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 March, 2019

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-            .

The information contained in Exhibits 99.1 and 99.2 of this Form 6-K is incorporated by reference into the registrant’s registration statement on Form S-8: File No. 333-206182.

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION
99.1	Annual Audited Consolidated Financial Statements for the Year Ended December 31, 2018, including Consolidated Statements of Financial Position as at December 31, 2018 and December 31, 2017 and Consolidated Statements of Comprehensive Loss, Changes in Equity and Cash Flows for the Years Ended December 31, 2018 and December 31, 2017 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, 2018, contained therein
99.2	Management’s Discussion and Analysis for the Year Ended December 31, 2018

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: March 7, 2019
	By:	/s/ Scott Parsons
	Name:	Scott Parsons
	Title:	Vice President, Investor Relations

EX-99.1

ALAMOS GOLD INC.

2018 FINANCIAL REPORT

December 31, 2018 and 2017

(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) Income

▪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, implementation 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 properly fulfill 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 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

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

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

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Alamos Gold Inc. (the Company) as of December 31, 2018 and 2017, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the years in the two‑year period ended December 31, 2018, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and its financial performance and its cash flows for each of the years in the two‑year period ended December 31, 2018, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 20, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. 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.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

"KPMG LLP"

Chartered Professional Accountants, Licensed Public Accountants

We have served as the Company’s auditor since 2005

Toronto, Canada

February 20, 2019

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 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, 2018, based on 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, 2018, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2018 and 2017, the related consolidated statements of comprehensive income, changes in equity, and cash flows for each of the years in the two-year period ended December 31, 2018,and the related notes (collectively, the consolidated financial statements), and our report dated February 20, 2019 expressed an 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, 2018. 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.

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 20, 2019

2018 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Financial Position

(Stated in millions of United States dollars)

	December 31, 2018			December 31, 2017
A S S E T S
Current Assets
Cash and cash equivalents		$206.0			$200.8
Equity securities	7.8			35.8
Amounts receivable (note 6)	40.5			41.0
Inventory (note 7)	110.2			161.2
Other current assets	15.5			14.4
Total Current Assets	380.0			453.2
Non-Current Assets
Long-term inventory (note 7)	30.0			68.7
Mineral property, plant and equipment (note 8)	2,813.3			2,753.4
Other non-current assets	41.9			45.0
Total Assets	$3,265.2			$3,320.3
L I A B I L I T I E S
Current Liabilities
Accounts payable and accrued liabilities (note 9)		$118.7			$101.0
Income taxes payable	6.2			12.2
Total Current Liabilities	124.9			113.2
Non-Current Liabilities
Deferred income taxes (note 11)	491.5			477.0
Decommissioning liabilities (note 10)	44.9			44.6
Other non-current liabilities	1.6			4.3
Total Liabilities	662.9			639.1
E Q U I T Y
Share capital (note 12)		$3,705.2			$3,691.7
Contributed surplus	87.3			89.5
Warrants	3.9			4.0
Accumulated other comprehensive (loss) income	(9.2		)	13.0
Deficit	(1,184.9		)	(1,117.0		)
Total Equity	2,602.3			2,681.2
Total Liabilities and Equity		$3,265.2			$3,320.3

Commitments (note 19)

Subsequent events (note 12a, 12g)

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.

2018 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Comprehensive (Loss) Income

For the years ended December 31, 2018 and 2017

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

	December 31,			December 31,
	2018			2017
OPERATING REVENUES		$651.8			$542.8
COST OF SALES
Mining and processing	387.2			315.6
Impairment of El Chanate inventory (note 7)	64.0			—
Royalties (note 19)	21.6			15.6
Amortization	166.6			125.6
	639.4			456.8
EXPENSES
Exploration	11.0			8.3
Corporate and administrative	17.4			15.5
Share-based compensation (note 12)	6.6			6.2
	674.4			486.8
(LOSS) EARNINGS FROM OPERATIONS	(22.6		)	56.0
OTHER EXPENSES
Finance expense	(3.0		)	(6.6		)
Foreign exchange (loss) gain	(4.4		)	5.0
Other loss (note 13)	(8.4		)	(3.1		)
Loss on redemption of senior secured notes	—			(29.1		)
(LOSS) EARNINGS BEFORE INCOME TAXES		($38.4	)		$22.2
INCOME TAXES (note 11)
Current income tax expense	(17.3		)	(11.9		)
Deferred income tax (expense) recovery	(16.9		)	16.3
NET (LOSS) EARNINGS	($72.6		)	$26.6
Items that may be subsequently reclassified to net earnings:
Unrealized (loss) gain on currency hedging instruments, net of taxes	(7.4		)	6.0
Unrealized loss on fuel hedging instruments, net of taxes	(0.5		)	—
Items that will not be reclassified to net earnings:
Unrealized (loss) gain on equity securities, net of taxes	(1.8		)	6.6
Total other comprehensive (loss) income	($9.7		)	$12.6
COMPREHENSIVE (LOSS) INCOME	($82.3		)	$39.2
(LOSS) EARNINGS PER SHARE (note 12)
– basic	($0.19		)	$0.09
– diluted	($0.19		)	$0.09
Weighted average number of common shares outstanding (000's)
– basic	389,816			305,521
– diluted	389,816			309,021

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

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ALAMOS GOLD INC.

Consolidated Statements of Changes in Equity

For the years ended December 31, 2018 and 2017

(Stated in millions of United States dollars)

	December 31,		December 31,
	2018		2017
SHARE CAPITAL (note 12)
Balance, beginning of the year	$3,691.7		$2,822.2
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 share-based compensation	3.5		2.3
Issuance of shares related to exercise of warrants	0.6		0.5
Issuance of shares through flow-through share agreements	—		8.4
Transfer from contributed surplus of share-based compensation redeemed	9.4		1.2
Balance, end of year	$3,705.2		$3,691.7
CONTRIBUTED SURPLUS
Balance, beginning of the year	$89.5		$70.9
Share-based compensation	7.2		6.4
Transfer of share capital of share-based compensation redeemed	(9.4	)	(1.2	)
Equity settled share-based payments related to the Richmont acquisition	—		13.4
Balance, end of year	$87.3		$89.5
WARRANTS
Balance, beginning of the year	$4.0		$3.5
Exercise of warrants	(0.2	)	—
Issuance of warrants	0.1		0.5
Balance, end of year	$3.9		$4.0
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
Balance, beginning of the year on equity securities	$7.0		$0.4
Realized gain on sale of equity securities, reclassified to deficit, net of tax (note 16)	(12.5	)	—
Unrealized (loss) gain - equity securities, net of taxes	(1.8	)	6.6
	($7.3	)	$7.0
Balance, beginning of the year on currency hedging instruments	$6.0		—
Unrealized (loss) gain on currency hedging instruments, net of taxes	(7.4	)	6.0
	($1.4	)	$6.0
Balance, beginning of the year on fuel hedging instruments	—		—
Unrealized loss on fuel hedging instruments, net of taxes	(0.5	)	—
	($0.5	)	—
Balance, end of year	($9.2	)	$13.0
DEFICIT
Balance, beginning of the year	($1,117.0	)	($1,137.6	)
Dividends (note12(f))	(7.8	)	(6.0	)
Reclassification of realized gain on sale of equity securities, net of tax (note 16)	12.5		—
Net (loss) earnings	(72.6	)	26.6
Balance, end of year	($1,184.9	)	($1,117.0	)
TOTAL EQUITY	$2,602.3		$2,681.2

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

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2018 FINANCIAL REPORT

ALAMOS GOLD INC.

Consolidated Statements of Cash Flows

For the years ended December 31, 2018 and 2017

(Stated in millions of United States dollars)

	December 31,		December 31,
	2018		2017
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES
Net (loss) earnings for the period	($72.6	)	$26.6
Adjustments for items not involving cash:
Amortization	166.6		125.6
Foreign exchange loss (gain)	4.4		(5.0	)
Current income tax expense	17.3		11.9
Deferred income tax expense (recovery)	16.9		(16.3	)
Share-based compensation	6.6		6.2
Finance expense	3.0		6.6
Impairment of El Chanate inventory	64.0		—
Loss on redemption of senior secured notes	—		29.1
Other items (note 14)	5.5		(1.4	)
Changes in working capital and taxes received or paid (note 14)	2.2		(19.8	)
	213.9		163.5
INVESTING ACTIVITIES
Mineral property, plant and equipment	(221.5	)	(162.5	)
Cash received from the acquisition of Richmont (note 5)	—		46.2
Proceeds from sale of equity securities	24.9		(6.7	)
Other	—		3.6
	(196.6	)	(119.4	)
FINANCING ACTIVITIES
Net proceeds from bought deal financing	—		239.1
Repayment of senior secured notes	—		(327.2	)
Repayment of debt and equipment financing obligations	(4.1	)	(4.4	)
Interest paid	—		(12.2	)
Credit facility transaction fees	(0.8	)	(2.1	)
Proceeds received from the exercise of stock options and warrants	3.9		3.5
Dividends paid	(7.8	)	(6.0	)
Proceeds from issuance of flow-through shares	—		11.7
	(8.8	)	(97.6	)
Effect of exchange rates on cash and cash equivalents	(3.3	)	2.1
Increase (decrease) in cash and cash equivalents	5.2		(51.4	)
Cash and cash equivalents - beginning of year	200.8		252.2
CASH AND CASH EQUIVALENTS - END OF YEAR	$206.0		$200.8

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

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ALAMOS GOLD INC.

Notes to Consolidated Financial Statements

December 31, 2018 and 2017

(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 20, 2019.

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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
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
Patricia Mining Corp.	Holding company	Canada
Alamos Gold Holdings Inc.	Holding company	Canada
Alamos Gold Holdings Coöperatief U.A.	Holding company	Netherlands
Alamos Gold Holdings B.V.	Holding company	Netherlands

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.

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

(d) Revenue recognition

Revenue from the sale of gold, including refined metal, dore and gold concentrate, is recognized when control over the metal is transferred to the customer. Transfer of control generally occurs when the refined metal, dore, or gold concentrate has been accepted by the customer. Once the customer has accepted the metals, control has typically been transferred and the customer is able to direct the use of and obtain substantially all of the remaining benefits from the metals. On transfer of control, revenue and related costs can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Company as payment is received on the date of or within a few days of transfer of control.

(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

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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 (loss) earnings 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	3-7 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 (loss) earnings as the excess of the carrying amount over the recoverable amount (refer to note 3 (j) for definition of 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.

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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) Income.

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(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 (Loss) Income.

(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

For financial assets measured at amortized cost, the impairment model under IFRS 9, Financial Instruments ("IFRS 9"), reflects expected credit losses. 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.

(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

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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 (Loss) Income.

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.

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(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 Comprehensive (Loss) Income 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 to 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.

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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) (Loss) earnings per share

Basic (loss) earnings per share is calculated based on the weighted average number of common shares and common share equivalents outstanding for the period. Diluted (loss) earnings 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’s financial instruments are classified and subsequently measured as follows:

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

The Company's accounting policy for financial instruments is 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 classified or designated as at fair value through profit and loss: 1) the Company’s objective 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 is not recycled to profit or loss, rather transfered to deficit. The Company has elected to account for equity securities within this manner.

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.

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Financial liabilities

Financial liabilities, including 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 against the United States Dollars ("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-hedging derivative financial instruments are included in net earnings or loss as non-hedging 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.

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(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 accounting standards and amendments to accounting standards, effective January 1, 2018:

The Company has adopted IFRS 15, Revenue from Contracts with Customers ("IFRS 15") as of January 1, 2018. IFRS 15 covers principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The Company elected to apply IFRS 15 using a modified retroactive approach by recognizing the cumulative effect of initially adopting IFRS 15 as an adjustment to the opening balance sheet through equity at January 1, 2018. The adoption of IFRS 15 resulted in no impact to the consolidated financial statements as the timing of revenue recognition on gold sales is unchanged.

The Company has adopted IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration. The interpretation clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Company has evaluated the impact of applying IFRIC 22, and has concluded that the adoption of the standard had no material impact on the consolidated financial statements.

(v) Standards issued but not yet adopted

Standards issued, but not yet adopted include:

In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16"). The objective of IFRS 16 is to recognize substantially all leases on balance sheet for lessees. IFRS 16 requires lessees to recognize a "right-of-use" asset and a lease liability calculated using a prescribed methodology. The effective date of IFRS 16 is for annual periods beginning on or after January 1, 2019. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company will adopt IFRS 16 for the annual period beginning January 1, 2019 using the modified retrospective approach which does not require restatement of comparative periods. Instead, the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the beginning of 2019.  The Company elected to apply the practical expedient to grandfather its previous assessment of which contracts are, or contain, leases. The Company does not expect IFRS 16 to have a significant impact to the balance sheet, however will result in the recognition of additional right of use assets and lease liabilities on the balance sheet, and a corresponding increase in depreciation and interest expense. The Company also expects cash flows from operating activities to increase under IFRS 16 as lease payments for substantially all leases will be recorded as financing outflows in the consolidated statement of cash flows as opposed to operating cash flows. The Company has substantially completed its assessment of existing operating leases and will finalize its assessment and report more detailed information in its first quarter 2019 interim 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 Company does not expect the adoption of the Interpretation to have a material impact to the consolidated financial statements.

On December 12, 2017 the IASB issued narrow-scope amendments to three standards as part of its annual improvements process. The amendments are effective on or after January 1, 2019. Each of the amendments has its own specific transition requirements.

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Amendments were made to the following standards:

• IFRS 3 Business Combinations and IFRS 11 Joint Arrangements - to clarify how an entity accounts for increasing its interest in a joint operation that meets the definition of a business;

• IAS 12 Income Taxes - to clarify that all income tax consequences of dividends are recognized consistently with the transactions that generated the distributable profits - i.e. in profit or loss, OCI, or equity; and

• IAS 23 Borrowing Costs - to clarify that specific borrowings - i.e. funds borrowed specifically to finance the construction of a qualifying asset - should be transferred to the general borrowings pool once the construction of the qualifying asset has been completed. They also clarify that an entity includes funds borrowed specifically to obtain an asset other than a qualifying asset as part of general borrowings.

The Company does not anticipate the adoption of these standard amendments to have an impact on the consolidated financial statements.

On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations, that seek to clarify whether a transaction results in an asset or a business acquisition. The amendments include an election to use a concentration test. This is a simplified assessment that results in an asset acquisition if substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets. If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendments apply to businesses acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The Company does not anticipate the adoption of the amendment to have an impact on the consolidated financial statements.

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 mineral reserves of it's mines and the portion of mineral resources expected to be ultimately converted to reserves. The estimation of quantities of mineral reserves and mineral 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. Mineral reserve estimates are used in the calculation of depletion expense and to calculate the recoverable amount of a CGU, and to forecast the expected life of a mine.

