has also increased its global exploration budget to $36 million, up 50% from 2017 with nearly 80% of the spending to be focused on Island Gold and Mulatos.

Approximately 80% of the 2018 budget for Kirazlı is contingent upon, and will be spent following receipt of the GSM (Business Opening and Operation) permit. Pending receipt of final permits, Kirazlı is expected to produce more than 100,000 ounces in 2020, its first full year of production, at mine-site all-in sustaining costs of less than $400 per ounce. This is expected to drive company-wide production above 600,000 ounces in 2020, representing more than 20% growth from 2018, while further lowering the Company’s cost profile.

The Company is well positioned to fund this growth having significantly de-risked its balance sheet over the past year with the repayment of the $315 million senior secured notes in April 2017. The Company is debt free with growing cash flow from its operations and over $635 million of cash and available liquidity under the Company's credit facility.

9

2017Management’s Discussion and Analysis

Young-Davidson

The Young-Davidson mine is located near the town of Matachewan in Northern Ontario, Canada. The property consists of contiguous mineral leases and claims totaling 11,000 acres, and is situated on the site of two past producing mines that produced over one million ounces of gold between 1934 and 1957. The Young-Davidson mine declared commercial production in 2013.

Young-Davidson Financial and Operational Review

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Gold production (ounces)	56,500			44,662			200,000			170,000
Gold sales (ounces)	52,475			40,934			197,937			168,979
Financial Review (in millions)
Operating Revenues		$66.8			$51.2			$249.7			$211.9
Cost of sales (1)		$58.1			$44.1			$213.4			$183.7
Earnings from operations		$8.7			$7.1			$36.3			$28.2
Cash provided by operating activities		$33.4			$26.0			$114.5			$98.4
Capital expenditures (sustaining) (2)		$8.7			$10.5			$34.1			$40.0
Capital expenditures (growth) (2)		$8.3			$12.1			$46.2			$54.6
Mine-site free cash flow (2)		$16.4			$3.4			$34.2			$3.8
Cost of sales, including amortization per ounce of gold sold (1)		$1,107			$1,077			$1,078			$1,087
Total cash costs per ounce of gold sold (2)		$690			$667			$658			$657
Mine-site all-in sustaining costs per ounce of gold sold  (2),(3)		$859			$926			$834			$897
Underground Operations
Tonnes of ore mined	664,847			614,101			2,423,289			2,199,857
Tonnes of ore mined per day ("tpd")	7,227			6,675			6,639			6,011
Average grade of gold (4)	2.70			2.40			2.69			2.54
Metres developed	2,776			3,044			12,787			12,379
Unit mining costs per tonne		$34			$32			$34			$33
Unit mining costs per tonne (CAD)		$44			$42			$44			$43
Mill Operations
Tonnes of ore processed	716,273			694,753			2,735,267			2,629,032
Tonnes of ore processed per day	7,786			7,552			7,494			7,183
Average grade of gold (4)	2.59			2.18			2.47			2.19
Contained ounces milled	59,561			48,755			217,184			184,928
Average recovery rate	92		%	90		%	92		%	91		%

⁽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 MD&A for a description and calculation of these measures. Total cash costs and mine-site AISC are exclusive of net-realizable value adjustments.

⁽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").

Young-Davidson produced a record 56,500 ounces of gold in the fourth quarter of 2017, 27% higher than the same period of 2016 and exceeding the previous record set in the third quarter of 2017. The increase in production reflects record underground mining rates and an increase in mill throughput during the quarter.

The Company mined a record 664,847 tonnes of ore from underground in the fourth quarter of 2017, or 7,227 tpd, a 10% increase from the previous quarter and 8% higher than the prior year period. The Company expects underground mining rates to average more than 7,000 tpd in 2018, up from an average of 6,639 tpd in 2017, driving stronger gold production and free-cash flow. Underground grades in the fourth quarter were 2.70 g/t Au, and averaged 2.69 g/t Au for the full year, consistent with the mineral reserve grade, and higher than the prior year period.

During the fourth quarter, 716,273 tonnes, or 7,786 tpd, were processed through the mill with grades averaging 2.59 g/t Au. Grades were higher than the prior year period reflecting a higher contribution of underground tonnes as well as higher underground grades mined. Mill throughput increased compared to the third quarter of 2017 reflecting the commissioning of the pebble crusher in the fourth quarter. Mill recoveries of 92% were consistent with expectations and higher than the prior year period.

10

2017Management’s Discussion and Analysis

Financial Review

For the three months ended December 31, 2017, revenues of $66.8 million were $15.6 million higher than the prior-year period, reflecting more ounces sold and a higher realized gold price. For 2017, revenues of $249.7 million were $37.8 million higher than the prior year period, attributable to both to a higher realized gold and a higher number of ounces sold.

In the fourth quarter of 2017, cost of sales of $58.1 million were higher than the prior year period reflecting higher gross costs from additional tonnes mined and milled, as well as a stronger Canadian dollar. Cost of sales reflects mining and processing costs, royalties, and amortization expense. For 2017, cost of sales of $213.4 million were $29.7 million higher than the prior-year period, reflecting more tonnes mined and milled and a stronger Canadian dollar.

Total cash costs in the fourth quarter were $690 per ounce, representing a 3% increase from the fourth quarter of 2016. The increase was attributable to a stronger Canadian dollar and a higher proportion of operating development which is reflected in cash costs rather than capital. Underground unit mining costs were $34 per tonne in the fourth quarter, slightly higher than the prior year period as the benefit of higher underground mining rates was offset by a stronger Canadian dollar. Further strengthening in the Canadian dollar is not expected to adversely impact costs against guidance in the first half of 2018 as the Company has hedged the majority of its Canadian dollar operating and capital costs at budgeted rates. Mine-site AISC were $859 per ounce, 7% lower than the prior year period reflecting a lower level of sustaining capital across a higher number of ounces sold. For the full 2017 year, total cash costs were $658 per ounce and mine-site AISC were $834 per ounce, compared to $657 and $897 per ounce, respectively, in the prior year. The decrease in mine-site AISC was attributable to lower sustaining capital expenditures and a higher number of ounces sold.

Capital expenditures totaled $17.0 million in the fourth quarter, 25% lower than the same period of 2016. For 2017, capital expenditures of $80.3 million were 16% lower than 2016 and consistent with guidance. Capital spending in the fourth quarter was focused primarily on lateral development in the upper and lower mines, and lower mine infrastructure. Total capital expenditures in the fourth quarter included $8.7 million of sustaining capital and $8.3 million of growth capital.

Young-Davidson generated record mine-site free cash flow of $16.4 million in the fourth quarter driven by stronger production and lower capital spending. For 2017, Young-Davidson generated $34.2 million of mine-site free cash flow, a significant increase compared to $3.8 million in the prior year period, driven by higher production, lower costs and capital spending and higher gold prices.

11

2017Management’s Discussion and Analysis

Mulatos

The Mulatos mine is located within the Salamandra Concessions in the Sierra Madre Occidental mountain range in the State of Sonora, Mexico. The Company controls a total of 28,777 hectares of mineral concessions in close proximity to the Mulatos mine. The mine achieved commercial production in 2006 as an open pit, heap leach mining operation and has produced approximately 1.8 million ounces of gold to-date. In addition, construction of the first phase of the La Yaqui mine was completed in the third quarter of 2017. The Mulatos mine is subject to a 5% royalty which is capped at 2 million ounces of gold, after which no third-party royalty is payable on production at Mulatos. Financial and operating results at Mulatos include La Yaqui Phase I, where commercial production commenced in September 2017.

Mulatos Financial and Operational Review

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Gold production (ounces)	42,700			44,900			160,000			154,000
Gold sales (ounces)	50,006			50,178			159,276			151,337
Financial Review (in millions)
Operating Revenues		$64.0			$60.8			$201.4			$187.3
Cost of sales (1)		$47.7			$56.8			$153.0			$164.6
Earnings from operations		$14.5			$3.3			$41.7			$20.7
Cash provided by operating activities		$22.3			$19.6			$64.3			$59.7
Capital expenditures (sustaining) (2)		$0.9			$1.6			$5.5			$8.4
Capital expenditures (Mulatos growth) (2),(6)		$8.1			$7.9			$25.9			$24.5
La Yaqui Phase I construction cost (2)	—			—				$12.5		—
Mine-site free cash flow, excluding La Yaqui construction   capital (2)		$13.3			$10.1			$32.9			$26.8
Cost of sales, including amortization per ounce of gold sold (1)		$954			$1,132			$961			$1,088
Total cash costs per ounce of gold sold (2)		$762			$877			$775			$838
Mine site all-in sustaining costs per ounce of gold sold (2),(3)		$798			$931			$835			$916
Open Pit & Underground Operations
Tonnes of ore mined - open pit (4)	2,575,306			1,795,562			8,485,933			7,034,978
Total waste mined - open pit	1,719,986			2,614,810			6,443,971			9,184,468
Total tonnes mined - open pit	4,515,673			4,410,372			15,566,165			16,396,080
Waste-to-ore ratio (operating)	0.67			1.46			0.76			1.31
Tonnes of ore mined - underground	23,238			25,139			100,701			122,516
Crushing and Heap Leach Operations
Tonnes of ore stacked	1,745,513			1,709,346			6,796,155			6,552,742
Average grade of gold processed (5)	0.91			0.81			0.92			0.81
Contained ounces stacked	51,242			44,609			201,222			170,600
Mill Operations
Tonnes of high grade ore milled	31,449			33,867			133,328			133,720
Average grade of gold processed (5)	8.15			9.76			9.42			11.23
Contained ounces milled	8,238			10,623			40,378			48,284
Total contained ounces stacked and milled	59,480			55,232			241,600			218,884
Recovery ratio (ratio of ounces produced to contained ounces   stacked and milled)	72		%	81		%	66		%	70		%
Ore crushed per day (tonnes) - combined	19,300			18,900			19,000			18,300

⁽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 MD&A for a description and calculation of these measures. Total cash costs and mine-site AISC are exclusive of net-realizable value adjustments.

⁽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 ore stockpiled during the quarter.

⁽⁵⁾  Grams per tonne of gold ("g/t Au").

⁽⁶⁾ Includes capitalized exploration, of $1.0 million and $6.9 million for the three and twelve months ended December 31, 2017.

Mulatos produced 42,700 ounces of gold in the fourth quarter of 2017, including approximately 7,000 ounces from La Yaqui Phase I. Production in the quarter was slightly lower than the prior year period due to lower production from the mill circuit. For the full year, Mulatos produced 160,000 ounces of gold, achieving the top end of production guidance for 2017.

12

2017Management’s Discussion and Analysis

Total crusher throughput averaged 19,300 tpd, above the same period of 2016 reflecting the startup of La Yaqui Phase I. A total of 1,745,513 tonnes were stacked in the fourth quarter, at a grade of 0.91 g/t Au, both higher than the same period of 2016 due to a combination of mine sequencing, positive grade reconciliation and the addition of higher grade tonnes from La Yaqui Phase I. The waste-to-ore ratio of 0.67:1 was lower than the prior year period and 2017 guidance due to mine sequencing and the addition of La Yaqui Phase I, which has a minimal waste-to-ore ratio.

La Yaqui Phase I construction was completed in the third quarter, ahead of schedule and on budget. For the full year 2017, La Yaqui produced 10,000 ounces of gold.

Underground tonnes mined from San Carlos during the quarter were lower than the same period of 2016 but higher than the third quarter of 2017. For the fourth quarter, 31,449 tonnes were milled at an average grade of 8.15 g/t Au. The underground San Carlos deposit and high grade surface stockpiles are expected to be depleted during the first half of 2018. At the end of 2017, the Company had approximately 28,000 tonnes remaining in high grade stockpiles which will continue to supplement mill feed during that period.

The ratio of ounces produced to contained ounces stacked and milled (or recovery ratio) was 72% in the quarter compared to 81% in the prior year period. For the full year, the recovery ratio was 66%, slightly lower than plan reflecting a temporary increase in ounces on the leach pad which will be recovered in 2018.

Financial Review

For the three months ended December 31, 2017, revenues of $64.0 million were $3.2 million higher than the prior-year period reflecting a higher realized gold price during the quarter. For 2017, revenues of $201.4 million were $14.1 million higher than the prior year, attributable to both more ounces sold and a higher realized gold price.

Cost of sales in the fourth quarter of $47.7 million were lower than the prior-year period as gross costs decreased reflecting a lower waste-to-ore ratio, lower amortization per ounce charges, and the inclusion of lower cost La Yaqui Phase I production. Cost of sales reflects mining and processing costs, royalties, and amortization expense. For 2017, cost of sales of $153.0 million were $11.6 million lower than the prior-year period, driven by a lower waste-to-ore ratio and lower mining and processing costs.

Total cash costs of $762 per ounce in the fourth quarter were 13% lower than $877 per ounce in the prior year period, reflecting higher grades stacked, a lower waste-to-ore ratio, and the addition of lower cost La Yaqui Phase I production. Mine-site AISC in the quarter were $798 per ounce, $133 or 14% lower than the prior year period reflecting lower total cash costs and lower sustaining capital. For 2017, total cash costs were $775 per ounce and mine-site AISC were $835 per ounce, a significant improvement from 2016 reflecting higher grades stacked, a lower waste-to-ore ratio and lower cost La Yaqui Phase I production.

The improvement of the cost profile at Mulatos resulted in another strong quarter from a cash flow perspective, generating $13.3 million in mine-site free cash flow. For the full year, Mulatos generated $32.9 million in mine-site free cash flow, reflecting strong earnings from operations, an increase in Value Added Tax ("VAT") refunds and lower sustaining capital.

13

2017Management’s Discussion and Analysis

Island Gold

The Island Gold mine is a high grade, low cost underground mining operation located 83 kilometres northeast of Wawa, Ontario. The mine comprises 217 patented, leased and staked claims covering 7,926 hectares. The mine began production in October 2007 and has produced over 500,000 ounces of gold to date.

Financial results for Island Gold are included for the period from closing of the Richmont acquisition (November 23, 2017) to December 31, 2017. Operational data is presented in the table below for the fourth quarters and full years of 2017 and 2016, for informational purposes.

Island Gold Financial and Operational Review

	Three Months Ended December 31,						Years Ended December 31,
	2017 (1)			2016 (1)			2017 (1)			2016 (1)
Gold production (ounces) (1)	9,000			—			9,000			—
Gold sales (ounces) (1)	11,720			—			11,720			—
Financial Review (in millions)
Operating Revenues		$14.9			$—			$14.9			$—
Cost of sales (2)		$13.4			$—			$13.4			$—
Earnings from operations		$1.5			$—			$1.5			$—
Cash provided by operating activities		$11.8			$—			$11.8			$—
Capital expenditures (sustaining) (3)		$1.7			$—			$1.7			$—
Capital expenditures (growth) (3)		$3.1			$—			$3.1			$—
Mine-site free cash flow (3)		$7.0			$—			$7.0			$—
Cost of sales, including amortization per ounce of gold sold (2)		$1,143		$—				$1,143		$—
Total cash costs per ounce of gold sold (3)		$401		$—				$401		—
Mine-site all-in sustaining costs per ounce of gold sold  (3),(4)		$546		$—				$546		—
Underground Operations
Tonnes of ore mined	94,407			89,881			374,962			318,045
Tonnes of ore mined per day ("tpd")	1,026			977			1,027			869
Average grade of gold (5)	9.44			8.83			9.42			8.67
Metres developed	1,667			1,464			6,906			5,218
Unit mining costs per tonne		$100			$87			$95			$103
Unit mining costs per tonne (CAD)		$127			$116			$124			$136
Mill Operations
Tonnes of ore processed	84,559			83,091			338,603			297,757
Tonnes of ore processed per day	919			903			928			814
Average grade of gold (5)	8.46			9.31			9.36			9.02
Contained ounces milled	23,005			24,857			101,842			86,345
Average recovery rate	96		%	97		%	97		%	97		%

⁽¹⁾  Financial results from Island Gold are included in Alamos’ consolidated financial statements for the period subsequent to November 23, 2017. Gold production from Island Gold for the three and twelve months ended December 31, 2017 was 22,100 ounces (2016 - 24,086) and 98,600 ounces (2016 - 83,323), respectively.

⁽²⁾  Cost of sales includes mining and processing costs, royalties and amortization.

⁽³⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this MD&A for a description and calculation of these measures. Total cash costs and mine-site AISC are exclusive of net-realizable value adjustments.

⁽⁴⁾  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.

⁽⁵⁾  Grams per tonne of gold ("g/t Au").

Island Gold produced 22,100 ounces of gold in the fourth quarter of 2017 (9,000 ounces of which is attributable to the Company for the period subsequent to November 23, 2017) down slightly from the prior year period reflecting lower grades milled. Full year production of 98,600 ounces exceeded full year guidance of 87,000 to 93,000 ounces. This also represented an 18% increase from 2016 reflecting higher mining and milling rates as well as grades processed.

The Company mined 94,407 tonnes of ore from underground in the fourth quarter of 2017, or 1,026 tpd, slightly higher than the prior year period. Underground mining rates are expected to average about 1,000 tpd in 2018, consistent with the rates achieved in 2017. Underground grades in the fourth quarter were 9.44 g/t Au, higher than the prior year period due to mine sequencing.

During the fourth quarter, 84,559 tonnes or 919 tpd were processed through the mill with grades averaging 8.46 g/t Au, lower than the prior year period. Mill throughput is expected to average 980 tpd in 2018 with mill grades ranging between 8.3 and 8.9 g/t Au. Expected tonnes mined, milled and grades processed for 2018 are all consistent with the Phase I expansion PEA released in 2017.

14

2017Management’s Discussion and Analysis

The operation is currently undergoing a mill expansion to 1,100 tpd. The mill expansion is expected to be completed during the second half of 2018. Higher mill throughput will drive strong production growth and lower costs into 2019. This, combined with lower capital spending, will generate significant free cash flow growth in 2019.

Financial Review

For the period of Alamos' ownership of the asset (subsequent to November 23, 2017), the Company sold 11,720 ounces and generated revenues of $14.9 million. Cost of sales were $13.4 million and includes mining and processing costs, royalties, and amortization expense. Cost of sales includes a one-time charge of $5.9 million within amortization expense related to the fair value adjustment of Island Gold. Total cash costs were $401 per ounce and mine-site AISC were $546 per ounce relating to the ounces sold by Alamos, and not indicative of full year results given the short-period of time under ownership.

El Chanate

The El Chanate mine is located northeast of the town of Caborca in the state of Sonora, Mexico. El Chanate is an open pit, heap leach mining operation.

El Chanate Financial and Operational Review

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Gold production (ounces)	12,100			16,114			60,400			68,000
Gold sales (ounces)	12,585			16,393			61,182			68,835
Financial Review (in millions)
Operating Revenues		$16.0			$20.2			$76.8			$83.0
Cost of sales (1)		$17.4			$20.7			$77.0			$81.0
(Loss) earnings from operations		($1.4	)		($0.5	)		($0.2	)		$2.0
Cash provided by operating activities		$0.6			$0.2			$4.8			$5.6
Capital expenditures		$0.2			$0.2			$1.4			$0.8
Mine-site free cash flow (2)		$0.4			$—			$3.4			$4.8
Cost of sales, including amortization per ounce of gold sold (1)		$1,383			$1,263			$1,259			$1,177
Total cash costs per ounce of gold sold (2)		$1,311			$1,171			$1,188			$1,052
Mine site all-in sustaining costs per ounce of gold sold (2),(3)		$1,335			$1,190			$1,218			$1,069
Open Pit Operations
Tonnes of ore mined	895,545			1,641,448			4,475,004			6,306,469
Total tonnes mined	4,156,001			8,604,171			22,646,606			31,288,807
Waste-to-ore ratio (operating)	3.64			4.24			4.06			3.96
Average grade of gold (4)	0.48			0.61			0.47			0.60
Crushing and Heap Leach Operations
Total tonnes of ore stacked	988,640			1,699,327			4,536,847			6,320,627
Average grade of gold (4)	0.48			0.61			0.50			0.60
Total contained ounces stacked	15,257			33,327			72,932			121,928
Ore crushed and run-of-mine ore stacked per day (tonnes) - combined	10,700			18,500			12,400			17,300
Recovery ratio (ratio of ounces produced to contained ounces stacked)	79		%	48		%	83		%	56		%

⁽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 MD&A for a description and calculation of these measures. Total cash costs and mine-site AISC are exclusive of net-realizable value adjustments.

⁽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").

El Chanate produced 12,100 ounces of gold in the fourth quarter compared to 16,114 ounces in the prior year period. Quarterly production decreased in the fourth quarter reflecting lower stacking rates during 2017. For the full year, El Chanate produced 60,400 ounces of gold, achieving the top end of production guidance. Full year production benefited from the recovery of ounces stacked in previous year, resulting in a drawdown of leach pad inventory.

15

2017Management’s Discussion and Analysis

El Chanate is expected to continue to produce at lower than historical rates in 2018 as the mine reaches the end of mining activities by mid-year. Given the long leach cycle at El Chanate, the Company expects to benefit from ongoing gold production beyond 2018 through residual leaching of the pad. This is expected to drive higher mine-site free cash flow from the operation in the second half of the year.

In 2017 El Chanate continued with industry leading safety performance achieving milestones of 1,100 days and 4.8 million hours without a Lost Time Injury ("LTI") by year end. The site continues its strong commitment to ensuring all of our employees go home safe every day. The site achieved 5 million hours on February 1, 2018.

Financial Review

For the three months ended December 31, 2017, revenue of $16.0 million was $4.2 million lower than the prior year period, reflecting less ounces sold, partially offset by higher realized gold prices. For 2017, revenue of $76.8 million was $6.2 million lower.

For the fourth quarter, cost of sales were lower than the prior-year period, decreasing by $3.3 million to $17.4 million as a result of lower gold sales and a lower amortization per ounce. Cost of sales reflects mining and processing costs, royalties, and amortization expense. For 2017, cost of sales of $77.0 million were $4.0 million lower than the prior-year period.

Total cash costs of $1,311 per ounce and mine-site all-in sustaining costs of $1,335 per ounce in the fourth quarter increased from the same period of 2016 due to lower grades stacked. For 2017, total cash costs were $1,188 per ounce and mine-site AISC were $1,218 per ounce, also attributable to lower grades stacked.

El Chanate continued to generate positive mine-site free cash flow of $0.4 million in the quarter, and $3.4 million for 2017. Given El Chanate's higher cost structure, the Company has hedged all of its expected 2018 gold production through gold collar contracts, ensuring a minimum gold price of $1,270 and participation up to a price of $1,444 per ounce.

Fourth Quarter 2017 Development Activities

Mulatos District

La Yaqui Phase I

During 2017, the Company spent $12.5 million to complete construction of the first phase of La Yaqui. In early September, the Company announced the completion of construction and commercial production ahead of schedule and within budget. La Yaqui Phase I produced 10,000 ounces in 2017 and is expected to contribute annual production of approximately 25,000 ounces at significantly lower cash costs over an approximate three year mine life.

Cerro Pelon and La Yaqui Grande

The Company invested $7.9 million at Cerro Pelon and La Yaqui Grande in 2017 consisting of $6.9 million of capitalized exploration and $1.0 million focused on early stage engineering and baseline work in support of permitting. The capital budget for Cerro Pelon in 2018 is $8 million which will be spent on engineering, permitting and early stage construction activities. The Cerro Pelon deposit is located approximately three kilometres from the existing Mulatos operation. Given its proximity to Mulatos’ infrastructure, ore from the Cerro Pelon open pit is expected to be trucked to the existing heap leach circuit for processing. The environmental impact assessment (“MIA”) for Cerro Pelon is expected to be finalized and submitted mid-2018. Following approval, construction and pre-stripping activities are expected to take approximately 18 months with initial production expected in 2020.

La Yaqui Grande’s capital budget for 2018 is $5 million with spending focused on permitting and project engineering. The MIA is expected to be completed and submitted by the end of 2018 with construction and pre-stripping activities commencing in the latter part of 2019 and production in 2021. Similar to La Yaqui Phase I, La Yaqui Grande will be developed as a standalone, open pit, heap leach operation. La Yaqui Grande exploration activities in 2017 were successful in increasing the Mineral Reserves by 28% to 644,000 ounces (14.3 million tonnes grading 1.4 g/t Au).

Lynn Lake

The Company owns 100% of the Lynn Lake development project, in Manitoba, Canada. The Company released a positive Feasibility Study on the project in December 2017 outlining average annual production of 143,000 ounces over a 10 year mine life (170,000 ounces over its first six years) at average mine-site all-in sustaining costs of $745 per ounce.

The 2018 capital budget for Lynn Lake is $12 million, comprised of $8 million for development activities and $4 million for exploration. Development spending will be focused on baseline work in support of the Environmental Impact Study (“EIS”) for the project that will be submitted to satisfy federal and provincial environmental assessment requirements. The permitting process is expected to take approximately two years followed by two years of construction. The Company will also be evaluating various opportunities to

16

2017Management’s Discussion and Analysis

enhance the project’s economics as outlined in the December 2017 Feasibility Study. This includes incorporating exploration success over the past year and ongoing results with a further $4 million budgeted for exploration in 2018.

During the fourth quarter, $1.4 million was spent at Lynn Lake ($17.3 million for 2017) on development and exploration activities. Spending for the year consisted of completing the Feasibility Study, exploration activities and the purchase and cancellation of a 2.0% net smelter return royalty.

Turkey

The Company has been granted the Environmental Impact Assessment and Forestry Permits for Kirazlı and is awaiting the GSM (Business Opening and Operation) permit, which is granted by the Çanakkale Governorship.

The 2018 capital budget for Kirazlı is $100 million which will be focused on construction and development of the project. Development activities including power line construction, tree clearing and road relocation began in the second half of 2017 and will continue into 2018. The Company has awarded several key contracts which will comprise the majority of the spending in 2018, including civil works and the water reservoir.

Approximately 80% of the 2018 budget is contingent upon receipt of the GSM permit. The remainder of Kirazlı's initial capital will be spent in 2019 with initial gold production expected in the second half of 2019. Kirazlı is expected to produce more than 100,000 ounces of gold in its first full year of production at mine-site AISC of less than $400 per ounce. This is expected to drive company-wide production growth of more than 20% between 2018 and 2020, while significantly lowering the Company’s cost profile.

For the three and twelve months ended December 31, 2017, total development expenditures in Turkey were $6.0 million and $16.5 million respectively.

Other

The Company capitalized $0.2 million related to the Esperanza Project ($1.9 million, year to date) and capitalized $0.4 million to Quartz Mountain during the fourth quarter ($2.2 million, year to date).

Fourth Quarter 2017 Exploration Activities

Mulatos District, Mexico

The Company has a large exploration package covering 28,777 hectares with the majority of past exploration efforts focused around the Mulatos mine. Over the last three years, exploration has moved beyond the main Mulatos pit area and focused on prospects throughout the wider district. In 2017, the Company invested $13.6 million in exploration activities within the Mulatos District, of which $6.9 million was capitalized and $6.7 million was expensed. After significant exploration success at La Yaqui Grande, emphasis in 2018 will move to other parts of the district including El Carricito, El Halcon and El Jaspe.

La Yaqui Grande

The Company continued drilling at La Yaqui Grande during the fourth quarter, with a total of 4,587 metres (“m”) of drilling undertaken in 30 holes. Exploration spending at La Yaqui Grande in the fourth quarter of 2017 totaled $0.9 million ($5.7 million year-to-date).

Exploration drilling in 2017 resulted in an increase of Mineral Reserves at La Yaqui Grande by 28% to 644,000 ounces (14.3 million tonnes grading 1.4 g/t Au).

Island Gold, Canada

Surface exploration drilling

Surface exploration drilling continued at Island Gold Mine during the fourth quarter of 2017 with 9,705 m drilled in 11 holes. Seven deep directional holes were completed for a total of 5,645 m of diamond core. This drilling was peripheral to deep inferred resource blocks below the 1,000 m level and comprised both infill holes and 100 meter spaced step-out holes. The area covered by this exploration drilling covers a 950m strike length and a 200m vertical extent.

In 2018, diamond drilling programs will focus on defining new inferred resources.

Underground exploration drilling

During the fourth quarter of 2017, a total of 5,721m of underground exploration diamond drilling was completed. This comprised 1,716 m from the 620 level in and 4,005 m from the 840 level. The objective of this drilling was to identify new resources close to known resource or reserve blocks.

Delineation drilling at Island Gold in 2017 was successful in increasing mineral reserves by 18%, net of mining depletion. In addition, the 2017 exploration drilling resulted in the addition of new mineral resources.

17

2017Management’s Discussion and Analysis

Lynn Lake, Canada

Exploration drilling continued at Lynn Lake during the fourth quarter of 2017 with 4,116 m drilled in 13 holes. This was scout drilling to test the structures between the Linkwood and Burnt Timber deposits. Total spending in the fourth quarter was $0.9 million ($3.4 million year-to-date).

A total of $4 million and 10,000 m of drilling is budgeted at the Lynn Lake project for 2018.

Key External Performance Drivers

Gold Price

The Company’s performance is largely dependent on the price of gold, which directly affects the Company’s profitability and cash flow.  The price of gold is subject to volatile price movements and is affected by numerous factors, such as the strength of the US dollar, supply and demand, interest rates, and inflation rates, all of which are beyond the Company’s control. During the fourth quarter of 2017, the London PM Fix price of gold averaged $1,275 per ounce, lower than the average of $1,278 in the third quarter of 2017. The price of gold ranged from $1,237 to $1,308 per ounce in the fourth quarter of 2017.

For 2018, the Company has hedged 50,100 ounces ensuring an average minimum gold price of $1,270 per ounce and participation up to an average gold price of $1,444 per ounce. Subsequent to year end, the Company hedged a further 53,200 ounces, ensuring an average minimum gold price of $1,295 and participation up to an average gold price of $1,465 per ounce.

Foreign Exchange Rates

At the Company’s mine sites, a significant portion of operating costs and capital expenditures are denominated in foreign currencies, including Mexican pesos and Canadian dollars. Fluctuations in the value of these foreign currencies compared to the US dollar can significantly impact the Company’s costs and cash flow. In the fourth quarter of 2017, the Mexican peso ("MXN") and CAD averaged approximately 18.98 MXN to $1 US dollar and $1.27 CAD to $1 US dollar, respectively, compared to average rates of 19.85 MXN to $1 US dollar and $1.34 CAD to $1 US dollar, respectively, in the fourth quarter of 2016. The Company recorded a $5.1 million foreign exchange loss in the fourth quarter of 2017. The majority of this loss is unrealized and due to the weakening Mexican peso and Canadian dollar in the quarter on the Company's Mexican peso and Canadian dollar denominated net monetary assets.

During the year, the movement of the CAD and MXN rates generated a foreign exchange gain of $22.5 million, resulting from the revaluation of monetary tax and deferred tax balances. This gain is recorded in deferred tax recovery.

The Company actively manages its currency exposure through a hedging program, which resulted in realized foreign exchange gains of $0.9 million in the quarter and $3.5 million for the year. The realized gains were applied to the costs at the mines, which benefited total cash cost per ounce sold at Young-Davidson by $9, Mulatos by $5, and El Chanate by $7 for the year.

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2017Management’s Discussion and Analysis

Summarized Financial and Operating Results

(in millions, except ounces, per share amounts, average realized prices, AISC and total cash costs)
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017		2016			2015
Gold production (ounces) (1)	120,300			105,676			429,400		392,000			380,000
Gold sales (ounces)	126,786			107,505			430,115		389,151			382,772
Operating Revenues		$161.7			$132.2			$542.8		$482.2			$355.1
Cost of sales(2)		$136.6			$121.6			$456.8		$429.3			$384.0
Earnings from operations		$17.1			$3.5			$56.0		$21.3			($492.6	)
Net (loss) earnings		($4.7	)		($20.6	)		$26.6		($17.9	)		($508.9	)
(Loss) earnings per share, basic		($0.01	)		($0.08	)		$0.09		($0.07	)		($2.62	)
Total assets								$3,313.8		$2,492.2			$2,462.2
Total non-current liabilities							525.9		633.2			638.1
Cash flow from operations		$48.6			$38.3			$163.5		$135.7			$60.0
Dividends per share, declared	0.01			0.01			0.02		0.02			0.05
Average realized gold price per ounce		$1,275			$1,230			$1,262		$1,239			$1,148
Cost of sales per ounce of gold sold,   including amortization (2)		$1,077			$1,131			$1,062		$1,103			$1,241
Total cash costs per ounce of gold sold (3)		$753			$842			$770		$797			$766
All-in sustaining costs per ounce of gold  sold (3)		$902			$1,033			$933		$1,010			$1,091

⁽¹⁾  Gold production from Island Gold have been included in this table for periods subsequent to November 23, 2017 only. Gold production from Island Gold for the three and twelve months ended December 31, 2017 was 22,100 ounces (2016 - 24,086) and 98,600 ounces (2016 - 83,323, 2015 - 55,040), respectively.

⁽²⁾  Cost of sales includes mining and processing costs, royalties and amortization

⁽³⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this MD&A for a description and calculation of these measures. Total cash costs and AISC are exclusive of net-realizable value adjustments.

Review of Fourth Quarter Financial Results

Operating Revenue

During the fourth quarter of 2017, the Company sold 126,786 ounces of gold for total proceeds of $161.7 million, a 22% increase compared to the prior year period. This reflected higher ounces sold (a $24.6 million benefit), and a higher realized price of $1,275 per ounce compared to $1,230 per ounce in the prior year period (a $4.8 million benefit). Sales at Young-Davidson were 28% higher in the quarter as a result of higher production generated by stronger underground mining rates. Island Gold contributed an additional 11,720 ounces of gold sold from November 23, 2017 onward, which generated $14.9 million in revenue. The Company's realized gold price in the fourth quarter was in line with the average London PM fix of $1,275 per ounce.

Cost of Sales

For the fourth quarter of 2017, cost of sales were $136.6 million, compared to $121.6 million in the prior-year period.

Mining and Processing

Mining and processing costs were $90.6 million compared to $86.9 million in the prior-year period. The increased costs were mainly the result of the inclusion of Island Gold, which added $4.1 million of mining and processing costs in the period.

Consolidated total cash costs for the quarter were $753 per ounce, compared to $842 in the prior year period. The decrease in total cash costs is attributable to higher grades mined at Young-Davidson and Mulatos, as well as the inclusion of lower cost ounces from Island Gold.

In the fourth quarter, AISC per ounce decreased to $902 from $1,033 in the prior year period. This was primarily driven by lower mining and processing costs and lower sustaining capital expenditures.

Royalties

Royalty expense was higher in the fourth quarter at $4.9 million, compared to $3.6 million in the prior year period, primarily due to inclusion of Island Gold in the quarter, and higher ounces sold at Young-Davidson.

Amortization

Amortization of $41.1 million in the quarter was higher than the prior year period expense of $31.1 million. Amortization was $324 per ounce, up from $289 per ounce in the prior year period. This reflected lower amortization at Mulatos and El Chanate, more than

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2017Management’s Discussion and Analysis

offset by the inclusion of Island Gold which has a higher depreciation per ounce reflecting the acquisition price of the asset. Amortization at Island Gold also included a one-time charge of $5.9 million related to a fair value adjustment of inventory.

Earnings from Operations

The Company recognized earnings from operations of $17.1 million in the quarter, compared to $3.5 million in the same period of 2016, driven by higher production and gold sales and stronger operating margins at Young-Davidson and Mulatos.

Net loss

The Company reported a net loss of $4.7 million in the quarter, compared to a net loss of $20.6 million in the same period of 2016. The loss in the quarter was primarily attributable to transaction costs of $3.8 million, an expense related to the valuation of the replacement options of $1.3 million, and a one-time charge of $5.9 million ($4.1 million, after tax) related to fair value adjustment of inventory, all related to the Richmont acquisition. Included in net loss is $5.1 million of foreign exchange related losses as a result of the weakening Canadian dollar and Mexican Peso in the quarter, recorded in foreign exchange loss.

Review of 2017 Financial Results

Operating Revenue

For the year ended 2017, the Company sold 430,115 ounces of gold for proceeds of $542.8 million, a 13% increase compared to the prior year period. This reflected higher ounces sold (a $51.7 million benefit), and a higher average realized price of $1,262 per ounce compared to $1,239 per ounce in the prior year period (a $8.9 million benefit). The Company's realized gold price during the year was $5 above the average London PM fix of $1,257 per ounce, contributing an additional $2.0 million of operating cash flow.

Cost of Sales

For the year ended 2017, cost of sales was $456.8 million, compared to $429.3 million in 2016.

Mining and Processing

Mining and processing costs increased to $315.6 million in the year from $297.0 million in 2016. The increase reflects higher gross operating costs at all mine sites as a result of higher production and sales volumes.

Consolidated total cash costs for the year were $770 per ounce, a 3% improvement compared to the prior year period. This decrease is attributable to higher grades mined during the year at Young-Davidson and Mulatos, partially offset by the strengthening of the Company's operating currencies against the USD, and higher costs at El Chanate.

For the full year, AISC per ounce decreased substantially to $933 from $1,010 in the prior year period. This reduction was attributable to reduced sustaining capital levels and a lower mark-to-market charge related to share-based compensation as the Company's share price increased significantly in the prior year resulting in higher share based compensation charges. In addition, AISC at Island Gold for the period from November 23, 2017 to December 31, 2017 were significantly lower at $546 per ounce.

Royalties

Royalty expense was $15.6 million, compared to $13.3 million in the prior year period, as a result of both higher gold sales at Young-Davidson and higher realized gold prices.

Amortization

Amortization of $125.6 million during the year was higher than the prior year expense of $119.0 million. Amortization was $292 per ounce, down from $306 per ounce in 2016, reflecting lower amortization attributable to Mulatos and El Chanate.

Earnings from Operations

The Company recognized earnings from operations of $56.0 million during the year, compared to $21.3 million in 2016, driven by a higher gold prices and number of ounces sold, stronger operating margins, and lower share-based compensation, partially offset by higher exploration expenditures.

Net earnings

The Company reported net earnings of $26.6 million in 2017, compared to a net loss of $17.9 million in 2016. Net earnings for the year reflects stronger earnings from operations, and a deferred tax recovery resulting primarily from foreign exchange movements. This was partially offset by a charge of $29.1 million incurred on redemption of the senior secured notes ($21.8 million after tax). In addition, earnings were impacted by transaction costs of $3.8 million, an expense related to the valuation of the replacement

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2017Management’s Discussion and Analysis

options of $1.3 million, and one-time charge of $5.9 million ($4.1 million, after tax) related to the fair value adjustment of inventory, all related to the Richmont acquisition.

Consolidated Expenses and Other

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Exploration expense		($2.3	)		($1.6	)		($8.3	)		($5.1	)
Corporate and administrative expense	(4.6		)	(4.6		)	(15.5		)	(16.3		)
Share-based compensation expense	(1.1		)	(0.9		)	(6.2		)	(10.2		)
Finance expense	(1.4		)	(6.4		)	(9.1		)	(24.0		)
Foreign exchange gain (loss)	(5.1		)	(7.8		)	5.0			(12.5		)
Other (loss) gains	(5.0		)	2.5			(0.6		)	7.6
Loss on redemption of senior secured notes	—			—			(29.1		)	—

Exploration

Exploration expense mainly relates to expenditures on early-stage exploration projects and corporate exploration support. Exploration expenses incurred in the fourth quarter of 2017 mainly relate to drilling at Mulatos, as well as corporate exploration support. Exploration at Island Gold, Lynn Lake and near-mine exploration at Mulatos was capitalized in the year.

Corporate and administrative

Corporate and administrative costs include expenses relating to the overall management of the business that are not part of direct mine operating costs. These costs are generally incurred at the corporate office located in Canada. Corporate and administrative costs remained consistent with the prior year period and in line with guidance.