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2018 FINANCIAL REPORT

• The Company forecasts prices of commodities, exchange rates, production costs, discount rates, and recovery rates. These estimates may change the economic status of mineral reserves and may result in mineral reserves and mineral 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 CGUs at December 31, 2018, or for December 31, 2017.

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2018 FINANCIAL REPORT

5. ACQUISITION OF RICHMONT MINES INC.

On November 23, 2017, the Company completed a plan of 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. Richmont owned and operated the Island Gold mine in Ontario, Canada.

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.

During the year, the Company finalized the purchase price allocation, which did not result in any adjustment to the preliminary values allocated to the net assets acquired.

The following table summarizes the final fair value of the total consideration transferred from Alamos shareholders and the fair value of identified assets acquired and liabilities assumed:

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

6. AMOUNTS RECEIVABLE

	December 31, 2018	December 31, 2017
Sales tax receivables
Canada	$10.6	$6.4
Mexico	17.5	26.5
Other	3.4	0.9
Concentrate receivable	2.3	3.2
Other receivables	6.7	4.0
	$40.5	$41.0

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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2018 FINANCIAL REPORT

7. INVENTORY

	December 31, 2018		December 31, 2017
In-process precious metals	$53.6		$131.6
Ore in stockpiles	35.4		44.1
Parts and supplies	45.7		41.5
Dore, refined precious metals and gold in concentrate	5.5		12.7
	140.2		229.9
Less: Long-term inventory	(30.0	)	(68.7	)
	$110.2		$161.2

Long term inventory consists of heap leach and long-term stockpiles which are expected to be recovered after one year.

The amount of inventories recognized in mining and processing costs for the year ended December 31, 2018 was $393.1 million (December 31, 2017 - $323.3 million). The amount of inventories recognized in amortization costs for the year ended December 31, 2018 was $166.6 million (December 31, 2017 - $125.6 million).

For the year ended December 31, 2018, the Company wrote down $64.0 million of heap leach inventory at El Chanate, of which $62.5 million related to mining and processing costs and $1.5 million related to amortization. The Company ceased mining activities at El Chanate during 2018 and has begun residual leaching the heap leach pad. An analysis of the recoverability of the ounces in inventory on the heap leach pad was conducted as of December 31, 2018. The Company estimated that approximately 51,900 ounces were not expected to be economically recovered, resulting in an impairment charge of $64.0 million ($49.9 million after-tax).

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2018 FINANCIAL REPORT

8. MINERAL PROPERTY, PLANT AND EQUIPMENT

			Mineral property
	Plant and equipment		Depletable	Non-depletable	Exploration and evaluation		Total
Cost
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
Additions	123.4		73.4	15.3	14.4		226.5
Transfer (i)	—		98.6	—	(98.6	)	—
Disposals	(8.8	)	—	—	—		(8.8	)
At December 31, 2018	$1,217.6		$2,290.3	$95.8	$242.7		$3,846.4
Accumulated amortization and impairment charges
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
Amortization	72.4		88.1	—	—		160.5
Disposals	(2.7	)	—	—	—		(2.7	)
At December 31, 2018	$403.6		$618.1	$5.1	$6.3		$1,033.1
Net carrying value
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6		$2,753.4
At December 31, 2018	$814.0		$1,672.2	$90.7	$236.4		$2,813.3

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2018 FINANCIAL REPORT

The net carrying values by segment (note 15) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$608.9	$744.7	$90.7	—	$1,444.3
Mulatos	115.6	95.8	—	—	211.4
Island Gold	79.5	720.6	—	—	800.1
El Chanate	1.5	0.8	—	—	2.3
Kirazlı (i)	3.2	110.3	—	—	113.5
Corporate and other	5.3	—	—	236.4	241.7
At December 31, 2018	$814.0	$1,672.2	$90.7	$236.4	$2,813.3
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

(i) Kirazlı Project

On July 25, 2018, the Company received the GSM (Business Opening and Operation) permit. With receipt of the permit, the costs associated with Kirazlı were transferred from the exploration and evaluation category to the depletable category.

Other

The carrying value of construction in progress at December 31, 2018 was $120.7 million (December 31, 2017 - $64.4 million).

9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31, 2018		December 31, 2017
Trade accounts payable and accrued liabilities	$104.4		$87.3
Royalties payable	4.8		4.9
Share-based compensation liability	1.6		4.5
Current portion of equipment financing obligations	2.6		4.2
Derivative liabilities (note 16)	5.3		0.1
		$118.7		$101.0

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2018 FINANCIAL REPORT

10. 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, 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
Reclamation expenditures	(0.9	)
Accretion expense	3.0
Revisions to expected discounted cash flows	(1.8)
Balance – December 31, 2018	$44.9

The majority of the expenditures are expected to occur between 2021 and 2036. The discount rates used in discounting the estimated reclamation and closure cost obligations were between 2.3% and 8.4% for the year ended December 31, 2018 (2017 – 2.3% and 7.6%), and the inflation rate used was between 2.0% and 4.2% for the year ended December 31, 2018 (2017 – 2.0% and 4.0%).

The total undiscounted value of the decommissioning liabilities at December 31, 2018 was $53.4 million (2017 - $53.2 million).

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2018 FINANCIAL REPORT

11. INCOME TAXES

The following table represents the major components of income tax expense (recovery) recognized in net (loss) earnings for the years ended December 31, 2018 and 2017:

	December 31, 2018	December 31, 2017
Current income tax expense	$17.3	$11.9
Deferred income tax expense (recovery)	16.9	(16.3	)
Income tax expense (recovery) recognized in net (loss) earnings	$34.2	($4.4	)

The statutory tax rate for 2018 was 25.0% (2017 – 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) earnings for the years ended December 31, 2018 and 2017:

	December 31, 2018		December 31, 2017
(Loss) earnings before income taxes	($38.4	)	$22.2
Statutory tax rate	25.0	%	25.0	%
Expected income tax (recovery) expense based on above rates	($9.6	)	$5.6
Effect of higher tax rates in foreign jurisdictions	(2.4	)	0.3
Non-deductible expenses	4.4		4.9
Impact of local mining taxes	6.0		2.2
Impact of foreign exchange	28.8		(22.5	)
Impact of renouncement of flow through share expenditures	0.3		2.6
Withholding tax	1.2		1.3
Change in unrecognized temporary differences	5.2		2.6
Other	0.3		(1.4	)
Income tax (recovery) expense	$34.2		($4.4	)

The following table reflects the change in deferred income tax liability at December 31, 2018 and December 31, 2017:

	December 31, 2018		December 31, 2017
Balance, beginning of year	$477.0		$291.0
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	—		201.5
Deferred income tax expense (recovery) recognized in net (loss) earnings	16.9		(16.3	)
Deferred income tax (recovery) expense recognized in OCI	(2.4	)	3.5
Deferred income tax recovery recognized in equity	—		(2.7	)
Balance, end of year	$491.5		$477.0

The following reflects the deferred income tax liability at December 31, 2018 and December 31, 2017:

	December 31, 2018		December 31, 2017
Accounting value of mineral property, plant and equipment in excess of tax value	$446.8		$409.0
Accounting value of inventories in excess of tax value	13.8		34.7
Other taxable temporary differences	64.3		58.6
Non-capital losses carried forward	(33.4	)	(25.3	)
Deferred income tax liability	$491.5		$477.0

27 Alamos Gold Inc.

2018 FINANCIAL REPORT

The Company has Canadian tax losses of $92.8 million expiring between 2024 and 2038, Mexican tax losses of $39.8 million expiring between 2019 and 2028, United States tax losses of $19.6 million expiring between 2028 and 2037, as well as Turkish tax losses of $4.3 million expiring between 2019 and 2023.

The Company has unrecognized deferred income tax assets at December 31, 2018 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 $81.9 million (December 31, 2017 -$77.8 million).

At December 31, 2018, the Company has unrecognized deferred income tax liabilities on taxable temporary differences of $13.4 million (December 31, 2017 - $6.1 million) for taxes that would be payable on the unremitted earnings of certain subsidiaries of the Company.

12. 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, 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	1,301,535	8.4
Outstanding at December 31, 2017	389,101,550	$3,691.7
Shares issued through:
Share-based compensation plans	1,984,698	12.9
Exercise of warrants	163,955	0.6
Outstanding at December 31, 2018	391,250,203	$3,705.2

(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.

Normal Course Issuer Bid

On December 24, 2018, a Normal Course Issuer Bid ("NCIB") was initiated permitting the Company to purchase for cancellation up to 25,513,043 Class A Common Shares (“Common Shares”), representing 10% of the Company’s public float of the Common Shares. The Company may purchase Common Shares under the NCIB over the next twelve-month period beginning December 24, 2018 and ending December 23, 2019. Any purchases made under the NCIB will be effected through the facilities of the TSX, alternative Canadian trading systems and/or the New York Stock Exchange.

As at December 31, 2018, the Company has not purchased and cancelled any Common Shares.

Subsequent to year end, the Company purchased and cancelled 2,444,352 common shares at a cost of $10.0 million or $4.07 per share.

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2018 FINANCIAL REPORT

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, and employees 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, 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
Granted	1,009,100		6.56
Exercised	(1,984,698	)	2.40
Expired	(2,798,292	)	12.70
Outstanding at December 31, 2018	6,655,455		$7.38

During the year ended December 31, 2018, the weighted average share price at the date of exercise for stock options exercised was CAD $5.89 per share (for the year ended December 31, 2017: CAD $9.99 per share).

(i) Stock options granted

During the year ended December 31, 2018, the Company granted 1,009,100 stock options (year ended December 31, 2017 - 578,490). 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, 2018		December 31, 2017
Weighted average share price at grant date (CAD$)	$6.56		$9.62
Risk-free rate	1.88% - 2.06%		0.91% - 1.35%
Expected dividend yield	0.70	%	0.70	%
Expected stock price volatility (based on historical volatility)	57	%	57	%
Expected life of option (months)	42 - 84		36 - 84
Weighted average per share fair value of stock options granted (CAD$)	$3.11		$4.27

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2018 FINANCIAL REPORT

Stock options outstanding and exercisable as at December 31, 2018:

	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	213,108	2.67	0.04	213,108	2.67
$3.01 - $7.00	2,668,070	4.97	4.52	1,136,011	4.18
$7.01 - $11.00	3,159,640	8.24	1.66	2,773,982	8.05
$11.01 - $15.00	249,777	13.15	0.67	249,777	13.15
$15.01 - $19.00	364,860	16.42	0.56	364,860	16.42
	6,655,455	$7.38	2.65	4,737,738	$7.79

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, 2018 and 2017:

	Restricted share units ("RSU")		Stock appreciation rights ("SAR")		Deferred share units ("DSU")	Performance share units ("PSU")
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
Granted	611,717		—		164,808	440,420
Forfeited	(99,939	)	(482,533	)	—	(56,684	)
Settled	(445,016	)	(63,800	)	—	—
Outstanding units, December 31, 2018	1,567,696		509,192		645,413	983,441

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 at the option of the Company. The Company has historically equity settled these instruments.

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2018 FINANCIAL REPORT

e) (Loss) earnings 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 (loss) earnings 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,
	2018			2017
Net (loss) earnings	($72.6		)	$26.6
Weighted average number of common shares outstanding (in thousands)	389,816			305,521
Basic (loss) earnings per share		($0.19	)		$0.09
Dilutive effect of potential common share equivalents (in thousands)	—			3,500
Diluted weighted average number of common shares outstanding (in thousands)	389,816			309,021
Diluted (loss) earnings per share		($0.19	)		$0.09

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 $6.44 for the year ended December 31, 2018 (2017 - CAD $9.40), 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)	2018	2017
Stock options	6,655	2,920
Warrants	5,215	12,232
	11,870	15,152

(f)    Dividends

On April 30 and October 30, 2018, the Company paid a dividend of $0.01 per share or $3.9 million, for a total of $7.8 million in 2018.

(g)    Share purchase warrants

The Company has the following share purchase warrants ("Warrants"), outstanding as at December 31, 2018 related to past acquisitions:

	Number of warrants	Common shares issuable	Exercise price	Expiry date
	(000s)	(000s)	CAD
AGI.WT.A	5,215	5,215	$10.00	January 7, 2019
	5,215	5,215

On August 30, 2018, 7,167,000 warrants expired. The warrants previously traded under the ticker AGI.WT. The company recorded a $0.1 million gain upon the expiry.

Subsequent to year end, on January 7, 2019, 5,215,000 warrants with the ticker AGI.WT.A expired unexercised.

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13. OTHER LOSS

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

	December 31,		December 31,
	2018		2017
Reduction of obligation to renounce flow-through exploration expenditures	$0.6		$2.3
Unrealized loss on non-hedging derivatives	(0.4	)	(0.3	)
Loss on disposal of assets	(6.1	)	(1.9	)
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	(2.5	)	1.9
	($8.4	)	($3.1	)

14. SUPPLEMENTAL CASH FLOW INFORMATION

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

	December 31,		December 31,
	2018		2017
Amounts receivable	($7.9	)	$14.0
Inventory	13.9		(15.9	)
Advances and prepaid expenses	(7.2	)	(4.3	)
Accounts payable and accrued liabilities	7.6		(12.1	)
Income taxes paid	(4.2	)	(1.5	)
	$2.2		($19.8	)
Interest received	$2.8		$2.5

Other items for the years ended:

	December 31,			December 31,
	2018			2017
Unrealized loss on non-hedging derivatives		$0.4			$0.3
Payment for reclamation activities	(0.9		)	—
Reduction of obligation to renounce flow-through exploration expenditures	(0.6		)	(2.3		)
Loss on disposal of assets	6.1			1.9
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	0.5			3.3
	$5.5			($1.4		)

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2018 FINANCIAL REPORT

15. 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, 2018
	Young-Davidson	Mulatos	Island Gold	El Chanate		Corporate/other1		Total
Operating revenues	$236.3	$223.3	$135.1	$57.1		—		$651.8
Cost of sales
Mining and processing	149.0	125.9	56.0	56.3		—		387.2
Impairment of El Chanate inventory	—	—	—	64.0		—		64.0
Royalties	3.6	11.8	6.2	—		—		21.6
Amortization	82.4	35.4	44.3	4.5		—		166.6
	235.0	173.1	106.5	124.8		—		639.4
Expenses
Exploration	—	7.5	1.4	—		2.1		11.0
Corporate and administrative	—	—	—	—		17.4		17.4
Share-based compensation	—	—	—	—		6.6		6.6
Earnings (loss) from operations	$1.3	$42.7	$27.2	($67.7	)	($26.1	)	($22.6	)
Finance expense								(3.0	)
Foreign exchange loss								(4.4	)
Other loss								(8.4	)
Loss before income taxes								($38.4	)

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

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								(6.6	)
Foreign exchange gain								5.0
Other loss								(3.1	)
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.