Share-based compensation

Share-based compensation expense for the quarter was $1.1 million, compared to $0.9 million in the prior year period. The cost was consistent with the prior year period as there was minimal impact on the mark-to-market revaluation of long-term incentive grants given no significant movement in the share price during the quarter. For the year ended December 31, 2017, share-based compensation was $6.2 million, compared to $10.2 million in the prior year period. This decrease resulted from lower mark-to-market revaluation charges in the current year.

Finance expense

Finance expense was significantly lower in the period, as the Company retired the senior secured notes on April 3, 2017. This resulted in the Company saving $6.1 million in gross interest expense per quarter subsequent to retirement of the notes.

Foreign exchange gain

During the quarter, a foreign exchange loss of $5.1 million was recorded. This was due to the weakening of both the Canadian dollar and Mexican peso in the quarter. The Canadian dollar weakened by 1% and the peso by 8% in the quarter.

The Company has elected to adopt hedge accounting for its Canadian and Mexican foreign currency option and forward contracts, which reduces the impact of unrealized foreign exchange movements on net earnings. For the year ended December 31, 2017, mark-to-market gains of $11.2 million were recorded within other comprehensive income.

The Company will continue to experience non-cash foreign currency gains or losses on monetary assets and liabilities, primarily as a result of fluctuations between the US dollar and both the Canadian dollar and Mexican peso.

Other loss

During the fourth quarter, the Company recorded a loss of $5.0 million compared to gains of $2.5 million in the prior year period. As part of the acquisition of Richmont, the Company expensed $3.8 million of transaction costs and revalued the replacement options to Richmont employees per IFRS 3, Business Combinations, resulting in a one-time expense of $1.3 million. The majority of the prior year period gain was due to the fair value adjustment on the prepayment option on the senior notes.

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2017Management’s Discussion and Analysis

Loss on redemption of senior secured notes

On April 3, 2017, the Company redeemed the senior secured notes at 103.875% of face value for $327.2 million, plus accrued interest to the date of redemption of $12.2 million. The senior secured notes had a carrying value of $298.1 million; as a result, the Company recorded a loss on redemption of $29.1 million, with a corresponding deferred tax recovery of $7.3 million.

Consolidated Income Tax Expense

The Company is subject to tax in various jurisdictions, including Mexico and Canada.  There are a number of factors that can significantly impact the Company’s effective tax rate including the geographic distribution of income, varying rates in different jurisdictions, the non-recognition of tax assets, mining allowances, foreign currency exchange rate movements, changes in tax laws and the impact of specific transactions and assessments.  Due to the number of factors that can potentially impact the effective tax rate and the sensitivity of the tax provision to these factors, it is expected that the Company’s effective tax rate will fluctuate in future periods.

In the fourth quarter of 2017, the Company recognized a current tax expense of $4.3 million and a deferred tax expense of $6.0 million.  During the year ended December 31, 2017 the Company recognized a current tax expense of $11.9 million and a deferred tax recovery of $16.3 million, compared to a current tax expense of $3.8 million and a deferred tax expense of $6.5 million in the same period of 2016. Current income tax expense in 2017 was primarily related to income tax and mining taxes in Mexico. The deferred tax recovery was primarily due to changes to foreign exchange rates during the periods, as well as the tax impact on the retirement of the senior secured notes.

The Company's Mulatos and El Chanate mines in Mexico, as well as the Young-Davidson and Island Gold mines in Canada, pay income taxes based on their tax functional currency which is the Mexican peso and Canadian dollar, respectively.  The legal entity financial statements for Mulatos, El Chanate, Young-Davidson and Island Gold include foreign exchange and other income items that differ from the US dollar reporting financial statements. The total foreign exchange impact recorded within deferred taxes in the year was a $22.5 million recovery (2016 - $5.1 million).  The impact of the monetary tax balances translated created a deferred tax expense of $1.3 million in 2017 (2016 - $3.7 million).  In addition, foreign exchange losses are recognized in deferred income tax expense when the Mexican peso and Canadian denominated deferred tax balances are translated to its US dollar reporting currency.  In 2017 this resulted in a deferred tax recovery of $23.8 million (2016 - $8.8 million).

The redemption of the Company's senior secured notes during the second quarter created a capital loss valued at approximately $56.6 million. Capital losses in Canada can only be used against capital gains. The recognition of deferred tax assets is based upon whether it is more likely than not that sufficient and suitable taxable profits will be available in the future against which the reversal of temporary differences can be deducted. This capital loss was not recognized in the calculation of the deferred tax asset in 2017 as the Company does not currently have any anticipated unrealized capital gains to be applied against the capital loss generated, with the exception of gains on equity securities.

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2017Management’s Discussion and Analysis

Financial Condition

	December 31, 2017		December 31, 2016
Current assets		$446.7		$454.5	Current assets remained consistent compared to the prior year, however, cash decreased primarily due to the redemption of the senior secured notes, as the Company used a portion of existing cash to repay the outstanding notes. The Company paid $327.2 million, plus accrued interest of $12.2 million. This was offset by the $239.1 million net cash proceeds of the equity financing, and positive operating cash flow generated during the year. After the close of the Richmont Mines transaction in November 2017, the Company added $80.4 million of current assets, including $46.2 million in cash.
Long-term assets	2,867.1		2,037.7		Long-term assets increased primarily due to acquisition of Richmont Mines. The acquired value of the mineral property was $774.3 million. As well, long-term assets increased due to capital expenditures at the Company's operating and development assets, offset by amortization charges.
Total assets		$3,313.8		$2,492.2
Current liabilities		$106.7		$99.6	Current liabilities have increased due to higher taxes payable and timing of trade payables and accruals.
Long-term financial liabilities	3.3		301.3		Long-term financial liabilities decreased as the Company retired the senior secured notes in the second quarter.
Other long-term liabilities	522.6		331.9		Other long-term financial liabilities increased from December 31, 2016, primarily due to the acquisition of Richmont Mines, which increased the deferred tax liability by $201.5 million, as well as movements in foreign exchanges rates and the impact of these changes on the deferred tax liability balances.
Total liabilities		$632.6		$732.8
Shareholders’ equity		$2,681.2		$1,759.4	Shareholders' equity increased primarily due to the issuance of shares related to the equity financing completed in February, and the acquisition of Richmont Mines in November.
Total liabilities and equity		$3,313.8		$2,492.2

Liquidity and Capital Resources

The Company’s strategy is based on achieving positive cash flow from operations to internally fund operating, capital and project development requirements. Material increases or decreases in the Company’s liquidity and capital resources will be substantially determined by the success or failure of the Company’s operations, exploration, and development programs, the ability to obtain equity or other sources of financing, the price of gold, and currency exchange rates.

As at December 31, 2017, the Company had cash and cash equivalents of $200.8 million and $35.8 million in equity securities compared to $252.2 million and $14.1 million respectively, at December 31, 2016. In addition, with the amendment to its credit facility in the third quarter of 2017, the Company has access to an additional $400.0 million in liquidity. In the opinion of management, the Company's liquidity position of $636.6 million at December 31, 2017 comprised of cash and cash equivalents, equity securities and availability under the credit facility, together with cash flows from operations, is sufficient to support the Company's normal operating requirements and capital commitments on an ongoing basis.

The senior secured notes of $315.0 million outstanding at December 31, 2016 were repurchased on April 3, 2017 for $327.2 million, which was the first available prepayment date, and will save the Company $24.4 million of annual interest payments until 2020.

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2017Management’s Discussion and Analysis

Cash Flow

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Cash flow provided by operating activities	$48.6			$38.3			$163.5			$135.7
Cash flow provided by (used in) investing activities	7.0			(39.4		)	(119.4		)	(151.5		)
Cash flow used in by financing activities	(3.8		)	(18.7		)	(97.6		)	(12.8		)
Effect of foreign exchange rates on cash	—			(1.9		)	2.1			(2.1		)
Net increase (decrease) in cash	51.8			(21.7		)	(51.4		)	(30.7		)
Cash and cash equivalents, beginning of period	149.0			273.9			252.2			282.9
Cash and cash equivalents, end of period		$200.8			$252.2			$200.8			$252.2

Cash flow provided by operating activities

In the fourth quarter of 2017, operating activities generated cash flow of $48.6 million compared to $38.3 million in the same period of 2016. Cash flow provided by operations before working capital and taxes paid was $52.7 million in the fourth quarter, compared to $34.0 million in the prior year period. The increase was due to higher ounces sold at Young-Davidson, the inclusion of Island Gold sales for one month and higher average realized gold prices, offset by the strengthening of the Canadian dollar and Mexican Peso compared to the prior year period. For the full year, operating activities generated $163.5 million compared to $135.7 million in the prior year period, as a result of higher ounces sold and stronger margins on ounces sold.

Cash flow used in investing activities

For the fourth quarter of 2017, capital expenditures were $39.2 million compared to $37.5 million in 2016. The Company completed the acquisition of Richmont Mines in the quarter, whereby the Company acquired $46.2 million of cash and cash equivalents upon close of the transaction.

For the full year, the Company invested $162.5 million on mineral property, plant and equipment compared to $146.5 million in the prior year. Included in the current year amount is $12.5 million incurred on construction of La Yaqui Phase I and the purchase of a royalty on the Lynn Lake gold project of $6.7 million.

Cash flow provided by financing activities

In the fourth quarter of 2017, the Company paid dividends of $3.0 million or $0.01 per share. For the year ended, the Company used $97.6 million from financing activities, consisting of the repayment of the notes for $327.2 million, or 103.875% of face value, to redeem the senior secured notes as well as $12.2 million of accrued interest to the redemption date, offset by $239.1 million received from the equity financing net of transaction costs.

Senior Secured Notes

On April 3, 2017, the Company redeemed and retired the senior secured notes. The carrying value of the notes at the redemption date was $298.1 million, as a result the company recorded a loss on redemption of $29.1 million and a deferred tax recovery of $7.3 million. Repayment of the notes will save the Company $24.4 million of annual interest payments until 2020.

Credit Facility

On September 21, 2017, the Company amended and increased its existing undrawn revolving credit facility (the "Facility") from $150.0 million to $400.0 million. The maturity date of the Facility has been extended to September 20, 2021. The amended Facility bears interest at an interest rate of Libor plus 2.00% to 3.125% on drawn amounts and stand-by fees of 0.45% to 0.70% on undrawn amounts, based on the Company's net leverage ratio, as defined in the agreement. 

The Facility is secured against all of the material present and future assets, property and undertakings of the Company. The Facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. It contains financial covenant tests that include (a) a minimum interest coverage ratio of 3.0:1.0 and (b) a maximum net leverage ratio of 3.5:1.0, both as defined in the agreement. As at December 31, 2017, the Company is in compliance with the covenants and the Facility is fully undrawn.  

During the year ended, the Company incurred costs of $2.1 million to amend the Facility. These costs will be amortized into net earnings over the term of the Facility.

24

2017Management’s Discussion and Analysis

Contractual Obligations	Less than 1 year	2 - 3 years	4 - 5 years	More than 5 years	Total
Operating and financing leases	5.4	5.6	2.0	2.9	15.9
Accounts payable and accrued liabilities	96.8	—	—	—	96.8
Decommissioning liability	—	—	—	54.8	54.8
Contract mining	47.9	72.0	47.8	38.9	206.6
Flow-through share obligation	0.7	—	—	—	0.7
Capital commitments	21.8	—	—	—	21.8
	$172.6	$77.6	$49.8	$96.6	$396.6

Contractual obligations exist with respect to royalties; however gold production subject to royalty cannot be ascertained with certainty and the royalty rate varies with the gold price. Based on the current gold price and rates of production, royalty expense is expected to be approximately $5.0 million per quarter for 2018. Obligations related to contract mining are based on current mine plans, and are subject to change.

Outstanding Share Data

(in 000’s)	February 21, 2018
Common shares	389,372,607
Stock options	9,315,627
Warrants	12,386,037
Deferred share units	480,605
Performance share units	599,706
Restricted share units	1,500,934
	413,655,516

Related party transactions

There were no related party transactions during the year other than those disclosed in the Company’s consolidated financial statements for the year ended December 31, 2017.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

Financial Instruments    

The Company seeks to manage its exposure to fluctuations in commodity prices, interest rates and foreign exchange rates by entering into derivative financial instruments from time to time.

Commodity option and forward contracts

As at December 31, 2017, the Company held option contracts to protect against the risk of a decrease in the value of the gold price on a portion of gold sales. These option contracts ensure a minimum average realized gold price of $1,270 per ounce and a maximum average realized gold price of $1,444 per ounce, regardless of the movement in gold prices during 2017.

The following gold collar contracts are outstanding as of December 31, 2017:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2018	50,100	$1,270	$1,444

The fair value of these contracts was an asset of $0.5 million at December 31, 2017 (December 31, 2016 - asset of $3.3 million). The options mature through 2018.

25

2017Management’s Discussion and Analysis

Subsequent to year end, the Company hedged a further 53,200 ounces, ensuring an average minimum gold price of $1,295 and participation up to an average gold price of $1,465 per ounce.

For the year ended December 31, 2017, the Company realized a loss of $0.6 million related to the settlement of option contracts (for the year ended December 31, 2016 - realized losses of $1.2 million). Total unrealized losses for the year ended December 31, 2017 was $2.6 million (for the year ended December 31, 2016 - unrealized gain of $3.3 million). The Company has elected to not apply hedge accounting to the gold option contracts, with changes in fair value recorded in net earnings.

Foreign currency contracts

As at December 31, 2017, the Company held option contracts to protect against the risk of an increase in the value of the Canadian dollar and Mexican peso versus the US dollar. These option contracts are for the purchase of local currencies and the sale of US dollars, which settle on a monthly basis, are summarized as follows:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)
2018	Collars and forwards	174.0	1.31	1.36

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2018	Collars and forwards	1,560.0	18.72	20.71

The fair value of these contracts was an asset of $5.0 million at December 31, 2017 (December 31, 2016 - liability of $3.3 million). For the year ended December 31, 2017, the Company realized gains of $4.3 million on the foreign currency contracts (for the year ended December 31, 2016 - realized losses of $1.6 million). Of these gains only $3.5 million were eligible to be recognized in accumulated other comprehensive income under hedge accounting for the year ended December 31, 2017 (for the year ended December 31, 2016 - $nil).

Summary of Quarterly Financial and Operating Results

(in millions, except ounces, per share amounts, and average realized prices)
	Q4 2017			Q3 2017		Q2 2017		Q1 2017		Q4 2016			Q3 2016		Q2 2016			Q1 2016
Gold ounces produced	120,300			107,000		105,900		96,200		105,676			99,228		92,464			94,632
Gold ounces sold	126,786			100,551		104,023		98,755		107,505			94,791		95,866			90,989
Operating Revenues		$161.7			$128.8		$131.3		$121.0		$132.2			$125.6		$120.1			$104.3
Earnings (loss) from operations		$17.1			$20.9		$15.8		$2.2		$3.5			$17.2		$2.9			($2.3	)
Net (loss) earnings		($4.7	)		$28.8		$2.4		$0.1		($20.6	)		$4.8		($11.8	)		$9.7
(Loss) earnings per share, basic(2)		($0.01	)		$0.10		$0.01		$0.00		($0.08	)		$0.02		($0.04	)		$0.04
Earnings (loss) before interest, taxes, depreciation and amortization (1)		$48.1			$51.4		$50.6		$35.9		$29.3			$51.1		$29.1			$25.9
Cash provided by operating activities		$48.6			$43.4		$51.4		$20.1		$38.3			$36.7		$36.9			$23.8
Average realized gold price		$1,275			$1,281		$1,262		$1,225		$1,230			$1,325		$1,253			$1,146

⁽¹⁾  Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this MD&A for a description and calculation of these measures.

Operating revenues have trended up since Q1 2016 as a result of higher production and a strengthening gold price. Gold production and earnings from operations have improved since Q1 2016 as a result of a higher gold price and lower operating costs, resulting in higher margins on ounces produced.

26

2017Management’s Discussion and Analysis

Non-GAAP Measures and Additional GAAP Measures

The Company has included certain non-GAAP financial measures to supplement its Consolidated Financial Statements, which are presented in accordance with IFRS, including the following:

• cash flow from operating activities before changes in working capital and taxes received;

• total mine-site free cash flow

• mine-site free cash flow;

• total cash cost per ounce of gold sold;

• all-in sustaining cost ("AISC") per ounce of gold sold;

• mine-site all-in sustaining cost ("Mine-site AISC") per ounce of gold sold;

• sustaining and non-sustaining capital expenditures; and

• earnings before interest, taxes, depreciation, and amortization

The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management's determination of the components of non-GAAP and additional measures are evaluated on a periodic basis influenced by new items and transactions, a review of investor uses and new regulations as applicable. Any changes in to the measures are dully noted and retrospectively applied as applicable.

Cash Flow from Operating Activities before Changes in Working Capital and Cash Taxes

“Cash flow from operating activities before changes in working capital and cash taxes” is a non-GAAP performance measure that could provide an indication of the Company’s ability to generate cash flows from operations, and is calculated by adding back the change in working capital and taxes received to “Cash provided by (used in) operating activities” as presented on the Company’s consolidated statements of cash flows. “Cash flow from operating activities before changes in working capital” is a non-GAAP financial measure with no standard meaning under IFRS.

The following table reconciles the non-GAAP measure to the consolidated statements of cash flows.

(in millions)
	Three Months Ended December 31,					Years Ended December 31,
	2017		2016			2017		2016
Cash flow from operating activities	$48.6		$38.3			$163.5		$135.7
Add back: Changes in working capital and cash taxes	4.1		(4.3		)	19.8		12.3
Cash flow from operating activities before changes in working capital and cash taxes		$52.7		$34.0			$183.3		$148.0

Mine-site Free Cash Flow

"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from mine-site operating activities, less mineral property, plant and equipment expenditures. The Company believes this to be a useful indicator of our ability to operate without reliance on additional borrowing or usage of existing cash. Free cash flow is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures of performance presented by other mining companies. Free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

27

2017Management’s Discussion and Analysis

Total Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
(in millions)
Cash flow from operating activities	$48.6			$38.3			$163.5			$135.7
Less: operating cash flow used by non-mine site activity	(19.5		)	(7.5		)	(31.9		)	(28.0		)
Cash flow from operating mine-sites		$68.1			$45.8			$195.4			$163.7
Mineral property, plant and equipment expenditure	$39.2			$37.5			$162.5			$146.5
Less: capital expenditures from development projects, and corporate	(8.2		)	(5.2		)	(44.6		)	(18.2		)
Capital expenditure from mine-sites		$31.0			$32.3			$117.9			$128.3
Total mine-site free cash flow		$37.1			$13.5			$77.5			$35.4

Young-Davidson Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
(in millions)
Cash flow from operating activities	$33.4			$26.0			$114.5			$98.4
Mineral property, plant and equipment expenditure	(17.0		)	(22.6		)	(80.3		)	(94.6		)
Mine-site free cash flow		$16.4			$3.4			$34.2			$3.8

Mulatos Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
(in millions)
Cash flow from operating activities	$22.3			$19.6			$64.3			$59.7
Mineral property, plant and equipment expenditure	(9.0		)	(9.5		)	(43.9		)	(32.9		)
Less: La Yaqui Phase I construction cost	—			—			12.5			—
Mulatos mineral property, plant and equipment expenditure		($9.0	)		($9.5	)		($31.4	)		($32.9	)
Mine-site free cash flow1		$13.3			$10.1			$32.9			$26.8

1. Excludes construction capital at La Yaqui Phase I.

Island Gold Mine-Site Free Cash Flow
	Three Months Ended December 31,					Years Ended December 31,
	2017			2016		2017			2016
(in millions)
Cash flow from operating activities	$11.8			—		$11.8			—
Mineral property, plant and equipment expenditure	(4.8		)	—		(4.8		)	—
Mine-site free cash flow		$7.0			$—		$7.0			$—

28

2017Management’s Discussion and Analysis

El Chanate Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
(in millions)
Cash flow from operating activities	$0.6			$0.2			$4.8			$5.6
Mineral property, plant and equipment expenditure	(0.2		)	(0.2		)	(1.4		)	(0.8		)
Mine-site free cash flow		$0.4			$—			$3.4			$4.8

Total Cash Costs per ounce

Total cash costs per ounce is a non-GAAP term typically used by gold mining companies to assess the level of gross margin available to the Company by subtracting these costs from the unit price realized during the period. This non-GAAP term is also used to assess the ability of a mining company to generate cash flow from operations. Total cash costs per ounce includes mining and processing costs plus applicable royalties, and net of by-product revenue and net realizable value adjustments. Total cash costs per ounce is exclusive of exploration costs.

Total cash costs per ounce is intended to provide additional information only and does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The measure is not necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.

All-in Sustaining Costs per ounce and Mine-site All-in Sustaining Costs

The Company adopted an “all-in sustaining costs per ounce” non-GAAP performance measure in accordance with the World Gold Council published in June 2013. The Company believes the measure more fully defines the total costs associated with producing gold; however, this performance measure has no standardized meaning. Accordingly, there may be some variation in the method of computation of “all-in sustaining costs per ounce” as determined by the Company compared with other mining companies. In this context, “all-in sustaining costs per ounce” for the consolidated Company reflects total mining and processing costs, corporate and administrative costs, share-based compensation, exploration costs, sustaining capital, and other operating costs.

For the purposes of calculating "mine-site all-in sustaining costs" at the individual mine-sites, the Company does not include an allocation of corporate and administrative costs and share-based compensation, as detailed in the reconciliations below.

Sustaining capital expenditures are expenditures that do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s development projects as well as certain expenditures at the Company’s operating sites that are deemed expansionary in nature. For each mine-site reconciliation, corporate and administrative costs, and non-site specific costs are not included in the all-in sustaining cost per ounce calculation.

All-in sustaining costs per gold ounce is intended to provide additional information only and does not have any standardized  meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be  considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The measure is not  necessarily indicative of cash flow from operations under IFRS or operating costs presented under IFRS.  

29

2017Management’s Discussion and Analysis

Total Cash Costs and All-in Sustaining Costs per Ounce Reconciliation Tables

The following tables reconciles these non-GAAP measures to the most directly comparable IFRS measures on a Company-wide and individual mine-site basis.

Total Cash Costs and AISC Reconciliation - Company-wide
	Three Months Ended December 31,				Years Ended December 31,
	2017		2016		2017			2016		2015
(in millions, except ounces and per ounce figures)
Mining and processing	$90.6		$86.9		$315.6			$297.0		$259.2
Royalties	4.9		3.6		15.6			13.3		7.3
Inventory and other adjustments	—		—		—			—		(29.4		)
Total cash costs		$95.5		$90.5		$331.2			$310.3		$237.1
Gold ounces sold	126,786		107,505		430,115			389,151		309,468
Total cash costs per ounce	$753		$842		$770			$797		$766
Total cash costs	$95.5		$90.5		$331.2			$310.3		$237.1
Corporate and administrative(1)	4.6		4.6		15.5			16.3		17.6
Sustaining capital expenditures(2)	11.5		12.3		42.7			49.2		68.2
Share-based compensation	1.1		0.9		6.2			10.2		5.1
Sustaining exploration	1.0		1.6		3.9			3.5		3.4
Accretion of decommissioning liabilities	0.7		0.5		2.7			2.1		1.3
Realized gains on FX options	—		0.6		(0.8		)	1.6		5.0
Total all-in sustaining costs		$114.4		$111.0		$401.4			$393.2		$337.7
Gold ounces sold	126,786		107,505		430,115			389,151		309,468
All-in sustaining costs per ounce	$902		$1,033		$933			$1,010		$1,091

⁽¹⁾  Corporate and administrative expenses exclude expenses incurred at development properties.

⁽²⁾  Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and exclude all expenditures at growth projects and certain expenditures at operating sites which are deemed expansionary in nature. Total sustaining capital for the period is as follows:

	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016			2015
Capital expenditures per cash flow statement		$39.2			$37.5			$162.5			$146.5			$163.1
Less: non-sustaining capital expenditures at:
Young-Davidson	(8.3		)	(12.1		)	(46.2		)	(54.6		)	(61.1		)
Mulatos	(8.1		)	(7.9		)	(38.4		)	(24.5		)	(9.9		)
Island Gold	(3.1		)	—			(3.1		)	—			—
El Chanate	—			—			—			—			(0.9		)
Corporate and other	(8.2		)	(5.2		)	(32.1		)	(18.2		)	(23.0		)
		$11.5			$12.3			$42.7			$49.2			$68.2

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2017Management’s Discussion and Analysis

Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2017		2016		2017		2016
(in millions, except ounces and per ounce figures)
Mining and processing	$35.1		$26.5		$125.9		$107.4
Royalties	1.1		0.8		4.4		3.7
Total cash costs		$36.2		$27.3		$130.3		$111.1
Gold ounces sold	52,475		40,934		197,937		168,979
Total cash costs per ounce	$690		$667		$658		$657
Total cash costs	$36.2		$27.3		$130.3		$111.1
Sustaining capital expenditures	8.7		10.5		34.1		40.0
Exploration	0.1		0.1		0.4		0.3
Accretion of decommissioning liabilities	0.1		—		0.2		0.1
Total all-in sustaining costs		$45.1		$37.9		$165.0		$151.5
Gold ounces sold	52,475		40,934		197,937		168,979
Mine-site all-in sustaining costs per ounce	$859		$926		$834		$897

Mulatos Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2017		2016		2017		2016
(in millions, except ounces and per ounce figures)
Mining and processing	$34.9		$41.2		$112.9		$117.2
Royalties	3.2		2.8		10.6		9.6
Total cash costs		$38.1		$44.0		$123.5		$126.8
Gold ounces sold	50,006		50,178		159,276		151,337
Total cash costs per ounce	$762		$877		$775		$838
Total cash costs	$38.1		$44.0		$123.5		$126.8
Sustaining capital expenditures	0.9		1.6		5.5		8.4
Exploration	0.4		0.7		1.9		1.9
Accretion of decommissioning liabilities	0.5		0.4		2.1		1.6
Total all-in sustaining costs		$39.9		$46.7		$133.0		$138.7
Gold ounces sold	50,006		50,178		159,276		151,337
Mine-site all-in sustaining costs per ounce	$798		$931		$835		$916

Island Gold Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2017		2016		2017		2016
(in millions, except ounces and per ounce figures)
Mining and processing	$4.1			$—	$4.1			$—
Royalties	0.6		—		0.6		—
Total cash costs		$4.7		$—		$4.7		$—
Gold ounces sold	11,720		—		11,720		—
Total cash costs per ounce	$401			$—	$401			$—
Total cash costs	$4.7		—		$4.7		—
Sustaining capital expenditures	1.7		—		1.7		—
Exploration	—		—		—		—
Total all-in sustaining costs		$6.4		$—		$6.4		$—
Gold ounces sold	11,720		—		11,720		—
Mine-site all-in sustaining costs per ounce	$546			$—	$546			$—

31

2017Management’s Discussion and Analysis

El Chanate Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2017		2016		2017		2016
(in millions, except ounces and per ounce figures)
Mining and processing	$16.5		$19.2		$72.7		$72.4
Total cash costs		$16.5		$19.2		$72.7		$72.4
Gold ounces sold	12,585		16,393		61,182		68,835
Total cash costs per ounce	$1,311		$1,171		$1,188		$1,052
Total cash costs	$16.5		$19.2		$72.7		$72.4
Sustaining capital expenditures	0.2		0.2		1.4		0.8
Accretion of decommissioning liabilities	0.1		0.1		0.4		0.4
Total all-in sustaining costs		$16.8		$19.5		$74.5		$73.6
Gold ounces sold	12,585		16,393		61,182		68,835
Mine-site all-in sustaining costs per ounce	$1,335		$1,190		$1,218		$1,069

Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)

EBITDA represents net earnings before interest, taxes, depreciation, and amortization. EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.

EBITDA does not have any standardized meaning under IFRS and may not be comparable to similar measures presented by other mining companies. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

The following is a reconciliation of EBITDA to the consolidated financial statements:

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2017			2016			2017			2016
Net earnings		($4.7	)		($20.6	)		$26.6			($17.9	)
Add back:
Finance expense	1.4			6.4			9.1			24.0
Amortization	41.1			31.1			125.6			119.0
Loss on redemption of senior secured notes	—			—			29.1			—
Deferred income tax expense (recovery)	6.0			11.5			(16.3		)	6.5
Current income tax expense	4.3			0.9			11.9			3.8
EBITDA		$48.1			$29.3			$186.0			$135.4

Additional GAAP Measures

Additional GAAP measures are presented on the face of the Company’s consolidated statements of comprehensive income and are not meant to be a substitute for other subtotals or totals presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. The following additional GAAP measures are used and are intended to provide an indication of the Company’s mine and operating performance:

• Earnings from operations - represents the amount of earnings before net finance income/expense, foreign exchange gain/loss, other income/loss, loss on redemption of senior secured notes and income tax expense

32

2017Management’s Discussion and Analysis

Accounting Estimates, Policies and Changes

Many of the amounts included in the Consolidated Statements of Financial Position require management to make estimates and judgements. Accounting estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

Critical accounting estimates

The following is a list of the accounting estimates that the Company believes are critical, due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liabilities, revenue or expense being reported. Actual results may differ from these estimates.

• The Company accounts for its ore stockpiles and in-process precious metals inventory using a process flow for applicable costs appropriate to the physical transformation of ore through the mining, crushing, leaching from heap leach operations, milling and gold recovery process. The Company estimates the expected ultimate recovery based on laboratory tests and ongoing analysis of leach pad kinetics in order to estimate the recoverable metals at the end of each accounting period. If the Company determines at any time that the ultimate recovery should be adjusted downward, then the Company will adjust the average carrying value of a unit of metal content in the in-process inventory and adjust upward on a prospective basis the unit cost of subsequent production. The Company estimates concentrate production based on assays and moisture samples taken and tested in laboratories, as well as weights using a calibrated scale. Final weights and assays are taken on settlement with the buyer, which are reconciled to production. Should an upward adjustment in the average carrying value of a unit of metal result in the carrying value exceeding the realizable value of the metal, the Company would write down the carrying value to the realizable value.

• The Company values inventory at the lower of cost and net realizable value. The calculation of net realizable value relies on forecasted gold prices, estimated grades of ore on stockpiles, concentrate and heap leach pads, forecasted exchange rates, and estimated costs to complete the processing of ore inventory.

• The Company makes estimates of the quantities of proven and probable reserves of the mine and the portion of mineralization expected to be classified as reserves. The estimation of quantities of reserves and resources is complex, requiring significant subjective assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Reserve estimates are used in the calculation of depletion expense and to calculate the recoverable amount of a CGU, and to forecast the life of the mine.

• The Company forecasts prices of commodities, exchange rates, production costs, discount rates, and recovery rates. These estimates may change the economic status of reserves and may result in reserves and resources being revised. In addition, these estimates are used to calculate the recoverable amount of a CGU for the purpose of impairment testing.

• The Company amortizes its property, plant and equipment, net of residual value, over the estimated useful life of each asset, not to exceed the life of the mine at which the asset is utilized. The Company uses estimated proven and probable mineral reserves, and an estimate of mineral resources as the basis for amortizing certain mineral property, plant and equipment. The physical life of these assets, and related components, may differ from the Company’s estimate, which would impact amortization and depletion expense.

• The Company makes estimates of the likelihood of whether or not all or some portion of each deferred income tax asset and investment tax credits will be realized, which is impacted by interpretation of tax laws and regulations, historic and future expected levels of taxable income, timing of reversals of taxable temporary timing differences, and tax planning initiatives. Levels of future taxable income are affected by, among other things, market gold prices, production costs, quantities of proven and probable gold reserves, interest rates, and foreign currency exchange rates.

• The Company makes estimates of the timing and amount of expenditures required to settle the Company’s decommissioning liabilities. The principal factors that can cause expected future expenditures to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics that ultimately impact the environment; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. In general, as the end of the mine life nears, the reliability of expected cash flows increases, but earlier in the mine life, the estimation of a decommissioning liability is inherently more subjective.

Critical accounting judgements

The following are critical judgements that management has made in the process of applying accounting policies that may have a significant impact on the amounts recognized in the consolidated financial statements.

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2017Management’s Discussion and Analysis

• The Company makes judgements about whether or not indicators of impairment, or indicators of a reversal of impairment, exist at each reporting period. This determination impacts whether or not a detailed impairment assessment is performed at the reporting date. These judgements did not impact cash generating units at December 31, 2017, or for December 31, 2016.

Accounting Policies and Changes

The Company adopted the following amendments to accounting standards, effective January 1, 2017:

The Company adopted the following amendments to accounting standards, effective January 1, 2017:

The Company adopted IFRS 9 (2014), Financial Instruments (“IFRS 9”). This standard replaces the guidance in IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”) on the classification and measurement of financial assets and financial liabilities. IFRS 9 provides a new model for the classification and measurement of financial assets. The Company has fully incorporated the standard into its accounting policy, and has included the impact of the adoption in note 2(r).

The Company adopted amendments to IAS 12, Income Taxes. The amendments clarify that the existence of a deductible temporary difference depends solely on a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by possible future changes in the carrying amount or expected manner of recovery of the asset. The amendments also clarify the methodology to determine the future taxable profits used for assessing the utilization of deductible temporary differences. The amendments had no impact on the consolidated financial statements.

Future accounting standard changes, not effective as of December 31, 2017:

	Effective
IFRS 15, Revenue from Contracts with Customers	January 1, 2018
IFRS 16, Leases	January 1, 2019
IFRIC 22, Foreign Currency Transactions and Advance Consideration	January 1, 2018

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), outlines a single comprehensive model with guidance for entities to use in accounting for revenue arising from contracts with its customers. IFRS 15 uses a control based approach to recognize revenue which is a change from the risk and reward approach under the current standard. This standard replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. The Company will adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRS 15, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRS 16, Leases, specifies the methodology to recognize, measure, present and disclose leases. This standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. This standard substantially carries forward the lessor accounting requirements of IAS 17, while requiring enhanced disclosures to be provided by lessors. Other areas of the lease accounting model have been impacted, including the definition of a lease. Transitional provisions have been provided. The Company intends to adopt IFRS 16 in its financial statements for the annual period beginning on January 1, 2019. The Company is currently compiling a list and reviewing contracts that may be impacted, with particular focus on the contract mining at Mulatos

IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration, clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Interpretation is applicable for annual periods beginning on or after January 1, 2018. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRIC 22, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRIC 23, Uncertainty over Income Tax Treatments, provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019. Earlier application is permitted. The Interpretation requires: (a) an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution; (b) an entity to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and (c) if it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The extent of the impact of adoption of the Interpretation has not yet been determined.

Internal Control over Financial Reporting

Management is responsible for the design and operating effectiveness of internal control over financial reporting. Under the supervision of the Chief Executive Officer and Chief Financial Officer, management evaluated the effectiveness of the Company’s

34

2017Management’s Discussion and Analysis

internal control over financial reporting as of December 31, 2017. In making the assessment, management used the criteria set forth in Internal Control - Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the evaluation performed, management determined internal control over financial reporting was effective as at December 31, 2017. In making this evaluation, management limited the scope of its evaluation to exclude the business acquired as a result of the acquisition of Richmont Mines Inc. on November 23, 2017 (refer to Scope of Evaluation - Acquisition of Richmont Mines Inc., below).

KPMG LLP, an independent registered public accounting firm, has audited the effectiveness of the Company’s internal control over financial reporting, and has expressed their opinion in their report included with our annual consolidated financial statements filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the quarter ended December 31, 2017 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Disclosure Controls

Management is also responsible for the design and effectiveness of disclosure controls and procedures. The Company’s Chief Executive Officer and Chief Financial Officer have each evaluated the effectiveness of the Company’s disclosure controls and procedures as at December 31, 2017 and have concluded that these disclosure controls and procedures were appropriately designed and operating effectively as at December 31, 2017. In making this evaluation, management limited the scope of its evaluation to exclude the business acquired as a result of the acquisition of Richmont Mines Inc. on November 23, 2017 (refer to Scope of Evaluation - Acquisition of Richmont Mines Inc., below).

Scope of Evaluation - Acquisition of Richmont Mines Inc.

Effective November 23, 2017, the Company acquired 100% of the outstanding common shares of Richmont Mines Inc. The results of Richmont’s operations have been included in the consolidated financial statements since the date of acquisition. Management has excluded the Richmont operations from the Company’s annual assessment of disclosure controls and procedures and internal control over financial reporting. A summary of the financial information for Richmont, expressed in millions of dollars, which was included in the consolidated financial statements of the Company at December 31, 2017 and for the year then ended is as follows:

• Revenue, $14.9 million;

• Earnings from operations, $1.5 million;

• Total assets, $849.6 million;

• Total liabilities, $222.5 million;

Risk Factors and Uncertainties

Risk Factors

The following is a discussion of risk factors relevant to the Company’s operations and future financial performance. Additional risks not currently known by the Company, or that the Company currently deems immaterial, may also impair the Company’s operations.

The financing, exploration, development and mining of any of the Company’s properties is subject to a number of risk factors, including, among other things, the price of gold, laws and regulations, political conditions, currency fluctuations, and the ability to hire qualified people and to obtain necessary services in jurisdictions where the Company operates. Before deciding to invest in securities of the Company, investors should consider carefully such risks and uncertainties.

Commodity and Currency Risk

In recent years financial conditions have been characterized by volatility, which in turn has resulted in volatility in commodity prices and foreign exchange rates, tightening of the credit market, increased counterparty risk, and volatility in the prices of publicly traded entities. The volatility in commodity prices and foreign exchange rates directly impacts the Company’s revenues, earnings and cash flow.

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2017Management’s Discussion and Analysis

The volatility of the price of gold and the price of other metals could have a negative impact on the Company’s future operations.

The value of the Company’s mineral resources and future operating profit and loss is significantly impacted by fluctuations in gold prices, over which the Company has no control. A reduction in the price of gold may prevent the Company’s properties from being economically mined or result in the write-off of assets whose value is impaired as a result of low gold prices. The price of gold may also have a significant influence on the market price of the Company’s common shares. The price of gold is affected by numerous factors beyond the Company’s control, such as the level of inflation, fluctuation of the United States dollar and foreign currencies, global and regional demand, sale of gold by central banks and the political and economic conditions of major gold producing countries throughout the world.

In addition to adversely affecting the Company’s reserve and resource estimates and financial condition, declining metal prices can impact operations by requiring a reassessment of the feasibility of a particular project, and the Company may determine that it is not feasible to continue commercial production at some or all of its current projects. Even if a project is ultimately determined to be economically viable, the need to conduct such a reassessment may cause substantial delays and/or may interrupt operations until the reassessment can be completed, which may have a material adverse effect on the results of operations and financial condition.

From time to time the Company may engage in commodity hedging transactions intended to reduce the risk associated with fluctuations in commodity prices, but there is no assurance that any such commodity-hedging transactions designed to reduce the risk associated with fluctuations in metal prices will be successful. Hedging may not protect adequately against declines in the price of the hedged metal. Furthermore, although hedging may protect the Company from a decline in the price of the metal being hedged, it may also prevent it from benefiting from price increases.

The Company is subject to currency fluctuations that may adversely affect the financial position of the Company.

The Company is subject to currency risks. The Company’s functional currency is the U.S. dollar, which is exposed to fluctuations against other currencies. The Company’s mining operations are located in Canada and Mexico, with additional development stage assets in Canada, the United States, Mexico and Turkey, and as such many of its expenditures and obligations are denominated in Canadian dollars, Mexican pesos, Turkish lira and Euros. The Company maintains its principal office in Toronto (Canada), maintains cash accounts in U.S. dollars, Mexican pesos, Turkish lira and Canadian dollars and has monetary assets and liabilities in U.S. dollars and Canadian dollars, Mexican pesos and Turkish lira.

The Company’s operating results and cash flow are significantly affected by changes in the U.S./Canadian dollar and U.S./Mexican peso exchange rates. Revenues are denominated in U.S. dollars, while most expenses are currently denominated in Canadian dollars and Mexican pesos. Exchange rate movements can therefore have a significant impact on most of the Company’s costs. The appreciation of non-U.S. dollar currencies against the U.S. dollar can increase the costs of production at Alamos’ mines, making these mines less profitable.