33 Alamos Gold Inc.

2018 FINANCIAL REPORT

(b) Segment assets and liabilities

The following table presents the segment assets and liabilities:

	Total Assets		Total liabilities
	December 31, 2018	December 31, 2017	December 31, 2018	December 31, 2017
Young-Davidson	$1,569.4	$1,580.9	$272.3	$243.4
Mulatos	366.9	356.5	95.4	100.3
Island Gold	876.2	849.6	236.3	222.5
El Chanate	35.9	111.4	5.9	24.3
Corporate/other	416.8	421.9	53.0	48.6
Total assets and liabilities	$3,265.2	$3,320.3	$662.9	$639.1

16. 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, 2018. 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, 2018			December 31, 2017
	Level 1	Level 2		Level 1		Level 2
Financial assets
Fair value through profit or loss
Gold options	—	—		—		0.5
Fair value through OCI
Equity securities	7.8	—		35.8		—
Currency hedging derivative instruments	—	—		—		5.0
Financial liabilities
Fair value through profit or loss
Share purchase warrants	—	—		(0.1	)	—
Gold options	—	(0.1	)	—		—
Fair value through OCI
Currency hedging derivative instruments	—	(4.7	)	—		—
Fuel options	—	(0.5	)	—		—
	$7.8	($5.3	)	$35.7		$5.5

The methods of measuring financial assets and liabilities have not changed during the year ended December 31, 2018. 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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2018 FINANCIAL REPORT

Equity Securities

As at December 31, 2018, the Company held shares in Monarques Gold Corp. that had a value of $7.3 million. The Company also has other investments valued at $0.5 million.

During the first quarter of 2018, the Company disposed of its investment in AuRico Metals as it was acquired by a third party for CAD$1.80 per share. The Company received $22.2 million in proceeds on its investment, resulting in a gain of $13.7 million, based on an average cost of CAD$0.72 per share. Also in the first quarter, the Company disposed of its position in Corex Gold for $2.7 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. The tax impact of these gains were $1.8 million. These gains were transferred from accumulated other comprehensive income to deficit.

Revolving Credit Facility

In the third quarter of 2018, the Company completed the extension of its existing undrawn revolving credit facility (the "Facility") of $400.0 million to September 20, 2022 from September 20, 2021 at similar terms and conditions to those existing previously. The Facility bears interest at a 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, 2018, the Company is in compliance with the covenants and the Facility is fully undrawn.

The Company incurred costs of $0.8 million in 2018 to extend the Facility (2017 - $2.1 million). These costs are amortized into net earnings over the term of the Facility.

Derivative Instruments

The fair value of derivative instruments is as follows:

	December 31,		December 31,
	2018		2017
Derivatives designated as hedging instruments
Currency hedging derivative instruments	($4.7	)	$5.0
Fuel options	(0.5	)	—
	(5.2	)	5.0
Derivatives not designated as hedging instruments
Gold options	($0.1	)	$0.5
Share purchase warrants liability	—		(0.1	)
	($0.1	)	$0.4

Currency derivative instruments

The Company enters into option and forward contracts to hedge 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, 2018, the Company has 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). Cash flows in relation to the designated hedged item and hedging instrument are matched since the foreign currency option and forward contracts (hedging instrument) matures during the same month as the operational cash flows (hedged item) are expected to

35 Alamos Gold Inc.

2018 FINANCIAL REPORT

be incurred. The correlation between the foreign exchange rate of the hedged item and the hedging instrument is 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 using one unit of both the hedged and hedging item respectively.

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

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, 2018 and 2017 recorded in accumulated other comprehensive income is:

	December 31,		December 31,
	2018		2017
Balance, beginning of the period	$6.0		—
Unrealized (loss) gains on currency instruments	(5.9	)	11.2
Less: realized gains on CAD currency instruments	(3.9	)	(2.2	)
Less: realized gains on MXN currency instruments	—		(1.3	)
Deferred income tax related to hedging instrument	2.4		(1.7	)
	($1.4	)	$6.0

For the year ended December 31, 2018, 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, 2018:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)	Forward price (USD/CAD)
2019	Collars	342.0	1.30	1.35	N/A
2019	Forwards	9.0	N/A	N/A	1.34

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2019	Collars	1,380.0	19.50	22.07

The fair value of these contracts was a liability of $4.7 million at December 31, 2018 (December 31, 2017 - asset of $5.0 million). For the year ended December 31, 2018, the Company realized gains of $3.9 million on the foreign currency contracts (for the year ended December 31, 2017 - realized gains of $4.3 million).

Gold option contracts

As at December 31, 2018, 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 $1,250 per ounce and a maximum average realized gold price of $1,377 per ounce, regardless of the movement in gold prices during 2019.

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2018 FINANCIAL REPORT

The following gold collar contracts are outstanding as of December 31, 2018:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2019	15,000	$1,250	$1,377

The fair value of these contracts was a liability of $0.1 million at December 31, 2018 (December 31, 2017 - asset of $0.5 million). The options mature through out 2018.

For the year ended December 31, 2018, the Company realized a gain of $3.9 million related to the settlement of option contracts (for the year ended December 31, 2017 - realized losses of $0.6 million). Total unrealized losses for the year ended December 31, 2018 was $0.6 million (for the year ended December 31, 2017 - unrealized gain of $2.6 million). The Company has elected to not apply hedge accounting to the gold option contracts, with changes in fair value recorded in net earnings.

Fuel option contracts

The Company enters into option contracts to hedge against the risk of an increase in the price of diesel fuel. These option contracts are for the purchase of New York Harbour Ultra Low Sulfur Diesel ("ULSD") contracts, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing price risk.

During the year ended December 31, 2018, the Company has designated options as cash flow hedges for the highly probable consumption of diesel. 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 the hedging instrument. In order to assess the economic relationship between rack ULSD price and the NY Harbour ULSD benchmark, the Company considered both qualitative and quantitative factors. Cash flows in relation to the designated hedged item and hedging instrument are matched since the NY Harbour ULSD option contracts (hedging instrument) expires during the same month as the operational cash flows (hedged item) are expected to be incurred. The correlation between the hedged item and the hedging instrument is 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 the diesel price risk that is hedged with a NY Harbour ULSD hedging instrument using one unit of both the hedged and hedging item respectively.

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

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.

As at December 31, 2018, the Company has hedged 2.74 million gallons of diesel at a range of $1.83 to $2.09 per gallon.

For the year ended December 31, 2018, the Company has an unrealized loss of $0.5 million recorded in accumulated other comprehensive loss related to the fuel hedges. The Company did not recognize any ineffectiveness on the hedging instruments.

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.

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2018 FINANCIAL REPORT

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, 2018, 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, 2018 by $63.0 million (2017 - $54.3 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, 2018 would have increased or reduced other comprehensive (loss) income by $0.8 million (2017 - $3.5 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 future cash flows attributable to changes in market interest rates. The interest rate on the Facility is variable, however, the Facility was undrawn as at December 31, 2018.

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 $2.1 million in interest earned by the Company. The Company has not entered into any derivative contracts to manage this risk.

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 or deterioration 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, 2018	December 31, 2017
Impact of a 10% change in foreign exchange rates
Canadian dollar	$1.4	$7.8
Mexican peso	2.1	1.5

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, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Cash and cash equivalents	$26.8		$43.1		$10.8		$7.1
Equity securities	7.8		35.8		—		—
Amounts receivable	11.9		7.4		21.4		22.0
Other monetary assets	33.0		47.8		5.9		—
Accounts payable and accrued liabilities	(69.1	)	(56.1	)	(16.8	)	(14.7	)
Total exposure to currency risk	10.4		78.0		21.3		14.4

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2018 FINANCIAL REPORT

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, 2018		December 31, 2017
Cash and cash equivalents		$206.0		$200.8
Concentrate receivable	2.3		3.2
Trade receivables	5.7		4.0
Total financial instrument exposure to credit risk	$214.0		$208.0

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	3.1	1.5	0.7	0.6	5.9
Accounts payable and accrued liabilities	118.7	—	—	—	118.7
Decommissioning liability	—	6.4	—	47.0	53.4
Contract mining	31.9	32.0	—	—	63.9
Capital commitments	24.5	—	—	—	24.5
	$178.2	$39.9	$0.7	$47.6	$266.4

Contractual obligations exist with respect to royalties (note 19); 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.

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2018 FINANCIAL REPORT

17. 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, 2018, total managed capital was $2,602.3 million (2017 - $2,681.2 million).

	December 31, 2018	December 31, 2017
Shareholder's equity	$2,602.3	$2,681.2

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.

18. 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:	2018	2017
Short-term employee benefits	6.1	8.8
Share-based payments	4.9	4.5
	$11.0	$13.3

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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2018 FINANCIAL REPORT

19. COMMITMENTS

Capital commitments

As of December 31, 2018, the Company has $24.5 million in committed capital purchases (December 31, 2017 - $21.8 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, 2018, the royalty was paid or accrued on approximately 1.97 million ounces of applicable gold production. Royalty expense related to the third party royalty was $10.6 million for the year ended December 31, 2018 (2017 - $9.6 million). In addition, royalty expense includes the 0.5% Extraordinary Mining Duty, which totaled $1.2 million for the year ended December 31, 2018, payable to the Mexican government (2017- $1.0 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, 2018, the Company recorded a royalty expense of $3.5 million (2017 - $3.9 million). In addition, other royalties related to production at Young-Davidson totaled $0.1 million for the year ended December 31, 2018 (2017 - $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 year ended December 31, 2018, the Company recorded a royalty expense of $6.2 million related to production at Island Gold (2017 - $0.6 million).

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 is also subject to a 2% state royalty on production in Turkey based on current gold prices, subject to certain deductions. No payments have been made, as the projects are not in production.

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, 2018

ALAMOS GOLD INC.

For the Year Ended December 31, 2018

Table of Contents

Overview of the Business	3
Highlight Summary	4
2018 Highlights	6
Key Business Developments	7
Outlook and Strategy	8
Young-Davidson Mine ("Young-Davidson")	10
Island Gold Mine ("Island Gold")	12
Mulatos Mine ("Mulatos")	14
El Chanate Mine ("El Chanate")	16
Fourth Quarter 2018 Development Activities	17
Fourth Quarter 2018 Exploration Activities	18
Key External Performance Drivers	19
Summarized Financial and Operating Results	20
Review of Fourth Quarter Financial Results	20
Review of 2018 Financial Results	21
Consolidated Expenses and Other	22
Consolidated Income Tax Expense	23
Financial Condition	24
Liquidity and Capital Resources	24
Outstanding Share Data	26
Related Party Transactions	26
Off-Balance Sheet Arrangements	26
Financial Instruments	26
Summary of Quarterly Financial and Operating Results	27
Non-GAAP Measures and Additional GAAP Measures	28
Accounting Estimates, Policies and Changes	35
Internal Control over Financial Reporting	37
Changes in Internal Control over Financial Reporting	37
Disclosure Controls	37
Risk Factors and Uncertainties	37
Limitations of Controls and Procedures	48
Cautionary Note to United States Investors	48
Cautionary Note Regarding Forward-Looking Statements	48

2018Management’s Discussion and Analysis

This Management’s Discussion and Analysis (“MD&A”), dated February 20, 2019, 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, 2018 and 2017, 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 48.

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

2018Management’s Discussion and Analysis

Highlight Summary

	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
Financial Results (in millions)
Operating revenues		$163.1			$161.7			$651.8			$542.8
Cost of sales (1)		$207.1			$136.6			$639.4			$456.8
(Loss) earnings from operations		($51.3	)		$17.1			($22.6	)		$56.0
Net (loss) earnings		($71.5	)		($4.7	)		($72.6	)		$26.6
Adjusted net earnings (2)		$4.3			$0.3			$19.6			$38.9
Cash provided by operations before working capital and cash taxes(2)		$52.8			$52.7			$211.7			$183.3
Cash provided by operating activities		$47.4			$48.6			$213.9			$163.5
Capital expenditures (sustaining) (2)		$21.4			$11.5			$63.8			$42.7
Capital expenditures (growth) (2)		$36.4			$25.6			$139.2			$111.8
Capital expenditures (capitalized exploration) (3)	$3.7			$2.1			$18.5			$8.0
Operating Results
Gold production (ounces) (4)	125,600			120,300			505,000			429,400
Gold sales (ounces)	131,161			126,786			509,879			430,115
Per Ounce Data
Average realized gold price		$1,244			$1,275			$1,278			$1,262
Average spot gold price (London PM Fix)		$1,227			$1,275			$1,268			$1,257
Cost of sales per ounce of gold sold  (includes amortization) (1)		$1,579			$1,077			$1,254			$1,062
Total cash costs per ounce of gold sold (2)		$770			$753			$802			$770
All-in sustaining costs per ounce of gold sold (2)		$983			$902			$989			$933
Share Data
(Loss) earnings per share, basic		($0.18	)		($0.01	)		($0.19	)		$0.09
Adjusted earnings per share, basic (2)	$0.01			—			$0.05			$0.13
Weighted average common shares outstanding (basic) (000’s)	390,540			337,178			389,816			305,521
Financial Position (in millions)
Cash and cash equivalents							$206.0			$200.8

⁽¹⁾  Cost of sales includes mining and processing costs, royalties, and amortization expense. For the three months and year ended December 31, 2018, cost of sales includes a $64.0 million non-cash inventory impairment charge at El Chanate.

⁽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 at Mulatos and Island Gold.

⁽⁴⁾  Gold production from Island Gold has 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 and 98,600 ounces respectively.