From time to time the Company may engage in foreign exchange hedging transactions intended to reduce the risk associated with fluctuations in foreign exchange rates, but there is no assurance that any such hedging transactions designed to reduce the risk associated with fluctuations in exchange rates will be successful and as such, operating costs and capital expenditures may be adversely impacted.

Financial, Finance and Tax Risks

The Company’s activities expose it to a variety of financial risks including interest rate risk, credit risk and liquidity risk. The Company’s risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company may use derivative financial instruments to hedge certain risk exposures. The Company does not purchase derivative financial instruments for speculative investment purposes.

The Company’s revolving credit facility contains a number of restrictive covenants that impose significant operating and financial restrictions on the Company and may limit its ability to engage in acts that may be in the Company’s long-term best interest.

The Company’s failure to comply with covenants in its revolving credit facility could result in an event of default which, if not cured or waived, could result in the acceleration of such debt. The restrictions include, without limitation, restrictions on its ability to:

• Incur additional indebtedness;

• Pay dividends or make other distributions or repurchase or redeem its capital stock;

• Prepay, redeem or repurchase certain debt;

• Make loans and investments;

• Sell, transfer or otherwise dispose of assets;

• Incur or permit to exist certain liens;

• Enter into transactions with affiliates;

• Enter into agreements restricting its subsidiaries’ ability to pay dividends; and

• Consolidate, amalgamate, merge or sell all or substantially all of the Company’s assets.

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2017Management’s Discussion and Analysis

Liquidity Risk

Liquidity risk arises through the excess of financial obligations due over available financial assets at any point in time. The Company’s objective in managing liquidity risk is to maintain sufficient readily available cash reserves and credit in order to meet its liquidity requirements at any point in time. The total cost and planned timing of acquisitions and/or other development or construction projects is not currently determinable and it is not currently known whether the Company will require external financing in future periods.

In order to finance future operations, the Company may raise funds through the issuance of shares or the issuance of debt instruments or other securities convertible into shares.

The Company cannot predict the potential need or size of future issuances of common shares or the issuance of debt instruments or other securities convertible into shares or the effect, if any, that this would have on the market price of the Company’s common shares. Any transaction involving the issuance of shares, or securities convertible into shares, could result in dilution, possibly substantial, to present and prospective security holders.

The Company is subject to taxation in multiple jurisdictions and adverse changes to the taxation laws of such jurisdictions could have a material adverse effect on its profitability.

The Company has operations and conducts business in multiple jurisdictions and it is subject to the taxation laws of each such jurisdiction. These taxation laws are complicated and subject to change. The Company may also be subject to review, audit and assessment in the ordinary course. Any such changes in taxation law or reviews and assessments could result in higher taxes being payable or require payment of taxes due from previous years, which could adversely affect the Company’s profitability. Taxes may also adversely affect the Company’s ability to repatriate earnings and otherwise deploy its assets.

The Company may not be able to obtain the external financing necessary to continue its exploration and development activities on its mineral properties.

The ability of the Company to continue the exploration and development of its property interests will be dependent upon its ability to increase revenues from its existing production and planned expansions, and potentially raise significant additional financing thereafter. The sources of external financing that the Company may use for these purposes may include project debt, corporate debt or equity offerings. There is no assurance that the financing alternative chosen by the Company will be available to the Company, on favourable terms or at all. Depending on the alternative chosen, the Company may have less control over the management of its projects. There is no assurance that the Company will successfully increase revenues from existing and expanded production. Should the Company not be able to obtain such financing and increase its revenues, it may become unable to acquire and retain its exploration properties and carry out exploration and development on such properties, and its title interests in such properties may be adversely affected or lost entirely.

Production, Mining and Operating Risks

The Company is, and expects to continue to be, dependent on four mines for all of its commercial production.

The Young-Davidson, Island Gold, Mulatos and El Chanate Mines accounted for all of the Company’s commercial production in 2017 and are expected to continue to account for all of its commercial production in the near term. Any adverse condition affecting mining, processing conditions, expansion plans or ongoing permitting at Young-Davidson, Island Gold, Mulatos or El Chanate could have a material adverse effect on the Company’s financial performance and results of operations.

Forecasts of future production are estimates based on interpretation and assumptions and actual production may be less than estimated.

The Company prepares estimates of future production for its operating mines. The Company cannot give any assurance that it will achieve its production estimates. The failure of the Company to achieve its production estimates could have a material and adverse effect on future cash flows, profitability, results of operations and financial condition. These production estimates are dependent on, among other things, the accuracy of mineral reserve estimates, leach pad inventory, the accuracy of assumptions regarding ore grades and recovery rates, ground conditions, physical characteristics of ores, such as hardness and the presence or absence of particular metallurgical characteristics and the accuracy of estimated rates and costs of mining and processing.

The Company’s actual production may vary from its estimates for a variety of reasons, including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; short-term operating factors such as the need for sequential development of orebodies and the processing of new or different ore grades from those planned; mine failures, slope failures or equipment failures; industrial accidents; natural phenomena such as inclement weather conditions, floods, droughts, rock slides and earthquakes; encountering unusual or unexpected geological conditions; changes in power costs and potential power shortages; shortages of principal supplies needed for operation, including explosives, fuels, chemical reagents, water, equipment parts and lubricants; labour shortages or strikes; civil disobedience and protests; and restrictions or regulations imposed by government agencies or other changes in the regulatory environments. Such occurrences could result in damage to mineral properties, interruptions in production, injury or death to persons, damage to property of the Company or others, monetary losses and legal liabilities. These factors may cause a mineral deposit that has been mined profitably in the past to become unprofitable, forcing the Company to cease production. It is not unusual in new mining operations to experience unexpected problems during

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2017Management’s Discussion and Analysis

the start-up phase. Depending on the price of gold or other minerals, the Company may determine that it is impractical to commence or, if commenced, to continue commercial production at a particular site.

Mining operations and facilities are intensive users of electricity and carbon-based fuels. Energy prices can be affected by numerous factors beyond the Company’s control, including global and regional supply and demand, political and economic conditions, and applicable regulatory regimes. The prices of various sources of energy may increase significantly from current levels. An increase in energy prices for which the Company is not hedged could materially adversely affect the results of operations and financial condition.

The Company’s production costs are also affected by the prices of commodities consumed or used in operations, such as lime, cyanide and explosives. The prices of such commodities are influenced by supply and demand trends affecting the mining industry in general and other factors outside the Company’s control. Increases in the price for materials consumed in mining and production activities could materially adversely affect the Company’s results of operations and financial condition.

Risks and costs relating to development, ongoing construction and changes to existing mining operations and development projects.

The Company’s ability to meet development and production schedules and cost estimates for its development and expansion projects cannot be assured. Without limiting the generality of the foregoing, the Company is in the process of completing a ramp-up and expansion at both the Young-Davidson and Island Gold Mines and development at its Cerro Pelon and La Yaqui deposits near the Mulatos Mine in Mexico. In addition, the Company is undertaking permitting efforts with respect to expanded tailings dam facilities at the Young-Davidson Mine and expansion of the mill at Island Gold. Technical considerations, delays in obtaining governmental approvals, inability to obtain financing or other factors - including specifically to the foregoing - could cause delays in current mining operations or in developing properties. Such delays could materially affect the financial performance of the Company.

The Company prepares estimates of operating costs and/or capital costs for each operation and project. No assurance can be given that such estimates will be achieved. Failure to achieve cost estimates or material increases in costs could have an adverse impact on future cash flows, profitability, results of operations and financial condition.

Development projects are uncertain and it is possible that actual capital and operating costs and economic returns will differ significantly from those estimated for a project prior to production.

Alamos has a number of development stage projects in Canada, Mexico, the United States and Turkey. Mine development projects require significant expenditures during the development phase before production is possible. Development projects are subject to the completion of successful feasibility studies and environmental assessments, issuance of necessary governmental permits and availability of adequate financing. The economic feasibility of development projects is based on many factors such as: estimation of mineral reserves, anticipated metallurgical recoveries, environmental considerations and permitting, future gold prices, and anticipated capital and operating costs of these projects. Our development projects have no operating history upon which to base estimates of future production and cash operating costs. Particularly for development projects, estimates of proven and probable mineral reserves and cash operating costs are, to a large extent, based upon the interpretation of geologic data obtained from drill holes and other sampling techniques, and feasibility studies that derive estimates of cash operating costs based upon anticipated tonnage and grades of ore to be mined and processed, the configuration of the ore body, expected recovery rates of gold from the ore, estimated operating costs, anticipated climatic conditions and other factors. As a result, it is possible that actual capital and operating costs and economic returns will differ significantly from those currently estimated for a project prior to production.

Any of the following events, among others, could affect the profitability or economic feasibility of a project: unanticipated changes in grade and tonnes of ore to be mined and processed, unanticipated adverse geological conditions, unanticipated metallurgical recovery problems, incorrect data on which engineering assumptions are made, availability of labour, costs of processing and refining facilities, availability of economic sources of power, adequacy of water supply, availability of surface on which to locate processing and refining facilities, adequate access to the site, unanticipated transportation costs, government regulations (including regulations with respect to the environment, prices, royalties, duties, taxes, permitting, restrictions on production, quotas on exportation of minerals, environmental), fluctuations in gold prices, and accidents, labour actions and force majeure events.

It is not unusual in new mining operations to experience unexpected problems during the start-up phase, and delays can often occur at the start of production. It is likely that actual results for our projects will differ from current estimates and assumptions, and these differences may be material. In addition, experience from actual mining or processing operations may identify new or unexpected conditions that could reduce production below, or increase capital or operating costs above, current estimates. If actual results are less favourable than currently estimated, our business, results of operations, financial condition and liquidity could be materially adversely affected.

The figures for the Company’s reserves and resources are estimates based on interpretation and assumptions and may yield less mineral production under actual conditions than is currently estimated.

The Company must continually replace reserves depleted by production to maintain production levels over the long term. Reserves can be replaced by expanding known orebodies, locating new deposits or making acquisitions. Exploration is highly speculative in nature. Alamos’ exploration projects involve many risks and are frequently unsuccessful. Once a site with mineralization is discovered,

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2017Management’s Discussion and Analysis

it may take several years from the initial phases of drilling until production is possible, during which time the economic feasibility of production may change.

The Company’s mineral reserve and mineral resource estimates are estimates only and no assurance can be given that any particular level of recovery of gold or other minerals from mineral resources or mineral reserves will in fact be realized. There can also be no assurance that an identified mineral deposit will ever qualify as a commercially mineable (or viable) ore body which can be economically exploited. Additionally, no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. These estimates may require adjustments or downward revisions based upon further exploration or development work or actual production experience.

Estimates of mineral resources and mineral reserves can also be affected by such factors as environmental permitting regulations and requirements, weather, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions. In addition, the grade of ore ultimately mined may differ dramatically from that indicated by results of drilling, sampling and other similar examinations. Short term factors relating to mineral resources and mineral reserves, such as the need for orderly development of ore bodies or the processing of new or different grades, may also have an adverse effect on mining operations and on the results of operations.

Material changes in mineral resources and mineral reserves, grades, stripping ratios or recovery rates may affect the economic viability of projects. There is a risk that depletion of reserves will not be offset by discoveries, acquisitions or the conversion of mineral resources into mineral reserves. The mineral base of Alamos’ mines may decline if reserves are mined without adequate replacement and the Company may not be able to sustain production beyond the current mine lives, based on current production rates.

Mineral resources and mineral reserves are reported as general indicators of mine life. Mineral resources and mineral reserves should not be interpreted as assurances of mine life or of the profitability of current or future operations. There is a degree of uncertainty attributable to the calculation and estimation of mineral resources and mineral reserves and corresponding grades being mined or dedicated to future production. Until ore is actually mined and processed, mineral reserves and grades must be considered as estimates only.

In addition, the quantity of mineral resources and mineral reserves may vary depending on mineral prices. Extended declines in market prices for gold, silver and copper may render portions of the Company’s mineralization uneconomic and result in reduced reported mineralization. Any material change in mineral resources and mineral reserves, grades or stripping ratios may affect the economic viability of the Company’s projects.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The SEC does not permit mining companies in their filings with the SEC to disclose estimates other than mineral reserves. However, because the Company prepares its reserve and resource estimates in accordance with Canadian disclosure requirements, it contains resource estimates, which are required by NI 43-101. Mineral resource estimates for properties that have not commenced production are based, in many instances, on limited and widely spaced drill hole information, which is not necessarily indicative of the conditions between and around drill holes. Accordingly, such mineral resource estimates may require revision as more drilling information becomes available or as actual production experience is gained. No assurance can be given that any part or all of mineral resources constitute or will be converted into reserves.

Legal, Permitting, Regulatory, Title and Political Risk

The Company’s operating and development properties are located in jurisdictions that are subject to changes in economic and political conditions and regulations in those countries.

The economics of the mining and extraction of precious metals are affected by many factors, including the costs of mining and processing operations, variations of grade of ore discovered or mined, fluctuations in metal prices, foreign exchange rates and the prices of goods and services, applicable laws and regulations, including regulations relating to royalties, allowable production and importing and exporting goods and services. Depending on the price of minerals, the Company may determine that it is neither profitable nor advisable to acquire or develop properties, or to continue mining activities.

The Company’s mineral properties are located in Canada, Mexico, Turkey and the USA. Economic and political conditions in these countries could adversely affect the business activities of the Company. These conditions are beyond the Company’s control, and there can be no assurances that any mitigating actions by the Company will be effective.

Changing laws and regulations relating to the mining industry or shifts in political conditions may increase the costs related to the Company’s activities including the cost of maintaining its properties. Operations may also be affected to varying degrees by changes in government regulations with respect to restrictions on production, price controls, export controls, income taxes, royalties, expropriation of property, environmental legislation (including specifically legislation enacted to address climate change) and mine safety. The effect of these factors cannot be accurately predicted. Economic instability could result from current global economic conditions and could contribute to currency volatility and potential increases to income tax rates, both of which could significantly impact the Company’s profitability.

The Company’s activities are subject to extensive laws and regulations governing worker health and safety, employment standards, waste disposal, protection of historic and archaeological sites, mine development, protection of endangered and protected species

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2017Management’s Discussion and Analysis

and other matters. Regulators have broad authority to shut down and/or levy fines against facilities that do not comply with regulations or standards.

Risk factors specific to certain jurisdictions are described throughout, including specifically: “Risks related to development stage assets in Turkey”, “Water Management at the Company’s Mining operations”, “Security in Mexico” and “The Company will be unable to undertake its required drilling and other development work on its properties if all necessary permits and licenses are not granted.” The occurrence of the various factors and uncertainties related to economic and political risks of operating in the Company’s jurisdictions cannot be accurately predicted and could have a material adverse effect on our operations or profitability.

Risk related to development stage assets in Turkey

The Company has development stage mineral properties located in Turkey. Economic and political conditions in Turkey could adversely affect the business activities of the Company.

These conditions are beyond the Company’s control, and there can be no assurances that any mitigating actions by the Company will be effective. Turkey has recently experienced significant political, social, legal and regulatory instability. The impact of the change in political climate in Turkey in recent years is yet largely unknown, but will in instances likely include heightened control of the judiciary, bureaucracy, media and the private business sector. Changes to existing governmental regulations may affect the Company’s ability to conduct business, mineral exploration and mining activities more broadly and the Company’s ability to generate cash flow and profits from operations. Associated risks include, but are not limited to, resource nationalism, terrorism, corruption, extreme fluctuations in currency exchange rates and high rates of inflation.

Changing laws and regulations relating to the mining industry or shifts in political conditions may increase the costs related to the Company’s activities including the cost of maintaining its properties. Operations may also be affected to varying degrees by changes in government regulations with respect to restrictions on production, price controls, export controls, income taxes, royalties, expropriation of property, environmental legislation (including specifically legislation enacted to address climate change) and mine safety. The effect of these factors cannot be accurately predicted. Economic instability could result from current economic conditions and could contribute to currency volatility and potential increases to income tax rates, both of which could significantly impact the Company’s profitability.

The Company’s activities are subject to extensive laws and regulations governing worker health and safety, employment standards, waste disposal, protection of historic and archaeological sites, mine development, protection of endangered and protected species and other matters. Regulators have broad authority to shut down and/or levy fines against facilities that do not comply with regulations or standards.

Security in Mexico

In recent years, criminal activity and violence has increased and continues to increase in parts of Mexico. The mining sector has not been immune to the impact of criminal activity and violence, including in the form of kidnapping for ransom and extortion by organized crime, as well as direct armed robberies of mining operations. The Company takes measures to protect employees, property and production facilities from these and other security risks. There can be no assurance, however, that security incidents, in the future, will not have a material adverse effect on our operations.

The Company will be unable to undertake its required drilling and other development work on its properties if all necessary permits and licenses are not granted.

A number of approvals, licenses and permits are required for various aspects of exploration, development and expansion projects. The Company is uncertain if all necessary permits will be maintained or obtained on acceptable terms or in a timely manner. Future changes in applicable laws and regulations or changes in their enforcement or regulatory interpretation could negatively impact current or planned exploration and development activities or any other projects with which the Company becomes involved. Any failure to comply with applicable laws and regulations or failure to obtain or maintain permits, even if inadvertent, could result in the interruption of production, exploration or development, or material fines, penalties or other liabilities. It remains uncertain if the Company’s existing permits may be affected in the future or if the Company will have difficulties in obtaining all necessary permits that it requires for its proposed or existing mining activities.

On January 5, 2017, the Company announced that it had received its forestry permit in connection with its Kirazlı Project in Turkey. The Company continues to pursue the GSM (Business Opening and Operation) permit which is granted by the Çanakkale Governorship. The Company cannot provide assurance it will be able to maintain its existing permits and/or obtain all additional permits that it requires for its proposed mining activities. There can be no certainty with respect to permitting timelines.

In order to maintain mining concessions in good standing, concession holders must advance their projects efficiently, including by obtaining the necessary permits prior to stipulated deadlines. The Company has implemented plans to obtain all necessary permits prior to the relevant deadlines. While the Company is confident in its ability to meet all required deadlines or milestones so as to maintain its concessions in good standing, there is risk that the relevant permitting and licensing authorities will not respond in a timely manner. If these deadlines are not met, the Company believes that extensions to deadlines for obtaining the required approvals and permits could be negotiated so that the concessions would remain in good standing. However, there is no guarantee that the Company will be able to obtain the approvals and permits as planned or, if unable to meet such deadlines, that negotiations for an

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2017Management’s Discussion and Analysis

extension will be successful in order to maintain its concessions in good standing. If the concessions were to expire, this could have a material adverse impact on the Company and its ability to control and develop its Turkish projects.

Litigation could be brought against the Company and the resolution of current or future legal proceedings or disputes may have a material adverse effect on the Company’s future cash flows, results of operations or financial condition.

The Company could be subject to legal claims and/or complaints and disputes with other parties that result in litigation, including unexpected environmental remediation costs, arising out of the normal course of business. The results of ongoing litigation cannot be predicted with certainty. The costs of defending and settling litigation can be significant, even for claims that Alamos believes has no merit. There is a risk that if such claims are determined adversely to the Company, they could have a material adverse effect on the Company’s financial performance, cash flow and results of operations.

Some of the Company’s mineral assets are located outside Canada and are held indirectly through foreign affiliates.

It may be difficult if not impossible to enforce judgments obtained in Canadian courts predicated upon the civil liability provisions of the securities laws of certain provinces against substantially all of the Company’s assets which are located outside Canada.

Failure of the Company to comply with laws and regulations could negatively impact current or planned mining activities and exploration and developmental activities.

The Company’s mining, exploration and development activities are subject to extensive laws and regulations concerning the environment, worker health and safety, employment standards, waste disposal, mine development, mine operation, mine closure and reclamation and other matters. The Company requires permits and approvals from various regulatory authorities for many aspects of mine development, operation, closure and reclamation. In addition to meeting the requirements necessary to obtain such permits and approvals, they may be invalidated if the applicable regulatory authority is legally challenged that it did not lawfully issue such permits and approvals. The ability of the Company to obtain and maintain permits and approvals and to successfully develop and operate mines may be adversely affected by real or perceived impacts associated with its activities that affect the environment and human health and safety at its development projects and operations and in the surrounding communities. The real or perceived impacts of the activities of other mining companies may also adversely affect our ability to obtain and maintain permits and approvals. The Company is uncertain as to whether all necessary permits will be maintained on acceptable terms or in a timely manner. Future changes in applicable laws and regulations or changes in their enforcement or regulatory interpretation could negatively affect current or planned mining, exploration and developmental activities on the projects in which the Company is or may become involved. Any failure to comply with applicable laws and regulations or to obtain or maintain permits, even if inadvertent, could result in the interruption of mining, exploration and developmental operations or in material fines, penalties, clean-up costs, damages and the loss of key permits or approvals. While the Company has taken great care to ensure full compliance with its legal obligations, there can be no assurance that the Company has been or will be in full compliance with all of these laws and regulations, or with all permits and approvals that it is required to have. Environmental and regulatory review has also become a long, complex and uncertain process that can cause potentially significant delays.

The Company cannot guarantee that title to its properties will not be challenged.

The validity of the Company’s mining claims and access rights can be uncertain and may be contested. Although the Company is satisfied it has taken reasonable measures to acquire the rights needed to undertake its operations and activities as currently conducted, some risk exists that some titles and access rights may be defective. No assurance can be given that such claims are not subject to prior unregistered agreements or interests or to undetected or other claims or interests which could be materially adverse to the Company. While the Company has used its best efforts to ensure title to all its properties and secured access to surface rights, these titles or rights may be disputed, which could result in costly litigation or disruption of operations. From time to time, a land possessor may dispute the Company’s surface access rights, and as a result the Company may be barred from its legal occupation rights. Surface access issues have the potential to result in the delay of planned exploration programs, and these delays may be significant. The Company expects that it will be able to resolve these issues, however, there can be no assurance that this will be the case.

Additional future property acquisitions, relocation benefits, legal and related costs may be material. The Company may need to enter into negotiations with landowners and other groups in the host communities where our projects are located in order to conduct future exploration and development work. The Company cannot currently determine the expected timing, outcome of such negotiations or costs associated with the relocation of property owners and possessors and potential land acquisitions. There is no assurance that future discussions and negotiations will result in agreements with landowners or other local community groups so as to enable the Company to conduct exploration and development work on these projects.

The Company provides significant economic and social benefits to our host communities and countries, which facilitates broad stakeholder support for our operations and projects. There is no guarantee however that local residents will support our operations or projects.

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2017Management’s Discussion and Analysis

Relationships with Key Stakeholders

Aboriginal title claims, rights to consultation/accommodation, and the Company’s relationship with local communities may affect the Company’s existing operations and development projects.

Governments in many jurisdictions must consult with aboriginal peoples with respect to grants of mineral rights and the issuance or amendment of project authorizations. Consultation and other rights of Aboriginal people may require accommodations, including undertakings regarding employment, royalty payments and other matters. This may affect the Company’s ability to acquire, within a reasonable time frame, effective mineral titles in these jurisdictions, including in some parts of Canada, in which aboriginal title is claimed, and may affect the timetable and costs of development of mineral properties in these jurisdictions. The risk of unforeseen aboriginal title claims also could affect existing operations as well as development projects. These legal requirements may also affect the Company’s ability to expand or transfer existing operations or to develop new projects.

The Company’s relationship with the communities in which it operates are critical to ensure the future success of its existing operations and the construction and development of its projects. There is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Adverse publicity relating to the mining industry generated by non-governmental organizations and others could have an adverse effect on the Company’s reputation or financial condition and may impact its relationship with the communities in which it operates. While the Company is committed to operating in a socially responsible manner, there is no guarantee that the Company’s efforts in this regard will mitigate this potential risk.

The inability of the Company to maintain positive relationships with local communities may result in additional obstacles to permitting, increased legal challenges, or other disruptive operational issues at any of our operating mines, and could have a significant adverse impact on the Company’s ability to generate cash flow, with a corresponding adverse impact to the Company’s share price and financial condition.

The Company’s directors and officers may have interests that conflict with the Company’s interests.

Certain of the Company’s directors and officers serve as directors or officers of other public companies and as such it is possible that a conflict may arise between their duties as the Company’s directors or officers and their duties as directors or officers of these other companies.

Exploration, development and production at the Company’s mining operations are dependent upon the efforts of its key personnel and its relations with its employees and any labor unions that represent employees.

The Company’s success is heavily dependent on its key personnel and on the ability to motivate, retain and attract highly skilled employees.

Relations between the Company and its employees may be affected by changes in the scheme of labour relations that may be introduced by Mexican or Canadian governmental authorities in whose jurisdictions the Company carries on operations. Changes in such legislation or in the relationship between the Company and its employees may have a material adverse effect on the Company’s business, results of operations and financial condition.

In addition, the Company anticipates that as it expands its existing production and brings additional properties into production, and as the Company acquires additional mineral rights, the Company may experience significant growth in its operations. This growth may create new positions and responsibilities for management personnel and increase demands on its operating and financial systems, as well as require the hiring of a significant number of additional operations personnel. There can be no assurance that the Company will successfully meet these demands and effectively attract and retain any such additional qualified personnel. The failure to attract and retain such qualified personnel to manage growth effectively could have a material adverse effect on the Company’s business, financial condition or results of operations.

As a result of social media and other web-based applications, companies today are at much greater risk of losing control over how they are perceived.

Damage to the Company’s reputation can be the result of the actual or perceived occurrence of any number of events, and could include any negative publicity, whether true or not. Although the Company places a great emphasis on protecting its image and reputation, it does not ultimately have direct control over how it is perceived by others. Reputation loss may lead to increased challenges in developing and maintaining community relations, decreased investor confidence and act as an impediment to the Company’s overall ability to advance its projects, thereby having a material adverse impact on financial performance, cash flows and growth prospects.

Environmental Risks

The Company’s activities are subject to environmental laws and regulations that may increase its costs of doing business and restrict its operations.

The Company’s exploration and production activities are subject to regulation by governmental agencies under various environmental laws. These laws address noise, emissions, water discharges, waste management, management of hazardous substances, protection of natural resources, antiquities and endangered species and reclamation of lands disturbed by mining operations.

42

2017Management’s Discussion and Analysis

Environmental legislation in many countries is evolving and the trend has been towards stricter standards and enforcement, increased fines, penalties and potential for facilities to be shut-down for non- compliance, more stringent environmental assessments of proposed projects and increasing responsibility for companies and their officers, directors and employees. Compliance with environmental laws and regulations may require significant capital outlays on behalf of the Company and may cause material changes or delays in the Company’s intended activities. There can be no assurance that future changes in environmental regulations will not adversely affect the Company’s business, and it is possible that future changes in these laws or regulations could have a significant adverse impact on some portion of the Company’s business, causing the Company to re-evaluate those activities at that time.

Failure to comply with such laws and regulations can have serious consequences, including damage to the Company’s reputation, stopping the Company from proceeding with the development of a project, negatively impacting the operation or further development of a mine, increasing the cost of development or production and litigation and regulatory actions against the Company. The Company cannot give any assurance that, notwithstanding its precautions, breaches of environmental laws (whether inadvertent or not) or environmental pollution will not materially and adversely affect its financial condition and its results from operations. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company’s operations. Environmental hazards may exist on the properties on which the Company holds interests which are unknown to the Company at present and which have been caused by previous or existing owners or operators of the properties. The Company may also acquire properties with known or undiscovered environmental risks. Any indemnification from the entity from which the Company has acquired such properties may not be adequate to pay all the fines, penalties and costs (such as clean-up and restoration costs) incurred related to such properties. Some of the Company’s properties also have been used for mining and related operations for many years before acquisition and were acquired as is or with assumed environmental liabilities from previous owners or operators.

The Company’s failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. The Company may be required to compensate those suffering loss or damage by reason of its operations and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations.

Production at certain of the Company’s mines involves the use of various chemicals, including cyanide, which is a toxic material. Should cyanide or other toxic chemicals leak or otherwise be discharged from the containment system, the Company may become subject to liability for cleanup work that may not be insured. While appropriate steps will be taken to prevent discharges of pollutants into the ground water and the environment, the Company may become subject to liability for hazards that it may not be insured against and such liability could be material.

Actual costs of reclamation are uncertain, and higher than expected costs could negatively impact the results of operations and financial position.

Land reclamation requirements are generally imposed on mineral exploration companies (as well as companies with mining operations) in order to minimize long term effects of land disturbance, and the Company is subject to such requirements at its mineral properties. Decommissioning liabilities include requirements to control dispersion of potentially deleterious effluents; and, reasonably re-establish pre-disturbance land forms and vegetation.

In order to carry out reclamation obligations arising from exploration and potential development activities, the Company must allocate financial resources that might otherwise be spent on further exploration and development programs. Reclamation costs are uncertain and planned expenditures may differ from the actual expenditures required. If the Company is required to carry out unanticipated reclamation work, its financial position could be adversely affected.

Water management at the Company’s mining operations

The water collection, treatment and disposal operations at the Company’s mines are subject to substantial regulation and involve significant environmental risks. If collection or management systems fail, overflow or do not operate properly, untreated water or other contaminants could spill onto nearby properties or into nearby streams and rivers, causing damage to persons or property, injury to aquatic life and economic damages.

Environmental and regulatory authorities in Mexico and Canada conduct periodic or annual inspections of the Young-Davidson, Island Gold, Mulatos and El Chanate mines. As a result of these inspections, the Company is from time to time required to modify its water management program, complete additional monitoring work or take remedial actions with respect to the Company’s operations as it pertains to water management.

Liabilities resulting from damage, regulatory orders or demands, or similar, could adversely and materially affect the Company’s business, results of operations and financial condition. Moreover, in the event that the Company is deemed liable for any damage caused by overflow, the Company’s losses or consequences of regulatory action might not be covered by insurance policies.

Problems with water sources could have a negative impact on the Company’s exploration programs and future operations.

The Company may not be able to secure the water necessary to conduct its activities as planned. The Company will strive to ensure that its activities do not adversely impact community water sources. Future operations and activities may require that alternate water sources be provided to potentially affected communities at the Company’s expense.

43

2017Management’s Discussion and Analysis

Climate Change Risks

The Company’s mining and processing operations are energy intensive, resulting in a significant carbon footprint. The Company acknowledges climate change as an international and community concern. A number of governments or governmental bodies have introduced or are contemplating regulatory changes in response to the potential impacts of climate change. Where legislation already exists, regulation relating to emission levels and energy efficiency is becoming more stringent. Some of the costs associated with reducing emissions can be offset by increased energy efficiency and technological innovation. We expect that in the long term this may result in increased costs at our Canadian and Mexican operations. While the Company has taken measures to manage the use of energy, the inability to achieve required energy efficiencies could have an adverse impact on the Company’s ability to achieve cost guidance.

In addition, the physical risks of climate change may also have an adverse effect on our operations. These may include extreme weather events, changes in rainfall and storm patterns and intensities, water shortages, and changing temperatures. In particular, the Company’s producing assets are located in northwest Mexico and Canada. Extended periods of high rainfall or drought conditions are typical in this part of Mexico. In Canada, cold temperatures and heavy snowfall may impact the Company’s ability to achieve production forecasts, including anticipated recoveries. While the Company has taken measures to mitigate the impact of weather on its operations, severe rainfall or drought conditions could have an adverse impact on the Company’s ability to achieve production forecasts.

Insurance and Compliance Risks

We may not have sufficient insurance coverage.

The mining industry is subject to significant risks that could result in damage to, or destruction of, mineral properties or producing facilities, personal injury or death, environmental damage, delays in mining, monetary losses and possible legal liability.

The Company’s policies of insurance may not provide sufficient coverage for losses related to these or other risks. The Company’s insurance does not cover all risks that may result in loss or damages and may not be adequate to reimburse the Company for all losses sustained. In particular, the Company does not have coverage for certain environmental losses or certain types of earthquake damage. The occurrence of losses or damage not covered by insurance could have a material and adverse effect on the Company’s cash flows, results of operation and financial condition.

The Company’s business involves uninsurable risks.

In the course of exploration, development and production of mineral properties, certain risks and, in particular, unexpected or unusual geological operating conditions including cave-ins, fires, flooding and earthquakes may occur. It is not always possible to fully insure against such risks and the Company may decide not to take out insurance against such risks as a result of high premiums or other reasons. Should such liabilities arise, they could reduce or eliminate any future profitability and result in increasing costs and a decline in the value of the securities of the Company.

The Company may fail to maintain the adequacy of internal control over financial reporting as per the requirements of the Sarbanes-Oxley Act of 2002 (“SOX”).

The Company has documented and tested, during its most recent fiscal year, its internal control procedures in order to satisfy the requirements of Section 404 of SOX. Both SOX and Canadian legislation require an annual assessment by management of the effectiveness of the Company’s internal control over financial reporting.

The Company may fail to maintain the adequacy of its internal control over financial reporting as such standards are modified, supplemented, or amended from time to time, and the Company may not be able to ensure that it can conclude on an ongoing basis that it has effective internal controls over financial reporting. The Company’s failure to satisfy the requirements of Section 404 of SOX and equivalent Canadian legislation on an ongoing, timely basis could result in the loss of investor confidence in the reliability of its financial statements, which in turn could harm the Company’s business and negatively impact the trading price of the Company’s common shares or market value of its other securities. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company’s operating results or cause it to fail to meet its reporting obligations.

The Company may be impacted by Anti-Bribery laws.

The Canadian Corruption of Foreign Public Officials Act and the U.S. Foreign Corrupt Practices Act and anti-bribery laws in other jurisdictions where we do business, prohibit companies and their intermediaries from making improper payments for the purposes of obtaining or retaining business or other commercial advantage. The Company’s policies mandate compliance with these anti-bribery laws, which often carry substantial penalties. The Company operates in jurisdictions that have experienced governmental and private sector corruption to some degree, and, in certain circumstances, strict compliance with anti-bribery laws may conflict with certain local customs and practices. There can be no assurances that the Company’s internal control policies and procedures will always protect it from reckless or other inappropriate acts committed by the Company’s affiliates, employees or agents. Violations of these laws, or allegations of such violations, could have a material adverse effect on the Company’s business, financial position and results of operations.

44

2017Management’s Discussion and Analysis

Alamos’ critical operating systems may be compromised.

Cyber threats have evolved in severity, frequency and sophistication in recent years, and target entities are no longer primarily from the financial or retail sectors. Individuals engaging in cybercrime may target corruption of systems or data, or theft of sensitive data. While we invest in robust security systems to detect and block inappropriate or illegal access to our key systems, including supervisory control and data acquisition operating systems at our operations, and regularly review policies, procedures and protocols to ensure data and system integrity, there can be no assurance that critical systems will not be not inadvertently or intentionally breached and compromised. This may result in business interruption losses, equipment damage, or loss of critical or sensitive information.

Mining Industry Risks

The Company is in competition with other mining companies that have greater resources and experience.

The Company competes with other mining companies, many of which have greater resources and experience. Competition in the precious metals mining industry is primarily for: mineral rich properties which can be developed and produced economically; the technical expertise to find, develop, and produce such properties; the labour to operate the properties; and the capital for the purpose of financing development of such properties. Many competitors not only explore for and mine precious metals, but conduct refining and marketing operations on a world-wide basis and some of these companies have much greater financial and technical resources than the Company. Such competition may result in the Company being unable to acquire desired properties, recruit or retain qualified employees or acquire the capital necessary to fund its operations and develop its properties. The Company’s inability to successfully compete with other mining companies for these mineral deposits could have a material adverse effect on the Company’s results of operations.

The Company may be unable to identify opportunities to grow its business or replace depleted reserves, and it may be unsuccessful in integrating new businesses and assets that it may acquire in the future.

As part of the Company’s business strategy, it has sought and will continue to seek new operating, development and exploration opportunities in the mining industry. In pursuit of such opportunities, the Company may fail to select appropriate acquisition candidates or negotiate acceptable arrangements, including arrangements to finance acquisitions or integrate the acquired businesses into its business. The Company cannot provide assurance that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favorable terms, if at all, or that any acquisitions or business arrangements completed will ultimately benefit its business. Further, any acquisition the Company makes will require a significant amount of time and attention of its management, as well as resources that otherwise could be spent on the operation and development of its existing business.

Any future acquisitions would be accompanied by risks, such as a significant decline in the relevant metal price after the Company commits to complete an acquisition on certain terms; the quality of the mineral deposit acquired proving to be lower than expected; the difficulty of assimilating the operations and personnel of any acquired companies; the potential disruption of its ongoing business; the inability of management to realize anticipated synergies and maximize its financial and strategic position; the failure to maintain uniform standards, controls, procedures and policies; and the potential for unknown or unanticipated liabilities associated with acquired assets and businesses, including tax, environmental or other liabilities. There can be no assurance that any business or assets acquired in the future will prove to be profitable, that the Company will be able to integrate the acquired businesses or assets successfully or that the Company will identify all potential liabilities during the course of due diligence. Any of these factors could have a material adverse effect on its business, expansion, results of operations and financial condition.

Mining is inherently dangerous and subject to conditions or events beyond the Company’s control, which could have a material adverse effect on its business and which conditions and events may not be insurable.

Mining involves various types of risks and hazards, including, but not limited to:

• Environmental hazards;

• Industrial accidents;

• Metallurgical and other processing problems;

• Unusual or unexpected rock formations;

• Rock falls, pit wall failures and cave-ins;

• Seismic activity;

• Flooding;

• Fires;

• Periodic interruptions due to inclement or hazardous weather conditions;

• Variations in grade, deposit size, continuity and other geological problems;

• Mechanical equipment performance problems;

• Unavailability of materials and equipment;

• Theft of equipment, supplies and bullion;

• Labour force disruptions;

• Civil strife; and

• Unanticipated or significant changes in the costs of supplies.

45

2017Management’s Discussion and Analysis

Most of these risks are beyond the Company’s control and could result in damage to, or destruction of, mineral properties, production facilities or other properties, personal injury or death, loss of key employees, environmental damage, delays in mining, increased production costs, monetary losses and possible legal liability.

The business of exploration for minerals and mining involves a high degree of risk, as few properties that are explored are ultimately developed into producing mines.

The Company is engaged in exploration, mine development and the mining and production of precious metals, primarily gold, and is exposed to a number of risks and uncertainties that are common to other companies in the same business. Unusual or unexpected ground movements, fires, power outages, labour disruptions, flooding, cave-ins, landslides and the inability to obtain suitable adequate machinery, equipment or labour are risks involved in the operation of mines and the conduct of exploration programs. The Company has relied on and may continue to rely upon consultants and others for mine operating and exploration expertise. Few properties that are explored are ultimately developed into producing mines. Substantial expenditures are required to establish ore reserves through drilling, to develop metallurgical processes to extract the metal from the ore and in the case of new properties, to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although substantial benefits may be derived from the discovery of a major mineral deposit, the Company may not be able to raise sufficient funds for development. The economics of developing mineral properties is affected by many factors including the cost of operations, variations in the grade of ore mined, fluctuations in metal markets, costs of mining and processing equipment and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting of minerals and environmental protection. Where expenditures on a property have not led to the discovery of mineral reserves, spent costs will not usually be recoverable.

The trading price of the Company’s common shares may be subject to large fluctuations and may increase or decrease in response to a number of events and factors.

These factors may include:

• The price of gold and other metals;

• The Company’s operating performance and the performance of competitors and other similar companies;

• The public’s reaction to the Company’s press releases, other public announcements and the Company’s filings with the various securities regulatory authorities;

• Changes in earnings estimates or recommendations by research analysts who track the Company’s common shares or the shares of other companies in the resource sector;

• Changes in general economic conditions;

• The arrival or departure of key personnel; and

• Acquisitions, strategic alliances or joint ventures involving the Company or its competitors.