4

2018Management’s Discussion and Analysis

	Three Months Ended December 31,				Years Ended December 31,
	2018		2017(1)		2018		2017(1)
Gold production (ounces)
Young-Davidson	50,900		56,500		180,000		200,000
Mulatos	35,600		42,700		175,500		160,000
Island Gold (1)	29,000		9,000		105,800		9,000
El Chanate	10,100		12,100		43,700		60,400
Gold sales (ounces)
Young-Davidson	51,944		52,475		185,593		197,937
Mulatos	38,819		50,006		175,104		159,276
Island Gold (1)	30,199		11,720		105,520		11,720
El Chanate	10,199		12,585		43,662		61,182
Cost of sales (in millions)(2)
Young-Davidson		$61.5		$58.1		$235.0		$213.4
Mulatos		$38.4		$47.7		$173.1		$153.0
Island Gold (1)		$28.7		$13.4		$106.5		$13.4
El Chanate(2)		$78.5		$17.4		$124.8		$77.0
Cost of sales per ounce of gold sold (includes amortization)
Young-Davidson		$1,184		$1,107		$1,266		$1,078
Mulatos		$989		$954		$989		$961
Island Gold (1)		$950		$1,143		$1,009		$1,143
El Chanate		$7,697		$1,383		$2,858		$1,259
Total cash costs per ounce of gold sold (3)
Young-Davidson		$764		$690		$822		$658
Mulatos		$793		$762		$786		$775
Island Gold (1)		$570		$401		$589		$401
El Chanate		$1,304		$1,311		$1,289		$1,188
Mine-site all-in sustaining costs per ounce of gold sold (3),(4)
Young-Davidson		$974		$859		$1,017		$834
Mulatos		$881		$798		$855		$835
Island Gold (1)		$834		$546		$781		$546
El Chanate	$1,333			$1,335		$1,317		$1,218
Capital expenditures (sustaining, growth and capitalized exploration) (in millions)(3)
Young-Davidson		$23.1		$17.0		$86.6		$80.3
Mulatos(5)		$11.8		$9.0		$35.3		$43.9
Island Gold (1),(6)		$16.8		$4.8		$66.1		$4.8
El Chanate		$0.1		$0.2		$0.6		$1.4
Other		$9.7		$8.2		$32.9		$32.1

⁽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 and 98,600 ounces respectively.

⁽²⁾  Cost of sales includes mining and processing costs, royalties and amortization. For the three months and year ended December 31, 2018, cost of sales includes a $64.0 million non-cash inventory impairment charge at El Chanate.

⁽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 at Mulatos of $0.6 million and $2.9 million for the three and twelve months ended December 31, 2018 ($1.0 million and $6.9 million for the three and twelve months ended December 31, 2017).

⁽⁶⁾  Includes capitalized exploration at Island Gold of $3.1 million and $15.6 million for the three and twelve months ended December 31, 2018.

5

2018Management’s Discussion and Analysis

2018 Highlights

Fourth Quarter 2018

• Produced 125,600 ounces of gold, an increase from the third quarter reflecting a stronger performance from Young-Davidson and record quarterly production from Island Gold

• Sold a record 131,161 ounces of gold at an average realized price of $1,244 per ounce, $17 above the average London PM Fix, for revenues of $163.1 million

• Total cash costs¹ decreased to $770 per ounce, the lowest in 2018 reflecting improved performance at Young-Davidson; all-in sustaining costs ("AISC")¹ of $983 per ounce also decreased from the third quarter

• Cost of sales of $1,579 per ounce were higher than guidance reflecting a non-cash inventory impairment charge at El Chanate of $64.0 million, or $488 per ounce

• Reported adjusted net earnings¹ of $4.3 million, or $0.01 per share¹, which includes one-time adjustments for a $64.0 million ($49.9 million after-tax) non-cash inventory impairment charge at El Chanate, as well as unrealized foreign exchange losses recorded within both deferred taxes and foreign exchange of $15.8 million, and other items totaling $10.1 million

• Realized a net loss of $71.5 million, or $0.18 per share

• Generated cash flow from operating activities¹ of $47.4 million ($52.8 million, or $0.14 per share, before changes in working capital¹), an increase from the third quarter primarily reflecting lower costs, higher gold sales and a higher realized gold price

• Ended the quarter with no debt and cash and cash equivalents of $206.0 million

• Announced a Normal Course Issuer Bid permitting Alamos to purchase for cancellation up to 25,513,043 common shares, representing 10% of the Company’s public float

• Received the Schedule 2 Amendment from the Federal government for a new tailings facility at Young-Davidson, securing tailings capacity for all existing Mineral Reserves and Resources

• Successfully obtained permits for the high return Cerro Pelon project in Mexico and commenced full scale construction

Full year 2018

• Met the mid-point of guidance with record production of 505,000 ounces of gold, representing an 18% increase from the previous record in 2017

• Achieved increased production guidance at both Island Gold and Mulatos, with guidance having been revised higher twice at both operations in 2018

• Sold a record 509,879 ounces of gold at an average realized price of $1,278 per ounce for record revenues of $651.8 million

• Total cash costs¹ of $802 and AISC¹ of $989 per ounce were in line with revised cost guidance. Cost of sales of $1,254 per ounce were above guidance reflecting the non-cash inventory impairment charge at El Chanate

• Reported adjusted net earnings¹ of $19.6 million, or $0.05 per share¹ which includes one-time adjustments for the El Chanate non-cash inventory impairment, as well as unrealized foreign exchange losses recorded within both deferred taxes and foreign exchange of $33.2 million, and other items totaling $9.1 million

• Realized a net loss of $72.6 million, or $0.19 per share

• Reported record cash flow from operating activities¹ of $213.9 million ($211.7 million, or $0.54 per share, before changes in working capital¹), a 15% increase from 2017

• Generated positive free cash flow at each of the Company's operations for total mine-site free cash flow of $56.4 million¹ 

• Continued exploration success at Island Gold, driving a 14% increase in Mineral Reserves, 76% increase in Measured and Indicated Mineral Resources and 73% increase in Inferred Mineral Resources at Island Gold, compared to the end of 2017

• Successfully commissioned the Phase I expansion at Island Gold on schedule in the third quarter, increasing mill capacity to 1,100 tonnes per day

• Liquidated the Company's equity positions in AuRico Metals and Corex Gold, generating proceeds of $24.9 million and realizing a gain of $14.3 million reported in retained earnings (deficit)

Subsequent to Year-End

• The Company re-purchased and canceled 2,444,352 common shares at a cost of $10.0 million, or $4.07 per share under its Normal Course Issuer Bid

• Announced a doubling of the annual dividend, with a $0.01 per share dividend to be paid quarterly in 2019 (up from $0.01 semi-annually previously). The first quarterly dividend of $0.01 per share will be payable to shareholders of record on March 15, 2019, to be paid on March 29, 2019

^. 

⁽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

2018Management’s Discussion and Analysis

2018 Key Business Developments

Normal Course Issuer Bid

On December 24, 2018, a Normal Course Issuer Bid was initiated permitting Alamos to purchase for cancellation up to 25,513,043 Class A Common Shares (“Common Shares”), representing 10% of the Company’s public float. The Company may purchase Common Shares under the Normal Course Issuer Bid over the next twelve-month period beginning December 24, 2018 and ending December 23, 2019. Any purchases made under the Normal Course Issuer Bid will be effected through the facilities of the TSX, alternative Canadian trading systems and/or the New York Stock Exchange.

The price for any repurchased Common Shares will be the prevailing market price at the time of the purchase. All Common Shares purchased by the Company will be cancelled. Purchase and payment for the Common Shares will be made by Alamos in accordance with the requirements of the TSX and applicable securities laws.

Subsequent to the end of 2018, the Company purchased and canceled 2,444,352 common shares at a cost of $10.0 million, or $4.07 per share.

Quarterly Dividend Program

The Company announced the doubling of its annual dividend from $0.01 paid semi-annually to $0.01 paid quarterly. This is expected to double the amount of dividends distributed to shareholders from the $7.8 million paid in 2018. The increase in dividends is in line with the Company’s long term capital allocation objective of returning capital to shareholders, and is supported by recent higher gold prices and the Company’s expectation for significant free cash flow growth in 2020 and beyond.

Mineral Reserve and Resource Update

On February 19, 2019, the Company reported a global Mineral Reserve and Resource update. Highlights of the release include the following:

▪ Global Proven and Probable Mineral Reserves of 9.7 million ounces of gold, (199 million tonnes (“mt”) grading 1.51 grams per tonne of gold (“g/t Au”)), down slightly from 9.8 million ounces at the end of 2017 with mining depletion largely offset by increases at Island Gold and Lynn Lake

▪ Island Gold’s Proven and Probable Mineral Reserves increased 14% to 1.0 million ounces of gold, (3.0 mt grading 10.28 g/t Au) net of mining depletion with Mineral Reserve Grades also increasing slightly to 10.28 g/t Au

▪ Lynn Lake’s Proven and Probable Mineral Reserves increased 16% to 1.9 million ounces of gold, (32.0 mt grading 1.83 g/t Au) with the additions to be incorporated into an optimized feasibility study

▪ Global Measured and Indicated Mineral Resources decreased 2% to 7.2 million ounces of gold, (202 mt grading 1.11 g/t Au) reflecting decreases at Mulatos and El Chanate, partially offset by additions at Island Gold and Lynn Lake

▪ Global Inferred Mineral Resources increased 13% to 5.4 million ounces of gold, (129 mt grading 1.31 g/t Au) with grades also increasing 12% driven by substantial additions at Island Gold

▪ Island Gold’s Inferred Mineral Resources increased 73% to 1.6 million ounces of gold, (4.2 mt grading 11.71 g/t Au) with grades also increase 23%

Kirazlı Project

On July 25, 2018, the Company obtained the GSM (Business Opening and Operation) permit required for the development of its Kirazlı project from the Çanakkale Governorship in Turkey. There are several additional permits required prior to the start of gold production at Kirazlı, which the Company expects to receive in due course. As disclosed in December 2018, the Operating License, which is required for the start of earthworks on the open pit, remains outstanding. The Company spent approximately $21 million of Kirazlı's initial capital estimate of $152 million in 2018.

7

2018Management’s Discussion and Analysis

Outlook and Strategy

2019 Guidance
	Young-Davidson	Mulatos	Island    Gold	El Chanate	Turkey	Other (2)	Total
Gold production (000’s ounces)	180-190	150-160	135-145	15-25			480-520
Cost of sales, including amortization(in millions)(4),(5)	$226	$165	$123	$26	—	—	$540
Cost of sales, including amortization ($ per ounce)(4),(5)	$1,220	$1,065	$880	$1,300	—	—	$1,080
Total cash costs ($ per ounce)(1),(5)	$750-790	$820-860	$460-500	$1,200	—	—	$710-750
All-in sustaining costs  ($ per ounce)(1),(5)					—	—	$920-960
Mine-site all-in sustaining costs   ($ per ounce)(1),(3),(5)	$940-980	$860-900	$730-770	$1,200	—	—	—
Amortization costs  ($ per ounce)(1)	$450	$225	$400	$100	—	—	$350
Capital expenditures  (in millions)
Sustaining capital(1)	$35-40	$5	$35-40	—	—	—	$75-85
Growth capital(1)	$45-50	$45-50 (6)	$15-20	—	$75	$35 (2)	$215-230
Total capital expenditures(1)	$80-90	$50-55	$50-60	—	$75	$35	$290-315

⁽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 (excluding Turkey which is separately disclosed).

⁽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, and is calculated based on the mid-point of guidance.

⁽⁵⁾  Company-wide cost of sales, total cash costs, and all-in sustaining costs guidance have been updated from original guidance. The Company has not revised guidance for cost of sales, total cash costs, and mine-site all-in sustaining costs at individual mine sites.

⁽⁶⁾   Includes capital spending at Cerro Pelon and La Yaqui Grande of approximately $33 million

The Company’s long-term strategic objective is to generate increasing cash flow through low-cost production growth from its existing operations and portfolio of development projects. In 2018, the Company produced a record 505,000 ounces of gold, an 18% increase from 2017, driven by strong operational performances from both Island Gold and Mulatos. Since 2014, Alamos has transformed from a single asset producer with 140,000 ounces of annualized production to producing 505,000 ounces from four operating mines. This transformational growth has been accomplished while also improving margins through lower operating costs. Looking forward, the Company anticipates a substantial reduction in growth capital in 2020 and beyond and a further reduction in costs, which will lead to strong free cash flow growth.

In 2018, the Company continued to execute on its various internal growth initiatives. This included advancing the lower mine expansion at Young-Davidson, as well as the successful completion of the Phase I expansion at Island Gold while also delivering a significant increase in Mineral Reserves and Resources which will support future expansions. Within the development pipeline, the permits for the Cerro Pelon project in Mexico were received in 2018 and construction has now commenced. In addition, the GSM permit for the Kirazlı project in Turkey was received with full scale construction anticipated to commence following the receipt of the Operating License.

The Company expects a similar level of production in 2019, relative to 2018, with total cash costs and all-in sustaining costs expected to decrease 9% and 5%, respectively (based on the mid-point of guidance) driven by operational improvements at Young-Davidson and low-cost production growth at Island Gold. Costs and capital are expected to decline through the year driving stronger mine-site free cash flow in the second half of the year.

The near-term focus at Young-Davidson remains on maximizing efficiency from the upper mine infrastructure, while completing development and construction of the lower mine. Gold production at Young-Davidson is expected to increase slightly in 2019 to a range of 180,000 to 190,000 ounces, compared to 2018 production of 180,000 ounces. Total cash costs and mine-site all-in sustaining costs are expected to decrease 6% compared to 2018, driven by higher underground mining rates and grades mined. Young-Davidson’s 2019 guidance for production, mining rates, operating costs and capital are all consistent with its average performance over the past two years.

Capital spending at Young-Davidson is expected to total $80 to $90 million, consistent with 2018. Spending will be focused on completing development and infrastructure of the lower mine as well as starting construction of a newly permitted tailings facility (“TIA 1”). The Company successfully completed permitting of TIA 1 during the fourth quarter of 2018 with receipt of the Schedule

8

2018Management’s Discussion and Analysis

2 Amendment from the Federal government. TIA 1 will provide sufficient capacity for the remaining Mineral Reserves and Resources at Young-Davidson at substantially lower costs than the current facility.

Gold production from Young-Davidson is expected to decrease in 2020 reflecting approximately three months of downtime of the Northgate shaft to complete the tie-in of the upper and lower mines. This will temporarily limit underground throughput and impact three months of production during the first half of 2020. Following completion of the tie-in, underground mining rates are expected to ramp up above 7,500 tpd in the second half of 2020 and towards the long-term target of 8,000 tpd in 2021. This is expected to drive annual gold production above 200,000 ounces per year in 2021 and beyond. Combined with declining costs and capital spending, the Company expects strong free cash flow growth from Young-Davidson starting in the second half of 2020.

Island Gold is expected to produce between 135,000 to 145,000 ounces in 2019, a 32% increase relative to the previous record in 2018, reflecting higher grades and throughput with the completion of the Phase I expansion last year. Combined with an expected 19% decrease in total cash costs and 4% decrease in mine-site all-in sustaining costs, Island Gold is expected to generate strong free cash flow growth in 2019, net of a continued significant investment of $19 million in exploration to further expand Mineral Reserves and Resources.

Capital spending at Island Gold is expected to total $50 to $60 million in 2019, consistent with 2018. This includes $35 to $40 million of sustaining capital with underground development being accelerated to bring the significant growth in Mineral Reserves and Resources into the mine plan as well as support mining rates above 1,100 tpd. Lateral exploration development has also been increased to support the expanded exploration program.

The Phase I expansion at Island Gold was completed in September 2018, expanding the mill to a design capacity of approximately 1,200 tpd. The current mine infrastructure can support similar mining rates; however, the operation is currently permitted to operate at an average annual rate of 1,100 tpd. With a mine and mill that can support higher throughput rates, the Company is in the process of permitting an amendment to 1,200 tpd which is expected to be received by the end of 2019 as part of a Phase II expansion. In parallel, the Company has started an evaluation of a potential Phase III expansion of the operation beyond 1,200 tpd.

Total production from the Mulatos District is expected to be between 150,000 to 160,000 ounces of gold in 2019, consistent with long term guidance provided in January 2018. Mulatos significantly outperformed this production range in 2018 reflecting higher than expected recoveries at La Yaqui and Mulatos, and extended production from the high-grade San Carlos underground deposit which reached the end of its mine life in the third quarter of 2018. Mine-site all-in sustaining costs are expected to decrease relative to 2018 guidance of $900 per ounce reflecting the end of the 5% royalty early in 2019. Mine-site all-in sustaining costs are expected to increase slightly from 2018 with the operation having outperformed in 2018 given the above noted factors.

Capital spending across the Mulatos District is expected to total $50 to $55 million in 2019 including $5 million of sustaining capital. This increased from 2018 reflecting $25 million budgeted in 2019 for development of the Cerro Pelon project. Cerro Pelon is higher grade, higher return project and is expected to start contributing low cost production in 2020.

Mining activities ceased at El Chanate in the fourth quarter of 2018 and the operation has transitioned to residual leaching which will result in a declining rate of production through 2019. Mine-site all-in sustaining costs are expected to average $1,200 per ounce in 2019, with approximately 25% of those costs having been already incurred.

Development capital spending in 2019 will be primarily focused on the construction of the Kirazlı project, with the bulk of the remainder comprised of capitalized exploration at Island Gold and exploration, permitting and development activities at Lynn Lake.

The 2019 global exploration budget is $33 million, down slightly from the 2018 budget reflecting lower exploration spending at Mulatos. Island Gold continues to be the main focus of exploration with $19 million budgeted, an increase from the 2018 initial budget of $15 million. Mulatos and Lynn Lake remain the other two areas of focus with $6 million budgeted for each.

With over $600 million of cash and available liquidity, no debt, and growing cash flow from its operations, the Company is well positioned to fund its internal growth initiatives.

9

2018Management’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,
	2018			2017			2018			2017
Gold production (ounces)	50,900			56,500			180,000			200,000
Gold sales (ounces)	51,944			52,475			185,593			197,937
Financial Review (in millions)
Operating Revenues		$64.4			$66.8			$236.3			$249.7
Cost of sales (1)		$61.5			$58.1			$235.0			$213.4
Earnings from operations		$2.9			$8.7			$1.3			$36.3
Cash provided by operating activities		$23.6			$33.4			$97.5			$114.5
Capital expenditures (sustaining) (2)		$10.8			$8.7			$35.8			$34.1
Capital expenditures (growth) (2)		$12.3			$8.3			$50.8			$46.2
Mine-site free cash flow (2)		$0.5			$16.4			$10.9			$34.2
Cost of sales, including amortization per ounce of gold sold (1)		$1,184			$1,107			$1,266			$1,078
Total cash costs per ounce of gold sold (2)		$764			$690			$822			$658
Mine-site all-in sustaining costs per ounce of gold sold  (2),(3)		$974			$859			$1,017			$834
Underground Operations
Tonnes of ore mined	588,956			664,847			2,280,399			2,423,289
Tonnes of ore mined per day ("tpd")	6,402			7,227			6,248			6,639
Average grade of gold (4)	2.71			2.70			2.51			2.69
Metres developed	2,975			2,776			12,009			12,787
Mill Operations
Tonnes of ore processed	745,567			716,273			2,683,962			2,735,267
Tonnes of ore processed per day	8,104			7,786			7,353			7,494
Average grade of gold (4)	2.39			2.59			2.31			2.47
Contained ounces milled	57,192			59,561			197,701			217,184
Average recovery rate	92		%	92		%	92		%	92		%

⁽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 met revised production guidance with strong fourth quarter production of 50,900 ounces of gold. This was lower than the comparative quarter of 2017; however, a 4% improvement from the third quarter of 2018 and the highest quarterly production of the year reflecting higher underground mining rates and grades. Full year production of 180,000 ounces decreased 10% from 2017 primarily due to unscheduled downtime encountered in the first half of 2018 to both the Northgate hoist and the mill.

Underground mining rates increased to 6,402 tpd in the fourth quarter, a 7% increase from the third quarter and in-line with revised near-term guidance of 6,500 tpd until the tie-in of the lower mine in the first half of 2020 is completed. For the full year, underground mining rates were below prior year rates at 6,248 tpd due to temporary ore pass challenges experienced in the first half of the year, and eight days of downtime to the Northgate shaft in the second quarter. Underground mining rates are expected to increase substantially in the second half of 2020 following completion of the lower mine tie-in.

Underground grades mined also improved significantly to 2.71 g/t Au in the fourth quarter, a 5% increase from the third quarter and the highest grades of the year. Underground grades mined of 2.51 g/t Au for the year were slightly below guided levels and reserve grade of 2.69 g/t Au, due primarily to mine sequencing.

Mill throughput increased to a record 745,567 tonnes, or 8,104 tpd, in the fourth quarter, an 11% increase from the third quarter, bringing full year mill throughput to 7,353 tpd. Mill throughput is expected to average 7,800 tpd in the first half of 2019 before

10

2018Management’s Discussion and Analysis

decreasing to match underground mining rates in the second half of the year once lower grade surface stockpiles have been depleted.

Mill recoveries of 92% in the quarter and year-to-date were in line with expectations and the prior year period.

Financial Review

Fourth quarter revenues of $64.4 million were consistent with the comparative prior year quarter, and 12% higher than the third quarter of 2018 reflecting higher ounces sold and a higher realized gold price. Revenues of $236.3 million in 2018 were $13.4 million lower than the prior year due to a 6% decline in ounces sold, partially offset by a higher realized gold price.

Cost of sales, which reflects mining and processing costs, royalties, and amortization expense of $61.5 million were higher than the comparative quarter of 2017 reflecting higher per tonne underground mining costs and processing costs. For 2018, cost of sales were $235.0 million, an increase of $21.6 million due to higher underground mining costs, primarily attributable to increased maintenance and input costs.

Total cash costs decreased to $764 per ounce in the fourth quarter, down 7% from the third quarter and the lowest quarterly costs in 2018. Total cash costs were 11% higher than the fourth quarter of 2017 due to lower grades processed and a higher mining cost per tonne. Mining costs of CAD $51 per tonne in the quarter were above budget, reflecting the impact of lower mining rates on fixed costs, as well as higher diesel and maintenance costs. Total cash costs of $822 per ounce for 2018 were 25% higher than the prior year period reflecting 7% lower grades mined, and a 16% increase in mining cost per tonne.

Mine-site AISC also decreased to $974 per ounce in the fourth quarter, down 5% from the third quarter. For the full year, mine-site AISC averaged $1,017 per ounce. Mine-site AISC were 13% and 22% higher than the prior year quarter and prior year, respectively, reflecting higher total cash costs and higher sustaining capital. Total cash costs and mine-site AISC are both expected to decrease by approximately 6% in 2019.

Capital expenditures were $23.1 million in the fourth quarter, higher than the same quarter of 2017. This included $10.8 million of sustaining capital and $12.3 million of growth capital. Major capital spending in the fourth quarter was focused on lower mine development and lateral development in the upper and lower mines. Capital expenditures of $86.6 million for the twelve-month period were higher than the prior year period and guidance reflecting increased spending on tailings and water management.

Young-Davidson generated mine-site free cash flow of $0.5 million in the fourth quarter and $10.9 million for the full year, lower than the same periods of 2017 due to less ounces sold, lower gross margins and higher capital spending.

11

2018Management’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.

Financial results for Island Gold are included for the period of ownership (November 23, 2017) onward. Operational data is presented in the table below for the fourth quarter and the full year period of 2017 for informational purposes.

Island Gold Financial and Operational Review

	Three Months Ended December 31,						Years Ended December 31,
	2018			2017 (1)			2018			2017 (1)
Gold production (ounces) (1)	29,000			9,000			105,800			9,000
Gold sales (ounces) (1)	30,199			11,720			105,520			11,720
Financial Review (in millions)
Operating Revenues		$37.5			$14.9			$135.1			$14.9
Cost of sales (2)		$28.7			$13.4			$106.5			$13.4
Earnings from operations		$7.8			$1.5			$27.2			$1.5
Cash provided by operating activities		$16.3			$11.8			$75.9			$11.8
Capital expenditures (sustaining) (3)		$8.0			$1.7			$20.2			$1.7
Capital expenditures (growth) (3)		$5.7			$2.0			$30.3			$2.0
Capital expenditures (capitalized exploration) (3)		$3.1			$1.1			$15.6			$1.1
Mine-site free cash flow (3)		($0.5	)		$7.0			$9.8			$7.0
Cost of sales, including amortization per ounce of gold sold (2)		$950		$1,143				$1,009		$1,143
Total cash costs per ounce of gold sold (3)		$570		$401				$589		$401
Mine-site all-in sustaining costs per ounce of gold sold  (3),(4)		$834		$546				$781		$546
Underground Operations
Tonnes of ore mined	102,692			94,407			344,336			374,962
Tonnes of ore mined per day ("tpd")	1,116			1,026			943			1,027
Average grade of gold (5)	8.95			9.44			9.07			9.42
Metres developed	1,560			1,667			6,477			6,906
Mill Operations
Tonnes of ore processed	105,432			84,559			369,767			338,603
Tonnes of ore processed per day	1,146			919			1,013			928
Average grade of gold (5)	9.02			8.46			9.20			9.36
Contained ounces milled	30,621			23,005			109,414			101,842
Average recovery rate	96		%	96		%	96		%	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 and 98,600 ounces.

⁽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 a record 29,000 ounces in the fourth quarter and a record 105,800 ounces for the full year, a 7% increase from 2017. Island Gold exceeded expectations in 2018 with full-year production meeting the mid-point of revised guidance, which had been increased twice during the year.

Underground mining rates increased to 102,692 tonnes, or 1,116 tpd in the fourth quarter. This marked a 37% improvement from the third quarter as mining rates were increased to match the expanded mill capacity. For the full-year, 344,336 tonnes were mined, or 943 tpd, with mining rates in line with milling capacity prior to completing the mill expansion. Underground mining rates are expected to average 1,100 tpd in 2019, a 17% increase from average mining rates of 943 tpd in 2018. Underground grades mined averaged 8.95 g/t Au in the fourth quarter and 9.07 g/t Au for the full year, the latter above guidance reflecting a positive grade reconciliation.

Mill throughput increased to a new record of 105,432 tonnes, or 1,146 tpd in the fourth quarter reflecting the completion of the Phase I expansion of the mill in September 2018. This marked a 13% increase compared to the third quarter and 25% increase compared to the prior year quarter. The Phase I expansion has increased the design capacity of the mill to approximately 1,200 tpd; however,

12

2018Management’s Discussion and Analysis

the operation is currently permitted to operate at an average annual rate of 1,100 tpd. With a mine and mill that can support higher throughput rates, the Company is in the process of permitting an amendment to 1,200 tpd which is expected to be received by the end of 2019 as part of a Phase II expansion.

Mill recoveries were 96% for both the fourth quarter and full year, in line with the prior year and budget. Milled grades of 9.02 g/t Au for the quarter and 9.20 g/t Au for the year were consistent with underground grades mined. Milled grades are expected to increase to between 10.50 and 11.50 g/t Au in 2019. Combined with higher mining and milling rates, this is expected to drive a 32% increase in gold production in 2019 (based on the mid-point of guidance).

Financial Review

With the Company acquiring Island Gold on November 23, 2017, financial information prior to the acquisition date has not been included in the comparative table above.

Island Gold generated revenues of $37.5 million in the fourth quarter reflecting record gold production and ounces sold. Revenues for the year were $135.1 million compared to $14.9 million in the prior year, which was a partial period.

Cost of sales in the fourth quarter and for the full year were $28.7 million and $106.5 million, respectively. Cost of sales includes ongoing amortization charges related to the purchase price of the asset, which increases amortization to approximately $375 per ounce based on current Mineral Reserves and Resources.

Total cash costs were $570 per ounce in the fourth quarter, a 15% improvement from the third quarter of 2018, reflecting lower per tonne mining costs driven by higher mining rates. Full year total cash costs of $589 per ounce were slightly above annual guidance of $575 per ounce reflecting higher underground mining costs, partially offset by higher grades mined. Total cash costs are expected to decrease approximately 19% in 2019 driven by higher grades mined and mining rates.

Mine-site AISC of $834 per ounce in the fourth quarter were slightly above annual guidance of $825 per ounce primarily reflecting the timing of sustaining capital, as spending was below budget for the first half of the year. Full year mine-site AISC of $781 per ounce were below full year guidance reflecting higher production and lower sustaining capital.

Capital expenditures totaled $16.8 million in the fourth quarter, with spending focused primarily on lateral development, mining equipment, and capitalized exploration. This included $8.0 million of sustaining capital and $8.8 million of growth capital (inclusive of capitalized exploration). For 2018, capital expenditures totaled $66.1 million, consistent with guidance. This included $15.6 million of capitalized exploration focused on increasing near-mine Mineral Resources.

Mine-site free cash flow was negative $0.5 million during the fourth quarter due to timing of capital spending. For 2018, Island Gold generated mine-site free cash flow of $9.8 million, ahead of budget driven by stronger than expected production. Island Gold is expected to generate strong free cash flow growth in 2019 driven by higher production and lower costs.