In addition, the market price of the Company’s shares are affected by many variables not directly related to the Company’s success and are therefore not within the Company’s control, including other developments that affect the market for all resource sector shares, the breadth of the public market for the Company’s shares, and the attractiveness of alternative investments. In addition, securities markets have recently experienced an extreme level of price and volume volatility, and the market price of securities of many companies has experienced wide fluctuations which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies. The effect of these and other factors on the market price of the common shares on the exchanges in which the Company trades has historically made the Company’s share price volatile and suggests that the Company’s share price will continue to be volatile in the future. 

Limitations of Controls and Procedures

The Company’s management, including the Chief Executive Officer and Chief Financial Officer, believe that internal controls over financial reporting and disclosure controls and procedures, no matter how well designed and operated, have inherent limitations. Therefore, even those systems determined to be properly designed and effective can provide only reasonable assurance that the objectives of the control system are met.

46

2017Management’s Discussion and Analysis

Cautionary Note to United States Investors

Measured, Indicated and Inferred Resources: The Company is required to prepare its resource estimates in accordance with standards of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in Canadian National Instrument 43-101 (NI 43-101). These standards are materially different from the standards generally permitted in reports filed with the United States Securities and Exchange Commission. This MD&A uses the terms "measured", "indicated" or "inferred” resources which are not recognized by the United States Securities and Exchange Commission. The estimation of measured resources and indicated resources involve greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that any part of measured or indicated resources will ever be converted into economically or legally mineable proven or probable reserves. The estimation of inferred resources may not form the basis of a feasibility or other economic studies and involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources.

International Financial Reporting Standards: The consolidated financial statements of the Company have been prepared by management in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (see notes 2 and 3 to the consolidated financial statements for year ended December 31, 2017). These accounting principles differ in certain material respects from accounting principles generally accepted in the United States of America. The Company’s reporting currency is the United States dollar unless otherwise noted.

Cautionary Note Regarding Forward-Looking Statements

This MD&A contains forward-looking statements and forward-looking information as defined under Canadian and U.S. securities laws. All statements, other than statements of historical fact, are, or may be deemed to be, forward-looking statements. Words such as "expect", "believe", "anticipate", "will", "intend", "estimate", "forecast", "budget" and similar expressions identify forward-looking statements.

Forward-looking statements include information as to strategy, plans or future financial or operating performance, such as the Company’s expansion plans, project timelines, production plans and expected sustainable productivity increases, expected increases in mining activities and corresponding cost efficiencies, expected drilling targets, expected sustaining costs, expected improvements in cash flows and margins, expectations of changes in capital expenditures, forecasted cash shortfalls and the Company’s ability to fund them, cost estimates, projected exploration results, reserve and resource estimates, expected production rates and use of the stockpile inventory, expected recoveries, sufficiency of working capital for future commitments and other statements that express management’s expectations or estimates of future performance.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management at the time of making such statements, are inherently subject to significant business, economic, political and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.

Such factors and assumptions underlying the forward-looking statements in this document include, but are not limited to: changes to current estimates of mineral reserves and resources; changes to production estimates (which assume accuracy of projected ore grade, mining rates, recovery timing and recovery rate estimates and may be impacted by unscheduled maintenance, assumptions and expectations with respect to the proposed acquisition of Richmont Mines Inc. and its completion and the anticipated benefits and advantages of the same; labour and contractor availability and other operating or technical difficulties); fluctuations in the price of gold; changes in foreign exchange rates (particularly the Canadian dollar, Mexican peso, Turkish Lira and U.S. dollar); the impact of inflation; changes in our credit rating; any decision to declare a quarterly dividend; employee relations; litigation; disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; development delays at the Young-Davidson mine; inherent risks associated with mining and mineral processing; the risk that the Young-Davidson, Mulatos and El Chanate mines may not perform as planned; uncertainty with the Company’s ability to secure additional capital to execute its business plans; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, including the necessary licenses, permits, authorizations and/or approvals from the appropriate regulatory authorities for the Company’s development stage assets, including specifically its Turkish mineral properties; contests over title to properties; changes in national and local government legislation (including tax legislation) in Canada, Mexico, Turkey, the United States and other jurisdictions in which the Company does or may carry on business in the future; risk of loss due to sabotage and civil disturbances; the impact of global liquidity and credit availability and the values of assets and liabilities based on projected future cash flows; risks arising from holding derivative instruments; and business opportunities that may be pursued by the Company

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

47

2017Management’s Discussion and Analysis

Qualified Persons

Chris Bostwick, FAusIMM, Alamos’ Vice President, Technical Services, who is a qualified person within the meaning of National Instrument 43-101 ("Qualified Person"), has reviewed and approved the scientific and technical information contained in this MD&A. Information pertaining to the geological and exploration content has been reviewed and approved by Aoife McGrath, M.Sc., M.AIG, Alamos' Vice President, Exploration, a Qualified Person. Drilling, sampling, QA/QC protocols and analytical methods for work areas in Mexico are as outlined in the NI 43-101 report titled, "Mulatos Project Technical Report Update" dated December 21, 2012, available on SEDAR. For further details see also the Corporation’s news release dated February 22, 2018.

48

XML

Document and Entity Information Document	12 Months Ended
	Dec. 31, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	ALAMOS GOLD INC
Entity Central Index Key	0001178819
Document Type	6-K
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false
Document Period End Date	Dec. 31, 2017

XML

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 200.8	$ 252.2
Equity securities	35.8	14.1
Amounts receivable (note 6)	34.5	44.9
Inventory (note 7)	161.2	131.7
Other current assets	14.4	11.6
Total Current Assets	446.7	454.5
Non-Current Assets
Long-term inventory (note 7)	68.7	75.8
Mineral property, plant and equipment (note 8)	2,753.4	1,918.2
Other non-current assets	45.0	43.7
Total Assets	3,313.8	2,492.2
Current Liabilities
Accounts payable and accrued liabilities (note 9)	96.8	94.5
Current portion of financing obligations (note 10)	4.2	3.6
Income taxes payable	5.7	1.5
Total Current Liabilities	106.7	99.6
Non-Current Liabilities
Deferred income taxes (note 12)	477.0	291.0
Decommissioning liabilities (note 11)	44.6	39.6
Debt and financing obligations (note 10)	3.3	301.3
Other non-current liabilities	1.0	1.3
Total Liabilities	632.6	732.8
E Q U I T Y
Share capital (note 13)	3,691.7	2,822.2
Contributed surplus	89.5	70.9
Warrants	4.0	3.5
Accumulated other comprehensive income	13.0	0.4
Deficit	(1,117.0)	(1,137.6)
Total Equity	2,681.2	1,759.4
Total Liabilities and Equity	$ 3,313.8	$ 2,492.2

XML

Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Profit or loss [abstract]
OPERATING REVENUES	$ 542,800,000	$ 482,200,000
COST OF SALES
Mining and processing	315,600,000	297,000,000
Royalties (note 20)	15,600,000	13,300,000
Amortization	125,600,000	119,000,000
Cost of sales	456,800,000	429,300,000
EXPENSES
Exploration	8,300,000	5,100,000
Corporate and administrative	15,500,000	16,300,000
Share-based compensation (note 13)	6,200,000	10,200,000
Total expenses	486,800,000	460,900,000
EARNINGS FROM OPERATIONS	56,000,000	21,300,000
Finance expense	(9,100,000)	(24,000,000)
Foreign exchange loss	5,000,000	(12,500,000)
Other (loss) gain (note 14)	(600,000)	7,600,000
Loss on redemption of senior secured notes (note 10)	(29,100,000)	0
EARNINGS (LOSS) BEFORE INCOME TAXES	22,200,000	(7,600,000)
INCOME TAXES (note 12)
Current income tax expense	(11,900,000)	(3,800,000)
Deferred income tax recovery (expense)	16,300,000	(6,500,000)
NET EARNINGS (LOSS)	26,600,000	(17,900,000.0)
Items that may be subsequently reclassified to net earnings:
Realized disposition on equity securities, reclassified to net loss	0	(300,000)
Realized disposition on equity securities, reclassified to net loss	0	5,100,000
Gain on currency hedging instruments, net of taxes	6,000,000	0
Items that will not be reclassified to net earnings:
Unrealized gains on equity securities, net of taxes	6,600,000	0
Total other comprehensive income	12,600,000	4,800,000
COMPREHENSIVE INCOME (LOSS)	$ 39,200,000	$ (13,100,000)
EARNINGS (LOSS) PER SHARE (note 13)
- basic (usd per share)	$ 0.09	$ (0.07)
- diluted (usd per share)	$ 0.09	$ (0.07)
Weighted average number of common shares outstanding (000's)
- basic (in shares)	305,521	265,234
- diluted (in shares)	309,021	265,234

XML

Consolidated Statements of Changes in Equity - USD ($)	Total	Share capital [Member]	Contributed Surplus [member]	Warrants [member]	Accumulated other comprehensive income (loss) [member]	Accumulated other comprehensive income (loss) [member] Equity securities [member]	Accumulated other comprehensive income (loss) [member] Currency hedging instruments [member]	Deficit [member]
Beginning balance at Dec. 31, 2015		$ 2,773,700,000	$ 69,200,000	$ 0		$ (4,400,000)	$ 0	$ (1,114,300,000)
Changes in equity [abstract]
Issuance of shares related to Richmont acquisition (note 5)		0
Issuance of shares through bought deal financing, net of issuance costs and deferred taxes		0
Issuance of shares related to Carlisle acquisition		17,500,000
Issuance of shares related to share-based compensation		7,400,000	0
Issuance of shares related to exercise of warrants		1,200,000
Issuance of shares through flow-through share agreements		20,100,000
Share-based compensation			4,400,000
Fair value of share-based compensation redeemed		2,300,000	(3,100,000)
Shares issued related to the merger (note x)			0
Equity settled share-based payments related to Carlisle acquisition			400,000
Issuance of warrants related to Carlisle acquisition				2,800,000
Issuance of warrants, pursuant to the exercise of Carlisle equity instruments				700,000
Realized disposition on equity securities, reclassified to net loss	$ (300,000)					(300,000)
Unrealized gains on equity securities, net of taxes	5,100,000					5,100,000
Unrealized gain on currency hedging instruments, net of taxes	0						0
Dividends (note13(f))								(5,400,000)
Net earnings (loss)	(17,900,000.0)							(17,900,000)
Ending balance at Dec. 31, 2016	1,759,400,000	2,822,200,000	70,900,000	3,500,000	$ 400,000	400,000	0	(1,137,600,000)
Changes in equity [abstract]
Issuance of shares related to Richmont acquisition (note 5)		615,300,000
Issuance of shares through bought deal financing, net of issuance costs and deferred taxes		241,800,000
Issuance of shares related to Carlisle acquisition		0
Issuance of shares related to share-based compensation		2,300,000	1,300,000
Issuance of shares related to exercise of warrants		500,000
Issuance of shares through flow-through share agreements		8,400,000
Share-based compensation			6,400,000
Fair value of share-based compensation redeemed		1,200,000	(1,200,000)
Shares issued related to the merger (note x)			12,100,000
Equity settled share-based payments related to Carlisle acquisition			0
Issuance of warrants related to Carlisle acquisition				0
Issuance of warrants, pursuant to the exercise of Carlisle equity instruments				500,000
Realized disposition on equity securities, reclassified to net loss	0					0
Unrealized gains on equity securities, net of taxes	0					6,600,000
Unrealized gain on currency hedging instruments, net of taxes	6,000,000						6,000,000
Dividends (note13(f))								(6,000,000)
Net earnings (loss)	26,600,000							26,600,000
Ending balance at Dec. 31, 2017	$ 2,681,200,000	$ 3,691,700,000	$ 89,500,000	$ 4,000,000	$ 13,000,000	$ 7,000,000	$ 6,000,000	$ (1,117,000,000)

XML

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH PROVIDED (USED IN) BY OPERTING ACTIVITIES
Net earnings (loss) for the period	$ 26,600,000	$ (17,900,000.0)
Adjustments for items not involving cash:
Amortization	125,600,000	119,000,000
Foreign exchange (gain) loss	(5,000,000)	12,500,000
Current income tax expense	11,900,000	3,800,000
Deferred income tax (recovery) expense	(16,300,000)	6,500,000
Share-based compensation	6,200,000	10,200,000
Finance expense	9,100,000	24,000,000
Loss on redemption of senior secured notes	29,100,000	0
Other items (note 15)	(3,900,000)	(10,100,000)
Changes in working capital and taxes received or paid (note 15)	(19,800,000)	(12,300,000)
Cash flows from (used in) operating activities	163,500,000	135,700,000
INVESTING ACTIVITIES
Mineral property, plant and equipment	(162,500,000)	(146,500,000)
Cash received from the acquisition of Richmont (note 5)	46,200,000	0
Purchase of Lynn Lake gold project royalty (note 8)	(6,700,000)	0
Other	3,600,000	(5,000,000)
Cash flows from (used in) investing activities	(119,400,000)	(151,500,000)
FINANCING ACTIVITIES
Net proceeds from bought deal financing (note 13)	239,100,000	0
Repayment of senior secured notes (note 10)	(327,200,000)	0
Repayment of debt and equipment financing obligations	(4,400,000)	(9,700,000)
Interest paid	(12,200,000)	(24,400,000)
Credit facility transaction fees (note 10)	(2,100,000)	(1,100,000)
Proceeds received from the exercise of stock options and warrants	3,500,000	7,400,000
Dividends paid	(6,000,000)	(5,400,000)
Proceeds from issuance of flow-through shares	11,700,000	20,400,000
Cash flows from (used in) financing activities	(97,600,000)	(12,800,000)
Effect of exchange rates on cash and cash equivalents	2,100,000	(2,100,000)
Decrease in cash and cash equivalents	(51,400,000)	(30,700,000)
Cash and cash equivalents - beginning of year	252,200,000	282,900,000
CASH AND CASH EQUIVALENTS - END OF YEAR	$ 200,800,000	$ 252,200,000

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Nature of Operations

12 Months Ended

Dec. 31, 2017

Disclosure of notes and other explanatory information [Abstract]

Nature of Operations

1. NATURE OF OPERATIONS

Alamos Gold Inc. ("Alamos"), a company incorporated under the Business Corporation Act (Ontario), and its wholly-owned subsidiaries (collectively the “Company”) are engaged in the acquisition, exploration, development and extraction of precious metals. The Company owns and operates the Young-Davidson and Island Gold mines in Canada, as well as the Mulatos and El Chanate mines in Mexico. In addition, the Company owns the Ağı Dağı, Kirazlı and Çamyurt gold development projects in Turkey, the Lynn Lake gold project in Canada, the Esperanza gold project in Mexico, as well as an option to acquire a 100% interest in the Quartz Mountain gold project in Oregon, USA.

Alamos is a publicly traded company with common shares listed on the Toronto Stock Exchange (TSX: AGI) and the New York Stock Exchange (NYSE: AGI).

The Company’s registered office is located at 181 Bay St, Suite 3910, Toronto, Ontario, M5J 2T3.

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Basis of Preparation

12 Months Ended

Dec. 31, 2017

Disclosure of notes and other explanatory information [Abstract]

Basis of Preparation

2. BASIS OF PREPARATION

These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements have been prepared using the historical cost convention, other than for certain financial instruments, which are measured in accordance with the policy disclosed in note 3.

The consolidated financial statements were authorized for issue by the Board of Directors on February 21, 2018.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Disclosure of significant accounting policies [Abstract]

Summary of Significant Accounting Policies

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of consolidation

These consolidated financial statements include the accounts of the Company and the following subsidiaries:

Company	Principal activity	Country of incorporation
AuRico Gold Chihuahua, S.A. de C.V., SOFOM E.N.R.	Administrative services	Mexico
AuRico Gold Holdings Inc.	Holding company	Canada
AuRico Gold (USA), Inc.	Administrative services	United States of America
Capital Gold Corporation	Holding company	United States of America
Leadville Mining & Milling Holding Corporation	Holding company	United States of America
Minera Santa Rita, S. de R.L. de C.V.	Gold and silver mining	Mexico
Nayarit Gold Inc.	Holding company	Canada
Oro de Altar, S.A. de C.V.	Holding company	Mexico
0975828 B.C. LTD.	Holding company	Canada
Orsa Ventures Corp.	Holding company	Canada
Esperanza Resources (Cayman)	Holding company	Cayman Islands
Esperanza Exploration (BVI) Inc.	Holding company	British Virgin Islands
Minas de Oro Nacional, S.A. de C.V.	Gold and silver mining	Mexico
Operason S.A. de C.V.	Administrative services	Mexico
Sonora Gerencial S.A. de C.V.	Administrative services	Mexico
Esperanza Silver de Mexico SA de CV	Gold and silver mining	Mexico
Servicios Mineros Tetlama S.A. de C.V.	Administrative services	Mexico
Esperanza Silver Peru SAC	Gold and silver mining	Peru
Dogu Biga Madencilik Sanayi Ticaret AS	Gold and silver mining	Turkey
Esperanza Services Inc.	Holding company	USA
Quartz Mountain Gold Ltd.	Gold and silver mining	USA
Carlisle Goldfields Ltd.	Holding company	Canada
Richmont Mines Ltd.	Gold and silver mining	Canada

These subsidiaries are controlled by the Company, and are wholly-owned. Control exists when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

The Company also consolidates the accounts of Caborca Industrial S.A. de C.V., a related party entity, which provides mining support services to the Company’s El Chanate mine. This entity is consolidated in accordance with IFRS 10, Consolidated Financial Statements.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

(b) Investments in associates and joint ventures

The Company accounts for investments in associates and joint ventures using the equity method of accounting. The carrying value of the Company’s investments in associates and joint ventures represents the cost of the investment, including the Company’s share of retained earnings and losses subsequent to formation. At the end of each reporting period, the Company assesses its investments for any indicators of impairment.

(c) Foreign currency

Functional and presentation currency

These consolidated financial statements are presented in United States dollars (“US dollars”), which is the functional currency of the Company and all its subsidiaries.

Translation of transactions and balances into the functional currency

Transactions in currencies other than the Company's or a subsidiary's functional currency (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at that date. Foreign currency non-monetary items that are measured in terms of historical cost are not retranslated.

Exchange differences are recognized in net earnings (loss) in the period in which they arise. Exchange differences on deferred foreign tax assets and liabilities are presented as deferred income tax (recovery) expense on the Consolidated Statements of Comprehensive Income (Loss).

(d) Revenue recognition

Revenue from the sale of gold, including refined metal, dore and gold concentrate, is recognized when persuasive evidence of a sale arrangement exists, the risks and rewards of ownership pass to the purchaser, including title risk, the selling price is measurable, and collectability is probable. The risks and rewards of ownership are considered to have been transferred when title passes to the customer. Revenue is measured at the fair value of the consideration received or receivable, and may be subject to adjustment once final prices, weights and assays are determined.

Costs incurred or premium income related to forward sales or option contracts are recognized in revenue when the related contract is settled. Changes in the fair value of outstanding forward sales or option contracts are recognized in earnings or loss.

(e) Cash and cash equivalents

The Company considers deposits in banks, certificates of deposits, and short-term investments with original maturities of three months or less from the acquisition date as cash and cash equivalents.

(f) Inventories

Parts and supplies inventory

Supplies inventory consists of mining supplies and consumables used in the operation of the mines, and is valued at the lower of average cost and net realizable value. Provisions are recorded to reflect present intentions for the use of slow moving and obsolete parts and supplies inventory.

Stockpile inventory

Stockpiles represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to stockpiles based on the current mining cost per tonne incurred up to the point of stockpiling the ore, including applicable overhead, depletion and amortization relating to mining operations, to the extent determined recoverable, and are removed at the average cost per tonne. Stockpile inventory is measured at the lower of cost and net realizable value.

In-process inventory

The recovery of gold is achieved through milling and heap leaching processes. Costs are added to ore on leach pads and in the mill based on the current stockpiled mining cost and current processing cost, including applicable overhead, depletion and amortization relating to mining and processing operations. Costs are removed from ore on leach pads and in the mill as ounces are recovered, based on the average cost per recoverable ounce of gold in-process inventory. In-process inventory is measured at the lower of cost and net realizable value.

Finished goods inventory

Finished goods inventory consists of dore bars and gold concentrate containing predominantly gold by value which are generally refined off-site to return saleable metals. Dore and gold concentrate inventory is valued at the lower of cost to produce and net realizable value.

For all classes of gold inventory, net realizable value is calculated as the difference between the estimated future metal revenue based on prevailing and/or long-term metal prices as appropriate, and estimated costs to complete production into a saleable form.

(g) Long-lived assets

Mineral property, plant and equipment

Mineral property, plant and equipment is recorded at cost less accumulated amortization and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of any reclamation obligation, and for qualifying assets, borrowing costs. The purchase price or construction cost is the fair value of consideration given to acquire the asset. The capitalized value of a finance lease is also included within property, plant and equipment, and is measured at the lower of the present value of the minimum lease payments and the fair value of the leased asset. Subsequent costs are included in the asset’s carrying amount when it is probable that future economic benefits associated with the asset will flow to the Company, and the costs can be measured reliably. This would include costs related to the refurbishment or replacement of major components of an asset, when the refurbishment results in a significant extension in the physical life of the component. All other repairs and maintenance costs are recognized in net earnings (loss) as incurred.

The cost of property, plant and equipment, less any applicable residual value, is allocated over the estimated useful life of the asset on a straight-line basis, or on a unit-of-production basis if that method is more reflective of the allocation of benefits among periods. Amortization commences on an asset when it has been fully commissioned and is available for use. Amortization rates applicable to each category of property, plant and equipment, with the exception of land, are as follows:

Asset	Useful life
Leasehold improvements	3 years
Mobile equipment	2-10 years
Other equipment	2-20 years
Processing plant	2-20 years
Shaft, underground infrastructure and mineral properties	Unit-of-production
Vehicles	3-6 years
Buildings	7-20 years
Office equipment	2-8 years

When components of an item of property, plant and equipment have different useful lives than those noted above, they are accounted for as separate items of property, plant and equipment. Each asset or component’s estimated useful life is determined considering its physical life limitations; however, this physical life cannot exceed the remaining life of the mine at which the asset is utilized. Estimates of remaining useful lives and residual values are reviewed annually. Any changes in estimates of useful lives are accounted for prospectively from the date of the change.

Exploration and evaluation assets

Expenditures incurred prior to the Company obtaining the right to explore are expensed in the period in which they are incurred.

Exploration and evaluation expenditures include costs such as exploratory drilling, sample testing, costs of pre-feasibility studies, and for qualifying assets, borrowing costs. Subsequent to obtaining the legal right to explore, these costs are capitalized on a project-by-project basis pending determination of the technical feasibility and commercial viability of the project. All capitalized exploration and evaluation expenditures are monitored for indications of impairment, to ensure that exploration activities related to the property are continuing and/or planned for the future. If an exploration property does not prove viable, an impairment loss is recognized in net earnings (loss) as the excess of the carrying amount over the recoverable amount in the period in which that determination is made.

Exploration and evaluation expenditures are initially capitalized as exploration and evaluation assets and are subsequently reclassified to mine development costs upon determining that the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. The demonstration of the technical feasibility and commercial viability is the point at which management determines that it will develop the project. This typically includes, but is not limited to, the completion of an economic feasibility study; the establishment of mineral reserves; and the receipt of the applicable construction and operating permits for the project. Upon demonstrating the technical feasibility and commercial viability of establishing a mineral reserve, the Company performs an impairment test, based on the recoverable amount, prior to reclassification of exploration and evaluation assets to mine development costs in accordance with IFRS 6, Exploration for and evaluation of Mineral Resources. In addition, the carrying values of exploration and evaluation assets are reviewed periodically, when impairment indicators exist, for possible impairment, based on the recoverable amount.

Mining interests and mine development costs

The Company may hold interests in mineral properties in various forms, including prospecting licenses, exploration and exploitation concessions, mineral leases and surface rights. The Company capitalizes payments made in the process of acquiring legal title to these properties.

Property acquisition and mine development costs are recorded at cost. Mine development costs incurred to expand operating capacity, develop new ore bodies or develop mine areas in advance of current production are capitalized. Mine development costs related to current period production are recorded in inventory. Pre-production expenditures incurred prior to the mine being capable of operating in the manner intended by management are capitalized. Borrowing costs for qualifying assets are capitalized to mine development costs while construction and development activities at the property are in progress. Any proceeds from the sale of metals during the development and commissioning phase of a project are netted against the expenditures being capitalized. The development and commissioning phase ceases upon the commencement of commercial production.

Subsequent to the commencement of commercial production, further development expenditures incurred with respect to a mining interest are capitalized as part of the mining interest, when it is probable that additional future economic benefits associated with the expenditure will flow to the Company. Otherwise, such expenditures are classified as mining and processing costs.

Upon commencement of commercial production, mining interests are depleted over the life of the mine using the unit-of-production method based on estimated proven and probable mineral reserves of the mine and the portion of mineralization from measured, indicated and inferred resources expected to be classified as reserves, in applicable mines. The Company determines the portion of mineralization expected to be classified as reserves by considering the degree of confidence in the economic extraction of the resource, which is affected by long-term metal price assumptions, cut-off grade assumptions, and drilling results. These assessments are made on a mine-by-mine basis.

The expected useful lives used in depletion calculations are determined based on the facts and circumstances associated with the mining interest. Any changes in estimates of useful lives are accounted for prospectively from the date of the change.

Commercial production

Commercial production is reached when an open pit or underground mine is in the condition necessary for it to be capable of operating in the manner intended by management. The Company considers a range of factors when determining whether commercial production has been reached, which may include the completion of all required major capital expenditures, the demonstration of continuous production near the level required by the design capacity of the processing facilities, and the demonstration of continuous throughput levels at or above a target percentage of the design capacity. The Company assesses the ability to sustain production and throughput over a certain period, depending on the complexity of the operation, prior to declaring that commercial production has been reached.

Capitalized stripping costs

Pre-production stripping costs are capitalized as part of the cost of constructing a mine.

Mining costs associated with stripping activities during the production phase of a mine are capitalized only if the Company can identify the component of the ore body for which access is obtained, the costs associated with the related stripping activities can be measured reliably, and the activities represent a future benefit to the mining interest, in that access is gained to sources of reserves and resources that will be produced in future periods that would otherwise not have been accessible. Production stripping costs are allocated between inventory and capital based on the expected volume of waste extracted for a given volume of ore production. The expected volume of waste to be allocated to inventory is determined with reference to the life of mine stripping ratio of a particular mine or deposit, with the remaining amount allocated to capital. The amount of waste capitalized is calculated by multiplying the stripping tonnes mined during the period by the current mining cost per tonne in the open pit.

Capitalized stripping costs are depleted over the expected reserves and resources benefiting from the stripping activity using the unit-of-production method based on estimated proven and probable reserves, and the portion of mineralization expected to be classified as reserves.

Investment tax credits

Investment tax credits are earned as a result of incurring eligible exploration and development expenses prior to commercial production. Investment tax credits are accounted for as a reduction to property, plant and equipment or mining interests.

Investment tax credits also arise as a result of incurring eligible research and development expenses and these credits are recorded as a reduction to the related expenses.

Derecognition

Upon replacement of a major component, or upon disposal or abandonment of a long-lived asset, the carrying amounts of the assets are derecognized with any associated gains or losses recognized in the Consolidated Statements of Comprehensive Loss.

(h) Intangible assets

Identifiable intangible assets are recorded at fair value on the date of acquisition. Subsequent to initial recognition, they are recorded at cost less accumulated amortization and accumulated impairment losses. Identifiable intangible assets with a finite useful life are amortized on a straight-line basis over their expected useful life, unless another method represents a more accurate allocation of the expense over their useful life. Amortization expense resulting from intangible assets, is included in amortization expense in the Consolidated Statements of Comprehensive Income (Loss).

(i) Goodwill

Goodwill represents the difference between the consideration transferred in a business combination and the fair value of the identifiable net assets acquired, and is not amortized. Goodwill, if identified upon acquisition, is allocated to the cash-generating unit (“CGU”) or group of CGUs expected to benefit from the related business combination for the purposes of impairment testing. A CGU is defined as the smallest identifiable group of assets that generates cash inflows, which are largely independent of the cash inflows from other assets.

(j) Impairment of non-financial assets

The carrying amounts of non-financial assets, excluding inventories and deferred income tax assets, are reviewed for impairment at each reporting date, or whenever events or changes in circumstances indicate the carrying amounts may not be recoverable. If there are indicators of impairment, a review is undertaken to determine whether the carrying amounts are in excess of their recoverable amounts. Reviews are undertaken on an asset-by-asset basis, except where the recoverable amount for an individual asset cannot be determined, in which case the review is undertaken at the CGU level.

If applicable, on an annual basis, the Company evaluates the carrying amount of CGUs to which goodwill has been allocated to determine whether such carrying amount may be impaired. To accomplish this, the Company compares the recoverable amount of a CGU to its carrying amount. This evaluation is performed more frequently if there is an indication that a CGU may be impaired.

If the carrying amount of a CGU or non-financial asset exceeds the recoverable amount, being the higher of its fair value less costs to sell and its value-in-use, an impairment loss is recognized in net loss as the excess of the carrying amount over the recoverable amount. With respect to CGUs, impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGUs, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis.

Where the recoverable amount is assessed using discounted cash flow techniques, the estimates are based on detailed mine or production plans. The mine plan is the basis for forecasting production output in each future year and for forecasting production costs. For value-in-use calculations, production costs and output in the mine plan may be revised to reflect the continued use of the asset in its present form.

Non-financial assets that have previously been impaired are tested for a possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed, or may have partially reversed. In these instances, the impairment loss is reversed to the recoverable amount but not beyond the carrying amount, net of amortization, that would have arisen if the prior impairment loss had not been recognized. Goodwill impairments are not reversed.

(k) Impairment of financial assets

The Company adopted IFRS 9, Financial Instruments ("IFRS 9"), with an initial application date of January 1, 2017 (note 3 (r)).

Policy applicable from January 1, 2017:

For financial assets measured at amortized cost, the impairment model under IFRS 9 reflects expected credit losses, as opposed to incurred credit losses under IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"). Under the impairment approach in IFRS 9, it is no longer necessary for a credit event to have occurred before credit losses are recognized. Instead, the Company recognizes loss allowances for expected credit losses and changes in those expected credit losses. At each reporting date, financial assets carried at amortized cost are assessed to determine whether they are credit-impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. The gross carrying amount of a financial asset is written off to the extent that there is no realistic prospect of recovery.

Policy applicable prior to January 1, 2017:

Financial assets, other than those at fair value through profit or loss, were assessed for indicators for impairment at the end of each reporting period. Financial assets were considered to be impaired when there was objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows had been affected.

For financial assets measured at amortized cost, an impairment loss was calculated as the difference between an asset’s carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses were recognized in profit or loss and reflected in an allowance account. When the Company considered that there were no realistic prospects of recovery of the asset, the relevant amounts were written off. If the amount of impairment loss subsequently decreased and the decrease was related objectively to an event occurring after the impairment was recognized, then the previously recognized impairment loss was reversed through profit or loss.

Impairment losses on available-for-sale financial assets were recognized by reclassifying the losses accumulated in the fair value reserve to profit or loss. The amount reclassified was the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss previously recognized in profit or loss. If the fair value of an impaired available-for-sale debt security subsequently increased and the increase was related objectively to an event occurring after the impairment loss was recognized, then the impairment loss was reversed through profit or loss. Impairment losses recognized in profit or loss for an investment in an equity instrument classified as available-for-sale were not reversed through profit or loss.

(l) Flow-through shares

The Company may issue flow-through common shares to finance its Canadian exploration program or qualifying Canadian underground development. Pursuant to the Canadian Income Tax Act and the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. Proceeds received from flow-through share agreements are separated into a liability and share capital. The liability, which represents the obligation to renounce flow-through exploration and/or development expenditures, is calculated as the excess of cash consideration received over the market price of the Company’s shares on the agreement’s closing date. Upon qualifying exploration and/or development expenditures being incurred, the Company derecognizes the liability and recognizes it as other income. The related deferred tax expense is also recognized at the time the expenditures are incurred.

The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced, in accordance with the Canadian Income Tax Act flow-through regulations. When applicable, the estimated tax payable is accrued until paid.

(m) Uncertain tax positions

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective subsidiary’s country of domicile.

(n) Provisions

Decommissioning liabilities

The Company’s mining and exploration activities are subject to various governmental laws and regulations relating to the protection of the environment. These environmental regulations are continually changing, and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. The timing of these expenditures is dependent upon a number of factors including the life of the mine, the operating licence conditions, and the laws, regulations, and environment in which the mine operates.

Decommissioning liabilities are recognized at the time an environmental disturbance occurs and are measured at the Company’s best estimate of the expected future cash flows required to reclaim the disturbance for each mine operation, which are adjusted to reflect inflation, and discounted to their present value. The inflation rate used is determined based on external forecasts for inflation in the country in which the related mine operates. Expected future cash flows reflect the risks and probabilities that alternative estimates of cash flows could be required to settle the obligation. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money specific to the currency in which the cash flows are expected to be paid. The discount rate does not reflect risks for which the cash flows have been adjusted. Significant estimates are involved in forming expectations of future activities and the amount and timing of the associated cash flows. Those expectations are based on existing environmental and regulatory requirements or, if more stringent, Company policies that give rise to a constructive obligation.

Upon initial recognition of a decommissioning liability, the corresponding cost is capitalized as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The capitalized cost is recognized in mineral property and amortized in accordance with the Company's policy for the related asset.

The provision is progressively increased over the life of the operation as the effect of discounting unwinds, creating an expense included in finance expense on the Consolidated Statements of Comprehensive Income (Loss).

Decommissioning liabilities are adjusted for changes in estimates. Such adjustments, which are not the result of the current production of inventory, are accounted for as a change in the corresponding capitalized cost, except where a reduction in the provision is greater than the unamortized capitalized cost of the related assets. In instances where the capitalized cost of the related assets is nil, or will be reduced to nil, the remaining adjustment is recognized in earnings or loss. If reclamation and restoration costs are incurred as a consequence of the production of inventory, the costs are recognized as a cost of that inventory. Factors influencing such changes in estimates include revisions to estimated reserves, resources and lives of mines; developments in technologies; regulatory requirements and environmental management strategies; changes in estimated costs of anticipated activities, including the effects of inflation; and movements in interest rates affecting the discount rate applied.

Other provisions

Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

(o) Share-based compensation

The Company measures all equity-settled share-based awards made to employees and others providing similar services (collectively, “employees”) based on the fair value of the options or units on the date of grant.

The grant date fair value of options is estimated using an option pricing model and is recognized as compensation expense over the vesting period, based on the number of options that are expected to vest. A corresponding increase is recognized in equity. The grant date fair values of the Company’s equity-settled deferred share units, performance share units, and restricted share units are determined using an option pricing model and is recognized as compensation expense over the vesting period.

The Company awards cash-settled share-based compensation to certain employees and directors in the form of deferred share units, restricted share units and stock appreciation rights. In accounting for these awards, the Company recognizes the fair value of the amount payable to employees, using the Black-Scholes option pricing model for certain units, as they are earned based on the estimated number of units that are expected to vest. Based on the plan some units are initially measured at fair value and recognized as an obligation at the grant date using the Company's share price. The corresponding liability is re-measured at fair value on each reporting date and upon settlement, with changes in fair value recognized in net loss for the period. The fair value of restricted share units is determined by reference to the Company’s share price when the units are awarded or re-measured.

The Company also maintains an employee share purchase plan. Under this plan, contributions by the Company’s employees are matched to a specific percentage by the Company and are recognized as an expense when the Company’s obligation to contribute arises.

Share-based arrangements in which the Company receives goods or services as consideration for its own equity instruments are accounted for as equity-settled share-based payment transactions regardless of how the equity instruments are obtained by the Company. These share-based arrangements are measured at the fair value of goods or services received unless the fair value of the goods or services cannot be reliably measured, in which case they are measured at the fair value of the equity instruments issued.

(p) Income taxes

Income tax expense is comprised of current and deferred income tax. Current and deferred income taxes are recognized in earnings or loss except to the extent that they relate to a business combination, or to items recognized directly in equity or other comprehensive income ("OCI").

Current income taxes

Current income tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with respect of previous years.

Deferred income taxes

Deferred tax assets and liabilities are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following do not result in deferred tax assets or liabilities:

• temporary differences arising from the initial recognition of assets or liabilities, not arising in a business combination, that does not affect accounting or taxable profit;

• taxable temporary differences arising from the initial recognition of goodwill; and

• taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements where the timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings or loss in the period that substantive enactment occurs except to the extent it relates to items recognized directly in equity or in other comprehensive income.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced to its recoverable amount.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when they relate to the same taxable entity and income taxes levied by the same taxation authority and the Company intends to settle its tax assets and liabilities on a net basis.

(q) Earnings (Loss) per share

Basic loss per share is calculated based on the weighted average number of common shares and common share equivalents outstanding for the period. Diluted loss per share is calculated using the treasury method, except when assessing the dilution impact of convertible senior notes, equity-settled restricted share units, deferred share units and performance shares units, where the if converted method is used. The treasury method assumes that outstanding stock options and share purchase warrants with an average exercise price below the market price of the underlying shares, are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. The if converted method assumes that all convertible senior notes, restricted share units, and performance share units have been converted in determining fully diluted loss per share if they are in-the-money, except where such conversion would be antidilutive.

(r) Financial instruments

The Company has adopted IFRS 9, with an initial application date of January 1, 2017. The approach in IFRS 9 is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial asset. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial application (note 3(k)).

The adoption of the expected credit loss impairment model had no impact on the Company’s financial statements. The Company's financial instruments are accounted for as follows under IFRS 9 as compared to the Company's previous policy in accordance with IAS 39:

Asset / Liability	IAS 39	IFRS 9
Cash and cash equivalents	Fair value through profit or loss	Amortized cost
Equity securities	Available-for-sale	Fair value through OCI
Amounts receivable	Loans and receivable	Amortized cost
Prepayment option embedded derivative	Fair value through profit or loss	Fair value through profit or loss
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Debt and financing obligations	Amortized cost	Amortized cost
Non-hedged derivatives	Fair value through profit or loss	Fair value through profit or loss
Hedging Derivatives	Fair value through OCI	Fair value through OCI

The Company has adopted the standard retroactively effective January 1, 2017 and elected not to retroactively restate comparative periods. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements, but resulted in certain additional disclosures. There was no impact on carrying values and equity as at January 1, 2017 as a result of the adoption of the standard and no measurement differences as a result of adopting IFRS 9.

As a result of the adoption of IFRS 9, the Company's accounting policy for financial instruments has been updated as follows:

Financial assets

Financial assets are classified as either financial assets at fair value through profit or loss, amortized cost, or fair value through other comprehensive income ("OCI"). The Company determines the classification of its financial assets at initial recognition.

i. Financial assets recorded at fair value through profit or loss

Financial assets are classified at fair value if they are acquired for the purpose of selling in the near term. Gains or losses on these items are recognized in net earnings or loss.

ii. Amortized cost

Financial assets are classified at amortized cost if both of the following criteria are met and the financial assets are not designated as at fair value through profit and loss: 1) the object of the Company’s business model for these financial assets is to collect their contractual cash flows and 2) the asset’s contractual cash flows represent ‘solely payments of principal and interest’. The Company’s amounts receivable are recorded at amortized cost as they meet the required criteria.

iii. Fair value through other comprehensive income ("OCI")

For equity securities that are not held for trading, the Company can make an irrevocable election at initial recognition to classify the instruments at fair value through other comprehensive income ("FVOCI"), with all subsequent changes in fair value being recognized in other comprehensive income. This election is available for each separate investment. Under this new FVOCI category, fair value changes are recognized in OCI while dividends are recognized in profit or loss. On disposal of the investment the cumulative change in fair value remains in OCI and is not recycled to profit or loss.

iv. Reclassifications

Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Company changes its business model for managing financial assets.

Financial liabilities

For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company does not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact the Company's accounting policies for financial liabilities. Accounts payable and accrued liabilities, as well as debt and financing obligations are accounted for at amortized cost.

Transaction costs associated with financial instruments, carried at fair value through profit or loss, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The amortization of debt issue costs is calculated using the effective interest method.

Derivative financial instruments

The Company may hold derivative financial instruments to hedge its risk exposure to fluctuations in commodity prices, including the Company’s final product, consumables and other currencies compared to the USD. Derivative financial instruments are measured at fair value at each reporting period.

Non-hedged derivative financial instruments

All derivative instruments not designated in a hedge relationship that qualifies for hedge accounting are classified as financial instruments at fair value through profit or loss. Changes in fair value of non-hedged derivative financial instruments are included in net earnings or loss as non-hedged derivative gains or losses.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(s) Hedges

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivative hedging instruments to forecasted transactions. Hedge effectiveness is assessed based on the degree to which the cash flows from the derivative contracts are expected to offset the cash flows of the underlying transaction being hedged.

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in fair value is recognized in other comprehensive income. For hedged items other than the purchase of non-financial assets, the amounts accumulated in other comprehensive income are reclassified to the consolidated statement of other comprehensive income when the underlying hedged transaction, identified at contract inception, affects profit or loss. When hedging a forecasted transaction that results in the recognition of a non-financial asset, the amounts accumulated in other comprehensive income are removed and added to the carrying amount of the non-financial asset.

Any ineffective portion of a hedge relationship is recognized immediately in net earnings or loss. When derivative contracts designated as cash flow hedges are terminated, expired, sold or no longer qualify for hedge accounting, hedge accounting is discontinued prospectively. Any amounts recorded in other comprehensive income up until the time the contracts do not qualify for hedge accounting remain in other comprehensive income.

Gains or losses arising subsequent to the derivative contracts not qualifying for hedge accounting are recognized in the period incurred and are recorded in net earnings or loss. If the forecasted transaction is no longer expected to occur, then the amounts accumulated in other comprehensive income are reclassified to net earnings or loss immediately.

(t) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer. The Company’s operating segments, before aggregation, have been identified as the Company’s individual operating mines. Aggregation of one or more operating segment into a single operating segment is permitted if aggregation is consistent with the core principle of the standard, the operating segments have similar economic characteristics, and the operating segments have a number of other similarities, including similarities in the nature of their products, production processes, and regulatory environment. The Company’s reportable segments are consistent with the identified operating segments.

(u) New Standards issued and adopted

The Company adopted the following amendments to accounting standards, effective January 1, 2017:

The Company adopted IFRS 9 (2014), Financial Instruments (“IFRS 9”). This standard replaces the guidance in IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”) on the classification and measurement of financial assets and financial liabilities. IFRS 9 provides a new model for the classification and measurement of financial assets. The Company has included the impact of the adoption in note 2(r).

The Company adopted amendments to IAS 12, Income Taxes. The amendments clarify that the existence of a deductible temporary difference depends solely on a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by possible future changes in the carrying amount or expected manner of recovery of the asset. The amendments also clarify the methodology to determine the future taxable profits used for assessing the utilization of deductible temporary differences. The amendments had no impact on the consolidated financial statements.

(v) Standards issued but not yet adopted

Standards issued, but not yet adopted include:

	Effective
IFRS 15, Revenue from Contracts with Customers	January 1, 2018
IFRS 16, Leases	January 1, 2019
IFRIC 22, Foreign Currency Transactions and Advance Consideration	January 1, 2018

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), outlines a single comprehensive model with guidance for entities to use in accounting for revenue arising from contracts with its customers. IFRS 15 uses a control based approach to recognize revenue which is a change from the risk and reward approach under the current standard. This standard replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. The Company will adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRS 15, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRS 16, Leases, specifies the methodology to recognize, measure, present and disclose leases. This standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. This standard substantially carries forward the lessor accounting requirements of IAS 17, while requiring enhanced disclosures to be provided by lessors. Other areas of the lease accounting model have been impacted, including the definition of a lease. Transitional provisions have been provided. The Company intends to adopt IFRS 16 in its financial statements for the annual period beginning on January 1, 2019. The Company has not yet determined the impact of adopting IFRS 16 on its consolidated financial statements.

IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration, clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Interpretation is applicable for annual periods beginning on or after January 1, 2018. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRIC 22, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRIC 23, Uncertainty over Income Tax Treatments, provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019. Earlier application is permitted. The Interpretation requires: (a) an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution; (b) an entity to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and (c) if it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The extent of the impact of adoption of the Interpretation has not yet been determined.

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Critical Accounting Estimates and Judgements

12 Months Ended

Dec. 31, 2017

Disclosure of notes and other explanatory information [Abstract]

Critical Accounting Estimates and Judgements

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Many of the amounts included in the Consolidated Statements of Financial Position require management to make estimates and judgements. Accounting estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised.

Critical accounting estimates

The following is a list of the accounting estimates that the Company believes are critical, due to the degree of uncertainty regarding the estimates or assumptions involved and the magnitude of the asset, liabilities, revenue or expense being reported. Actual results may differ from these estimates.

• The Company accounts for its ore stockpiles and in-process precious metals inventory using a process flow for applicable costs appropriate to the physical transformation of ore through the mining, crushing, leaching from heap leach operations, milling and gold recovery process. The Company estimates the expected ultimate recovery based on laboratory tests and ongoing analysis of leach pad kinetics in order to estimate the recoverable metals at the end of each accounting period. If the Company determines at any time that the ultimate recovery should be adjusted downward, then the Company will adjust the average carrying value of a unit of metal content in the in-process inventory and adjust upward on a prospective basis the unit cost of subsequent production. The Company estimates concentrate production based on assays and moisture samples taken and tested in laboratories, as well as weights using a calibrated scale. Final weights and assays are taken on settlement with the buyer, which are reconciled to production. Should an upward adjustment in the average carrying value of a unit of metal result in the carrying value exceeding the realizable value of the metal, the Company would write down the carrying value to the realizable value.

• The Company values inventory at the lower of cost and net realizable value. The calculation of net realizable value relies on forecasted gold prices, estimated grades of ore on stockpiles, concentrate and heap leach pads, forecasted exchange rates, and estimated costs to complete the processing of ore inventory.

• The Company makes estimates of the quantities of proven and probable reserves of the mine and the portion of mineralization expected to be classified as reserves. The estimation of quantities of reserves and resources is complex, requiring significant subjective assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Reserve estimates are used in the calculation of depletion expense and to calculate the recoverable amount of a CGU, and to forecast the life of the mine.

• The Company forecasts prices of commodities, exchange rates, production costs, discount rates, and recovery rates. These estimates may change the economic status of reserves and may result in reserves and resources being revised. In addition, these estimates are used to calculate the recoverable amount of a CGU for the purpose of impairment testing.

• The Company amortizes its property, plant and equipment, net of residual value, over the estimated useful life of each asset, not to exceed the life of the mine at which the asset is utilized. The Company uses estimated proven and probable mineral reserves, and an estimate of mineral resources as the basis for amortizing certain mineral property, plant and equipment. The physical life of these assets, and related components, may differ from the Company’s estimate, which would impact amortization and depletion expense.

• The Company makes estimates of the likelihood of whether or not all or some portion of each deferred income tax asset and investment tax credits will be realized, which is impacted by interpretation of tax laws and regulations, historic and future expected levels of taxable income, timing of reversals of taxable temporary timing differences, and tax planning initiatives. Levels of future taxable income are affected by, among other things, market gold prices, production costs, quantities of proven and probable gold reserves, interest rates, and foreign currency exchange rates.

• The Company makes estimates of the timing and amount of expenditures required to settle the Company’s decommissioning liabilities. The principal factors that can cause expected future expenditures to change are: the construction of new processing facilities; changes in the quantities of material in reserves and a corresponding change in the life of mine plan; changing ore characteristics that ultimately impact the environment; changes in water quality that impact the extent of water treatment required; and changes in laws and regulations governing the protection of the environment. In general, as the end of the mine life nears, the reliability of expected cash flows increases, but earlier in the mine life, the estimation of a decommissioning liability is inherently more subjective.

Critical accounting judgements

The following are critical judgements that management has made in the process of applying accounting policies that may have a significant impact on the amounts recognized in the consolidated financial statements.

• The Company makes judgements about whether or not indicators of impairment, or indicators of a reversal of impairment, exist at each reporting period. This determination impacts whether or not a detailed impairment assessment is performed at the reporting date. These judgements did not impact cash generating units at December 31, 2017, or for December 31, 2016.

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Acquisition of Richmond Mines Ltd. Acquisition of Richmond Mines Ltd.

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about business combination [abstract]

Acquisition of Richmond Mines Ltd.

5. ACQUISITION OF RICHMONT MINES INC.

On November 23, 2017, the Company completed a plan of arrangement (the "Arrangement") whereby all of the issued and outstanding common shares of Richmont Mines Inc. ("Richmont") were exchanged on the basis of 1.385 Alamos common shares for each Richmont common share (the "Exchange Ratio"). Richmont owned and operated the Island Gold mine in Ontario, Canada. The Island Gold Mine acquisition provides the Company with further diversification of operations and provides the Company with a long-life, underground mine with exploration potential and the opportunity for production growth and operating synergies with the Company’s other operations.

Under the Arrangement, all of the outstanding Richmont stock options vested and were replaced and converted to Alamos options expiring on November 23, 2018. Richmont restricted share units were exchanged for awards of Alamos and continue to vest according to original plan terms.

The Company determined that the acquisition was a business combination in accordance with the definition in IFRS 3, Business Combinations, and as such has accounted for it in accordance with the standard, with Alamos being the accounting acquirer on November 23, 2017.

Upon closing of the Arrangement, Alamos issued 88,398,804 common shares pursuant to the Arrangement with a fair value of $615.3 million to the former Richmont shareholders.

The Company used a discounted cash flow model to estimate the fair value of the Island Gold mine, Richmont's primary asset. Expected future cash flows are based on estimates of future production and commodity prices, operating costs and forecast capital expenditures based on the life of mine plan as at the acquisition date.

Transaction costs of $3.8 million relating to the arrangement have been expensed in accordance with IFRS 3, Business Combinations, and have beenincluded within Other loss.

In addition, in accordance with IFRS 3,the Company is required to calculate the fair value of the options acquired, as well as the fair value of the replacement options granted. Under IFRS 3, Companies must value the pre-combination service value of the acquired options as well as the fair value of the replacement options using the new terms of the options. Any difference between the two values should be expensed in the post-close period under the new terms. Therefore, the Company recorded an expense of $1.3 million within Other loss, related to the additional share-based compensation of the replacement awards.

The following table summarizes the fair value of the total consideration transferred from the Company and the preliminary fair value of identified assets acquired and liabilities assumed, based on the calculated fair value estimates. Final valuations of assets and liabilities are not yet complete due to the timing of the acquisition and the inherent complexity associated with the valuations. The Company expects to finalize the determination of the fair values of the assets and liabilities acquired and deferred taxes within 12 months of the acquisition date, which could result in material differences from the preliminary values presented in these financial statements.

Consideration transferred
Common shares issued		$615.3
Replacement of long-term incentive instruments	12.1
	$627.4
Net assets acquired
Cash and cash equivalents		$46.2
Equity securities	11.7
Current assets, excluding cash and cash equivalents and equity securities	22.5
Mineral property, plant and equipment	774.3
Current liabilities	(21.2		)
Long-term liabilities	(4.6		)
Deferred income taxes	(201.5		)
	$627.4

These consolidated financial statements include Richmont’s results from November 23, 2017 to December 31, 2017. Revenues of $14.9 million were generated and net earnings of $1.5 million have been included in the Consolidated Statement of Comprehensive Income for that period. Had the acquisition occurred on January 1, 2017, Richmont would have contributed revenues of $125.3 million and net earnings of $12.0 million to the consolidated statement of comprehensive income.

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Amounts Receivable

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Amounts Receivable

6. AMOUNTS RECEIVABLE

	December 31, 2017	December 31, 2016
Sales tax receivables
Canada	$6.4	$2.3
Mexico	20.0	36.2
Other	0.9	0.5
Concentrate receivable	3.2	2.2
Other receivables	4.0	3.7
	$34.5	$44.9

Sales tax receivables are mainly related to value-added taxes at the Company's Mexican and Canadian operations. The Company expects that these receivables will be collected within the next year.

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Inventory

12 Months Ended

Dec. 31, 2017

Disclosure of inventories [Abstract]

Inventory

7. INVENTORY

	December 31, 2017		December 31, 2016
In-process precious metals	$131.6		$120.7
Ore in stockpiles	44.1		37.6
Parts and supplies	41.5		35.7
Dore, refined precious metals and gold in concentrate	12.7		13.5
	229.9		207.5
Less: Long-term inventory	(68.7	)	(75.8	)
	$161.2		$131.7

Long term inventory consists of heap leach and long-term stockpiles of $68.7 million at December 31, 2017 (December 31, 2016 - $75.8 million) and are expected to be recovered after one year.

The amount of inventories recognized in mining and processing costs for the year ended December 31, 2017 was $323.3 million (December 31, 2016 - $304.1 million). The amount of inventories recognized in amortization costs for the year ended December 31, 2017 was $125.6 million (December 31, 2016 - $119.0 million).

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Mineral Property, Pland and Equipment

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about property, plant and equipment [abstract]

Mineral Property, Pland and Equipment

8. MINERAL PROPERTY, PLANT AND EQUIPMENT

			Mineral property
	Plant and equipment		Depletable	Non-depletable	Exploration and evaluation	Total
Cost
At December 31, 2015	$922.9		$1,286.7	$48.4	$244.3	$2,502.3
Additions	67.4		56.3	17.8	16.9	158.4
Acquisition of Carlisle Goldfields	—		—	—	19.9	19.9
Transfer from other assets	—		—	—	4.2	4.2
Disposals	(6.7	)	—	—	—	(6.7	)
At December 31, 2016	$983.6		$1,343.0	$66.2	$285.3	$2,678.1
Additions	66.4		56.7	14.3	41.6	179.0
Acquisition of Richmont Mines (note 5)	55.7		718.6	—	—	774.3
Disposals	(2.7	)	—	—	—	(2.7	)
At December 31, 2017	$1,103.0		$2,118.3	$80.5	$326.9	$3,628.7
Accumulated amortization and impairment charges
At December 31, 2015	$206.5		$425.2	$5.1	$6.3	$643.1
Amortization	69.0		49.9	—	—	118.9
Disposals	(2.1	)	—	—	—	(2.1	)
At December 31, 2016	$273.4		$475.1	$5.1	$6.3	$759.9
Amortization	61.6		54.9	—	—	116.5
Disposals	(1.1	)	—	—	—	(1.1	)
At December 31, 2017	$333.9		$530.0	$5.1	$6.3	$875.3
Net carrying value
At December 31, 2016	$710.2		$867.9	$61.1	$279.0	$1,918.2
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6	$2,753.4

The net carrying values by segment (note 16) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$589.5	$767.1	$75.4	—	$1,432.0
Mulatos	112.9	99.1	—	—	212.0
Island Gold	54.8	720.1	—	—	774.9
El Chanate	4.1	2.0	—	—	6.1
Corporate and other	7.8	—	—	320.6	328.4
At December 31, 2017	$769.1	$1,588.3	$75.4	$320.6	$2,753.4
Young-Davidson	$580.7	$789.2	$61.1	—	$1,431.0
Mulatos	121.6	76.9	—	—	198.5
El Chanate	2.6	1.8	—	—	4.4
Corporate and other	5.3	—	—	279.0	284.3
At December 31, 2016	$710.2	$867.9	$61.1	$279.0	$1,918.2

Other

The carrying value of construction in progress at December 31, 2017 was $64.4 million (December 31, 2016 - $52.5 million).

During the year ended December 31, 2017, the Company capitalized $2.0 million of interest to capital projects (year ended December 31, 2016 - $6.6 million). The applicable capitalization rate for general borrowings was 8.62% (2016 - 8.62%)

In the second quarter of 2017, the Company purchased an outstanding royalty on the Lynn Lake gold project for $6.7 million, which has been capitalized to mineral property, plant and equipment.

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Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Accounts Payable and Accrued Liabilities

9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31, 2017		December 31, 2016
Trade accounts payable and accrued liabilities	$87.3		$75.6
Royalties payable	4.9		3.6
Interest payable	—		6.1
Share-based compensation liability	4.5		6.8
Derivative liabilities (note 17)	0.1		2.4
		$96.8		$94.5

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Financing Obligations

12 Months Ended

Dec. 31, 2017

Debt and Financing Obligations [Abstract]

Financing Obligations

10. FINANCING OBLIGATIONS

	December 31, 2017		December 31, 2016
Revolving credit facility (a)	—		—
Senior secured notes (b)	—		$297.6
Equipment financing obligations	$7.5		$7.3
	$7.5		$304.9
Less: Current portion of financing obligations	($4.2	)	($3.6	)
	$3.3		$301.3

(a) Revolving credit facility

On September 21, 2017, the Company amended and increased its existing undrawn revolving credit facility (the "Facility") from $150.0 million to $400.0 million. The maturity date of the Facility has been extended to September 20, 2021. The amended Facility bears interest at an interest rate of Libor plus 2.00% to 3.125% on drawn amounts and stand-by fees of 0.45% to 0.70% on undrawn amounts, based on the Company's net leverage ratio, as defined in the agreement.

The Facility is secured against all of the material present and future assets, property and undertakings of the Company. The Facility contains various covenants customary for a loan facility of this nature, including limits on indebtedness, asset sales and liens. It contains financial covenant tests that include (a) a minimum interest coverage ratio of 3.0:1.0 and (b) a maximum net leverage ratio of 3.5:1.0, both as defined in the agreement. As at December 31, 2017, the Company is in compliance with the covenants and the Facility is fully undrawn.

During the year ended December 31, 2017, the Company incurred costs of $2.1 million to amend the Facility. These costs will be amortized into net earnings over the term of the Facility.

(b) Senior secured notes

On March 27, 2014, the Company completed an offering of $315.0 million senior secured notes. The secured notes were sold at 96.524% of par, resulting in total proceeds of $304.1 million.

On April 3, 2017, the Company redeemed the senior secured notes on the first available prepayment date at 103.875% of face value for $327.2 million, plus accrued interest to the date of redemption of $12.2 million. In connection with the redemption of the notes, the Company recorded a pre-tax loss of $29.1 million, being the difference between the carrying amount of the senior secured notes, inclusive of the prepayment option embedded derivative, and the redemption amount. In addition, the Company recorded a deferred tax recovery of $7.3 million on the redemption.

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Decommissioning Liabilities

12 Months Ended

Dec. 31, 2017

Asset Retirement Obligation Disclosure1 [Abstract]

Decommissioning Liabilities

11. DECOMMISSIONING LIABILITIES

A decommissioning liability is recognized in the period in which it is incurred, on a discounted cash flow basis, if a reasonable estimate can be made. The liability accretes to its full value over time through charges to earnings or loss. In addition, the discounted value is added to the carrying amount of mineral property, plant and equipment, and is amortized on a units-of-production basis over the life of the mine. A continuity of the decommissioning liability is as follows:

	Total
Balance – December 31, 2015	$37.2
Reclamation expenditures	(0.3	)
Accretion expense	2.1
Revisions to expected discounted cash flows	0.6
Balance – December 31, 2016	$39.6
Liability assumed on acquisition	2.4
Reclamation expenditures	(0.1	)
Accretion expense	2.6
Revisions to expected discounted cash flows	0.1
Balance – December 31, 2017	$44.6

The majority of the expenditures are expected to occur between 2023 and 2036. The discount rates used in discounting the estimated reclamation and closure cost obligations were between 2.3% and 7.6% for the year ended December 31, 2017 (2016 – 2.3% and 7.4%), and the inflation rate used was between 2.0% and 4.0% for the year ended December 31, 2017 (2016 – 2.0% and 4.0%).

The total undiscounted value of the decommissioning liabilities at December 31, 2017 was $53.2 million (2016 - $51.3 million).

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Income Taxes

12 Months Ended

Dec. 31, 2017

Disclosure of income tax [Abstract]

Income Taxes

12. INCOME TAXES

The following table represents the major components of income tax expense (recovery) recognized in net loss for the years ended December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Current income tax expense	$11.9		$3.8
Deferred income tax (recovery) expense	(16.3	)	6.5
Income tax (recovery) expense recognized in net loss	($4.4	)	$10.3

The statutory tax rate for 2017 was 25.0% (2016 – 25.0%). The following table reconciles the expected income tax recovery at the Canadian combined statutory income tax rate to the amounts recognized in net loss for the years ended December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Earnings (loss) before income taxes	$22.2		($7.6	)
Statutory tax rate	25.0	%	25.0	%
Expected income tax expense (recovery) based on above rates	$5.6		($1.9	)
Effect of higher tax rates in foreign jurisdictions	0.3		0.3
Non-deductible expenses	4.9		4.1
Impact of local mining taxes	2.2		5.9
Impact of foreign exchange	(22.5	)	(5.1	)
Impact of renouncement of flow through share expenditures	2.6		5.3
Withholding tax	1.3		1.1
Change in unrecognized temporary differences	2.6		0.1
Other	(1.4	)	0.5
Income tax (recovery) expense	($4.4	)	$10.3

The following table reflects the change in deferred income tax liability at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016
Balance, beginning of year	$291.0		$284.1
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	201.5		—
Deferred income tax (recovery) expense recognized in net earnings (loss)	(16.3	)	6.5
Deferred income tax expense recognized in OCI	3.5		0.4
Deferred income tax recovery recognized in equity	(2.7	)	—
Balance, end of year	$477.0		$291.0

The following reflects the deferred income tax liability at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016
Accounting value of mineral property, plant and equipment in excess of tax value	$409.0		$270.8
Accounting value of inventories in excess of tax value	34.7		36.8
Other taxable temporary differences	58.6		18.1
Non-capital losses carried forward	(25.3	)	(34.7	)
Deferred income tax liability	$477.0		$291.0

The Company has Canadian tax losses of $80.8 million expiring between 2024 and 2036, Mexican tax losses of $43.6 million expiring between 2018 and 2027, United States tax losses of $20.3 million expiring between 2028 and 2035, as well as Turkish losses of $7.1 million expiring between 2018 and 2022.

The Company has unrecognized deferred income tax assets at December 31, 2017 in respect of aggregate loss carryforwards, deductible temporary differences and unused tax credits. The unrecognized loss carryforwards, deductible temporary differences and unused tax credits are $77.8 million (December 31, 2016 -$100.7 million).

At December 31, 2017, the Company has unrecognized deferred income tax liabilities on taxable temporary differences of $6.1 million (December 31, 2016 - $24.2 million) for taxes that would be payable on the unremitted earnings of certain subsidiaries of the Company.

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Share Capital

12 Months Ended

Dec. 31, 2017

Disclosure of share capital, reserves and other equity interest [Abstract]

Share Capital

13. SHARE CAPITAL

a) Authorized share capital of the Company consists of an unlimited number of fully paid Class A common shares without par value.

	Number of Shares	Amount
Outstanding at December 31, 2015	257,070,005		$2,773.7
Shares issued through:
Acquisition of Carlisle Goldfields	4,788,039	17.5
Share-based compensation plans	1,457,872	9.7
Exercise of warrants	432,191	1.2
Flow-through share financing	3,328,388	20.1
Outstanding at December 31, 2016	267,076,495	$2,822.2
Shares issued through:
Acquisition of Richmont Mines Ltd (note 5)	88,398,804	615.3
Equity financing (i)	31,450,000	241.8
Share-based compensation plans	542,250	3.5
Exercise of warrants	332,466	0.5
Flow-through share financing (ii)	1,301,535	8.4
Outstanding at December 31, 2017	389,101,550	$3,691.7

(i)     Equity financing

On February 9, 2017, the Company completed an equity financing with a syndicate of underwriters, pursuant to which, on a bought deal basis, 31,450,000 common shares of the Company were issued at a price of $7.95 per common share, for aggregate gross proceeds to the Company of $250.0 million. Transaction costs related to equity financing were $10.9 million, and the Company recognized a corresponding deferred tax asset of $2.7 million.

(ii)     Flow-through share financing

During the year, the Company completed a Canadian Development Expense ("CDE") flow-through financing for gross proceeds of CAD $12.0 million (at a price per share of CAD $10.87) and Canadian Exploration Expense ("CEE") flow-through financing for gross proceeds of CAD $3.0 million (at a price per share of CAD $15.15), both at premiums to the share price on the date of issuance.

b) Employee long-term incentive plan and share purchase plan

The Company has a long-term incentive plan under which share-based compensation, including stock options, deferred share units ("DSUs"), performance share units ("PSUs"), restricted share units ("RSUs") and stock appreciation rights ("SARs") may be granted to directors, officers, employees, and consultants of the Company. The incentive plan was approved by shareholders in 2016. The Company also has an Employee Share Purchase Plan which enables employees to purchase Class A common shares through payroll deduction. Employees can contribute up to 10% of their annual base salary, and the Company will match 75% of the employees’ contributions. The Class A common shares can be issued from treasury based on the volume weighted average closing price of the last five days prior to the end of the quarter. At the option of the Company, the shares may be purchased for plan participants in the open market. The maximum number of Class A common shares that may be reserved and set aside for issuance under the long-term incentive plan is 6.5% of the Class A common shares outstanding at the time of granting the award (on a non-diluted basis) inclusive of 0.2% of the issued and outstanding shares (on a non-diluted basis) specifically allocated to the employee share purchase plan.

c) Stock options

The following is a continuity of the changes in the number of stock options outstanding:

	Number		Weighted average exercise price (CAD$)
Outstanding at December 31, 2015	10,237,362		$12.15
Granted	1,620,000		3.75
Conversion of Carlisle options to Alamos	462,954		9.69
Exercised	(1,099,749	)	7.63
Expired	(1,708,931	)	13.56
Outstanding at December 31, 2016	9,511,636		$10.87
Granted	578,490		9.62
Conversion of Richmont options to Alamos options (note 5)	2,863,146		3.53
Exercised	(510,673	)	6.23
Expired	(2,013,254	)	16.42
Outstanding at December 31, 2017	10,429,345		$7.94

During the year ended December 31, 2017, the weighted average share price at the date of exercise for stock options exercised was CAD $9.99 per share (for the year ended December 31, 2016: CAD $11.37 per share).

(i) Stock options granted

During the year ended December 31, 2017, the Company granted 578,490 stock options (year ended December 31, 2016 - 1,620,000). The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation:

For options granted in the year ended:	December 31, 2017		December 31, 2016
Weighted average share price at grant date (CAD$)	$9.62		$3.75
Risk-free rate	0.91% - 1.35%		0.32% - 0.92%
Expected dividend yield	0.70	%	0.70	%
Expected stock price volatility (based on historical volatility)	57	%	49	%
Expected life of option (months)	36 - 84		42 - 84
Weighted average per share fair value of stock options granted (CAD$)	$4.27		$1.52

As part of the Richmont Mines acquisition (note 5), the Company issued 2,863,146 replacement stock options to ex-Richmont employees. The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation:

Replacement options granted:	November 23, 2017
Weighted average share price at grant date (CAD$)	$3.53
Risk-free rate	1.43	%
Expected dividend yield	0.70	%
Expected stock price volatility (based on historical volatility)	53	%
Expected life of option (months)	12
Weighted average per share fair value of stock options granted (CAD$)	$5.45

Stock options outstanding and exercisable as at December 31, 2017:

	Outstanding			Exercisable
Range of exercise prices (CAD$)	Number of options	Weighted average exercise price (CAD$)	Weighted average remaining contractual life (years)	Number of options	Weighted average exercise price (CAD$)
$0.82 - $3.00	1,770,508	2.04	0.90	1,770,508	2.04
$3.01 - $7.00	2,119,866	3.91	3.97	1,039,866	4.07
$7.01 - $11.00	4,234,349	8.07	2.21	3,375,194	7.88
$11.01 - $15.00	985,311	14.11	0.65	985,311	14.11
$15.01 - $19.00	1,112,425	16.59	0.81	1,112,425	16.59
$19.01 - $23.00	206,886	20.88	0.66	206,886	20.88
	10,429,345	$7.94	2.02	8,490,190	$8.53

d) Other employee long-term incentives

The following is a continuity of the changes in the number of other long-term incentive plans ("LTI") outstanding for the years ended December 31, 2017 and 2016:

	Restricted share units ("RSU")		Stock appreciation rights ("SAR")		Deferred share units ("DSU")		Performance share units ("PSU")
Outstanding units, December 31, 2015	1,404,325		2,471,462		276,930		273,363
Granted	574,088		—		130,009		340,188
Forfeited	(257,345	)	(729,816	)	(15,313	)	(102,156	)
Settled	(310,876	)	(252,071	)	(13,281	)	(87,142	)
Outstanding units, December 31, 2016	1,410,192		1,489,575		378,345		424,253
Granted	499,560		—		102,260		269,780
Conversion of Richmont units to Alamos units (note 5)	112,774		—		—		—
Forfeited	(171,452	)	(316,074	)	—		(65,451	)
Settled	(350,140	)	(117,976	)	—		(28,877	)
Outstanding units, December 31, 2017	1,500,934		1,055,525		480,605		599,705

The settlement of LTI is either cash or equity based on the feature of the LTI. The settlement of SARs is in cash, and RSUs, DSUs and PSUs are either cash or equity settled.

e) Earnings (loss) per share

Basic earnings or loss per share amounts are calculated by dividing earnings or loss for the period by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated based on the weighted average number of common shares outstanding during the period, including the effects of dilutive common share equivalents.

	For the years ended December 31,
	2017		2016
Net earnings (loss)	$26.6		($17.9		)
Weighted average number of common shares outstanding (in thousands)	305,521		265,234
Basic earnings (loss) per share		$0.09		($0.07	)
Dilutive effect of potential common share equivalents (in thousands)	3,500		—
Diluted weighted average number of common shares outstanding (in thousands)	309,021		265,234
Diluted earnings (loss) per share		$0.09		($0.07	)

The following table lists the equity securities excluded from the computation of diluted loss per share. The securities were excluded as the exercise price relating to the particular security exceeded the average market price of the Company's common shares of CAD $9.40 for the year ended December 31, 2017 (2016 - CAD $8.78), or the inclusion of the equity securities had an anti-dilutive effect on net loss.

For the periods in which the Company records a loss, diluted loss per share is calculated using the basic weighted average number of shares outstanding, as using the diluted weighted average number of shares outstanding in the calculation would be anti-dilutive.

	For the years ended December 31,
(in thousands)	2017	2016
Stock options	2,920	9,512
Equity settled LTI	—	369
Warrants	12,232	11,310
	15,152	21,191

(f)    Dividends

On April 28, 2017, the Company paid a dividend of $3.0 million or $0.01 per share.

On October 31, 2017, the Company paid a dividend of $3.0 million or $0.01 per share.

(g)    Share purchase warrants

The Company has the following share purchase warrants ("Warrants"), outstanding as at December 31, 2017 related to past acquisitions:

	Number of warrants	Common shares issuable	Exercise price	Expiry date
	(000s)	(000s)	CAD
AGI.WT	7,167	7,167	$28.46	August 30, 2018
AGI.WT.A	5,065	5,065	$10.00	January 7, 2019
	12,232	12,232

The AGI.WT warrants issued in relation to the Esperanza acquisition in 2013 are classified as a derivative liability recorded at fair value through profit or loss, due to the currency of the exercise price of the warrants. The warrants are priced in Canadian dollars, which is not the functional currency of the Company. Therefore the warrants are fair valued using the market price with gains or losses recorded in net loss. The Company recorded a gain of $2.3 million recorded in other gains for the year ended December 31, 2017 (2016 - a loss of 1.6 million).

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Other Gain (Loss)

12 Months Ended

Dec. 31, 2017

Other Gain (Loss) [Abstract]

Other (Loss) Gain

14. OTHER (LOSS) GAIN

Other (loss) gain recorded in net earnings (loss) for the years ended:

	December 31,		December 31,
	2017		2016
Reduction of obligation to renounce flow-through exploration expenditures	$2.3		$1.3
Unrealized (loss) gain on non-hedged derivatives	(0.3	)	1.6
Fair value adjustment on prepayment option embedded derivative	—		9.5
Loss on disposal of assets	(1.9	)	(4.6	)
Interest income	2.5		2.1
Transaction costs related to the Richmont acquisition (note 5)	(3.8	)	—
Share-based compensation related of replacement awards related to Richmont (note 5)	(1.3	)	—
Other	1.9		(2.3	)
	($0.6	)	$7.6

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Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2017

Disclosure of Cash Flow Statement [Abstract]

Supplemental Cash Flow Information

15. SUPPLEMENTAL CASH FLOW INFORMATION

Changes in working capital and income taxes received or paid for the years ended:

	December 31,		December 31,
	2017		2016
Amounts receivable	$14.0		($5.7	)
Inventory	(15.9	)	(16.1	)
Advances and prepaid expenses	(4.3	)	3.8
Accounts payable and accrued liabilities	(12.1	)	(7.5	)
Income taxes (paid) refunded	(1.5	)	13.2
	($19.8	)	($12.3	)
Interest received	$2.5		$2.1

Other items for the years ended:

	December 31,			December 31,
	2017			2016
Unrealized loss (gain) on non-hedged derivatives		$0.3			($1.6	)
Gain on prepayment option fair value adjustment	—			(9.5		)
Reduction of obligation to renounce flow-through exploration expenditures	(2.3		)	(1.3		)
Loss on disposal of assets	1.9			4.6
Payment of transaction costs incurred by Richmont Mines (note 5)	(5.9		)	—
Share-based payments related to Richmont Mines transaction (note 5)	1.3			—
Other non-cash items	0.8			(2.3		)
	($3.9		)	($10.1		)

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Segmented Information

12 Months Ended

Dec. 31, 2017

Disclosure of entity's operating segments [Abstract]

Segmented Information

16. SEGMENTED INFORMATION

(a) Segment revenues and results

The Company manages its reportable operating segments by operating mines. The Company operates in two principal geographical areas - Canada (country of domicile), and Mexico. The Young-Davidson and Island Gold mines operate in Canada, and the Mulatos and El Chanate mines operate in Sonora, Mexico. The results from operations for these reportable operating segments are summarized in the following tables:

Year ended December 31, 2017
	Young-Davidson	Mulatos	Island Gold	El Chanate		Corporate/other1		Total
Operating revenues	$249.7	$201.4	$14.9	$76.8		—		$542.8
Cost of sales
Mining and processing	125.9	112.9	4.1	72.7		—		315.6
Royalties	4.4	10.6	0.6	—		—		15.6
Amortization	83.1	29.5	8.7	4.3		—		125.6
	213.4	153.0	13.4	77.0		—		456.8
Expenses
Exploration	—	6.7	—	—		1.6		8.3
Corporate and administrative	—	—	—	—		15.5		15.5
Share-based compensation	—	—	—	—		6.2		6.2
Earnings (loss) from operations	$36.3	$41.7	$1.5	($0.2	)	($23.3	)	$56.0
Finance expense								(9.1	)
Foreign exchange gain								5.0
Other loss								(0.6	)
Loss on redemption of senior secured notes								(29.1	)
Earnings before income taxes								$22.2

1. Corporate and other consists of corporate balances and exploration and development projects.

Year ended December 31, 2016
	Young-Davidson	Mulatos	El Chanate	Corporate/other1		Total
Operating revenues	$211.9	$187.3	$83.0	—		$482.2
Cost of sales
Mining and processing	107.4	117.2	72.4	—		297.0
Royalties	3.7	9.6	—	—		13.3
Amortization	72.6	37.8	8.6	—		119.0
	183.7	164.6	81.0	—		429.3
Expenses
Exploration	—	2.0	—	3.1		5.1
Corporate and administrative	—	—	—	16.3		16.3
Share-based compensation	—	—	—	10.2		10.2
Earnings (loss) from operations	$28.2	$20.7	$2.0	($29.6	)	$21.3
Finance expense						(24.0	)
Foreign exchange loss						(12.5	)
Other gains						7.6
Loss before income taxes						($7.6	)

1. Corporate and other consists of corporate balances and exploration and development projects.

(b) Segment assets and liabilities

The following table presents the segment assets and liabilities:

	Total Assets		Total liabilities
	December 31, 2017	December 31, 2016	December 31, 2017	December 31, 2016
Young-Davidson	$1,580.9	$1,548.9	$243.4	$260.4
Mulatos	350.0	335.5	93.8	88.4
Island Gold	849.6	—	222.5	—
El Chanate	111.4	113.5	24.3	27.8
Corporate/other	421.9	494.3	48.6	356.2
Total assets and liabilities	$3,313.8	$2,492.2	$632.6	$732.8

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Financial Instruments and Risk Management

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about financial instruments [abstract]

Financial Instruments and Risk Management

17. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Fair values of financial instruments

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. The Company does not have any non-recurring fair value measurements as at December 31, 2017. Levels 1 to 3 of the fair value hierarchy are defined based on the degree to which fair value inputs are observable or unobservable, as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the net asset or liability, either directly or indirectly; and

• Level 3 inputs are unobservable (supported by little or no market activity).

	December 31, 2017			December 31, 2016
	Level 1		Level 2	Level 1		Level 2
Financial assets
Fair value through profit or loss
Prepayment option embedded derivative	—		—	—		9.6
Gold options	—		0.5	—		3.3
Fair value through OCI
Equity securities	35.8		—	14.1		—
Currency hedging derivative instruments	—		5.0	—		—
Financial liabilities
Fair value through profit or loss
Share purchase warrants	(0.1	)	—	(2.4	)	—
Currency derivative instruments	—		—	—		(3.3	)
	$35.7		$5.5	$11.7		$9.6

The methods of measuring financial assets and liabilities has not changed during the year ended December 31, 2017. The Company does not have any financial assets or liabilities measured at fair value based on unobservable inputs (Level 3).

The fair value of option and forwards (gold and currency) contracts are determined using a market approach with reference to observable market prices for identical assets traded in an active market. These are classified within Level 2 of the fair value hierarchy. The use of reasonably possible alternative assumptions would not significantly affect the Company’s results.

Derivative Instruments

The fair value of derivative instruments is as follows:

	December 31,		December 31,
	2017		2016
Derivatives designated as hedging instruments
Currency hedging derivative instruments	$5.0		—
Derivatives not designated as hedging instruments
Gold option asset	$0.5		$3.3
Currency derivative instruments	—		(3.3	)
Share purchase warrants liability	(0.1	)	(2.4	)
	$0.4		($2.4	)

Currency derivative contracts

The Company enters into option and forward contracts to protect against the risk of an increase in the value of the Canadian dollar and Mexican peso versus the US dollar. These option and forward contracts are for the purchase of local currencies and the sale of US dollars, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing currency risk.

During the year ended December 31, 2017, the Company designated options and forwards as cash flow hedges for the highly probable Canadian dollar and Mexican peso purchases. These derivatives meet the hedge effectiveness criteria and are designated in a hedge accounting relationship as a result of the following factors:

• An economic relationship exists between the hedged item and hedging instrument, as notional amounts match and both the hedged item and hedging instrument fair values move in response to the same risk (foreign exchange rates). There are no significant reasons or causes for the designated hedged item and hedging instrument to be mismatched since the hedging instrument matures during the same month as the expected hedged expenditures is incurred (hedged item). The correlation between the foreign exchange rate of the hedged item and the hedging instrument should be highly correlated and closely aligned as the maturity and the notional amount are the same.

• The hedge ratio is one to one for this hedging relationship, as the hedged item is foreign currency risk that is hedged with a foreign currency hedging instrument.

• Credit risk is not material in the fair value of the hedging instrument.

The Company has identified two sources of potential ineffectiveness: 1) the timing of cash flow differences between the expenditure and the related derivative and 2) the inclusion of credit risk in the fair value of the derivative not replicated in the hedged item. The Company expects the impact of these sources of hedge ineffectiveness to be minimal. The timing of hedge settlements and incurred expenditures are closely aligned, as they are expected to occur within 30 days of each other. As noted above, credit risk is not a material component of the fair value of the Company’s hedging instruments, as all counterparties are reputable Canadian banking institutions and are highly rated.