13

2018Management’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 28,972 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 1.97 million ounces of gold to-date. The Mulatos mine is subject to a 5% royalty which is capped at 2 million ounces of gold. This is expected to be achieved in the first quarter of 2019, 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,
	2018			2017			2018			2017
Gold production (ounces)	35,600			42,700			175,500			160,000
Gold sales (ounces)	38,819			50,006			175,104			159,276
Financial Review (in millions)
Operating Revenues		$48.1			$64.0			$223.3			$201.4
Cost of sales (1)		$38.4			$47.7			$173.1			$153.0
Earnings from operations		$8.8			$14.5			$42.7			$41.7
Cash provided by operating activities		$14.7			$22.3			$71.0			$64.3
Capital expenditures (sustaining) (2)		$2.5			$0.9			$7.2			$5.5
Capital expenditures (growth) (2)		$8.7			$7.1			$25.2			$19.0
Capital expenditures (capitalized exploration) (2)		$0.6			$1.0			$2.9			$6.9
La Yaqui Phase I construction cost (2)		$—			$—			$—			$12.5
Mine-site free cash flow, excluding La Yaqui construction costs (2)		$2.9			$13.3			$35.7			$32.9
Cost of sales, including amortization per ounce of gold sold (1)		$989			$954			$989			$961
Total cash costs per ounce of gold sold (2)		$793			$762			$786			$775
Mine site all-in sustaining costs per ounce of gold sold (2),(3)		$881			$798			$855			$835
Open Pit & Underground Operations
Tonnes of ore mined - open pit (4)	2,118,300			2,575,306			8,479,211			8,485,933
Total waste mined - open pit	1,081,811			1,719,986			6,037,427			6,443,971
Total tonnes mined - open pit	4,270,049			4,515,673			17,267,699			15,566,165
Waste-to-ore ratio (operating)	0.51			0.67			0.71			0.76
Tonnes of ore mined - underground	—			23,238			48,772			100,701
Crushing and Heap Leach Operations
Tonnes of ore stacked	1,776,719			1,745,513			6,795,175			6,796,155
Average grade of gold processed (5)	0.92			0.91			0.90			0.92
Contained ounces stacked	52,296			51,242			195,606			201,222
Mill Operations
Tonnes of high grade ore milled	—			31,449			91,680			133,328
Average grade of gold processed (5)	—			8.15			6.70			9.42
Contained ounces milled	—			8,238			19,744			40,378
Total contained ounces stacked and milled	52,296			59,480			215,350			241,600
Recovery ratio (ratio of ounces produced to contained ounces stacked and milled)	68		%	72		%	81		%	66		%
Ore crushed per day (tonnes) - combined	19,300			19,300			18,900			19,000

⁽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").

Mulatos produced 35,600 ounces in the fourth quarter, a decrease from the first three quarters of the year as mining from the San Carlos underground deposit ceased in the third quarter. For the full year, Mulatos produced 175,500 ounces meeting the mid-point of revised guidance, which was increased twice during the year. Mulatos outperformed initial guidance and budget with the San

14

2018Management’s Discussion and Analysis

Carlos underground mine operating approximately six months longer than expected, as well as higher than budgeted heap leach recoveries from both Mulatos and La Yaqui Phase I. With no further production from San Carlos, the Company expects 2019 production to return to the previously guided long term range of 150,000 to 160,000 ounces.

Total tonnes mined in the fourth quarter were 6% lower than the prior year quarter, due to an unexpected pit slope movement in the El Salto area of the open pit which temporarily impacted access to the Mulatos pit. On a year-to-date basis, total tonnes mined were 11% higher than 2017 reflecting a full year of mining at La Yaqui Phase I compared to one quarter in the prior year. The waste-to-ore ratio of 0.51:1 was lower than the prior year quarter and guidance.

Total crusher throughput averaged 19,300 tpd for a total of 1,776,719 tonnes stacked in the fourth quarter at a grade of 0.92 g/t Au, both in line with the prior year period. Total crusher throughput and grade for the year was also in line with the prior year period, and slightly above guidance.

The recovery ratio of ounces produced to contained ounces stacked and milled was 68% in the quarter compared to 72% in the prior year period. For the full-year, the recovery ratio of 81% significantly outperformed guidance of 75%, resulting in stronger production for the year. The Company expects a recovery ratio of 70% in 2019.

Financial Review

Fourth quarter revenues of $48.1 million were $15.9 million lower than the prior year quarter, primarily due to lower concentrate ounces sold in 2018 with the completion of mining at San Carlos in September. Revenues for 2018 were $223.3 million, an 11% increase from the prior year due to higher realized gold prices and ounces sold.

Cost of sales of $38.4 million in the fourth quarter were lower than the prior year period, due to lower tonnes mined in the open pit and the completion of underground mining at San Carlos. For the full year of 2018, cost of sales of $173.1 million were higher than the prior year reflecting higher total tonnes mined and increased amortization related to mining at La Yaqui Phase I.

Total cash costs of $793 per ounce in the fourth quarter were higher than $762 per ounce in the prior year quarter, as a result of lower recoveries, partially offset by a lower strip ratio. Total cash costs averaged $786 per ounce in 2018, below full year guidance of $800 per ounce and consistent with 2017 costs of $775 per ounce.

Mine-site AISC in the fourth quarter of $881 per ounce were higher than the $798 per ounce reported in the prior year quarter, due to timing of sustaining capital spending and higher cash costs. Mine-site AISC averaged $855 per ounce in 2018, below guidance of $900 per ounce and consistent with the prior year period.

Mulatos generated mine-site free cash flow of $2.9 million in the fourth quarter and $35.7 million for the full year, driven by stronger than expected production, and increased operating margins. A portion of Mulatos' strong cash flow in 2018 was invested in permitting and early construction activities at Cerro Pelon, advancing permitting at La Yaqui Grande, as well as funding ongoing exploration activities.

15

2018Management’s Discussion and Analysis

El Chanate

The El Chanate mine is located northeast of the town of Caborca in the state of Sonora, Mexico. El Chanate ceased mining activities in October 2018 and transitioned to residual leaching.

El Chanate Financial and Operational Review

	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
Gold production (ounces)	10,100			12,100			43,700			60,400
Gold sales (ounces)	10,199			12,585			43,662			61,182
Financial Review (in millions)
Operating Revenues		$13.1			$16.0			$57.1			$76.8
Cost of sales (1)		$78.5			$17.4			$124.8			$77.0
Loss from operations		($65.4	)		($1.4	)		($67.7	)		($0.2	)
Cash provided by operating activities		$2.4			$0.6			$0.6			$4.8
Capital expenditures		$0.1			$0.2			$0.6			$1.4
Mine-site free cash flow (2)		$2.3			$0.4			$—			$3.4
Cost of sales, including amortization per ounce of gold sold (1)		$7,697			$1,383			$2,858			$1,259
Total cash costs per ounce of gold sold (2)		$1,304			$1,311			$1,289			$1,188
Mine site all-in sustaining costs per ounce of gold sold (2),(3)		$1,333			$1,335			$1,317			$1,218
Open Pit Operations
Tonnes of ore mined	481,623			895,545			3,050,636			4,475,004
Total tonnes mined	658,014			4,156,001			8,815,076			22,646,606
Waste-to-ore ratio (operating)	0.37			3.64			1.89			4.06
Average grade of gold (4)	0.52			0.48			0.55			0.47
Crushing and Heap Leach Operations
Total tonnes of ore stacked	573,336			988,640			3,066,456			4,536,847
Average grade of gold (4)	0.52			0.48			0.55			0.50
Total contained ounces stacked	9,585			15,257			54,224			72,932
Ore crushed and run-of-mine ore stacked per day (tonnes) - combined	6,200			10,700			8,400			12,400

⁽¹⁾  Cost of sales includes mining and processing costs, royalties and amortization. For the three months and year ended December 31, 2018, cost of sales includes a $64.0 million non-cash inventory impairment charge at El Chanate.

⁽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 10,100 ounces of gold in the fourth quarter of 2018, down from 12,100 ounces in the prior year quarter as the operation has transitioned to residual leaching in the quarter. Mining activities ceased at El Chanate on October 30, 2018. The Company expects to recover between 15,000 and 25,000 ounces in 2019 through residual leaching.

Financial Review

Fourth quarter revenues of $13.1 million were lower than the prior year quarter due to fewer ounces sold as mining activities wound down during the period. Revenues for 2018 of $57.1 million were down from $76.8 million in the prior year period due to a lower realized gold price and ounces sold.

During the fourth quarter, the Company reviewed the heap leach pad inventory at the El Chanate mine as the operation transitioned to residual leaching activities. This included an analysis of the number of ounces included in inventory on the heap leach pad that are expected to be recovered economically. It was determined that approximately 51,900 ounces are not economically recoverable. As a result, the Company incurred a non-cash inventory impairment charge of $64.0 million (pre-tax) which has been included in cost of sales.

Total cash costs per ounce of $1,304 for the fourth quarter, were consistent with the prior year period. Total cash costs per ounce of $1,289 in 2018 were higher than 2017 reflecting lower ounces stacked in the period, and higher per-tonne mining and processing costs resulting from lower throughput. Mine-site AISC per ounce were $1,333 for the quarter and $1,317 for the full year.

16

2018Management’s Discussion and Analysis

Mine-site free cash flow was $2.3 million in the quarter and break-even for the year. The Company expects mine-site free cash flow to improve in 2019 with the transition to residual leaching.

Fourth Quarter 2018 Development Activities

Kirazlı (Çanakkale, Turkey)

The Company has been granted the three major permits required for the start of construction of Kirazlı including the Environmental Impact Assessment, Forestry Permits and GSM (Business Opening and Operation) permit.

There are several additional permits required prior to the start of gold production at Kirazlı, which the Company expects to receive in due course. As disclosed in December 2018, the next permit required to meet the construction schedule is an Operating License which allows for the start of earthworks on the future open pit. Following receipt of the Operating License, the Company expects to ramp up major construction and earthworks activities, putting initial production from Kirazlı on track for the second half of 2020.

The Company spent $20.9 million of Kirazlı's initial capital of $152 million in 2018 with road construction complete and the water reservoir and power line 50% and 85% complete, respectively.

As outlined in the 2017 Feasibility Study, Kirazlı has a 44% after-tax internal rate of return and is expected to produce over 100,000 ounces of gold during its first full year of production at mine-site all-in sustaining costs of less than $400 per ounce.

Mulatos District (Sonora, Mexico)

Cerro Pelon and La Yaqui Grande

The environmental impact assessment (“MIA”) for Cerro Pelon was submitted during the second quarter of 2018, with approval of the MIA and Change in Land Use permits received in the fourth quarter. The Company has invested $3.4 million on permitting and engineering activities at these projects in the fourth quarter, and $6.8 million for the full year. On receipt of these permits, the Company has commenced full scale construction, with $25 million budgeted in 2019 for development of the project.

Given its proximity to Mulatos’ infrastructure, ore from the Cerro Pelon open pit will be trucked to the existing heap leach circuit for crushing and processing. Recently completed work includes construction of a bridge to cross the overland conveyor, and a haulage road and crushing circuit which will be located at the Mulatos mine. Cerro Pelon is a higher grade, high return project, and is expected to start contributing low cost production in 2020, driving down combined Mulatos District costs.

In addition, $8 million is budgeted in 2019 for permitting and engineering of La Yaqui Grande. The MIA for La Yaqui Grande was submitted late in 2018 with approval expected in the second half of 2019.

Lynn Lake (Manitoba, Canada)

The Company released a positive Feasibility Study on the Lynn Lake 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.

Over the past year, the Company has been evaluating value engineering initiatives to enhance the project’s economics, including modifications to the overall site layout, structures and foundations for the process plant, and review of the camp location. This work along with 259,000 ounces of newly defined Mineral Reserves that were not included in the 2017 Feasibility Study will be incorporated into an updated Feasibility Study which is expected to be completed in the second quarter of 2019. Development spending in the fourth quarter of $0.6 million related to project optimization activities, and $2.4 million for the full year.

The 2019 capital budget for Lynn Lake is $11 million, including $5 million for development activities and $6 million for exploration. Development spending will be focused on completing the updated Feasibility Study and 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.

17

2018Management’s Discussion and Analysis

Fourth Quarter 2018 Exploration Activities

Island Gold (Ontario, Canada)

The 2018 exploration program targeted three main areas within the Island Main Zone which extends over two-kilometres along strike. The focus was on expanding the down-plunge and lateral extensions of the deposit with the objective of adding new near-mine Mineral Resources. Drill holes in the Main and Western Extension areas were testing high-grade, east-plunging shoots below existing Mineral Reserves and Resources. Drill holes in the Eastern Extension were exploring for additional plunging shoots along strike beyond existing Mineral Reserves and Resources.

The 2018 exploration budget included 45,000 metres ("m") of surface directional exploration drilling, 30,000 m of underground exploration drilling, 35,000 m of underground delineation drilling and 15,000 m of regional exploration drilling.

The underground delineation drilling program was focused on converting Inferred Mineral Resources into Indicated Mineral Resources. This drilling was conducted from the 340, 450, 620, 730, and 840 levels.

Surface exploration drilling

A total of 9 holes were completed in the fourth quarter as part of the directional drilling program which totaled 11,737 m. Directional drilling targeted areas peripheral to the Inferred Mineral Resource blocks below the 1,000 m level, with drill hole spacing ranging from 75 m to 100 m. The area that was targeted by the surface directional drill program extends approximately 2,000 m in strike length between the 1,000 m and 1,500 m elevation below surface.

The surface directional drilling program will continue in 2019 with a focus on defining new Inferred Mineral Resources.

In the fourth quarter, 5 holes totalling 6,039 m were completed as part of the regional exploration drilling program to drill test targets along the Goudreau Deformation Zone to the west of the main Island Gold Mine deposit and at the Kremzar Gold Deposit.

Underground exploration drilling

During the fourth quarter of 2018, a total of 2,596 m of underground exploration diamond drilling was completed in 7 holes from the 450 and 840 levels. The objective of the underground drilling is to identify new Mineral Resources close to existing Mineral Resource or Reserve blocks.

Total capitalized exploration expenditures at Island Gold during the fourth quarter of 2018 were $3.1 million, with full year capitalized exploration expenditures of $15.6 million.

Mulatos District (Sonora, Mexico)

The Company has a large exploration package covering 28,972 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. After significant exploration success at La Yaqui Grande over the past few years, the focus in 2018 has shifted to other parts of the district including El Carricito, El Halcon and El Jaspe.

In the fourth quarter of 2018, the Company invested $1.5 million in exploration activities within the Mulatos District, of which $0.6 million was capitalized and the remainder expensed. This included 4,174 m of diamond drilling focused on El Carricito. For the full year, the Company spent $10.5 million, of which $2.9 million was capitalized.

At El Carricito, the drill program is testing anomalous alteration and structural targets identified by mapping in the first half of 2018.

Lynn Lake (Manitoba, Canada)

The results from the 2018 regional exploration program which included till sampling, mapping, and prospecting have been integrated with the Lynn Lake database and are being interpreted in conjunction with the results of the airborne gravity gradiometer ("AGG") and magnetic survey with the objective of generating a pipeline of prospective targets across the Lynn Lake Greenstone Belt.

Spending in the fourth quarter totaled $1.4 million, with full year expenditures to $5.1 million.

18

2018Management’s Discussion and Analysis

Key External Performance Drivers

Gold Price

The Company’s financial 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 2018, the London PM Fix price of gold averaged $1,227 per ounce, while the Company realized an average gold price of $1,244 per ounce in the quarter, $17 per ounce above the London PM Fix. The Company was effective in managing gold price fluctuations throughout the year, including hedging a portion of its gold production, which resulting in a realized gold price of $1,278 per ounce in 2018, or $10 per ounce above the London PM Fix for the year.