The effective portion of the changes in fair value of the hedging instrument for the years ended December 31, 2017 and 2016 recorded in accumulated other comprehensive income are:

	December 31,		December 31,
	2017		2016
Balance, beginning of the period	—		—
Gains on currency instruments	11.2		—
Less: realized gains on CAD currency instruments	(2.2	)	—
Less: realized gains on MXN currency instruments	(1.3	)	—
Deferred income tax related to hedging instrument	(1.7	)	—
	$6.0		—

For the year ended December 31, 2017, the Company did not recognize any ineffectiveness on the hedging instruments.

The open contracts, which settle on a monthly basis, are summarized as at December 31, 2017:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)
2018	Collars and forwards	174.0	1.31	1.36

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2018	Collars and forwards	1,560.0	18.72	20.71

The fair value of these contracts was an asset of $5.0 million at December 31, 2017 (December 31, 2016 - liability of $3.3 million). For the year ended December 31, 2017, the Company realized gains of $4.3 million on the foreign currency contracts (for the year ended December 31, 2016 - realized losses of $1.6 million). Of these gains only $3.5 million were eligible to be recognized in accumulated other comprehensive income under hedge accounting for the year ended December 31, 2017 (for the year ended December 31, 2016 - $nil).

The following table illustrates unrealized gains on foreign currency contracts for the years ended:

	December 31,	December 31,
	2017	2016
Foreign currency hedged contracts
Unrealized gains	$11.2	—
Foreign currency non-hedged contracts
Unrealized gains	2.1	2.3
	$13.3	$2.3

Gold option contracts

As at December 31, 2017, the Company held option contracts to protect against the risk of a decrease in the value of the gold price on a portion of gold sales. These option contracts ensure a minimum average realized gold price of $1,270 per ounce and a maximum average realized gold price of $1,444 per ounce, regardless of the movement in gold prices during 2017.

The following gold collar contracts are outstanding as of December 31, 2017:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2018	50,100	$1,270	$1,444

The fair value of these contracts was an asset of $0.5 million at December 31, 2017 (December 31, 2016 - asset of $3.3 million). The options mature through out 2018.

For the year ended December 31, 2017, the Company realized a loss of $0.6 million related to the settlement of option contracts (for the year ended December 31, 2016 - realized losses of $1.2 million). Total unrealized losses for the year ended December 31, 2017 was $2.6 million (for the year ended December 31, 2016 - unrealized gain of $3.3 million). The Company has elected to not apply hedge accounting to the gold option contracts, with changes in fair value recorded in net earnings.

Risks

In the normal course of operations, the Company is exposed to credit risk, liquidity risk and the following market risks: commodity price, market price, interest rate and foreign currency exchange rate. The Company has developed a risk management process to identify, analyze and assess these and other risks, and has formed a Risk Committee to monitor all significant risks to the Company. The Board of Directors has overall responsibility for the oversight of the Company’s risk management framework, and receives regular reports from the Risk Committee.

Commodity price risk

The profitability of the Company’s mining operations is significantly affected by changes in the market price for gold. Gold prices fluctuate on a daily basis and are affected by numerous factors beyond the Company’s control. The supply and demand for gold, the level of interest rates, the rate of inflation, investment decisions by large holders of gold, including governmental reserves, and the stability of exchange rates can all cause significant fluctuations in gold prices. Such external economic factors are in turn influenced by changes in international investment patterns and monetary systems, and political developments. From time to time, the Company will enter into zero cost collars or other financial instruments to manage short term commodity price fluctuations.

Market price risk

The Company’s earnings or loss, cash flows and financial condition are subject to price risk due to fluctuations in the market price of gold and silver. Gold prices have historically fluctuated widely and are affected by numerous factors beyond the Company’s control. For the year ended December 31, 2017, the Company’s revenues and cash flows were impacted by gold prices in the range of $1,146 to $1,349 per ounce. Metal price declines could cause the continued development of, and production from, the Company’s properties to be uneconomic. A 10% change in the gold price would impact the Company's net loss before tax for the year ended December 31, 2017 by $54.3 million (2016 - $48.2 million).

The Company is exposed to fluctuations in the fair value of investments made in equity securities. A 10% increase or reduction in each company’s share price at December 31, 2017 would have increased or reduced other comprehensive income (loss) by $3.5 million (2016 - $1.4 million).

Interest rate risk

Interest rate risk is the risk that the fair value or the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. All of the Company’s outstanding debt obligations bear interest at fixed rates and are therefore not exposed to changes in market interest rates. The interest rate on the credit facility (note 10) is variable, however, the Facility was undrawn as at December 31, 2017.

The Company is exposed to interest rate risk on its cash and cash equivalents. The cash and cash equivalent interest earned is based on bank account interest rates which may fluctuate. A 1.0% change in the interest rate would result in an increase or decrease of approximately $2.0 million in interest earned by the Company. The Company has not entered into any derivative contracts to manage this risk.

The fair value of the prepayment option embedded derivative, that was present at December 31, 2016 was also impacted by fluctuations in interest rates.

Foreign currency exchange rate risk

Metal sales revenues for the Company are denominated in US dollars. The Company is exposed to currency fluctuations relative to the US dollar on expenditures that are denominated in Canadian dollars and Mexican pesos. These potential currency fluctuations could have a significant impact on production costs and thereby, the profitability of the Company. The Company is also exposed to the impact of currency fluctuations on its monetary assets and liabilities.

A 10% strengthening of these currencies against the US dollar at each balance sheet date would have resulted in a gain recorded in net loss by the amounts shown below. This analysis assumes that other variables, in particular interest rates, remain constant.

	December 31, 2017	December 31, 2016
Impact of a 10% change in foreign exchange rates
Canadian dollar	$7.8	$2.3
Mexican peso	1.5	0.7

The currencies of the Company's financial instruments and other foreign currency denominated liabilities based on notional amounts, denominated in U.S dollar equivalents were as follows:

	Canadian Dollars				Mexican Peso
	December 31, 2017		December 31, 2016		December 31, 2017		December 31, 2016
Cash and cash equivalents	$17.2		$22.8		$6.8		$7.3
Equity securities	35.8		14.1		—		—
Amounts receivable	7.4		3.3		22.0		38.2
Accounts payable and accrued liabilities	(56.1	)	(42.7	)	(14.7	)	(16.1	)
Current portion of financing obligations	(4.2	)	(1.5	)	—		—
Financing obligations	(3.3	)	(3.7	)	—		—
Total exposure to currency risk	(3.2	)	(7.7	)	14.1		29.4

Credit risk

Credit risk relates to receivables and other contracts, and arises from the possibility that any counterparty to an instrument fails to perform. For cash and cash equivalents, restricted cash, and receivables, the Company’s credit risk is limited to the carrying amount on the balance sheet. The Company manages credit risk by transacting with highly-rated counterparties and establishing a limit on contingent exposure for each counterparty based on the counterparty’s credit rating. Exposure on receivables is limited as the Company sells its products to a small number of organizations, on which the historical level of defaults is minimal.

The Company's maximum exposure to credit risk is as follows:

	December 31, 2017		December 31, 2016
Cash and cash equivalents		$200.8		$252.2
Trade receivables	4.0		5.9
Total financial instrument exposure to credit risk	$204.8		$258.1

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The Company manages this risk through regular monitoring of its cash flow requirements to support ongoing operations and expansionary plans. The Company ensures that there are sufficient committed loan facilities to meet its business requirements, taking into account anticipated cash flows from operations and holdings of cash and cash equivalents.

(a) Contractual commitments

The following table shows the contractual maturities of debt commitments. The amount presented represents the future undiscounted principal and interest cash flows, and therefore, do not equate to the carrying amounts on the consolidated statements of financial position.

	Less than 1 year	2 - 3 years	4 - 5 years	More than 5 years	Total
Operating and financing leases	5.4	5.6	2.0	2.9	15.9
Accounts payable and accrued liabilities	96.8	—	—	—	96.8
Decommissioning liability	—	—	—	54.8	54.8
Contract mining	47.9	72.0	47.8	38.9	206.6
Flow-through share obligation	0.7	—	—	—	0.7
Capital commitments	21.8	—	—	—	21.8
	$172.6	$77.6	$49.8	$96.6	$396.6

Contractual obligations exist with respect to royalties (note 20); however gold production subject to royalty cannot be ascertained with certainty and the royalty rate varies with the gold price.

The obligations related to contract mining are based on current mine plans, and are subject to change.

The Company’s future operating cash flow and cash position are highly dependent on gold prices, as well as other factors. Taking into consideration the Company’s current cash position, volatile equity markets, and global uncertainty in the capital markets, the Company is continually reviewing expenditures and assessing business opportunities to enhance liquidity in order to ensure adequate liquidity and flexibility to support its growth strategy, including the development of its projects, while continuing production at its current operations. A period of continuous low gold prices may necessitate the deferral of capital expenditures which may impact the timing of development work and project completion, as well as production from mining operations. In addition, in such a price environment, the Company may be required to adopt one or more alternatives to increase liquidity.

(b) Equity securities

As at December 31, 2017, the Company held shares in AuRico Metals Inc. ("AuRico Metals") valued at $21.8 million, and an investment in Corex Gold Corp. ("Corex") valued at $3.5 million. As part of the Richmont Mines acquisition, the Company acquired Richmont's investment in Monarques Gold Corp. that had a value of $9.4 million. The Company also has other investments valued at $1.1 million.

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Management of Capital

12 Months Ended

Dec. 31, 2017

Disclosure of objectives, policies and processes for managing capital [abstract]

Management of Capital

18. MANAGEMENT OF CAPITAL

The Company defines capital that it manages as its shareholders equity as well as debt and financing obligations. The Company’s objectives when managing capital are to safeguard the Company's ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders. At December 31, 2017, total managed capital was $2,688.7 million (2016 - $2,064.3 million).

	December 31, 2017	December 31, 2016
Shareholder's equity	$2,681.2	$1,759.4
Current portion of debt and financing obligations	4.2	3.6
Long-term debt and financing obligations	3.3	301.3
	$2,688.7	$2,064.3

The Company’s capital structure reflects the requirements of an entity focused on sustaining strong cash flows from its current mining operations and financing both internal and external growth opportunities and development projects. The Company faces lengthy development lead times as well as risks associated with increasing capital costs and project completion timing due to the availability of resources, permits and other factors beyond the Company’s control. The Company’s operations are also significantly affected by the volatility of the market price of gold.

The Company continually assesses its capital structure and makes adjustments to it with reference to changes in economic conditions and risk characteristics associated with its underlying assets. In order to maintain or adjust the capital structure, the Company may issue new shares, pay dividends, sell assets or enter into new debt arrangements.

The Company manages its capital structure by performing the following:

• Maintaining sufficient liquidity in order to address any potential operational disruptions or industry downturns;

• Preparing detailed budgets and cash flow forecasts for each mining operation, exploration project, development project and corporate activities that are approved by the Board of Directors;

• Regular internal reporting and Board of Directors’ meetings to review actual versus budgeted spending and cash flows; and

• Detailed project financial analysis to assess or determine new funding requirements.

There were no changes in the Company’s approach to managing capital during the year.

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Related Party Transactions

12 Months Ended

Dec. 31, 2017

Disclosure of related party [Abstract]

Related Party Transactions

19. RELATED PARTY TRANSACTIONS

Remuneration of key management (includes the Company's directors and executive team) for the years ended:

	December 31,	December 31,
Expense by nature:	2017	2016
Short-term employee benefits	8.8	7.8
Share-based payments	4.5	4.2
	$13.3	$12.0

These transactions are in the normal course of operations and all of the transactions are measured at the exchange amount of consideration established and agreed to by the parties.

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Commitments Commitments

12 Months Ended

Dec. 31, 2017

Disclosure of additional information [Abstract]

Commitments

20. COMMITMENTS

Capital commitments

As of December 31, 2017, the Company has $21.8 million in committed capital purchases (December 31, 2016 - $2.8 million).

Royalties

Production from certain concessions within the Salamandra district, including the Mulatos Mine, is subject to a production royalty payable at a rate of 5% of the value of gold and silver production, less certain deductible refining and transportation costs. Production to a maximum of two million ounces of gold is subject to this royalty. For the year ended December 31, 2017, the royalty was paid or accrued on approximately 1.8 million ounces of applicable gold production. Royalty expense related to the third party royalty was $9.6 million for the year ended December 31, 2017 (2016 - $8.7 million). In addition, royalty expense includes the 0.5% Extraordinary Mining Duty, which totaled $1.0 million for the year ended December 31, 2017, payable to the Mexican government (2016- $0.9 million).

The Company is required to pay a 1.5% net smelter royalty on production from the Young-Davidson mine effective July 2, 2015. For the year ended December 31, 2017, the Company recorded a royalty expense of $3.9 million (2016 - $3.2 million). In addition, other royalties related to production at Young-Davidson totaled $0.5 million for the year ended December 31, 2017 (2016 - $0.5 million).

At the Island Gold mine, the Company is required to pay a 3% net smelter royalty on production from the Lochalsh claims, a 2% net smelter return royalty in addition to a 15% net profit interest royalty per ounce produced from the Goudreau claims, as well, a 4.38% net smelter return royalty and a 10.38% net profit interest royalty per ounce produced from Goudreau Lake property. For the period of ownership, the Company recorded a royalty expense of $0.6 million related to production at Island Gold.

In addition, a third party has a 2% net smelter return royalty on production from a portion of the Company's Turkish projects. The Company has not recorded an accrual for this royalty at December 31, 2017 as the project is not in production. The Company is also subject to a 3% state royalty on production in Turkey based on current gold prices, subject to certain deductions.

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Subsequent Event

12 Months Ended

Dec. 31, 2017

Disclosure of events after reporting period [Abstract]

Subsequent Event

20. SUBSEQUENT EVENT

Subsequent to December 31, 2017, AuRico Metals was acquired by a third party for CAD$1.80 per share. The Company received $22.1 million in proceeds on its investment, resulting in a gain of $13.2 million, based on an average cost of CAD$0.72 per share. In addition, the Company disposed of its position in Corex for $2.6 million or CAD$0.13 per share, resulting in a gain of $0.6 million, based on an average cost of CAD$0.10 per share. These gains will be recorded within equity in the first quarter of 2018.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Disclosure of significant accounting policies [Abstract]

Basis of preparation

These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements have been prepared using the historical cost convention, other than for certain financial instruments, which are measured in accordance with the policy disclosed in note 3.

Basis of consolidation

These consolidated financial statements include the accounts of the Company and the following subsidiaries:

Company	Principal activity	Country of incorporation
AuRico Gold Chihuahua, S.A. de C.V., SOFOM E.N.R.	Administrative services	Mexico
AuRico Gold Holdings Inc.	Holding company	Canada
AuRico Gold (USA), Inc.	Administrative services	United States of America
Capital Gold Corporation	Holding company	United States of America
Leadville Mining & Milling Holding Corporation	Holding company	United States of America
Minera Santa Rita, S. de R.L. de C.V.	Gold and silver mining	Mexico
Nayarit Gold Inc.	Holding company	Canada
Oro de Altar, S.A. de C.V.	Holding company	Mexico
0975828 B.C. LTD.	Holding company	Canada
Orsa Ventures Corp.	Holding company	Canada
Esperanza Resources (Cayman)	Holding company	Cayman Islands
Esperanza Exploration (BVI) Inc.	Holding company	British Virgin Islands
Minas de Oro Nacional, S.A. de C.V.	Gold and silver mining	Mexico
Operason S.A. de C.V.	Administrative services	Mexico
Sonora Gerencial S.A. de C.V.	Administrative services	Mexico
Esperanza Silver de Mexico SA de CV	Gold and silver mining	Mexico
Servicios Mineros Tetlama S.A. de C.V.	Administrative services	Mexico
Esperanza Silver Peru SAC	Gold and silver mining	Peru
Dogu Biga Madencilik Sanayi Ticaret AS	Gold and silver mining	Turkey
Esperanza Services Inc.	Holding company	USA
Quartz Mountain Gold Ltd.	Gold and silver mining	USA
Carlisle Goldfields Ltd.	Holding company	Canada
Richmont Mines Ltd.	Gold and silver mining	Canada

These subsidiaries are controlled by the Company, and are wholly-owned. Control exists when the Company is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

The Company also consolidates the accounts of Caborca Industrial S.A. de C.V., a related party entity, which provides mining support services to the Company’s El Chanate mine. This entity is consolidated in accordance with IFRS 10, Consolidated Financial Statements.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Investments in associates and joint ventures

Investments in associates and joint ventures

The Company accounts for investments in associates and joint ventures using the equity method of accounting. The carrying value of the Company’s investments in associates and joint ventures represents the cost of the investment, including the Company’s share of retained earnings and losses subsequent to formation. At the end of each reporting period, the Company assesses its investments for any indicators of impairment.

Functional and presentation currency

Functional and presentation currency

These consolidated financial statements are presented in United States dollars (“US dollars”), which is the functional currency of the Company and all its subsidiaries.

Translation of transactions and balances into the functional currency

Translation of transactions and balances into the functional currency

Transactions in currencies other than the Company's or a subsidiary's functional currency (“foreign currencies”) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary assets and liabilities denominated in foreign currencies are translated at the rates prevailing at that date. Foreign currency non-monetary items that are measured in terms of historical cost are not retranslated.

Exchange differences are recognized in net earnings (loss) in the period in which they arise. Exchange differences on deferred foreign tax assets and liabilities are presented as deferred income tax (recovery) expense on the Consolidated Statements of Comprehensive Income (Loss).

Revenue recognition

Revenue recognition

Revenue from the sale of gold, including refined metal, dore and gold concentrate, is recognized when persuasive evidence of a sale arrangement exists, the risks and rewards of ownership pass to the purchaser, including title risk, the selling price is measurable, and collectability is probable. The risks and rewards of ownership are considered to have been transferred when title passes to the customer. Revenue is measured at the fair value of the consideration received or receivable, and may be subject to adjustment once final prices, weights and assays are determined.

Costs incurred or premium income related to forward sales or option contracts are recognized in revenue when the related contract is settled. Changes in the fair value of outstanding forward sales or option contracts are recognized in earnings or loss.

Cash and cash equivalents

Cash and cash equivalents

The Company considers deposits in banks, certificates of deposits, and short-term investments with original maturities of three months or less from the acquisition date as cash and cash equivalents.

Inventories

Inventories

Parts and supplies inventory

Supplies inventory consists of mining supplies and consumables used in the operation of the mines, and is valued at the lower of average cost and net realizable value. Provisions are recorded to reflect present intentions for the use of slow moving and obsolete parts and supplies inventory.

Stockpile inventory

Stockpiles represent ore that has been mined and is available for further processing. Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number of contained ounces (based on assay data) and the estimated metallurgical recovery rates (based on the expected processing method). Stockpile ore tonnages are verified by periodic surveys. Costs are allocated to stockpiles based on the current mining cost per tonne incurred up to the point of stockpiling the ore, including applicable overhead, depletion and amortization relating to mining operations, to the extent determined recoverable, and are removed at the average cost per tonne. Stockpile inventory is measured at the lower of cost and net realizable value.

In-process inventory

The recovery of gold is achieved through milling and heap leaching processes. Costs are added to ore on leach pads and in the mill based on the current stockpiled mining cost and current processing cost, including applicable overhead, depletion and amortization relating to mining and processing operations. Costs are removed from ore on leach pads and in the mill as ounces are recovered, based on the average cost per recoverable ounce of gold in-process inventory. In-process inventory is measured at the lower of cost and net realizable value.

Finished goods inventory

Finished goods inventory consists of dore bars and gold concentrate containing predominantly gold by value which are generally refined off-site to return saleable metals. Dore and gold concentrate inventory is valued at the lower of cost to produce and net realizable value.

For all classes of gold inventory, net realizable value is calculated as the difference between the estimated future metal revenue based on prevailing and/or long-term metal prices as appropriate, and estimated costs to complete production into a saleable form.

Mineral property, plant and equipment

Amortization rates applicable to each category of property, plant and equipment, with the exception of land, are as follows:

Asset	Useful life
Leasehold improvements	3 years
Mobile equipment	2-10 years
Other equipment	2-20 years
Processing plant	2-20 years
Shaft, underground infrastructure and mineral properties	Unit-of-production
Vehicles	3-6 years
Buildings	7-20 years
Office equipment	2-8 years

When components of an item of property, plant and equipment have different useful lives than those noted above, they are accounted for as separate items of property, plant and equipment. Each asset or component’s estimated useful life is determined considering its physical life limitations; however, this physical life cannot exceed the remaining life of the mine at which the asset is utilized. Estimates of remaining useful lives and residual values are reviewed annually. Any changes in estimates of useful lives are accounted for prospectively from the date of the change.

Mineral property, plant and equipment

Mineral property, plant and equipment is recorded at cost less accumulated amortization and accumulated impairment losses. The initial cost of an asset is comprised of its purchase price or construction cost, any costs directly attributable to bringing the asset into operation, the initial estimate of any reclamation obligation, and for qualifying assets, borrowing costs. The purchase price or construction cost is the fair value of consideration given to acquire the asset. The capitalized value of a finance lease is also included within property, plant and equipment, and is measured at the lower of the present value of the minimum lease payments and the fair value of the leased asset. Subsequent costs are included in the asset’s carrying amount when it is probable that future economic benefits associated with the asset will flow to the Company, and the costs can be measured reliably. This would include costs related to the refurbishment or replacement of major components of an asset, when the refurbishment results in a significant extension in the physical life of the component. All other repairs and maintenance costs are recognized in net earnings (loss) as incurred.

The cost of property, plant and equipment, less any applicable residual value, is allocated over the estimated useful life of the asset on a straight-line basis, or on a unit-of-production basis if that method is more reflective of the allocation of benefits among periods. Amortization commences on an asset when it has been fully commissioned and is available for use.

Description of accounting policy for property, plant and equipment

Amortization rates applicable to each category of property, plant and equipment, with the exception of land, are as follows:

Asset	Useful life
Leasehold improvements	3 years
Mobile equipment	2-10 years
Other equipment	2-20 years
Processing plant	2-20 years
Shaft, underground infrastructure and mineral properties	Unit-of-production
Vehicles	3-6 years
Buildings	7-20 years
Office equipment	2-8 years

Exploration and evaluation assets

Exploration and evaluation assets

Expenditures incurred prior to the Company obtaining the right to explore are expensed in the period in which they are incurred.

Exploration and evaluation expenditures include costs such as exploratory drilling, sample testing, costs of pre-feasibility studies, and for qualifying assets, borrowing costs. Subsequent to obtaining the legal right to explore, these costs are capitalized on a project-by-project basis pending determination of the technical feasibility and commercial viability of the project. All capitalized exploration and evaluation expenditures are monitored for indications of impairment, to ensure that exploration activities related to the property are continuing and/or planned for the future. If an exploration property does not prove viable, an impairment loss is recognized in net earnings (loss) as the excess of the carrying amount over the recoverable amount in the period in which that determination is made.

Exploration and evaluation expenditures are initially capitalized as exploration and evaluation assets and are subsequently reclassified to mine development costs upon determining that the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. The demonstration of the technical feasibility and commercial viability is the point at which management determines that it will develop the project. This typically includes, but is not limited to, the completion of an economic feasibility study; the establishment of mineral reserves; and the receipt of the applicable construction and operating permits for the project. Upon demonstrating the technical feasibility and commercial viability of establishing a mineral reserve, the Company performs an impairment test, based on the recoverable amount, prior to reclassification of exploration and evaluation assets to mine development costs in accordance with IFRS 6, Exploration for and evaluation of Mineral Resources. In addition, the carrying values of exploration and evaluation assets are reviewed periodically, when impairment indicators exist, for possible impairment, based on the recoverable amount.

Mining interests and mine development costs

Mining interests and mine development costs

The Company may hold interests in mineral properties in various forms, including prospecting licenses, exploration and exploitation concessions, mineral leases and surface rights. The Company capitalizes payments made in the process of acquiring legal title to these properties.

Property acquisition and mine development costs are recorded at cost. Mine development costs incurred to expand operating capacity, develop new ore bodies or develop mine areas in advance of current production are capitalized. Mine development costs related to current period production are recorded in inventory. Pre-production expenditures incurred prior to the mine being capable of operating in the manner intended by management are capitalized. Borrowing costs for qualifying assets are capitalized to mine development costs while construction and development activities at the property are in progress. Any proceeds from the sale of metals during the development and commissioning phase of a project are netted against the expenditures being capitalized. The development and commissioning phase ceases upon the commencement of commercial production.

Subsequent to the commencement of commercial production, further development expenditures incurred with respect to a mining interest are capitalized as part of the mining interest, when it is probable that additional future economic benefits associated with the expenditure will flow to the Company. Otherwise, such expenditures are classified as mining and processing costs.

Upon commencement of commercial production, mining interests are depleted over the life of the mine using the unit-of-production method based on estimated proven and probable mineral reserves of the mine and the portion of mineralization from measured, indicated and inferred resources expected to be classified as reserves, in applicable mines. The Company determines the portion of mineralization expected to be classified as reserves by considering the degree of confidence in the economic extraction of the resource, which is affected by long-term metal price assumptions, cut-off grade assumptions, and drilling results. These assessments are made on a mine-by-mine basis.

The expected useful lives used in depletion calculations are determined based on the facts and circumstances associated with the mining interest. Any changes in estimates of useful lives are accounted for prospectively from the date of the change.

Commercial production

Commercial production

Commercial production is reached when an open pit or underground mine is in the condition necessary for it to be capable of operating in the manner intended by management. The Company considers a range of factors when determining whether commercial production has been reached, which may include the completion of all required major capital expenditures, the demonstration of continuous production near the level required by the design capacity of the processing facilities, and the demonstration of continuous throughput levels at or above a target percentage of the design capacity. The Company assesses the ability to sustain production and throughput over a certain period, depending on the complexity of the operation, prior to declaring that commercial production has been reached.

Capitalized stripping costs

Capitalized stripping costs

Pre-production stripping costs are capitalized as part of the cost of constructing a mine.

Mining costs associated with stripping activities during the production phase of a mine are capitalized only if the Company can identify the component of the ore body for which access is obtained, the costs associated with the related stripping activities can be measured reliably, and the activities represent a future benefit to the mining interest, in that access is gained to sources of reserves and resources that will be produced in future periods that would otherwise not have been accessible. Production stripping costs are allocated between inventory and capital based on the expected volume of waste extracted for a given volume of ore production. The expected volume of waste to be allocated to inventory is determined with reference to the life of mine stripping ratio of a particular mine or deposit, with the remaining amount allocated to capital. The amount of waste capitalized is calculated by multiplying the stripping tonnes mined during the period by the current mining cost per tonne in the open pit.

Capitalized stripping costs are depleted over the expected reserves and resources benefiting from the stripping activity using the unit-of-production method based on estimated proven and probable reserves, and the portion of mineralization expected to be classified as reserves.

Investment tax credits

Investment tax credits

Investment tax credits are earned as a result of incurring eligible exploration and development expenses prior to commercial production. Investment tax credits are accounted for as a reduction to property, plant and equipment or mining interests.

Investment tax credits also arise as a result of incurring eligible research and development expenses and these credits are recorded as a reduction to the related expenses.

Derecognition

Derecognition

Upon replacement of a major component, or upon disposal or abandonment of a long-lived asset, the carrying amounts of the assets are derecognized with any associated gains or losses recognized in the Consolidated Statements of Comprehensive Loss.

Intangible assets

Intangible assets

Identifiable intangible assets are recorded at fair value on the date of acquisition. Subsequent to initial recognition, they are recorded at cost less accumulated amortization and accumulated impairment losses. Identifiable intangible assets with a finite useful life are amortized on a straight-line basis over their expected useful life, unless another method represents a more accurate allocation of the expense over their useful life. Amortization expense resulting from intangible assets, is included in amortization expense in the Consolidated Statements of Comprehensive Income (Loss).

Goodwill

Goodwill

Goodwill represents the difference between the consideration transferred in a business combination and the fair value of the identifiable net assets acquired, and is not amortized. Goodwill, if identified upon acquisition, is allocated to the cash-generating unit (“CGU”) or group of CGUs expected to benefit from the related business combination for the purposes of impairment testing. A CGU is defined as the smallest identifiable group of assets that generates cash inflows, which are largely independent of the cash inflows from other assets.

Impairment of non-financial assets and goodwill

Impairment of non-financial assets

The carrying amounts of non-financial assets, excluding inventories and deferred income tax assets, are reviewed for impairment at each reporting date, or whenever events or changes in circumstances indicate the carrying amounts may not be recoverable. If there are indicators of impairment, a review is undertaken to determine whether the carrying amounts are in excess of their recoverable amounts. Reviews are undertaken on an asset-by-asset basis, except where the recoverable amount for an individual asset cannot be determined, in which case the review is undertaken at the CGU level.

If applicable, on an annual basis, the Company evaluates the carrying amount of CGUs to which goodwill has been allocated to determine whether such carrying amount may be impaired. To accomplish this, the Company compares the recoverable amount of a CGU to its carrying amount. This evaluation is performed more frequently if there is an indication that a CGU may be impaired.

If the carrying amount of a CGU or non-financial asset exceeds the recoverable amount, being the higher of its fair value less costs to sell and its value-in-use, an impairment loss is recognized in net loss as the excess of the carrying amount over the recoverable amount. With respect to CGUs, impairment losses are allocated first to reduce the carrying amount of any goodwill allocated to the CGUs, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis.

Where the recoverable amount is assessed using discounted cash flow techniques, the estimates are based on detailed mine or production plans. The mine plan is the basis for forecasting production output in each future year and for forecasting production costs. For value-in-use calculations, production costs and output in the mine plan may be revised to reflect the continued use of the asset in its present form.

Non-financial assets that have previously been impaired are tested for a possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed, or may have partially reversed. In these instances, the impairment loss is reversed to the recoverable amount but not beyond the carrying amount, net of amortization, that would have arisen if the prior impairment loss had not been recognized. Goodwill impairments are not reversed.

Impairment of financial assets

Impairment of financial assets

Flow-through shares

Flow-through shares

The Company may issue flow-through common shares to finance its Canadian exploration program or qualifying Canadian underground development. Pursuant to the Canadian Income Tax Act and the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. Proceeds received from flow-through share agreements are separated into a liability and share capital. The liability, which represents the obligation to renounce flow-through exploration and/or development expenditures, is calculated as the excess of cash consideration received over the market price of the Company’s shares on the agreement’s closing date. Upon qualifying exploration and/or development expenditures being incurred, the Company derecognizes the liability and recognizes it as other income. The related deferred tax expense is also recognized at the time the expenditures are incurred.

The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced, in accordance with the Canadian Income Tax Act flow-through regulations. When applicable, the estimated tax payable is accrued until paid.

Uncertain tax positions

Uncertain tax positions

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to taxable income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective subsidiary’s country of domicile.

Provisions

Provisions

Decommissioning liabilities

The Company’s mining and exploration activities are subject to various governmental laws and regulations relating to the protection of the environment. These environmental regulations are continually changing, and the Company has made, and intends to make in the future, expenditures to comply with such laws and regulations. The timing of these expenditures is dependent upon a number of factors including the life of the mine, the operating licence conditions, and the laws, regulations, and environment in which the mine operates.

Decommissioning liabilities are recognized at the time an environmental disturbance occurs and are measured at the Company’s best estimate of the expected future cash flows required to reclaim the disturbance for each mine operation, which are adjusted to reflect inflation, and discounted to their present value. The inflation rate used is determined based on external forecasts for inflation in the country in which the related mine operates. Expected future cash flows reflect the risks and probabilities that alternative estimates of cash flows could be required to settle the obligation. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money specific to the currency in which the cash flows are expected to be paid. The discount rate does not reflect risks for which the cash flows have been adjusted. Significant estimates are involved in forming expectations of future activities and the amount and timing of the associated cash flows. Those expectations are based on existing environmental and regulatory requirements or, if more stringent, Company policies that give rise to a constructive obligation.

Upon initial recognition of a decommissioning liability, the corresponding cost is capitalized as an asset, representing part of the cost of acquiring the future economic benefits of the operation. The capitalized cost is recognized in mineral property and amortized in accordance with the Company's policy for the related asset.

The provision is progressively increased over the life of the operation as the effect of discounting unwinds, creating an expense included in finance expense on the Consolidated Statements of Comprehensive Income (Loss).

Decommissioning liabilities are adjusted for changes in estimates. Such adjustments, which are not the result of the current production of inventory, are accounted for as a change in the corresponding capitalized cost, except where a reduction in the provision is greater than the unamortized capitalized cost of the related assets. In instances where the capitalized cost of the related assets is nil, or will be reduced to nil, the remaining adjustment is recognized in earnings or loss. If reclamation and restoration costs are incurred as a consequence of the production of inventory, the costs are recognized as a cost of that inventory. Factors influencing such changes in estimates include revisions to estimated reserves, resources and lives of mines; developments in technologies; regulatory requirements and environmental management strategies; changes in estimated costs of anticipated activities, including the effects of inflation; and movements in interest rates affecting the discount rate applied.

Other provisions

Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources that can be reliably estimated will be required to settle the obligation. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

Share-based compensation

Share-based compensation

The Company measures all equity-settled share-based awards made to employees and others providing similar services (collectively, “employees”) based on the fair value of the options or units on the date of grant.

The grant date fair value of options is estimated using an option pricing model and is recognized as compensation expense over the vesting period, based on the number of options that are expected to vest. A corresponding increase is recognized in equity. The grant date fair values of the Company’s equity-settled deferred share units, performance share units, and restricted share units are determined using an option pricing model and is recognized as compensation expense over the vesting period.

The Company awards cash-settled share-based compensation to certain employees and directors in the form of deferred share units, restricted share units and stock appreciation rights. In accounting for these awards, the Company recognizes the fair value of the amount payable to employees, using the Black-Scholes option pricing model for certain units, as they are earned based on the estimated number of units that are expected to vest. Based on the plan some units are initially measured at fair value and recognized as an obligation at the grant date using the Company's share price. The corresponding liability is re-measured at fair value on each reporting date and upon settlement, with changes in fair value recognized in net loss for the period. The fair value of restricted share units is determined by reference to the Company’s share price when the units are awarded or re-measured.

The Company also maintains an employee share purchase plan. Under this plan, contributions by the Company’s employees are matched to a specific percentage by the Company and are recognized as an expense when the Company’s obligation to contribute arises.

Share-based arrangements in which the Company receives goods or services as consideration for its own equity instruments are accounted for as equity-settled share-based payment transactions regardless of how the equity instruments are obtained by the Company. These share-based arrangements are measured at the fair value of goods or services received unless the fair value of the goods or services cannot be reliably measured, in which case they are measured at the fair value of the equity instruments issued.

Income taxes

Income taxes

Income tax expense is comprised of current and deferred income tax. Current and deferred income taxes are recognized in earnings or loss except to the extent that they relate to a business combination, or to items recognized directly in equity or other comprehensive income ("OCI").

Current income taxes

Current income tax expense is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments to tax payable with respect of previous years.

Deferred income taxes

Deferred tax assets and liabilities are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following do not result in deferred tax assets or liabilities:

• temporary differences arising from the initial recognition of assets or liabilities, not arising in a business combination, that does not affect accounting or taxable profit;

• taxable temporary differences arising from the initial recognition of goodwill; and

• taxable temporary differences associated with investments in subsidiaries, associates, and interests in joint arrangements where the timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the liability settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings or loss in the period that substantive enactment occurs except to the extent it relates to items recognized directly in equity or in other comprehensive income.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced to its recoverable amount.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when they relate to the same taxable entity and income taxes levied by the same taxation authority and the Company intends to settle its tax assets and liabilities on a net basis.

Loss per share

Loss) per share

Basic loss per share is calculated based on the weighted average number of common shares and common share equivalents outstanding for the period. Diluted loss per share is calculated using the treasury method, except when assessing the dilution impact of convertible senior notes, equity-settled restricted share units, deferred share units and performance shares units, where the if converted method is used. The treasury method assumes that outstanding stock options and share purchase warrants with an average exercise price below the market price of the underlying shares, are exercised and the assumed proceeds are used to repurchase common shares of the Company at the average market price of the common shares for the period. The if converted method assumes that all convertible senior notes, restricted share units, and performance share units have been converted in determining fully diluted loss per share if they are in-the-money, except where such conversion would be antidilutive.

Financial instruments

Financial instruments

The Company has adopted IFRS 9, with an initial application date of January 1, 2017. The approach in IFRS 9 is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial asset. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward in IFRS 9. IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since initial application (note 3(k)).

The adoption of the expected credit loss impairment model had no impact on the Company’s financial statements. The Company's financial instruments are accounted for as follows under IFRS 9 as compared to the Company's previous policy in accordance with IAS 39:

Asset / Liability	IAS 39	IFRS 9
Cash and cash equivalents	Fair value through profit or loss	Amortized cost
Equity securities	Available-for-sale	Fair value through OCI
Amounts receivable	Loans and receivable	Amortized cost
Prepayment option embedded derivative	Fair value through profit or loss	Fair value through profit or loss
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Debt and financing obligations	Amortized cost	Amortized cost
Non-hedged derivatives	Fair value through profit or loss	Fair value through profit or loss
Hedging Derivatives	Fair value through OCI	Fair value through OCI

The Company has adopted the standard retroactively effective January 1, 2017 and elected not to retroactively restate comparative periods. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements, but resulted in certain additional disclosures. There was no impact on carrying values and equity as at January 1, 2017 as a result of the adoption of the standard and no measurement differences as a result of adopting IFRS 9.

As a result of the adoption of IFRS 9, the Company's accounting policy for financial instruments has been updated as follows:

Financial assets

Financial assets are classified as either financial assets at fair value through profit or loss, amortized cost, or fair value through other comprehensive income ("OCI"). The Company determines the classification of its financial assets at initial recognition.

i. Financial assets recorded at fair value through profit or loss

Financial assets are classified at fair value if they are acquired for the purpose of selling in the near term. Gains or losses on these items are recognized in net earnings or loss.

ii. Amortized cost

Financial assets are classified at amortized cost if both of the following criteria are met and the financial assets are not designated as at fair value through profit and loss: 1) the object of the Company’s business model for these financial assets is to collect their contractual cash flows and 2) the asset’s contractual cash flows represent ‘solely payments of principal and interest’. The Company’s amounts receivable are recorded at amortized cost as they meet the required criteria.

iii. Fair value through other comprehensive income ("OCI")

For equity securities that are not held for trading, the Company can make an irrevocable election at initial recognition to classify the instruments at fair value through other comprehensive income ("FVOCI"), with all subsequent changes in fair value being recognized in other comprehensive income. This election is available for each separate investment. Under this new FVOCI category, fair value changes are recognized in OCI while dividends are recognized in profit or loss. On disposal of the investment the cumulative change in fair value remains in OCI and is not recycled to profit or loss.

iv. Reclassifications

Financial assets are not reclassified subsequent to their initial recognition, except in the period after the Company changes its business model for managing financial assets.

Financial liabilities

For financial liabilities, IFRS 9 retains most of the IAS 39 requirements and since the Company does not have any financial liabilities designated at fair value through profit or loss, the adoption of IFRS 9 did not impact the Company's accounting policies for financial liabilities. Accounts payable and accrued liabilities, as well as debt and financing obligations are accounted for at amortized cost.

Transaction costs associated with financial instruments, carried at fair value through profit or loss, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability. The amortization of debt issue costs is calculated using the effective interest method.

Derivative financial instruments

The Company may hold derivative financial instruments to hedge its risk exposure to fluctuations in commodity prices, including the Company’s final product, consumables and other currencies compared to the USD. Derivative financial instruments are measured at fair value at each reporting period.