As at December 31, 2018, the Company has hedged 15,000 ounces ensuring an average minimum gold price of $1,250 per ounce and participation up to an average gold price of $1,377 per ounce. Subsequent to year end, the Company hedged a further 85,000 ounces, bringing the total to 100,000 ounces ensuring an average minimum gold price of $1,289 per ounce and participation up to an average gold price of $1,413 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 2018, the Canadian dollar averaged approximately $1.32 CAD to $1 US dollar compared to $1.31 CAD to $1 USD in the third quarter of 2018. The Mexican peso ("MXN") averaged 19.81 MXN to $1 US dollar in the fourth quarter compared to 18.94 MXN to $1 US dollar in the third quarter of 2018

The Company recorded a $1.7 million foreign exchange loss in the fourth quarter related to translation of the Company's net monetary assets and resulting from changes in period-end foreign exchange rates. During the fourth quarter, the Canadian dollar year end spot price weakened 5% relative to the US dollar, depreciating to $1.36 CAD to $1 US dollar at December 31st compared to $1.29 CAD to $1 USD at September 30, 2018. Similarly, the Mexican peso ("MXN") year end spot price weakened 5% during the fourth quarter to 19.65 MXN to $1 US dollar as at December 31, 2018 from 18.69 MXN to $1 US dollar at September 30, 2018.

During the quarter, the movement of the CAD and MXN rates also generated a foreign exchange loss of $14.1 million on the revaluation of monetary tax and deferred tax balances, recorded within deferred tax expense.

The Company actively manages its currency exposure through a hedging program, which resulted in realized foreign exchange loss of $0.6 million in the quarter, and a gain $3.9 million for the full year. The Company applies hedge accounting; accordingly these realized loss and gains have been applied to benefit operating and capital costs at the operating mines, which has improved mine-site all-in sustaining costs for the full year.

19

2018Management’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,
	2018			2017			2018			2017		2016
Gold production (ounces) (1)	125,600			120,300			505,000			429,400		392,000
Gold sales (ounces)	131,161			126,786			509,879			430,115		389,151
Operating Revenues		$163.1			$161.7			$651.8			$542.8		$482.2
Cost of sales(2)		$207.1			$136.6			$639.4			$456.8		$429.3
(Loss) earnings from operations		($51.3	)		$17.1			($22.6	)		$56.0		$21.3
Net (loss) earnings		($71.5	)		($4.7	)		($72.6	)		$26.6		($17.9	)
Adjusted net (loss) earnings (3)		$4.3			$0.3			$19.6			$38.9		($16.0	)
(Loss) earnings per share, basic		($0.18	)		($0.01	)		($0.19	)		$0.09		($0.07	)
Adjusted (loss) earnings per share (3)		$0.01		—				$0.05			$0.13		($0.06	)
Total assets								$3,265.2			$3,320.3		$2,492.2
Total non-current liabilities							538.0			525.9		633.2
Cash flow from operations		$47.4			$48.6			$213.9			$163.5		$135.7
Dividends per share, declared	0.01			0.01			0.02			0.02		0.02
Average realized gold price per ounce		$1,244			$1,275			$1,278			$1,262		$1,239
Cost of sales per ounce of gold sold, including amortization (2)		$1,579			$1,077			$1,254			$1,062		$1,103
Total cash costs per ounce of gold sold (3)		$770			$753			$802			$770		$797
All-in sustaining costs per ounce of gold sold (3)		$983			$902			$989			$933		$1,010

⁽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 and 98,600 ounces, respectively.

⁽²⁾  Cost of sales includes mining and processing costs, royalties and amortization. For the three months and year ended December 31, 2018, cost of sales includes a $64.0 million non-cash inventory impairment charge at El Chanate.

⁽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.

Review of Fourth Quarter Financial Results

Operating Revenue

During the fourth quarter of 2018, the Company sold 131,161 ounces of gold for total revenue of $163.1 million, an increase of $1.4 million compared to the prior year period. This was primarily driven by the Island Gold acquisition completed in November 2017, which contributed a record 30,199 ounces, or $37.5 million in gold sales in the quarter, offset by lower ounces sold at Mulatos and a lower realized gold price in the quarter. The Company's realized gold price of $1,244 per ounce in the fourth quarter was $17 per ounce higher than the London PM fix of $1,227 per ounce.

Cost of Sales

For the fourth quarter of 2018, cost of sales were $207.1 million, compared to $136.6 million in the prior-year period, with the increase driven by a non-cash inventory impairment charge recorded at El Chanate in the quarter.

Mining and Processing

Mining and processing costs were $96.2 million compared to $90.6 million in the prior-year period. The increased costs were mainly the result of the addition of Island Gold, which contributed $15.5 million of mining and processing costs in the period, as well as higher per-unit operating costs at Young-Davidson.

Consolidated total cash costs for the quarter were $770 per ounce, compared to $753 in the prior year period. The increase was driven by higher total cash costs at Young-Davidson and El Chanate, partially offset by the addition of lower cost production from Island Gold.

In the quarter, AISC per ounce increased to $983 from $902 in the prior year period. This was primarily driven by higher total cash costs, and the timing of sustaining capital spending at Young-Davidson.

Impairment of El Chanate inventory

During the quarter, the Company wrote down $64.0 million of heap leach inventory at El Chanate, of which $62.5 million was related to mining and processing costs and $1.5 million was related to amortization. The Company ceased mining activities at El Chanate during 2018 and has begun residual leaching the heap leach pad.  An analysis of the recoverability of the ounces in inventory on

20

2018Management’s Discussion and Analysis

the heap leach pad was conducted as of December 31, 2018. The Company estimated that approximately 51,900 ounces may not be economically recovered, resulting in a non-cash impairment charge of $64.0 million ($49.9 million after-tax).

Royalties

Royalty expense was $4.8 million in the fourth quarter and consistent with the prior year period of $4.9 million, as higher royalties at Island Gold were offset by lower royalties at Mulatos.

Amortization

Amortization of $42.1 million in the quarter was consistent with the prior year period expense of $41.1 million. Amortization was $321 per ounce, compared to $324 per ounce in the prior year period, and consistent with guidance.

Loss from Operations

The Company recognized a loss from operations of $51.3 million in the quarter, compared to earnings of $17.1 million in the same period of 2017, as a result of the non-cash El Chanate inventory impairment charge of $64.0 million and increased operating costs at Young-Davidson.

Net Loss

The Company reported a net loss of $71.5 million in the quarter, compared to net loss of $4.7 million in the same period of 2017. Net loss for the fourth quarter was impacted by the non-cash inventory impairment charge, other losses related to disposals and settlement charges, and foreign exchange movements related to the weakening of Canadian dollar and Mexican Peso, which generated a foreign exchange loss of $1.7 million, as well as a foreign exchange loss of $14.1 million recorded within deferred income taxes.

Review of 2018 Financial Results

Operating Revenue

For the year ended 2018, the Company sold 509,879 ounces of gold for total revenue of $651.8 million, a 20% increase compared to the prior year period. This was primarily driven by the Island Gold acquisition, which contributed 105,520 ounces, or $135.1 million in revenue for the year, compared to 11,720 ounces in the prior year due to the acquisition closing in November 2017. In addition, the Company benefited from a higher realized gold price of $1,278 per ounce compared to $1,262 per ounce in 2017, resulting in a $6.7 million benefit.

Cost of Sales

For the year ended 2018, cost of sales were $639.4 million, compared to $456.8 million in the prior-year period. Cost of sales in 2018 includes a non-cash inventory impairment charge recorded in the fourth quarter of $64.0 million.

Mining and Processing

Mining and processing costs increased to $387.2 million from $315.6 million in the prior-year period, driven by the addition of Island Gold, which added $56.0 million of mining and processing costs in the current year. In addition, mining and processing costs at Young-Davidson increased as a result of higher underground mining and maintenance costs.

Consolidated total cash costs per ounce for 2018 were $802 per ounce compared to $770 in the prior year period. The increase in total cash costs is attributable to higher per-unit costs at Young-Davidson, driven by lower underground mining rates and higher maintenance charges during the year. Higher costs at Young-Davidson and El Chanate were partially offset by the addition of lower cost ounces from Island Gold.

For the year, AISC per ounce increased to $989 from $933 in the prior year period. The increase was primarily driven by higher operating costs and sustaining capital at Young-Davidson.

Impairment of El Chanate inventory

During the quarter, the Company wrote down $64.0 million of heap leach inventory at El Chanate, of which $62.5 million was related to mining and processing costs and $1.5 million was related to amortization. The Company ceased mining activities at El Chanate during 2018 and has begun residual leaching the heap leach pad.  An analysis of the recoverability of the ounces in inventory on the heap leach pad was conducted as of December 31, 2018. The Company estimated that approximately 51,900 ounces may not be economically recovered, resulting in a non-cash impairment charge of $64.0 million ($49.9 million after-tax).

Royalties

Royalty expense was higher for the year ended 2018 at $21.6 million, compared to $15.6 million in the prior year period, primarily due to the addition of Island Gold, and a higher number of ounces sold at Mulatos.

21

2018Management’s Discussion and Analysis

Amortization

Amortization of $166.6 million in 2018 was higher than in the prior year of $125.6 million. Amortization was $327 per ounce, in line with guidance but an increase from the prior year, reflecting amortization charges at Island Gold which carries a higher per-ounce amortization charge.

Loss from Operations

The Company recognized a loss from operations of $22.6 million for the year ended 2018, compared to earnings of $56.0 million in 2017. The decrease was due to lower margins at Young-Davidson and the non-cash inventory impairment charge recorded at El Chanate, partially offset by higher ounces sold at Mulatos and Island Gold.

Net Loss

The Company reported a net loss of $72.6 million for the year ended 2018, compared to net earnings of $26.6 million in the same period of 2017. Net loss for the year ended 2018 was significantly impacted by the non-cash inventory impairment charge recorded at El Chanate and foreign exchange movements, as the Company recorded a foreign exchange loss of $4.4 million (compared to a gain of $5.0 million in the prior year), in addition to foreign exchange losses of $28.8 million recorded within deferred income taxes, mainly resulting from a weakening Canadian dollar.

Consolidated Expenses and Other

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
Exploration expense		($2.5	)		($2.3	)		($11.0	)		($8.3	)
Corporate and administrative expense	(3.5		)	(4.6		)	(17.4		)	(15.5		)
Share-based compensation expense	(1.3		)	(1.1		)	(6.6		)	(6.2		)
Finance expense	(0.2		)	(1.1		)	(3.0		)	(6.6		)
Foreign exchange (loss) gain	(1.7		)	(5.1		)	(4.4		)	5.0
Other loss	(10.1		)	(5.3		)	(8.4		)	(3.1		)
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 2018 relate to drilling at El Carricito (Mulatos), as well as corporate exploration support. Exploration spending at Island Gold, Lynn Lake and near-mine exploration at Mulatos are capitalized and are therefore reflected as capital expenditures rather than exploration expense. For 2018, exploration expense of $11.0 million primarily relates to drilling in the Mulatos district in Mexico.

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 incurred at the corporate office located in Canada. Corporate and administrative costs remained consistent with the prior year period and in line with annual guidance of $18 million for the year.

Share-based compensation

Share-based compensation expense was $1.3 million in the fourth quarter and $6.6 million for the year, both consistent with the prior year comparative periods.

Finance expense

Finance expense decreased compared to the prior year period, though was consistent with budget, as the Company repaid senior secured notes on April 3, 2017 resulting in a reduction of gross interest expense per quarter subsequent to retirement of the notes.

Foreign exchange loss

During the quarter, a foreign exchange loss of $1.7 million was recorded. Both the Canadian dollar and Mexican peso weakened by 5% in the fourth quarter, compared to the US dollar. For the year ended 2018, the foreign exchange loss of $4.4 million was driven by an 9% depreciation of the Canadian dollar.

22

2018Management’s Discussion and Analysis

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. During the fourth quarter, the Company realized a loss of $0.6 million on settled contracts, and the mark-to-market loss on the outstanding hedge position of $6.2 million was recorded within other comprehensive income. For the year ended 2018, the Company realized gains of $3.9 million on settled contracts, and a mark-to-market loss of $9.8 million 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 an other loss of $10.1 million compared to a loss of $5.3 million in the prior year period. The fourth quarter charges are comprised of losses on disposal of assets, legal settlement fees, mark-to-market gains and losses on non-hedged derivatives, including gold collar contracts.

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 2018, the Company recognized a current tax recovery of $0.6 million and a deferred tax expense of $8.8 million.  During the year ended December 31, 2018 the Company recognized a current tax expense of $17.3 million and a deferred tax expense of $16.9 million, compared to a current tax expense of $11.9 million and a deferred tax recovery of $16.3 million in the same period of 2017. Current income tax expense in 2018 was primarily related to income tax and mining taxes in Mexico. The deferred tax expense was primarily due to changes to foreign exchange rates during the periods.

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 functional currency financial statements. The total foreign exchange impact recorded within deferred taxes in the year was a $28.8 million expense (2017 - $22.5 million recovery). 

23

2018Management’s Discussion and Analysis

Financial Condition

	December 31, 2018		December 31, 2017
Current assets		$380.0		$453.2	Current assets decreased in 2018, driven by a lower inventory balance as the Company recorded an inventory impairment charge at El Chanate;
Long-term assets	2,885.2		2,867.1		Long-term assets remained consistent with the prior year as capital expenditures in the year were offset by amortization charges.
Total assets		$3,265.2		$3,320.3
Current liabilities		$124.9		$113.2	Current liabilities increased due to an increase in trade payables and accruals, mainly at Young-Davidson and Island Gold.
Non-current liabilities	538.0		525.9		Non-current financial liabilities increased from the prior year-end driven by movements in foreign exchanges rates and the impact of these fluctuations on the deferred income tax liability.
Total liabilities		$662.9		$639.1
Shareholders’ equity		$2,602.3		$2,681.2	Shareholders' equity for the period decreased as a result of the net loss incurred in the year, and dividends declared during the year of $7.8 million.
Total liabilities and equity		$3,265.2		$3,320.3

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, 2018, the Company had cash and cash equivalents of $206.0 million and $7.8 million in equity securities compared to $200.8 million and $35.8 million respectively, at December 31, 2017. In addition, the Company has access to an additional $400 million in liquidity through its existing credit facility. In the opinion of management, the Company's liquidity position of $613.8 million at December 31, 2018 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.