Non-hedged derivative financial instruments

All derivative instruments not designated in a hedge relationship that qualifies for hedge accounting are classified as financial instruments at fair value through profit or loss. Changes in fair value of non-hedged derivative financial instruments are included in net earnings or loss as non-hedged derivative gains or losses.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

Hedges

Hedges

Segment reporting

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Executive Officer. The Company’s operating segments, before aggregation, have been identified as the Company’s individual operating mines. Aggregation of one or more operating segment into a single operating segment is permitted if aggregation is consistent with the core principle of the standard, the operating segments have similar economic characteristics, and the operating segments have a number of other similarities, including similarities in the nature of their products, production processes, and regulatory environment. The Company’s reportable segments are consistent with the identified operating segments.

New Standards issued and adopted and Standards issued but not yet adopted

New Standards issued and adopted

The Company adopted the following amendments to accounting standards, effective January 1, 2017:

The Company adopted IFRS 9 (2014), Financial Instruments (“IFRS 9”). This standard replaces the guidance in IAS 39, Financial Instruments: Recognition and Measurement (“IAS 39”) on the classification and measurement of financial assets and financial liabilities. IFRS 9 provides a new model for the classification and measurement of financial assets. The Company has included the impact of the adoption in note 2(r).

The Company adopted amendments to IAS 12, Income Taxes. The amendments clarify that the existence of a deductible temporary difference depends solely on a comparison of the carrying amount of an asset and its tax base at the end of the reporting period, and is not affected by possible future changes in the carrying amount or expected manner of recovery of the asset. The amendments also clarify the methodology to determine the future taxable profits used for assessing the utilization of deductible temporary differences. The amendments had no impact on the consolidated financial statements.

Standards issued but not yet adopted

Standards issued, but not yet adopted include:

	Effective
IFRS 15, Revenue from Contracts with Customers	January 1, 2018
IFRS 16, Leases	January 1, 2019
IFRIC 22, Foreign Currency Transactions and Advance Consideration	January 1, 2018

IFRS 15, Revenue from Contracts with Customers (“IFRS 15”), outlines a single comprehensive model with guidance for entities to use in accounting for revenue arising from contracts with its customers. IFRS 15 uses a control based approach to recognize revenue which is a change from the risk and reward approach under the current standard. This standard replaces IAS 18 Revenue, IAS 11 Construction Contracts and related interpretations. The Company will adopt IFRS 15 in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRS 15, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRS 16, Leases, specifies the methodology to recognize, measure, present and disclose leases. This standard introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognize a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. This standard substantially carries forward the lessor accounting requirements of IAS 17, while requiring enhanced disclosures to be provided by lessors. Other areas of the lease accounting model have been impacted, including the definition of a lease. Transitional provisions have been provided. The Company intends to adopt IFRS 16 in its financial statements for the annual period beginning on January 1, 2019. The Company has not yet determined the impact of adopting IFRS 16 on its consolidated financial statements.

IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration, clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Interpretation is applicable for annual periods beginning on or after January 1, 2018. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2018. The Company has evaluated the potential impact of applying IFRIC 22, and has concluded that the adoption of the standard will not have a material impact on the consolidated financial statements.

IFRIC 23, Uncertainty over Income Tax Treatments, provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The Interpretation is applicable for annual periods beginning on or after January 1, 2019. Earlier application is permitted. The Interpretation requires: (a) an entity to contemplate whether uncertain tax treatments should be considered separately, or together as a group, based on which approach provides better predictions of the resolution; (b) an entity to determine if it is probable that the tax authorities will accept the uncertain tax treatment; and (c) if it is not probable that the uncertain tax treatment will be accepted, measure the tax uncertainty based on the most likely amount or expected value, depending on whichever method better predicts the resolution of the uncertainty. The Company intends to adopt the Interpretation in its financial statements for the annual period beginning on January 1, 2019. The extent of the impact of adoption of the Interpretation has not yet been determined.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of significant accounting policies [Abstract]

Schedule of Subsidiaries

These consolidated financial statements include the accounts of the Company and the following subsidiaries:

Company	Principal activity	Country of incorporation
AuRico Gold Chihuahua, S.A. de C.V., SOFOM E.N.R.	Administrative services	Mexico
AuRico Gold Holdings Inc.	Holding company	Canada
AuRico Gold (USA), Inc.	Administrative services	United States of America
Capital Gold Corporation	Holding company	United States of America
Leadville Mining & Milling Holding Corporation	Holding company	United States of America
Minera Santa Rita, S. de R.L. de C.V.	Gold and silver mining	Mexico
Nayarit Gold Inc.	Holding company	Canada
Oro de Altar, S.A. de C.V.	Holding company	Mexico
0975828 B.C. LTD.	Holding company	Canada
Orsa Ventures Corp.	Holding company	Canada
Esperanza Resources (Cayman)	Holding company	Cayman Islands
Esperanza Exploration (BVI) Inc.	Holding company	British Virgin Islands
Minas de Oro Nacional, S.A. de C.V.	Gold and silver mining	Mexico
Operason S.A. de C.V.	Administrative services	Mexico
Sonora Gerencial S.A. de C.V.	Administrative services	Mexico
Esperanza Silver de Mexico SA de CV	Gold and silver mining	Mexico
Servicios Mineros Tetlama S.A. de C.V.	Administrative services	Mexico
Esperanza Silver Peru SAC	Gold and silver mining	Peru
Dogu Biga Madencilik Sanayi Ticaret AS	Gold and silver mining	Turkey
Esperanza Services Inc.	Holding company	USA
Quartz Mountain Gold Ltd.	Gold and silver mining	USA
Carlisle Goldfields Ltd.	Holding company	Canada
Richmont Mines Ltd.	Gold and silver mining	Canada

Disclosure of detailed information about property, plant and equipment [text block]

Amortization rates applicable to each category of property, plant and equipment, with the exception of land, are as follows:

Asset	Useful life
Leasehold improvements	3 years
Mobile equipment	2-10 years
Other equipment	2-20 years
Processing plant	2-20 years
Shaft, underground infrastructure and mineral properties	Unit-of-production
Vehicles	3-6 years
Buildings	7-20 years
Office equipment	2-8 years

			Mineral property
	Plant and equipment		Depletable	Non-depletable	Exploration and evaluation	Total
Cost
At December 31, 2015	$922.9		$1,286.7	$48.4	$244.3	$2,502.3
Additions	67.4		56.3	17.8	16.9	158.4
Acquisition of Carlisle Goldfields	—		—	—	19.9	19.9
Transfer from other assets	—		—	—	4.2	4.2
Disposals	(6.7	)	—	—	—	(6.7	)
At December 31, 2016	$983.6		$1,343.0	$66.2	$285.3	$2,678.1
Additions	66.4		56.7	14.3	41.6	179.0
Acquisition of Richmont Mines (note 5)	55.7		718.6	—	—	774.3
Disposals	(2.7	)	—	—	—	(2.7	)
At December 31, 2017	$1,103.0		$2,118.3	$80.5	$326.9	$3,628.7
Accumulated amortization and impairment charges
At December 31, 2015	$206.5		$425.2	$5.1	$6.3	$643.1
Amortization	69.0		49.9	—	—	118.9
Disposals	(2.1	)	—	—	—	(2.1	)
At December 31, 2016	$273.4		$475.1	$5.1	$6.3	$759.9
Amortization	61.6		54.9	—	—	116.5
Disposals	(1.1	)	—	—	—	(1.1	)
At December 31, 2017	$333.9		$530.0	$5.1	$6.3	$875.3
Net carrying value
At December 31, 2016	$710.2		$867.9	$61.1	$279.0	$1,918.2
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6	$2,753.4

The net carrying values by segment (note 16) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$589.5	$767.1	$75.4	—	$1,432.0
Mulatos	112.9	99.1	—	—	212.0
Island Gold	54.8	720.1	—	—	774.9
El Chanate	4.1	2.0	—	—	6.1
Corporate and other	7.8	—	—	320.6	328.4
At December 31, 2017	$769.1	$1,588.3	$75.4	$320.6	$2,753.4
Young-Davidson	$580.7	$789.2	$61.1	—	$1,431.0
Mulatos	121.6	76.9	—	—	198.5
El Chanate	2.6	1.8	—	—	4.4
Corporate and other	5.3	—	—	279.0	284.3
At December 31, 2016	$710.2	$867.9	$61.1	$279.0	$1,918.2

Schedule of Investments By Classification

Asset / Liability	IAS 39	IFRS 9
Cash and cash equivalents	Fair value through profit or loss	Amortized cost
Equity securities	Available-for-sale	Fair value through OCI
Amounts receivable	Loans and receivable	Amortized cost
Prepayment option embedded derivative	Fair value through profit or loss	Fair value through profit or loss
Accounts payable and accrued liabilities	Amortized cost	Amortized cost
Debt and financing obligations	Amortized cost	Amortized cost
Non-hedged derivatives	Fair value through profit or loss	Fair value through profit or loss
Hedging Derivatives	Fair value through OCI	Fair value through OCI

Schedule of Recently Issued Standards, Not Yet Adopted

Standards issued, but not yet adopted include:

	Effective
IFRS 15, Revenue from Contracts with Customers	January 1, 2018
IFRS 16, Leases	January 1, 2019
IFRIC 22, Foreign Currency Transactions and Advance Consideration	January 1, 2018

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Acquisition of Richmond Mines Ltd. (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about business combination [abstract]

Schedule of Asset Acquisitions

The following table summarizes the fair value of the total consideration transferred from the Company and the preliminary fair value of identified assets acquired and liabilities assumed, based on the calculated fair value estimates. Final valuations of assets and liabilities are not yet complete due to the timing of the acquisition and the inherent complexity associated with the valuations. The Company expects to finalize the determination of the fair values of the assets and liabilities acquired and deferred taxes within 12 months of the acquisition date, which could result in material differences from the preliminary values presented in these financial statements.

Consideration transferred
Common shares issued		$615.3
Replacement of long-term incentive instruments	12.1
	$627.4
Net assets acquired
Cash and cash equivalents		$46.2
Equity securities	11.7
Current assets, excluding cash and cash equivalents and equity securities	22.5
Mineral property, plant and equipment	774.3
Current liabilities	(21.2		)
Long-term liabilities	(4.6		)
Deferred income taxes	(201.5		)
	$627.4

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Amounts Receivable (Tables)

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Schedule of Receivables

	December 31, 2017	December 31, 2016
Sales tax receivables
Canada	$6.4	$2.3
Mexico	20.0	36.2
Other	0.9	0.5
Concentrate receivable	3.2	2.2
Other receivables	4.0	3.7
	$34.5	$44.9

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Inventory (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of inventories [Abstract]

Schedule of Inventory

	December 31, 2017		December 31, 2016
In-process precious metals	$131.6		$120.7
Ore in stockpiles	44.1		37.6
Parts and supplies	41.5		35.7
Dore, refined precious metals and gold in concentrate	12.7		13.5
	229.9		207.5
Less: Long-term inventory	(68.7	)	(75.8	)
	$161.2		$131.7

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Mineral Property, Pland and Equipment (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about property, plant and equipment [abstract]

Disclosure of detailed information about property, plant and equipment

Amortization rates applicable to each category of property, plant and equipment, with the exception of land, are as follows:

Asset	Useful life
Leasehold improvements	3 years
Mobile equipment	2-10 years
Other equipment	2-20 years
Processing plant	2-20 years
Shaft, underground infrastructure and mineral properties	Unit-of-production
Vehicles	3-6 years
Buildings	7-20 years
Office equipment	2-8 years

			Mineral property
	Plant and equipment		Depletable	Non-depletable	Exploration and evaluation	Total
Cost
At December 31, 2015	$922.9		$1,286.7	$48.4	$244.3	$2,502.3
Additions	67.4		56.3	17.8	16.9	158.4
Acquisition of Carlisle Goldfields	—		—	—	19.9	19.9
Transfer from other assets	—		—	—	4.2	4.2
Disposals	(6.7	)	—	—	—	(6.7	)
At December 31, 2016	$983.6		$1,343.0	$66.2	$285.3	$2,678.1
Additions	66.4		56.7	14.3	41.6	179.0
Acquisition of Richmont Mines (note 5)	55.7		718.6	—	—	774.3
Disposals	(2.7	)	—	—	—	(2.7	)
At December 31, 2017	$1,103.0		$2,118.3	$80.5	$326.9	$3,628.7
Accumulated amortization and impairment charges
At December 31, 2015	$206.5		$425.2	$5.1	$6.3	$643.1
Amortization	69.0		49.9	—	—	118.9
Disposals	(2.1	)	—	—	—	(2.1	)
At December 31, 2016	$273.4		$475.1	$5.1	$6.3	$759.9
Amortization	61.6		54.9	—	—	116.5
Disposals	(1.1	)	—	—	—	(1.1	)
At December 31, 2017	$333.9		$530.0	$5.1	$6.3	$875.3
Net carrying value
At December 31, 2016	$710.2		$867.9	$61.1	$279.0	$1,918.2
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6	$2,753.4

The net carrying values by segment (note 16) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$589.5	$767.1	$75.4	—	$1,432.0
Mulatos	112.9	99.1	—	—	212.0
Island Gold	54.8	720.1	—	—	774.9
El Chanate	4.1	2.0	—	—	6.1
Corporate and other	7.8	—	—	320.6	328.4
At December 31, 2017	$769.1	$1,588.3	$75.4	$320.6	$2,753.4
Young-Davidson	$580.7	$789.2	$61.1	—	$1,431.0
Mulatos	121.6	76.9	—	—	198.5
El Chanate	2.6	1.8	—	—	4.4
Corporate and other	5.3	—	—	279.0	284.3
At December 31, 2016	$710.2	$867.9	$61.1	$279.0	$1,918.2

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Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Subclassifications of assets, liabilities and equities [abstract]

Schedule of Accounts Payable and Accrued Liabilities

	December 31, 2017		December 31, 2016
Trade accounts payable and accrued liabilities	$87.3		$75.6
Royalties payable	4.9		3.6
Interest payable	—		6.1
Share-based compensation liability	4.5		6.8
Derivative liabilities (note 17)	0.1		2.4
		$96.8		$94.5

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Financing Obligations (Tables)

12 Months Ended

Dec. 31, 2017

Debt and Financing Obligations [Abstract]

Schedule of Financing Obligations

	December 31, 2017		December 31, 2016
Revolving credit facility (a)	—		—
Senior secured notes (b)	—		$297.6
Equipment financing obligations	$7.5		$7.3
	$7.5		$304.9
Less: Current portion of financing obligations	($4.2	)	($3.6	)
	$3.3		$301.3

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Decommissioning Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Asset Retirement Obligation Disclosure1 [Abstract]

Schedule of Change in Asset Retirement Obligation

A continuity of the decommissioning liability is as follows:

	Total
Balance – December 31, 2015	$37.2
Reclamation expenditures	(0.3	)
Accretion expense	2.1
Revisions to expected discounted cash flows	0.6
Balance – December 31, 2016	$39.6
Liability assumed on acquisition	2.4
Reclamation expenditures	(0.1	)
Accretion expense	2.6
Revisions to expected discounted cash flows	0.1
Balance – December 31, 2017	$44.6

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of income tax [Abstract]

Major Components Of Tax Expense (Income)

The following table represents the major components of income tax expense (recovery) recognized in net loss for the years ended December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Current income tax expense	$11.9		$3.8
Deferred income tax (recovery) expense	(16.3	)	6.5
Income tax (recovery) expense recognized in net loss	($4.4	)	$10.3

Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates And Average Effective Tax Rate

The statutory tax rate for 2017 was 25.0% (2016 – 25.0%). The following table reconciles the expected income tax recovery at the Canadian combined statutory income tax rate to the amounts recognized in net loss for the years ended December 31, 2017 and 2016:

	December 31, 2017		December 31, 2016
Earnings (loss) before income taxes	$22.2		($7.6	)
Statutory tax rate	25.0	%	25.0	%
Expected income tax expense (recovery) based on above rates	$5.6		($1.9	)
Effect of higher tax rates in foreign jurisdictions	0.3		0.3
Non-deductible expenses	4.9		4.1
Impact of local mining taxes	2.2		5.9
Impact of foreign exchange	(22.5	)	(5.1	)
Impact of renouncement of flow through share expenditures	2.6		5.3
Withholding tax	1.3		1.1
Change in unrecognized temporary differences	2.6		0.1
Other	(1.4	)	0.5
Income tax (recovery) expense	($4.4	)	$10.3

Schedule of Change in Deferred Income Tax Liability

The following table reflects the change in deferred income tax liability at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016
Balance, beginning of year	$291.0		$284.1
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	201.5		—
Deferred income tax (recovery) expense recognized in net earnings (loss)	(16.3	)	6.5
Deferred income tax expense recognized in OCI	3.5		0.4
Deferred income tax recovery recognized in equity	(2.7	)	—
Balance, end of year	$477.0		$291.0

Schedule of Deferred Tax Assets and Liabilities

The following reflects the deferred income tax liability at December 31, 2017 and December 31, 2016:

	December 31, 2017		December 31, 2016
Accounting value of mineral property, plant and equipment in excess of tax value	$409.0		$270.8
Accounting value of inventories in excess of tax value	34.7		36.8
Other taxable temporary differences	58.6		18.1
Non-capital losses carried forward	(25.3	)	(34.7	)
Deferred income tax liability	$477.0		$291.0

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Share Capital (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of share capital, reserves and other equity interest [Abstract]

Schedule of Common Stock Outstanding Roll Forward

	Number of Shares	Amount
Outstanding at December 31, 2015	257,070,005		$2,773.7
Shares issued through:
Acquisition of Carlisle Goldfields	4,788,039	17.5
Share-based compensation plans	1,457,872	9.7
Exercise of warrants	432,191	1.2
Flow-through share financing	3,328,388	20.1
Outstanding at December 31, 2016	267,076,495	$2,822.2
Shares issued through:
Acquisition of Richmont Mines Ltd (note 5)	88,398,804	615.3
Equity financing (i)	31,450,000	241.8
Share-based compensation plans	542,250	3.5
Exercise of warrants	332,466	0.5
Flow-through share financing (ii)	1,301,535	8.4
Outstanding at December 31, 2017	389,101,550	$3,691.7

Disclosure of number and weighted average exercise prices of share options

The following is a continuity of the changes in the number of stock options outstanding:

	Number		Weighted average exercise price (CAD$)
Outstanding at December 31, 2015	10,237,362		$12.15
Granted	1,620,000		3.75
Conversion of Carlisle options to Alamos	462,954		9.69
Exercised	(1,099,749	)	7.63
Expired	(1,708,931	)	13.56
Outstanding at December 31, 2016	9,511,636		$10.87
Granted	578,490		9.62
Conversion of Richmont options to Alamos options (note 5)	2,863,146		3.53
Exercised	(510,673	)	6.23
Expired	(2,013,254	)	16.42
Outstanding at December 31, 2017	10,429,345		$7.94

Weighted average fair value assumptions used in the Black-Scholes valuation for stock options

The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation:

For options granted in the year ended:	December 31, 2017		December 31, 2016
Weighted average share price at grant date (CAD$)	$9.62		$3.75
Risk-free rate	0.91% - 1.35%		0.32% - 0.92%
Expected dividend yield	0.70	%	0.70	%
Expected stock price volatility (based on historical volatility)	57	%	49	%
Expected life of option (months)	36 - 84		42 - 84
Weighted average per share fair value of stock options granted (CAD$)	$4.27		$1.52

Disclosure of number and weighted average remaining contractual life of outstanding share options

Stock options outstanding and exercisable as at December 31, 2017:

	Outstanding			Exercisable
Range of exercise prices (CAD$)	Number of options	Weighted average exercise price (CAD$)	Weighted average remaining contractual life (years)	Number of options	Weighted average exercise price (CAD$)
$0.82 - $3.00	1,770,508	2.04	0.90	1,770,508	2.04
$3.01 - $7.00	2,119,866	3.91	3.97	1,039,866	4.07
$7.01 - $11.00	4,234,349	8.07	2.21	3,375,194	7.88
$11.01 - $15.00	985,311	14.11	0.65	985,311	14.11
$15.01 - $19.00	1,112,425	16.59	0.81	1,112,425	16.59
$19.01 - $23.00	206,886	20.88	0.66	206,886	20.88
	10,429,345	$7.94	2.02	8,490,190	$8.53

Stock options outstanding and exercisable by range of exercise prices

Stock options outstanding and exercisable as at December 31, 2017:

	Outstanding			Exercisable
Range of exercise prices (CAD$)	Number of options	Weighted average exercise price (CAD$)	Weighted average remaining contractual life (years)	Number of options	Weighted average exercise price (CAD$)
$0.82 - $3.00	1,770,508	2.04	0.90	1,770,508	2.04
$3.01 - $7.00	2,119,866	3.91	3.97	1,039,866	4.07
$7.01 - $11.00	4,234,349	8.07	2.21	3,375,194	7.88
$11.01 - $15.00	985,311	14.11	0.65	985,311	14.11
$15.01 - $19.00	1,112,425	16.59	0.81	1,112,425	16.59
$19.01 - $23.00	206,886	20.88	0.66	206,886	20.88
	10,429,345	$7.94	2.02	8,490,190	$8.53

Continuity of the changes in the number of other long-term incentive plans (LTIP) outstanding

The following is a continuity of the changes in the number of other long-term incentive plans ("LTI") outstanding for the years ended December 31, 2017 and 2016:

	Restricted share units ("RSU")		Stock appreciation rights ("SAR")		Deferred share units ("DSU")		Performance share units ("PSU")
Outstanding units, December 31, 2015	1,404,325		2,471,462		276,930		273,363
Granted	574,088		—		130,009		340,188
Forfeited	(257,345	)	(729,816	)	(15,313	)	(102,156	)
Settled	(310,876	)	(252,071	)	(13,281	)	(87,142	)
Outstanding units, December 31, 2016	1,410,192		1,489,575		378,345		424,253
Granted	499,560		—		102,260		269,780
Conversion of Richmont units to Alamos units (note 5)	112,774		—		—		—
Forfeited	(171,452	)	(316,074	)	—		(65,451	)
Settled	(350,140	)	(117,976	)	—		(28,877	)
Outstanding units, December 31, 2017	1,500,934		1,055,525		480,605		599,705

Schedule of Earnings (loss) per share

	For the years ended December 31,
	2017		2016
Net earnings (loss)	$26.6		($17.9		)
Weighted average number of common shares outstanding (in thousands)	305,521		265,234
Basic earnings (loss) per share		$0.09		($0.07	)
Dilutive effect of potential common share equivalents (in thousands)	3,500		—
Diluted weighted average number of common shares outstanding (in thousands)	309,021		265,234
Diluted earnings (loss) per share		$0.09		($0.07	)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

For the periods in which the Company records a loss, diluted loss per share is calculated using the basic weighted average number of shares outstanding, as using the diluted weighted average number of shares outstanding in the calculation would be anti-dilutive.

	For the years ended December 31,
(in thousands)	2017	2016
Stock options	2,920	9,512
Equity settled LTI	—	369
Warrants	12,232	11,310
	15,152	21,191

Schedule of Share Purchase Warrants

The Company has the following share purchase warrants ("Warrants"), outstanding as at December 31, 2017 related to past acquisitions:

	Number of warrants	Common shares issuable	Exercise price	Expiry date
	(000s)	(000s)	CAD
AGI.WT	7,167	7,167	$28.46	August 30, 2018
AGI.WT.A	5,065	5,065	$10.00	January 7, 2019
	12,232	12,232

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Other (Loss) Gain (Tables)

12 Months Ended

Dec. 31, 2017

Other Gain (Loss) [Abstract]

Schedule of Other Nonoperating Income (Expense)

Other (loss) gain recorded in net earnings (loss) for the years ended:

	December 31,		December 31,
	2017		2016
Reduction of obligation to renounce flow-through exploration expenditures	$2.3		$1.3
Unrealized (loss) gain on non-hedged derivatives	(0.3	)	1.6
Fair value adjustment on prepayment option embedded derivative	—		9.5
Loss on disposal of assets	(1.9	)	(4.6	)
Interest income	2.5		2.1
Transaction costs related to the Richmont acquisition (note 5)	(3.8	)	—
Share-based compensation related of replacement awards related to Richmont (note 5)	(1.3	)	—
Other	1.9		(2.3	)
	($0.6	)	$7.6

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Cash Flow Statement [Abstract]

Schedules of Cash Flow, Supplemental Disclosures

Changes in working capital and income taxes received or paid for the years ended:

	December 31,		December 31,
	2017		2016
Amounts receivable	$14.0		($5.7	)
Inventory	(15.9	)	(16.1	)
Advances and prepaid expenses	(4.3	)	3.8
Accounts payable and accrued liabilities	(12.1	)	(7.5	)
Income taxes (paid) refunded	(1.5	)	13.2
	($19.8	)	($12.3	)
Interest received	$2.5		$2.1

Other items for the years ended:

	December 31,			December 31,
	2017			2016
Unrealized loss (gain) on non-hedged derivatives		$0.3			($1.6	)
Gain on prepayment option fair value adjustment	—			(9.5		)
Reduction of obligation to renounce flow-through exploration expenditures	(2.3		)	(1.3		)
Loss on disposal of assets	1.9			4.6
Payment of transaction costs incurred by Richmont Mines (note 5)	(5.9		)	—
Share-based payments related to Richmont Mines transaction (note 5)	1.3			—
Other non-cash items	0.8			(2.3		)
	($3.9		)	($10.1		)

Schedule of Other Significant Noncash Transactions

Other items for the years ended:

	December 31,			December 31,
	2017			2016
Unrealized loss (gain) on non-hedged derivatives		$0.3			($1.6	)
Gain on prepayment option fair value adjustment	—			(9.5		)
Reduction of obligation to renounce flow-through exploration expenditures	(2.3		)	(1.3		)
Loss on disposal of assets	1.9			4.6
Payment of transaction costs incurred by Richmont Mines (note 5)	(5.9		)	—
Share-based payments related to Richmont Mines transaction (note 5)	1.3			—
Other non-cash items	0.8			(2.3		)
	($3.9		)	($10.1		)

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Segmented Information (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of entity's operating segments [Abstract]

Disclosure of operating segments [text block]

The results from operations for these reportable operating segments are summarized in the following tables:

Year ended December 31, 2017
	Young-Davidson	Mulatos	Island Gold	El Chanate		Corporate/other1		Total
Operating revenues	$249.7	$201.4	$14.9	$76.8		—		$542.8
Cost of sales
Mining and processing	125.9	112.9	4.1	72.7		—		315.6
Royalties	4.4	10.6	0.6	—		—		15.6
Amortization	83.1	29.5	8.7	4.3		—		125.6
	213.4	153.0	13.4	77.0		—		456.8
Expenses
Exploration	—	6.7	—	—		1.6		8.3
Corporate and administrative	—	—	—	—		15.5		15.5
Share-based compensation	—	—	—	—		6.2		6.2
Earnings (loss) from operations	$36.3	$41.7	$1.5	($0.2	)	($23.3	)	$56.0
Finance expense								(9.1	)
Foreign exchange gain								5.0
Other loss								(0.6	)
Loss on redemption of senior secured notes								(29.1	)
Earnings before income taxes								$22.2

1. Corporate and other consists of corporate balances and exploration and development projects.

Year ended December 31, 2016
	Young-Davidson	Mulatos	El Chanate	Corporate/other1		Total
Operating revenues	$211.9	$187.3	$83.0	—		$482.2
Cost of sales
Mining and processing	107.4	117.2	72.4	—		297.0
Royalties	3.7	9.6	—	—		13.3
Amortization	72.6	37.8	8.6	—		119.0
	183.7	164.6	81.0	—		429.3
Expenses
Exploration	—	2.0	—	3.1		5.1
Corporate and administrative	—	—	—	16.3		16.3
Share-based compensation	—	—	—	10.2		10.2
Earnings (loss) from operations	$28.2	$20.7	$2.0	($29.6	)	$21.3
Finance expense						(24.0	)
Foreign exchange loss						(12.5	)
Other gains						7.6
Loss before income taxes						($7.6	)

1. Corporate and other consists of corporate balances and exploration and development projects.

(b) Segment assets and liabilities

The following table presents the segment assets and liabilities:

	Total Assets		Total liabilities
	December 31, 2017	December 31, 2016	December 31, 2017	December 31, 2016
Young-Davidson	$1,580.9	$1,548.9	$243.4	$260.4
Mulatos	350.0	335.5	93.8	88.4
Island Gold	849.6	—	222.5	—
El Chanate	111.4	113.5	24.3	27.8
Corporate/other	421.9	494.3	48.6	356.2
Total assets and liabilities	$3,313.8	$2,492.2	$632.6	$732.8

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Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of detailed information about financial instruments [abstract]

Disclosure of fair value measurement of assets

	December 31, 2017			December 31, 2016
	Level 1		Level 2	Level 1		Level 2
Financial assets
Fair value through profit or loss
Prepayment option embedded derivative	—		—	—		9.6
Gold options	—		0.5	—		3.3
Fair value through OCI
Equity securities	35.8		—	14.1		—
Currency hedging derivative instruments	—		5.0	—		—
Financial liabilities
Fair value through profit or loss
Share purchase warrants	(0.1	)	—	(2.4	)	—
Currency derivative instruments	—		—	—		(3.3	)
	$35.7		$5.5	$11.7		$9.6

Disclosure of fair value measurement of liabilities

	December 31, 2017			December 31, 2016
	Level 1		Level 2	Level 1		Level 2
Financial assets
Fair value through profit or loss
Prepayment option embedded derivative	—		—	—		9.6
Gold options	—		0.5	—		3.3
Fair value through OCI
Equity securities	35.8		—	14.1		—
Currency hedging derivative instruments	—		5.0	—		—
Financial liabilities
Fair value through profit or loss
Share purchase warrants	(0.1	)	—	(2.4	)	—
Currency derivative instruments	—		—	—		(3.3	)
	$35.7		$5.5	$11.7		$9.6

Disclosure of detailed information about hedges

The fair value of derivative instruments is as follows:

	December 31,		December 31,
	2017		2016
Derivatives designated as hedging instruments
Currency hedging derivative instruments	$5.0		—
Derivatives not designated as hedging instruments
Gold option asset	$0.5		$3.3
Currency derivative instruments	—		(3.3	)
Share purchase warrants liability	(0.1	)	(2.4	)
	$0.4		($2.4	)

Disclosure of information about credit exposures designated as measured at fair value through profit or loss

The effective portion of the changes in fair value of the hedging instrument for the years ended December 31, 2017 and 2016 recorded in accumulated other comprehensive income are:

	December 31,		December 31,
	2017		2016
Balance, beginning of the period	—		—
Gains on currency instruments	11.2		—
Less: realized gains on CAD currency instruments	(2.2	)	—
Less: realized gains on MXN currency instruments	(1.3	)	—
Deferred income tax related to hedging instrument	(1.7	)	—
	$6.0		—

Schedule of Contracts Settled on Monthly Basis

The open contracts, which settle on a monthly basis, are summarized as at December 31, 2017:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)
2018	Collars and forwards	174.0	1.31	1.36

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2018	Collars and forwards	1,560.0	18.72	20.71

Schedule of Unrealized Gains (Losses) on Foreign Currency Contracts

The following table illustrates unrealized gains on foreign currency contracts for the years ended:

	December 31,	December 31,
	2017	2016
Foreign currency hedged contracts
Unrealized gains	$11.2	—
Foreign currency non-hedged contracts
Unrealized gains	2.1	2.3
	$13.3	$2.3

Schedule of Outstanding Derivative Contracts

The following gold collar contracts are outstanding as of December 31, 2017:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2018	50,100	$1,270	$1,444

Schedule of Foreign Currency Exchange Rate Risk

	December 31, 2017	December 31, 2016
Impact of a 10% change in foreign exchange rates
Canadian dollar	$7.8	$2.3
Mexican peso	1.5	0.7

Disclosure of credit risk exposure

The currencies of the Company's financial instruments and other foreign currency denominated liabilities based on notional amounts, denominated in U.S dollar equivalents were as follows:

	Canadian Dollars				Mexican Peso
	December 31, 2017		December 31, 2016		December 31, 2017		December 31, 2016
Cash and cash equivalents	$17.2		$22.8		$6.8		$7.3
Equity securities	35.8		14.1		—		—
Amounts receivable	7.4		3.3		22.0		38.2
Accounts payable and accrued liabilities	(56.1	)	(42.7	)	(14.7	)	(16.1	)
Current portion of financing obligations	(4.2	)	(1.5	)	—		—
Financing obligations	(3.3	)	(3.7	)	—		—
Total exposure to currency risk	(3.2	)	(7.7	)	14.1		29.4

The Company's maximum exposure to credit risk is as follows:

	December 31, 2017		December 31, 2016
Cash and cash equivalents		$200.8		$252.2
Trade receivables	4.0		5.9
Total financial instrument exposure to credit risk	$204.8		$258.1

Schedule of Maturities of Debt

The following table shows the contractual maturities of debt commitments. The amount presented represents the future undiscounted principal and interest cash flows, and therefore, do not equate to the carrying amounts on the consolidated statements of financial position.

	Less than 1 year	2 - 3 years	4 - 5 years	More than 5 years	Total
Operating and financing leases	5.4	5.6	2.0	2.9	15.9
Accounts payable and accrued liabilities	96.8	—	—	—	96.8
Decommissioning liability	—	—	—	54.8	54.8
Contract mining	47.9	72.0	47.8	38.9	206.6
Flow-through share obligation	0.7	—	—	—	0.7
Capital commitments	21.8	—	—	—	21.8
	$172.6	$77.6	$49.8	$96.6	$396.6

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Management of Capital (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of objectives, policies and processes for managing capital [abstract]

Schedule of Managed Capital

	December 31, 2017	December 31, 2016
Shareholder's equity	$2,681.2	$1,759.4
Current portion of debt and financing obligations	4.2	3.6
Long-term debt and financing obligations	3.3	301.3
	$2,688.7	$2,064.3

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of related party [Abstract]

Disclosure of transactions between related parties

Remuneration of key management (includes the Company's directors and executive team) for the years ended:

	December 31,	December 31,
Expense by nature:	2017	2016
Short-term employee benefits	8.8	7.8
Share-based payments	4.5	4.2
	$13.3	$12.0

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Nature of Operations (Details)	Dec. 31, 2017
Continuing and discontinued operations [Abstract]
Option to acquire business interest	100.00%

XML

Summary of Significant Accounting Policies (Assets) (Details)	12 Months Ended
	Dec. 31, 2017
Leasehold improvements [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	3 years
Mobile Equipment [Member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	2 years
Mobile Equipment [Member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	10 years
Other equipment [member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	2 years
Other equipment [member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	20 years
Processing Plant [Member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	2 years
Processing Plant [Member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	20 years
Vehicles [member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	3 years
Vehicles [member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	6 years
Buildings [member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	7 years
Buildings [member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	20 years
Office equipment [member] | Bottom of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	2 years
Office equipment [member] | Top of range [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful lives of property, plant and equipment	8 years

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Acquisition of Richmond Mines Ltd. (Narrative) (Details) - Richmont Mines Ltd [Member] $ in Millions		1 Months Ended	12 Months Ended
	Nov. 23, 2017 USD ($) shares	Dec. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Disclosure of detailed information about business combination [line items]
Conversion of Richmont units to Alamos units (note 5) | shares	88,398,804
Number of shares issued, business combination, value	$ 615.3
Transaction costs	3.8
Share based compensation, acquisitions	$ 12.1
Revenue of acquiree since acquisition date		$ 14.9
Profit of acquiree since acquisition date		$ 1.5
Revenue of combined entity as if combination occurred at beginning of period			$ 125.3
Profit (loss) of combined entity as if combination occurred at beginning of period			$ 12.0
Ordinary shares [member]
Disclosure of detailed information about business combination [line items]
Conversion ratio of shares	1.385
Other Loss [Member]
Disclosure of detailed information about business combination [line items]
Share based compensation, acquisitions	$ 1.3

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Acquisition of Richmond Mines Ltd. (Schedule of Asset Acquisition) (Details) - USD ($) $ in Millions	Nov. 23, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Net assets acquired
Cash and cash equivalents		$ 200.8	$ 252.2	$ 282.9
Equity securities		35.8	14.1
Mineral property, plant and equipment		2,753.4	1,918.2
Current liabilities		(106.7)	(99.6)
Deferred tax liabilities		$ (477.0)	$ (291.0)
Richmont Mines Ltd [Member]
Consideration transferred
Common shares issued	$ 615.3
Replacement of long-term incentive instruments	12.1
Consideration transferred	627.4
Net assets acquired
Cash and cash equivalents	46.2
Equity securities	11.7
Current assets, excluding cash and cash equivalents and equity securities	22.5
Mineral property, plant and equipment	774.3
Current liabilities	(21.2)
Long-term liabilities	(4.6)
Deferred tax liabilities	(201.5)
Net assets acquired	$ 627.4

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Amounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Receivables [Line Items]
Other receivables	$ 4.0	$ 3.7
Trade and other current receivables	34.5	44.9
Canada
Receivables [Line Items]
Sales tax receivables	6.4	2.3
Mexico
Receivables [Line Items]
Sales tax receivables	20.0	36.2
Other
Receivables [Line Items]
Sales tax receivables	0.9	0.5
Concentrate receivable	$ 3.2	$ 2.2

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Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of inventories [Abstract]
In-process precious metals	$ 131.6	$ 120.7
Ore in stockpiles	44.1	37.6
Parts and supplies	41.5	35.7
Dore, refined precious metals and gold in concentrate	12.7	13.5
Inventories	229.9	207.5
Less: Long-term inventory	(68.7)	(75.8)
Inventory	$ 161.2	$ 131.7

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Inventory (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of inventories [Abstract]
Long-term inventory	$ 68.7	$ 75.8
Mining and processing costs, inventories	323.3	304.1
Amortization costs, Inventories	$ 125.6	$ 119.0

XML

Mineral Property, Pland and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	$ 1,918.2
Mineral property, plant and equipment	1,918.2		$ 2,753.4
Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	2,678.1	$ 2,502.3
Additions	179.0	158.4
Acquisitions of new entities	774.3	19.9
Transfers		4.2
Disposals	(2.7)	(6.7)
Mineral property, plant and equipment	2,678.1	2,502.3	3,628.7
Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	759.9	643.1
Amortization	116.5	118.9
Disposals	(1.1)	(2.1)
Mineral property, plant and equipment	759.9	643.1	875.3
Plant and Equipment [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	710.2
Mineral property, plant and equipment	710.2		769.1
Plant and Equipment [Member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	983.6	922.9
Additions	66.4	67.4
Acquisitions of new entities	55.7	0.0
Transfers		0.0
Disposals	(2.7)	(6.7)
Mineral property, plant and equipment	983.6	922.9	1,103.0
Plant and Equipment [Member] | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	273.4	206.5
Amortization	61.6	69.0
Disposals	(1.1)	(2.1)
Mineral property, plant and equipment	273.4	206.5	333.9
Mineral Property - Depletable [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	867.9
Mineral property, plant and equipment	867.9		1,588.3
Mineral Property - Depletable [Member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	1,343.0	1,286.7
Additions	56.7	56.3
Acquisitions of new entities	718.6	0.0
Transfers		0.0
Disposals	0.0	0.0
Mineral property, plant and equipment	1,343.0	1,286.7	2,118.3
Mineral Property - Depletable [Member] | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	475.1	425.2
Amortization	54.9	49.9
Disposals	0.0	0.0
Mineral property, plant and equipment	475.1	425.2	530.0
Mineral Property - Non-Depletable [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	61.1
Mineral property, plant and equipment	61.1		75.4
Mineral Property - Non-Depletable [Member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	66.2	48.4
Additions	14.3	17.8
Acquisitions of new entities	0.0	0.0
Transfers		0.0
Disposals	0.0	0.0
Mineral property, plant and equipment	66.2	48.4	80.5
Mineral Property - Non-Depletable [Member] | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	5.1	5.1
Amortization	0.0	0.0
Disposals	0.0	0.0
Mineral property, plant and equipment	5.1	5.1	5.1
Exploration and evaluation assets [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	279.0
Mineral property, plant and equipment	279.0		320.6
Exploration and evaluation assets [member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	285.3	244.3
Additions	41.6	16.9
Acquisitions of new entities	0.0	19.9
Transfers		4.2
Disposals	0.0	0.0
Mineral property, plant and equipment	285.3	244.3	326.9
Exploration and evaluation assets [member] | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	6.3	6.3
Amortization	0.0	0.0
Disposals	0.0	0.0
Mineral property, plant and equipment	$ 6.3	$ 6.3	$ 6.3

XML

Mineral Property, Pland and Equipment (Net Value Carrying Values) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	$ 2,753.4	$ 1,918.2
Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	769.1	710.2
Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	1,588.3	867.9
Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	75.4	61.1
Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	320.6	279.0
Operating segments [member] | Young-Davidson [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	1,432.0	1,431.0
Operating segments [member] | Young-Davidson [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	589.5	580.7
Operating segments [member] | Young-Davidson [Member] | Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	767.1	789.2
Operating segments [member] | Young-Davidson [Member] | Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	75.4	61.1
Operating segments [member] | Young-Davidson [Member] | Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Operating segments [member] | Mulatos [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	212.0	198.5
Operating segments [member] | Mulatos [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	112.9	121.6
Operating segments [member] | Mulatos [Member] | Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	99.1	76.9
Operating segments [member] | Mulatos [Member] | Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Operating segments [member] | Mulatos [Member] | Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Operating segments [member] | Island Gold [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	774.9
Operating segments [member] | Island Gold [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	54.8
Operating segments [member] | Island Gold [Member] | Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	720.1
Operating segments [member] | Island Gold [Member] | Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0
Operating segments [member] | Island Gold [Member] | Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0
Operating segments [member] | El Chanate [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	6.1	4.4
Operating segments [member] | El Chanate [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	4.1	2.6
Operating segments [member] | El Chanate [Member] | Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	2.0	1.8
Operating segments [member] | El Chanate [Member] | Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Operating segments [member] | El Chanate [Member] | Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Corporate and other [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	328.4	284.3
Corporate and other [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	7.8	5.3
Corporate and other [Member] | Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Corporate and other [Member] | Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0	0.0
Corporate and other [Member] | Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	$ 320.6	$ 279.0

XML

Mineral Property, Pland and Equipment (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress		$ 64.4	$ 52.5
Interest costs capitalised		$ 2.0	$ 6.6
Capitalisation rate of borrowing costs eligible for capitalisation		8.62%	8.62%
Royalty Rights [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Additions other than through business combinations, property, plant and equipment	$ 6.7

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Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Subclassifications of assets, liabilities and equities [abstract]
Trade accounts payable and accrued liabilities	$ 87.3	$ 75.6
Royalties payable	4.9	3.6
Interest payable	0.0	6.1
Share-based compensation liability (note 16)	4.5	6.8
Derivative liabilities (note 20)	0.1	2.4
Accounts payable and accrued liabilities	$ 96.8	$ 94.5

XML

Financing Obligations (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Debt and Financing Obligations [Line Items]
Borrowings	$ 7.5	$ 304.9
Less: Current portion of financing obligations	(4.2)	(3.6)
Non-current portion of non-current borrowings	3.3	301.3
Revolving Credit Facility [Member]
Debt and Financing Obligations [Line Items]
Borrowings	0.0	0.0
Senior Secured Notes [Member]
Debt and Financing Obligations [Line Items]
Borrowings	0.0	297.6
Equipment Financing Obligations [Member]
Debt and Financing Obligations [Line Items]
Borrowings	$ 7.5	$ 7.3

XML

Financing Obligations (Revolving Credit Facility) (Details)		12 Months Ended
	Sep. 21, 2017 USD ($)	Dec. 31, 2017 USD ($)	Sep. 20, 2017 USD ($)
Revolving Credit Facility [Member]
Debt and Financing Obligations [Line Items]
Line of credit facility, maximum borrowing capacity	$ 400,000,000.0		$ 150,000,000.0
Minimum interest coverage ratio	3.0
Maximum net leverage ratio	3.5
Borrowing costs incurred		$ 2,100,000
Bottom of range [member] | Revolving Credit Facility [Member]
Debt and Financing Obligations [Line Items]
Commitment fee	0.45%
Top of range [member] | Revolving Credit Facility [Member]
Debt and Financing Obligations [Line Items]
Commitment fee	0.70%
LIBOR [Member] | Bottom of range [member] | Revolving Credit Facility - Drawn Amounts [Member]
Debt and Financing Obligations [Line Items]
Borrowings, adjustment to interest rate basis	2.00%
LIBOR [Member] | Top of range [member] | Revolving Credit Facility - Drawn Amounts [Member]
Debt and Financing Obligations [Line Items]
Borrowings, adjustment to interest rate basis	3.125%

XML

Financing Obligations (Senior Secured Notes) (Details) - USD ($) $ in Millions			12 Months Ended
	Apr. 03, 2017	Mar. 27, 2014	Dec. 31, 2017	Dec. 31, 2016
Debt and Financing Obligations [Line Items]
Borrowings			$ 7.5	$ 304.9
Payments for redemption of senior secured notes			327.2	0.0
Interest expense on debt instruments issued			12.2	24.4
Senior Secured Notes [Member]
Debt and Financing Obligations [Line Items]
Borrowings			$ 0.0	$ 297.6
Offering price as percent of par		96.524%
Proceeds from issuance of secured debt		$ 304.1
Redemption price as percent of par	103.875%
Payments for redemption of senior secured notes	$ 327.2
Interest expense on debt instruments issued	12.2
Pre-tax loss related to redemption of debt instruments	29.1
Deferred tax assets, redemption of debt instruments	$ 7.3
Gross carrying amount [member] | Senior Secured Notes [Member]
Debt and Financing Obligations [Line Items]
Borrowings		$ 315.0

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Decommissioning Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in other provisions [abstract]
Acquisitions through business combinations, other provisions	$ 2.4
Provision for decommissioning, restoration and rehabilitation costs [member]
Reconciliation of changes in other provisions [abstract]
Beginning balance	39.6	$ 37.2
Reclamation expenditures	(0.1)	(0.3)
Accretion expense	2.6	2.1
Revisions to expected discounted cash flows	0.1	0.6
Ending balance	$ 44.6	$ 39.6

XML

Decommissioning Liabilities (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Asset Retirement Obligation Disclosure [Line Items]
Estimated reclamation discount rate	2.30%	2.30%
Closure cost obligations discount rate	7.60%	7.40%
Bottom of range [member]
Asset Retirement Obligation Disclosure [Line Items]
Inflation rate	2.00%	2.00%
Top of range [member]
Asset Retirement Obligation Disclosure [Line Items]
Inflation rate	4.00%	4.00%
Provision for decommissioning, restoration and rehabilitation costs [member]
Asset Retirement Obligation Disclosure [Line Items]
Asset retirement obligation, undiscounted value	$ 53.2	$ 51.3

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Income Taxes (Components of tax expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of income tax [Abstract]
Current income tax expense	$ 11.9	$ 3.8
Deferred income tax (recovery) expense	(16.3)	6.5
Income tax (recovery) expense recognized in net loss	$ (4.4)	$ 10.3

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Income Taxes (Tax Reconciliation) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of income tax [Abstract]
Earnings (loss) before income taxes	$ 22.2	$ (7.6)
Statutory tax rate	25.00%	25.00%
Expected income tax expense (recovery) based on above rates	$ 5.6	$ (1.9)
Effect of higher tax rates in foreign jurisdictions	0.3	0.3
Non-deductible expenses	4.9	4.1
Impact of local mining taxes	2.2	5.9
Impact of foreign exchange	(22.5)	(5.1)
Impact of renouncement of flow through share expenditures	2.6	5.3
Withholding tax	1.3	1.1
Change in unrecognized temporary differences	2.6	0.1
Other	(1.4)	0.5
Income tax (recovery) expense recognized in net loss	$ (4.4)	$ 10.3

XML

Income Taxes (Schedule of Change in Deferred Income Tax Liabilities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of changes in deferred tax liability (asset) [abstract]
Balance, beginning of year	$ 291.0	$ 284.1
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	201.5	0.0
Deferred income tax (recovery) expense recognized in net earnings (loss)	(16.3)	6.5
Deferred income tax expense recognized in OCI	3.5	0.4
Deferred income tax recovery recognized in equity	(2.7)	0.0
Balance, end of year	$ 477.0	$ 291.0

XML

Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Non-capital losses carried forward	$ (477.0)	$ (291.0)
Deferred income tax liability	477.0	291.0	$ 284.1
Accounting value of mineral property, plant and equipment in excess of tax value
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	409.0	270.8
Accounting value of inventories in excess of tax value
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	34.7	36.8
Other taxable temporary differences
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	58.6	18.1
Non-capital losses carried forward
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Non-capital losses carried forward	$ (25.3)	$ (34.7)

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deductible temporary differences for which no deferred tax asset is recognised	$ 77.8	$ 100.7
Unrecognized tax liabilities	6.1	$ 24.2
Canada [Member] | Non-capital losses carried forward
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unused tax losses for which no deferred tax asset recognised	80.8
Mexico [Member] | Non-capital losses carried forward
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unused tax losses for which no deferred tax asset recognised	43.6
United States [Member] | Non-capital losses carried forward
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unused tax losses for which no deferred tax asset recognised	20.3
Turkey [Member] | Non-capital losses carried forward
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Unused tax losses for which no deferred tax asset recognised	$ 7.1

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Share Capital (Share Capital) (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 09, 2017	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of number of shares outstanding [abstract]
Beginning balance		$ 1,759.4
Shares issued through:
Equity financing (in shares)	31,450,000
Ending balance		$ 2,681.2	$ 1,759.4
Issued capital [member]
Reconciliation of number of shares outstanding [abstract]
Number of shares outstanding		267,076,495.000	257,070,005
Beginning balance		$ 2,822.2	$ 2,773.7
Shares issued through:
Acquisitions (in shares)			4,788,039
Acquisitions		$ 0.0	$ 17.5
Acquisitions (shares)		88,398,804
Acquisitions		$ 615.3	$ 0.0
Equity financing (in shares)		31,450,000
Equity financing		$ 241.8
Share-based employment compensation plans (in shares)		542,250.0	1,457,872
Share-based compensation plans		$ 3.5	$ 9.7
Exercise of warrants (in shares)		332,466.0	432,191
Exercise of warrants		$ 0.5	$ 1.2
Flow-through share financing (in shares)		1,301,535	3,328,388.0
Flow-through share financing		$ 8.4	$ 20.1
Number of shares outstanding		389,101,550.00	267,076,495.000
Ending balance		$ 3,691.7	$ 2,822.2

XML

Share Capital (Equity Financing) (Details) $ / shares in Units, $ in Millions		3 Months Ended	12 Months Ended
	Feb. 09, 2017 USD ($) $ / shares shares	Dec. 31, 2017 CAD / shares	Dec. 31, 2016 CAD / shares
Equity Financing [Line Items]
Equity financing (in shares) | shares	31,450,000
Share price (usd per share) | (per share)	$ 7.95	CAD 9.40	CAD 8.78
Gross proceeds from equity financing	$ 250.0
Transaction costs, equity financing	10.9
Equity Financing [Member]
Equity Financing [Line Items]
Deferred tax assets	$ 2.7

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Share Capital (Flow-though share financing) (Details) $ / shares in Units, CAD in Millions, $ in Millions	6 Months Ended		12 Months Ended
	Dec. 31, 2017 $ / shares	Dec. 31, 2017 CAD	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Flow-though Share Financing [Line Items]
Proceeds from issuance of flow-through shares | $			$ 11.7	$ 20.4
Canadian Development Expense [Member]
Flow-though Share Financing [Line Items]
Proceeds from issuance of flow-through shares | CAD		CAD 12.0
Proceeds from flow-through share financing (CAD per share) | $ / shares	$ 10.87
Canadian Exploration Expense [Member]
Flow-though Share Financing [Line Items]
Proceeds from issuance of flow-through shares | CAD		CAD 3.0
Proceeds from flow-through share financing (CAD per share) | $ / shares	$ 15.15

XML

Share Capital (Employee LTI plan and share purchase plan) (Details)	12 Months Ended
	Dec. 31, 2017
Employee Share Purchase Plan [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Employee contribution rate	10.00%
Employer match	75.00%
Ordinary Class A [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Maximum number of shares that may be reserved and set aside for issuance under the long-term incentive plan	6.50%
Issued and outstanding shares (on a non-diluted basis) specifically allocated to the employee share purchase plan	0.20%

XML

Share Capital (Stock Options) (Details)	12 Months Ended
	Dec. 31, 2017 CAD shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 CAD shares	Dec. 31, 2016 USD ($) shares
Disclosure of share capital, reserves and other equity interest [Abstract]
Number of options outstanding	9,511,636	9,511,636	10,237,362	10,237,362
Granted	578,490	578,490	1,620,000	1,620,000
Conversion shares	2,863,146	2,863,146	462,954	462,954
Exercised	(510,673)	(510,673)	(1,099,749)	(1,099,749)
Expired	(2,013,254)	(2,013,254)	(1,708,931)	(1,708,931)
Number of options outstanding	10,429,345	10,429,345	9,511,636	9,511,636
Weighted average exercise price of share options outstanding (CAD$) | CAD	CAD 10.87		CAD 12.15
Weighted average exercise price of share options granted (CAD$) | $		$ 9.62		$ 3.75
Weighted average exercise price of share options conversion of Carlisle options to Alamos (CAD$) | $		3.53		9.69
Weighted average exercise price of share options exercised (CAD$) | $		$ 6.23		$ 7.63
Weighted average exercise price of share options expired (CAD$) | CAD	16.42		13.56
Weighted average exercise price of share options outstanding (CAD$) | CAD	7.94		10.87
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise (CAD$) | CAD	CAD 9.99		CAD 11.37

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Share Capital (Fair Value Assumptions) (Details)		12 Months Ended
	Nov. 23, 2017 USD ($) month	Dec. 31, 2017 USD ($) month shares	Dec. 31, 2016 CAD month shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Granted | shares		578,490	1,620,000
Weighted average share price at grant date (CAD$)		$ 9.62	CAD 3.75
Expected dividend yield		0.70%	0.70%
Expected stock price volatility (based on historical volatility)		57.00%	49.00%
Weighted average per share fair value of stock options granted (CAD$)		$ 4.27	CAD 1.52
Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Risk-free rate		0.91%	0.32%
Expected life of option (months)		36	42
Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Risk-free rate		1.35%	0.92%
Expected life of option (months)		84	84
Richmont Mines Ltd [Member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Weighted average share price at grant date (CAD$) | $	$ 3.53
Risk-free rate	1.43%
Expected dividend yield	0.70%
Expected stock price volatility (based on historical volatility)	53.00%
Expected life of option (months)	12
Weighted average per share fair value of stock options granted (CAD$) | $	$ 5.45

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Share Capital (Schedule of Stock Options Range for Outstanding and Exercisable Shares) (Details)	Dec. 31, 2017 CAD shares year	Dec. 31, 2017 USD ($) shares year	Dec. 31, 2016 CAD shares	Dec. 31, 2015 CAD shares
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	10,429,345	10,429,345	9,511,636	10,237,362
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 7.94		CAD 10.87	CAD 12.15
Weighted average remaining contractual life of options outstanding (years) | year	2.02	2.02
Number of options exercisable (in shares) | shares	8,490,190	8,490,190
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 8.53
$0.82 - $3.00
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	1,770,508	1,770,508
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 2.04
Weighted average remaining contractual life of options outstanding (years) | year	0.90	0.90
Number of options exercisable (in shares) | shares	1,770,508	1,770,508
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 2.04
$3.01 - $7.00
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	2,119,866	2,119,866
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 3.91
Weighted average remaining contractual life of options outstanding (years) | year	3.97	3.97
Number of options exercisable (in shares) | shares	1,039,866	1,039,866
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 4.07
$7.01 - $11.00
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	4,234,349	4,234,349
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 8.07
Weighted average remaining contractual life of options outstanding (years) | year	2.21	2.21
Number of options exercisable (in shares) | shares	3,375,194	3,375,194
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 7.88
$11.01 - $15.00
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	985,311	985,311
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 14.11
Weighted average remaining contractual life of options outstanding (years) | year	0.65	0.65
Number of options exercisable (in shares) | shares	985,311	985,311
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 14.11
$15.01 - $19.00
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	1,112,425	1,112,425
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 16.59
Weighted average remaining contractual life of options outstanding (years) | year	0.81	0.81
Number of options exercisable (in shares) | shares	1,112,425	1,112,425
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 16.59
$19.01 - $23.00
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	206,886	206,886
Outstanding weighted average exercise price (CAD per share) | CAD	CAD 20.88
Weighted average remaining contractual life of options outstanding (years) | year	0.66	0.66
Number of options exercisable (in shares) | shares	206,886	206,886
Exercisable weighted average exercise price (CAD per share)) | CAD	CAD 20.88
Bottom of range [member] | $0.82 - $3.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		$ 0.82
Bottom of range [member] | $3.01 - $7.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		3.01
Bottom of range [member] | $7.01 - $11.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		7.011
Bottom of range [member] | $11.01 - $15.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		11.01
Bottom of range [member] | $15.01 - $19.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		15.01
Bottom of range [member] | $19.01 - $23.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		19.01
Top of range [member] | $0.82 - $3.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		3.00
Top of range [member] | $3.01 - $7.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		7.00
Top of range [member] | $7.01 - $11.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		11.00
Top of range [member] | $11.01 - $15.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		15.00
Top of range [member] | $15.01 - $19.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		19.00
Top of range [member] | $19.01 - $23.00
Disclosure of range of exercise prices of outstanding share options [line items]
Exercise price of outstanding share options | $		$ 23.00

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Share Capital (Other employee long-term incentives) (Details) - shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Restricted share units (RSU)
Disclosure of classes of share capital [line items]
Shares outstanding	1,410,192	1,404,325
Granted	499,560	574,088
Conversion of Richmont units to Alamos units (note 5)	112,774
Forfeiture	(171,452)	(257,345)
Settled	(350,140)	(310,876)
Shares outstanding	1,500,934	1,410,192
Stock appreciation rights (SAR)
Disclosure of classes of share capital [line items]
Shares outstanding	1,489,575	2,471,462
Granted	0	0
Conversion of Richmont units to Alamos units (note 5)	0
Forfeiture	(316,074)	(729,816)
Settled	(117,976)	(252,071)
Shares outstanding	1,055,525	1,489,575
Deferred share units (DSU)
Disclosure of classes of share capital [line items]
Shares outstanding	378,345	276,930
Granted	102,260	130,009
Conversion of Richmont units to Alamos units (note 5)	0
Forfeiture	0	(15,313)
Settled	0	(13,281)
Shares outstanding	480,605	378,345
Performance share units (PSU)
Disclosure of classes of share capital [line items]
Shares outstanding	424,253	273,363
Granted	269,780	340,188
Conversion of Richmont units to Alamos units (note 5)	0
Forfeiture	(65,451)	(102,156)
Settled	(28,877)	(87,142)
Shares outstanding	599,705	424,253

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Share Capital (Earnings (loss) per share) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of share capital, reserves and other equity interest [Abstract]
Net earnings (loss)	$ 26,600,000	$ (17,900,000.0)
Weighted average number of common shares outstanding (in shares)	305,521,000	265,234,000
Basic loss per share (usd per share)	$ 0.09	$ (0.07)
Dilutive effect of potential common share equivalents (in shares)	3,500,000	0
Diluted weighted average number of common shares outstanding (in shares)	309,021,000	265,234,000
Diluted loss per share (usd per share)	$ 0.09	$ (0.07)

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Share Capital (Antidilutive Securities) (Details) shares in Thousands		3 Months Ended	12 Months Ended
	Feb. 09, 2017 $ / shares	Dec. 31, 2017 CAD / shares	Dec. 31, 2017 shares	Dec. 31, 2016 CAD / shares shares
Earnings per share [line items]
Share price of company (in CAD per share) | (per share)	$ 7.95	CAD 9.40		CAD 8.78
Antidilutive securities			15,152	21,191
Employee Stock Option1 [Member]
Earnings per share [line items]
Antidilutive securities			2,920	9,512
Equity Settled LTI [Member]
Earnings per share [line items]
Antidilutive securities			0	369
Warrants [Member]
Earnings per share [line items]
Antidilutive securities			12,232	11,310

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Share Capital (Dividends) (Details) $ / shares in Units, $ in Millions	Apr. 28, 2017 USD ($) $ / shares
Disclosure of share capital, reserves and other equity interest [Abstract]
Dividends paid, ordinary shares | $	$ 3.0
Dividends paid, ordinary shares per share | $ / shares	$ 0.01

XML

Share Capital (Share Purchase Warrants) (Details) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2017 CAD / shares shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2016 USD ($)
Disclosure of classes of share capital [line items]
Number of warrants (in shares)	12,232	12,232
Common shares issuable (in shares)	12,232	12,232
Gains on derivatives | $		$ 2.3	$ 1.6
Warrants - Esperanza [Member]
Disclosure of classes of share capital [line items]
Number of warrants (in shares)	7,167	7,167
Common shares issuable (in shares)	7,167	7,167
Exercise price (CAD per share) | CAD / shares	CAD 28.46
Warrants - Carlisle [Member]
Disclosure of classes of share capital [line items]
Number of warrants (in shares)	5,065	5,065
Common shares issuable (in shares)	5,065	5,065
Exercise price (CAD per share) | CAD / shares	CAD 10.00

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Other (Loss) Gain (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Other Gain (Loss) [Abstract]
Reduction of obligation to renounce flow-through exploration expenditures	$ 2.3	$ 1.3
Unrealized gains on non-hedged derivatives	(0.3)	1.6
Fair value adjustment on prepayment option embedded derivative	0.0	9.5
Loss on disposal of assets	(1.9)	(4.6)
Interest income	2.5	2.1
Reclamation, care and maintenance	(3.8)	0.0
Transaction costs	(1.3)	0.0
Other	1.9	(2.3)
Other gains (losses)	$ (0.6)	$ 7.6

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Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Cash Flow Statement [Abstract]
Amounts receivable	$ 14.0	$ (5.7)
Inventory	(15.9)	(16.1)
Advances and prepaid expenses	(4.3)	3.8
Accounts payable and accrued liabilities	(12.1)	(7.5)
Income taxes (paid) refunded	(1.5)	13.2
Increase (decrease) in working capital	(19.8)	(12.3)
Interest received, classified as investing activities	$ 2.5	$ 2.1

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Supplemental Cash Flow Information (Other Non-cash Items) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of Cash Flow Statement [Abstract]
Unrealized gains on non-hedged derivatives	$ 0.3	$ (1.6)
(Gain) loss on prepayment option fair value adjustment	0.0	(9.5)
Reduction of obligation to renounce flow-through exploration expenditures	(2.3)	(1.3)
Loss on disposal of assets	1.9	4.6
Net realizable value adjustments	(5.9)	0.0
Gain on termination of retained interest royalty	1.3	0.0
Other non-cash items	0.8	(2.3)
Other adjustments for non-cash items	$ (3.9)	$ (10.1)

XML

Segmented Information (Narrative) (Details)	Dec. 31, 2017 geographical_area
Disclosure of entity's operating segments [Abstract]
Number of geographical areas	2

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Segmented Information (Segment revenues and results) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of operating segments [line items]
Operating revenues	$ 542.8	$ 482.2
Cost of sales
Cost of sales	315.6	297.0
Royalties	15.6	13.3
Amortization	125.6
Cost of sales	456.8	429.3
Expenses
Exploration	8.3	5.1
Corporate and administrative	15.5	16.3
Share-based compensation	6.2
EARNINGS FROM OPERATIONS	56.0	21.3
Finance expense	(9.1)	(24.0)
Foreign exchange loss	5.0	(12.5)
Other gains (loss)	(0.6)	7.6
Loss on redemption of senior secured notes	(29.1)	0.0
EARNINGS (LOSS) BEFORE INCOME TAXES	22.2	(7.6)
Operating segments [member] | Young-Davidson [Member]
Disclosure of operating segments [line items]
Operating revenues	249.7	211.9
Cost of sales
Cost of sales	125.9	107.4
Royalties	4.4	3.7
Amortization	83.1	72.6
Cost of sales	213.4	183.7
Expenses
Exploration	0.0	0.0
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
EARNINGS FROM OPERATIONS	36.3	28.2
Operating segments [member] | Mulatos [Member]
Disclosure of operating segments [line items]
Operating revenues	201.4	187.3
Cost of sales
Cost of sales	112.9	117.2
Royalties	10.6	9.6
Amortization	29.5	37.8
Cost of sales	153.0	164.6
Expenses
Exploration	6.7	2.0
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
EARNINGS FROM OPERATIONS	41.7	20.7
Operating segments [member] | Island Gold [Member]
Disclosure of operating segments [line items]
Operating revenues	14.9	83.0
Cost of sales
Cost of sales	4.1	72.4
Royalties	0.6	0.0
Amortization	8.7	8.6
Cost of sales	13.4	81.0
Expenses
Exploration	0.0	0.0
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
EARNINGS FROM OPERATIONS	1.5	2.0
Operating segments [member] | El Chanate [Member]
Disclosure of operating segments [line items]
Operating revenues	76.8	0.0
Cost of sales
Cost of sales	72.7	0.0
Royalties	0.0	0.0
Amortization	4.3	0.0
Cost of sales	77.0	0.0
Expenses
Exploration	0.0	3.1
Corporate and administrative	0.0	16.3
Share-based compensation	0.0	10.2
EARNINGS FROM OPERATIONS	(0.2)	(29.6)
Corporate and other [Member]
Disclosure of operating segments [line items]
Operating revenues	0.0	482.2
Cost of sales
Cost of sales	0.0	297.0
Royalties	0.0	13.3
Amortization	0.0	119.0
Cost of sales	0.0	429.3
Expenses
Exploration	1.6	5.1
Corporate and administrative	15.5	16.3
Share-based compensation	6.2	10.2
EARNINGS FROM OPERATIONS	$ (23.3)	$ 21.3

XML

Segmented Information (Segment assets and liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of operating segments [line items]
Total Assets	$ 3,313.8	$ 2,492.2
Total liabilities	632.6	732.8
Operating segments [member] | Young-Davidson [Member]
Disclosure of operating segments [line items]
Total Assets	1,580.9	1,548.9
Total liabilities	243.4	260.4
Operating segments [member] | Mulatos [Member]
Disclosure of operating segments [line items]
Total Assets	350.0	335.5
Total liabilities	93.8	88.4
Operating segments [member] | Island Gold [Member]
Disclosure of operating segments [line items]
Total Assets	849.6	0.0
Total liabilities	222.5	0.0
Operating segments [member] | El Chanate [Member]
Disclosure of operating segments [line items]
Total Assets	111.4	113.5
Total liabilities	24.3	27.8
Corporate and other [Member]
Disclosure of operating segments [line items]
Total Assets	421.9	494.3
Total liabilities	$ 48.6	$ 356.2

XML

Financial Instruments and Risk Management (Fair Value for Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of fair value measurement of assets [line items]
Financial assets	$ 3,313.8	$ 2,492.2
Financial liabilities	(632.6)	(732.8)
Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Fair value, net asset (liability)	35.7	11.7
Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Fair value, net asset (liability)	5.5	9.6
Fair value through profit or loss | Share Purchase Warrants [Member] | Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities	(0.1)	(2.4)
Fair value through profit or loss | Share Purchase Warrants [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities	0.0	0.0
Fair value through profit or loss | Currency Derivative Instruments [Member] | Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities	0.0	0.0
Fair value through profit or loss | Currency Derivative Instruments [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities	0.0	(3.3)
Fair value through profit or loss | Prepayment Option Embedded Derivative [Member] | Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	0.0	0.0
Fair value through profit or loss | Prepayment Option Embedded Derivative [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	0.0	9.6
Fair value through profit or loss | Gold Options [Member] | Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	0.0	0.0
Fair value through profit or loss | Gold Options [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	0.5	3.3
Fair value through OCI | Trading securities [member] | Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	35.8	14.1
Fair value through OCI | Trading securities [member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	0.0	0.0
Fair value through OCI | Currency Hedging Derivative Instruments [Member] | Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	0.0	0.0
Fair value through OCI | Currency Hedging Derivative Instruments [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial assets	$ 5.0	$ 0.0

XML

Financial Instruments and Risk Management (Fair Value And Presentation in the Balance Sheet) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	$ 0.4
Financial liabilities, at fair value		$ (2.4)
Derivatives [member] | Currency Hedging Derivative Instruments [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	5.0	0.0
Derivatives [member] | Gold Options [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	0.5	3.3
Derivatives [member] | Currency Derivative Instruments [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value	0.0
Financial liabilities, at fair value		3.3
Derivatives [member] | Share Purchase Warrants [Member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value	$ (0.1)	$ (2.4)

XML

Financial Instruments and Risk Management (Hedging Instruments Recorded in AOCI) (Details) - Currency risk [member] - Fair value hedges [member] - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Balance, beginning of the period	$ 0.0	$ 0.0
Gains on currency instruments	11.2	0.0
Deferred income tax related to hedging instrument	(1.7)	0.0
Balance, June 30, 2017	6.0	0.0
CAD Currency Instruments [Member]
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Gains on currency instruments	(2.2)	0.0
MXN Currency Instruments [Member]
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Gains on currency instruments	$ (1.3)	$ 0.0

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Financial Instruments and Risk Management (Currency Contracts) (Details) MXN in Millions, CAD in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2017 CAD	Dec. 31, 2017 USD ($)	Dec. 31, 2017 MXN	Dec. 31, 2017 MXN / $	Dec. 31, 2017 $ / CAD
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value				$ 0.4
Financial liabilities, at fair value		$ 2.4
Gains (losses) on change in fair value of derivatives	$ 2.3	1.6
Collars and Forwards [Member]
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value				$ 5.0
Financial liabilities, at fair value		3.3
Gains (losses) on change in fair value of derivatives	$ 4.3	$ (1.6)
2018 [member] | Collars and Forwards [Member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Notional amount			CAD 174		MXN 1,560.0
Bottom of range [member] | 2018 [member] | Collars and Forwards [Member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Average rate of hedging instrument						1872.00%	131.00%
Top of range [member] | 2018 [member] | Collars and Forwards [Member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Average rate of hedging instrument						2071.00%	136.00%

XML

Financial Instruments and Risk Management (Unrealized Gains (Losses) on Foreign Currency Contracts) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about hedged items [line items]
Unrealized gains	$ 0.3	$ (1.6)
Foreign Currency [Member]
Disclosure of detailed information about hedged items [line items]
Unrealized gains	13.3	2.3
Foreign Currency [Member] | Designated as Hedging Instrument [Member]
Disclosure of detailed information about hedged items [line items]
Unrealized gains	11.2	0.0
Foreign Currency [Member] | Not Designated as Hedging Instrument [Member]
Disclosure of detailed information about hedged items [line items]
Unrealized gains	$ 2.1	$ 2.3

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Financial Instruments and Risk Management (Gold Option Contracts) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) $ / oz oz	Dec. 31, 2016 USD ($)
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value	$ 0.4
Gains (losses) on change in fair value of derivatives	2.3	$ 1.6
Unrealized gains	0.3	(1.6)
Gold Options [Member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value	0.5	3.3
Gains (losses) on change in fair value of derivatives	(0.6)	(1.2)
Unrealized gains	$ 2.6	$ 3.3
Gold Options [Member] | 2017 [member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Ounces subject to contract | oz	50,100
Purchase Put Options [Member] | Gold Options [Member] | 2017 [member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Average realized price per ounce | $ / oz	1,270
Sold Call Option [Member] | Gold Options [Member] | 2017 [member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Average realized price per ounce | $ / oz	1,444

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Financial Instruments and Risk Management (Market Price Risk) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) $ / oz
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value	$ 0.4
Gains (losses) on change in fair value of derivatives	2.3	$ 1.6
Unrealized gains	$ 0.3	(1.6)
Market risk [member]
Disclosure of detailed information about hedged items [line items]
Potential percentage change in value	1000.00%
Impact on other comprehensive income	$ 3.5	1.4
Gold Options [Member] | Market risk [member]
Disclosure of detailed information about hedged items [line items]
Potential percentage change in value	10.00%
Impact on pre-tax earnings	$ 54.3	$ 48.2
Bottom of range [member] | Gold Options [Member] | Market risk [member]
Disclosure of detailed information about hedged items [line items]
Average realized price per ounce | $ / oz		1,146
Top of range [member] | Gold Options [Member] | Market risk [member]
Disclosure of detailed information about hedged items [line items]
Average realized price per ounce | $ / oz		1,349

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Financial Instruments and Risk Management (Interest Rate Risk) (Details) - Interest rate risk [member] $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($)
Disclosure of nature and extent of risks arising from financial instruments [line items]
Potential percentage change in value	100.00%
Impact on interest earned	$ 2.0

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Financial Instruments and Risk Management (Foreign Currency Exchange Rate Risk) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	$ 204.8	$ 258.1
Financial liabilities, at fair value		2.4
Unrealized gains	$ 0.3	(1.6)
Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Potential percentage change in value	10.00%
Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	$ (3.2)	(7.7)
Impact on pre-tax earnings	7.8	2.3
Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	14.1	29.4
Impact on pre-tax earnings	1.5	0.7
Cash and Cash Equivalents [Member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	200.8	252.2
Cash and Cash Equivalents [Member] | Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	17.2	22.8
Cash and Cash Equivalents [Member] | Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	6.8	7.3
Equity Securities [Member] | Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	35.8	14.1
Equity Securities [Member] | Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	0.0	0.0
Trade receivables [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	4.0	5.9
Trade receivables [member] | Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	7.4	3.3
Trade receivables [member] | Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	22.0	38.2
Accounts Payable And Accrued Liabilities [Member] | Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	(56.1)	(42.7)
Accounts Payable And Accrued Liabilities [Member] | Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	(14.7)	(16.1)
Current portion of financing obligations [Member] | Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	(4.2)	(1.5)
Current portion of financing obligations [Member] | Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	0.0	0.0
Financial Obligations [Member] | Canadian dollar | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	(3.3)	(3.7)
Financial Obligations [Member] | Mexican peso | Currency risk [member]
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	$ 0.0	$ 0.0

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Financial Instruments and Risk Management (Credit Risk) (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	$ 204.8	$ 258.1
Cash and Cash Equivalents [Member]
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	200.8	252.2
Trade receivables [member]
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	$ 4.0	$ 5.9

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Financial Instruments and Risk Management (Contractual Commitments) (Details) $ in Millions	Dec. 31, 2017 USD ($)
Disclosure of detailed information about financial instruments [abstract]
Operating and financing leases, less than 1 year	$ 5.4
Operating and financing leases, 2-3 years	5.6
Operating and financing leases, 4-5 years	2.0
Operating and financing leases, more than 5 years	2.9
Operating and financing leases, total	15.9
Accounts payable and accrued liabilities, less than 1 year	96.8
Accounts payable and accrued liabilities, 2-3 years	0.0
Accounts payable and accrued liabilities, 4-5 years	0.0
Accounts payable and accrued liabilities, more than 5 years	0.0
Accounts payable and accrued liabilities, total	96.8
Decommissioning liability, less than 1 year	0.0
Decommissioning liability, 2-3 years	0.0
Decommissioning liability, 4-5 years	0.0
Decommissioning liability, more than 5 years	54.8
Decommissioning liability, total	54.8
Contract mining, less than 1 year	47.9
Contract mining, 2-3 years	72.0
Contract mining, 4-5 years	47.8
Contract mining, more than 5 years	38.9
Contract mining, total	206.6
Flow-through share obligation, less than 1 year	0.7
Flow-through share obligation, 2-3 years	0.0
Flow-through share obligation, 4-5 years	0.0
Flow-through share obligation, more than 5 years	0.0
Flow-through share obligations, total	0.7
Capital commitments, less than 1 year	21.8
Capital commitments, 2-3 years	0.0
Capital commitments, 4-5 years	0.0
Capital commitments, more than 5 years	0.0
Capital commitments, total	21.8
Contractual obligation, less than 1 year	172.6
Contractual obligation, 2-3 years	77.6
Contractual obligation, 4-5 years	49.8
Contractual obligation, more than 5 years	96.6
Contractual obligation, total	$ 396.6

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Financial Instruments and Risk Management (Available for Sale Financial Assets) (Details) $ in Millions	Dec. 31, 2017 USD ($)
AuRico Metals [Member]
Investment [Line Items]
Financial assets available-for-sale	$ 21.8
Corex Gold Corp [Member]
Investment [Line Items]
Financial assets available-for-sale	3.5
Monarques Gold Corp [Member]
Investment [Line Items]
Financial assets available-for-sale	9.4
Other Investments [Member]
Investment [Line Items]
Financial assets available-for-sale	$ 1.1

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Management of Capital (Details) - USD ($) $ in Millions	Dec. 31, 2017	Dec. 31, 2016
Disclosure of objectives, policies and processes for managing capital [abstract]
Shareholder's equity	$ 2,681.2	$ 1,759.4
Current portion of financing obligations (note 10)	4.2	3.6
Non-current portion of non-current borrowings	3.3	301.3
Managed capital	$ 2,688.7	$ 2,064.3

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Related Party Transactions (Details) - Company's directors and executive team [member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Disclosure of transactions between related parties [line items]
Short-term employee benefits	$ 8.8	$ 7.8
Share-based payments	4.5	4.2
Amounts payable, related party transactions	$ 13.3	$ 12.0

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Commitments (Details) oz in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2017 USD ($) oz	Dec. 31, 2016 USD ($)
Commitments [Line Items]
Capital purchases commitments	$ 21.8	$ 2.8
Royalties	15.6	13.3
Royal Gold [Member]
Commitments [Line Items]
Extraordinary mining duty tax	1.0	0.9
Island Gold [Member]
Commitments [Line Items]
Royalties	$ 0.6
Production Royalty [Member] | Royal Gold [Member]
Commitments [Line Items]
Royalty rate	5.00%
Quantity of production subject to royalty | oz	2.0
Actual production quantity | oz	1.8
Royalties	$ 9.6	8.7
Net Smelter Royalty [Member] | AuRico Metals [Member]
Commitments [Line Items]
Royalty rate	1.50%
Royalties	$ 3.9	3.2
Net Smelter Royalty [Member] | Island Gold [Member]
Commitments [Line Items]
Royalty rate	2.00%
Other Royalties [Member] | AuRico Metals [Member]
Commitments [Line Items]
Royalties	$ 0.5	$ 0.5
Turkey [Member] | Net Smelter Royalty [Member] | Third Party [Member]
Commitments [Line Items]
Royalty rate	2.00%
Turkey [Member] | State Royalty [Member]
Commitments [Line Items]
Royalty rate	3.00%
Lochalsh [Member] | Production Royalty [Member] | Island Gold [Member]
Commitments [Line Items]
Royalty rate	3.00%
Goudreau [Member] | Net Profit Interest [Member] | Island Gold [Member]
Commitments [Line Items]
Royalty rate	15.00%
Goudreau Lake [Member] | Production Royalty [Member] | Island Gold [Member]
Commitments [Line Items]
Royalty rate	4.38%
Goudreau Lake [Member] | Net Profit Interest [Member] | Island Gold [Member]
Commitments [Line Items]
Royalty rate	10.38%

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Subsequent Event (Details) - 2 months ended Feb. 27, 2018 - Other disposals of assets [member] CAD / shares in Units, $ in Millions	CAD CAD / shares	USD ($)
Corex Gold Corp [Member]
Disclosure of non-adjusting events after reporting period [line items]
Sale of stock (CAD per share) | CAD / shares	CAD 0.13
Proceeds from divestiture of businesses		$ 2.6
Gain on sale of business		0.6
Weighted average share price | CAD	CAD 0.10
AuRico Metals [Member]
Disclosure of non-adjusting events after reporting period [line items]
Sale of stock (CAD per share) | CAD / shares	CAD 1.80
Proceeds from divestiture of businesses		22.1
Gain on sale of business		$ 13.2
Weighted average share price | CAD	CAD 0.72