Cash Flow

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
Cash flow provided by operating activities	$47.4			$48.6			$213.9			$163.5
Cash flow (used in) from investing activities	(61.5		)	7.0			(196.6		)	(119.4		)
Cash flow (used in) from financing activities	(2.6		)	(3.8		)	(8.8		)	(97.6		)
Effect of foreign exchange rates on cash	(2.1		)	—			(3.3		)	2.1
Net increase in cash	(18.8		)	51.8			5.2			(51.4		)
Cash and cash equivalents, beginning of period	224.8			149.0			200.8			252.2
Cash and cash equivalents, end of period		$206.0			$200.8			$206.0			$200.8

Cash flow provided by operating activities

In the fourth quarter of 2018, operating activities generated cash flow of $47.4 million compared to $48.6 million in the same period of 2017. Cash flow provided by operations before working capital and taxes paid was $52.8 million in the fourth quarter, compared to $52.7 million in the prior year period. The consistent operating cash flows were due to higher ounces sold in 2018, offset by a lower realized gold price and higher operating costs. For the year ended 2018, operating activities generated $213.9 million compared to $163.5 million in the prior year period, as a result of higher gold sales and higher realized gold prices.

24

2018Management’s Discussion and Analysis

Cash flow used in investing activities

For the fourth quarter of 2018, capital expenditures were $61.5 million compared to $39.2 million in 2017. Capital expenditures were higher than the prior year, reflecting capital spending at Island Gold, which was acquired on November 23, 2017, as well as higher capital at Young-Davidson. The Company invested $221.5 million on mineral property, plant and equipment for the year ended 2018, compared to $162.5 million in the prior year, primarily due to spending at Island Gold which was not included in the comparative period.

In addition, the Company liquidated its investment in AuRico Metals Inc., and Corex Gold Corp in the first quarter of 2018 for proceeds of $24.9 million and realized a gain of $14.3 million ($12.5 million net of tax). This gain was transferred from accumulated other comprehensive income to deficit.

In the comparative period, as part of the Richmont Mines acquisition that closed on November 23, 2017, the Company acquired $46.2 million in cash and cash equivalents upon close of the transaction.

Cash flow used in financing activities

In the fourth quarter of 2018, the Company paid a dividend of $3.9 million and incurred $0.9 million related to lease payments. For the year ended 2018, the Company incurred $8.8 million of an outflow primarily related to dividends paid and lease payments, offset by fund received from the exercise of stock options and warrants.

Credit Facility

In the third quarter of 2018, the Company completed the extension of its existing undrawn revolving credit facility (the "Facility") of $400.0 million to September 20, 2022 from September 20, 2021 at similar terms and conditions to those existing previously. The 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, 2018, the Company is in compliance with the covenants and the Facility is fully undrawn.  

Contractual Obligations	Less than 1 year	2 - 3 years	4 - 5 years	More than 5 years	Total
Operating and financing leases	3.1	1.5	0.7	0.6	5.9
Accounts payable and accrued liabilities	118.7	—	—	—	118.7
Decommissioning liability	—	6.4	—	47.0	53.4
Contract mining	31.9	32.0	—	—	63.9
Capital commitments	24.5	—	—	—	24.5
	$178.2	$39.9	$0.7	$47.6	$266.4

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 average approximately $3.5 million per quarter for 2019. Obligations related to contract mining are based on current mine plans, and are subject to change.

Initiation of Normal Course Issuer Bid and Quarterly Dividend Program

On December 24, 2018, a Normal Course Issuer Bid was initiated permitting Alamos to purchase for cancellation up to 25,513,043 Class A Common Shares (“Common Shares”), representing 10% of the Company’s public float of the Common Shares. The Company may purchase Common Shares under the Normal Course Issuer Bid over the next twelve-month period beginning December 24, 2018 and ending December 23, 2019. Any purchases made under the Normal Course Issuer Bid will be effected through the facilities of the TSX, alternative Canadian trading systems and/or the New York Stock Exchange. As at December 31, 2018, there were no purchases, however, in 2019, the Company has purchased and cancelled 2,444,352 common shares at a cost of $10.0 million or $4.07 per share.

Commencing in the first quarter of 2019, the Company is initiating a quarterly dividend commencing in the first quarter of 2019, with the first dividend of $0.01 per share payable to shareholders on record on March 15, 2019, to be paid on March 29, 2019. The Company expects to increase the amount of dividends paid to shareholders in 2019 through the quarterly program opposed to the historic practice of semi-annual dividends

25

2018Management’s Discussion and Analysis

Outstanding Share Data

	February 20, 2019
Common shares	388,805,896
Stock options	6,655,455
Deferred share units	645,413
Performance share units	983,441
Restricted share units	2,213,200
	399,303,405

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, 2018.

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, 2018, 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 $1,250 per ounce and a maximum average realized gold price of $1,377 per ounce, regardless of the movement in gold prices during 2019.

The following gold collar contracts are outstanding as of December 31, 2018:

Period Covered	Contract type	Ounces subject to contract	Average purchase put option	Average sold call option
2019	Collar	15,000	$1,250	$1,377

The fair value of these contracts was a liability of $0.1 million at December 31, 2018 (December 31, 2017 - asset of $0.5 million). The options mature through 2018.

For the year ended December 31, 2018, the Company realized a gain of $3.9 million related to the settlement of option contracts (for the year ended December 31, 2017 - realized losses of $0.6 million). The total unrealized losses for the year ended December 31, 2018 was $0.6 million (for the year ended December 31, 2017 - unrealized gain of $2.6 million). The Company has elected to not apply hedge accounting to gold option contracts, with changes in fair value recorded in net earnings.

Foreign currency contracts

As at December 31, 2018, 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:

26

2018Management’s Discussion and Analysis

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)	Forward price (USD/CAD)
2019	Collars	342.0	1.30	1.35	N/A
2019	Forwards	9.0	N/A	N/A	1.34

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2019	Collars	1,380.0	19.50	22.07

The fair value of these contracts was a liability of $4.7 million at December 31, 2018 (December 31, 2017 - asset of $5.0 million). For the year ended December 31, 2018, the Company realized gains of $3.9 million on the foreign currency contracts (for the year ended December 31, 2017 - realized gains of $4.3 million. In 2018, all the gains were eligible for hedge accounting, however, of the gains recognized in the year ended December 31, 2017 only $3.5 million were eligible to be recognized in accumulated other comprehensive income under hedge accounting).

Fuel contracts

The Company enters into option contracts to economically hedge against the risk of an increase in the price of diesel fuel. These option contracts are for the purchase of New York Harbour Ultra Low Sulfur Diesel ("ULSD") contracts, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing price risk.

As at December 31, 2018, the Company has hedged 2.74 million gallons of diesel at a range of $1.83 to $2.09 per gallon.

For the year ended December 31, 2018, the Company has an unrealized loss of $0.5 million recorded in accumulated other comprehensive loss related to the fuel hedges.

Summary of Quarterly Financial and Operating Results

(in millions, except ounces, per share amounts, and average realized prices)
	Q4 2018			Q3 2018		Q2 2018			Q1 2018		Q4 2017			Q3 2017		Q2 2017		Q1 2017
Gold ounces produced	125,600			124,000		126,500			128,900		120,300			107,000		105,900		96,200
Gold ounces sold	131,161			119,401		129,272			130,045		126,786			100,551		104,023		98,755
Operating Revenues		$163.1			$146.7		$168.9			$173.1		$161.7			$128.8		$131.3		$121.0
(Loss) earnings from operations		($51.3	)		$0.6		$9.6			$18.5		$17.1			$20.9		$15.8		$2.2
Net (loss) earnings		($71.5	)		$7.2		($8.9	)		$0.6		($4.7	)		$28.8		$2.4		$0.1
(Loss) earnings per share, basic(2)		($0.18	)		$0.02		($0.02	)	$—			($0.01	)		$0.10		$0.01	$—
Earnings before interest, taxes, depreciation and amortization (1)		$43.0			$41.7		$51.9			$58.6		$47.8			$51.1		$50.1		$35.9
Cash provided by operating activities		$47.4			$45.2		$62.5			$58.8		$48.6			$43.4		$51.4		$20.1
Average realized gold price		$1,244			$1,229		$1,307			$1,331		$1,275			$1,281		$1,262		$1,225

⁽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 overall trended up since Q1 2017 as a result of higher production and a strengthening gold price. The Company acquired Island Gold in the fourth quarter of 2017, increasing production from approximately 100,000 ounces per quarter to over 120,000 ounces per quarter, driving revenues higher. Since the acquisition of Island Gold, quarterly revenues have been consistent throughout 2018, with fluctuations resulting from changes in gold price for the period. Subject to the following, earnings from operations and cash flow from operating activities have improved since Q1 2017 as a result of a higher gold price and lower operating costs, resulting in higher margins on ounces produced. Earnings from operations and net income in the fourth quarter of 2018 were impacted by one-time, non-cash items, including a non-cash inventory impairment charge at El Chanate.

27

2018Management’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:

• adjusted net earnings and adjusted earnings per share;

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

• Company-wide free cash flow;

• 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.

Adjusted Net Earnings and Adjusted Earnings per Share

“Adjusted net earnings” and “adjusted earnings per share” are non-GAAP financial measures with no standard meaning under IFRS which exclude the following from net earnings:

• Foreign exchange gain (loss)

• Items included in other gain (loss)

• Certain non-reoccurring items

• Foreign exchange gain (loss) recorded in deferred tax expense

Net earnings have been adjusted, including the associated tax impact, for the group of costs in “Other loss” on the consolidated statement of comprehensive income. Transactions within this grouping are: the fair value changes on non-hedged derivatives; the renunciation of flow-through exploration expenditures; and loss on disposal of assets. The adjusted entries are also impacted for tax to the extent that the underlying entries are impacted for tax in the unadjusted net earnings.

The Company uses adjusted net earnings for its own internal purposes. Management’s internal budgets and forecasts and public guidance do not reflect the items which have been excluded from the determination of adjusted net earnings. Consequently, the presentation of adjusted net earnings enables shareholders to better understand the underlying operating performance of the core mining business through the eyes of management. Management periodically evaluates the components of adjusted net earnings based on an internal assessment of performance measures that are useful for evaluating the operating performance of our business and a review of the non-GAAP measures used by mining industry analysts and other mining companies.

Adjusted net earnings 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 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 operating profit or cash flows from operations as determined under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.

28

2018Management’s Discussion and Analysis

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017			2016
Net Earnings (Loss)	($71.5		)	($4.7		)	($72.6		)	$26.6			($17.9		)
Adjustments:
Impairment of El Chanate inventory	64.0			—			64.0			—			—
Tax impact on impairment of El Chanate inventory	(14.1		)	—			(14.1		)	—			—
Foreign exchange loss (gain)	1.7			(5.1		)	4.4			5.0			12.5
Other loss (gain)	10.1			5.3			8.4			3.1			(5.5		)
Unrealized foreign exchange loss (gain) recorded in deferred tax expense	14.1			(0.3		)	28.8			(22.5		)	(5.1		)
Transaction costs related to the Richmont acquisition	—			3.8			—			3.8			—
Acquisition fair value adjustment on Richmont acquisition	—			1.3			—			1.3			—
Loss on redemption of senior secured notes	—			—			—			29.1			—
Other income and mining tax adjustments (1)	—			—			0.7			(7.5		)	—
Adjusted net earnings (loss)		$4.3			$0.3			$19.6			$38.9			($16.0	)
Adjusted earnings (loss) per share - basic		$0.01			$—			$0.05			$0.13			($0.06	)

⁽¹⁾  This reflects the recognition of previously unrecognized capital losses, and the tax impact on adjusted earnings.

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,
	2018		2017		2018			2017
Cash flow from operating activities	$47.4		$48.6		$213.9			$163.5
Add back: Changes in working capital and cash taxes	5.4		4.1		(2.2		)	19.8
Cash flow from operating activities before changes in working capital and cash taxes		$52.8		$52.7		$211.7			$183.3

Company-wide Free Cash Flow

“Company-wide free cash flow" is a non-GAAP performance measure calculated from the consolidated operating cash flow, less consolidated 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 company-wide. Company-wide 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. Company-wide free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

(in millions)
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
Cash flow from operating activities	$47.4			$48.6			$213.9			$163.5
Less: mineral property, plant and equipment expenditures	(61.5		)	(39.2		)	(221.5		)	(162.5		)
Company-wide free cash flow		($14.1	)		$9.4			($7.6	)		$1.0

29

2018Management’s Discussion and Analysis

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. Mine-site 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. Mine-site free cash flow should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Total Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
(in millions)
Cash flow from operating activities	$47.4			$48.6			$213.9			$163.5
Less: operating cash flow used by non-mine site activity	(9.6		)	(19.5		)	(31.1		)	(31.9		)
Cash flow from operating mine-sites		$57.0			$68.1			$245.0			$195.4
Mineral property, plant and equipment expenditure	$61.5			$39.2			$221.5			$162.5
Less: capital expenditures from development projects, and corporate (1)	(9.7		)	(8.2		)	(32.9		)	(44.6		)
Capital expenditure from mine-sites		$51.8			$31.0			$188.6			$117.9
Total mine-site free cash flow		$5.2			$37.1			$56.4			$77.5

⁽¹⁾  The comparative periods include capital expenditures related to La Yaqui Phase I of nil and $12.5 million for the three and twelve months ended December 31, 2017.

Young-Davidson Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
(in millions)
Cash flow from operating activities	$23.6			$33.4			$97.5			$114.5
Mineral property, plant and equipment expenditure	(23.1		)	(17.0		)	(86.6		)	(80.3		)
Mine-site free cash flow		$0.5			$16.4			$10.9			$34.2

Mulatos Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
(in millions)
Cash flow from operating activities	$14.7			$22.3			$71.0			$64.3
Mineral property, plant and equipment expenditure	(11.8		)	(9.0		)	(35.3		)	(43.9		)
Less: La Yaqui Phase I construction cost	—			—			—			12.5
Mulatos mineral property, plant and equipment expenditure		($11.8	)		($9.0	)		($35.3	)		($31.4	)
Mine-site free cash flow		$2.9			$13.3			$35.7			$32.9

Island Gold Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
(in millions)
Cash flow from operating activities	$16.3			$11.8			$75.9			$11.8
Mineral property, plant and equipment expenditure	(16.8		)	(4.8		)	(66.1		)	(4.8		)
Mine-site free cash flow		($0.5	)		$7.0			$9.8			$7.0

30

2018Management’s Discussion and Analysis

El Chanate Mine-Site Free Cash Flow
	Three Months Ended December 31,						Years Ended December 31,
	2018			2017			2018			2017
(in millions)
Cash flow from operating activities	$2.4			$0.6			$0.6			$4.8
Mineral property, plant and equipment expenditure	(0.1		)	(0.2		)	(0.6		)	(1.4		)
Mine-site free cash flow		$2.3			$0.4			$—			$3.4

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.  

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.

31

2018Management’s Discussion and Analysis

Total Cash Costs and AISC Reconciliation - Company-wide
	Three Months Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017			2016
(in millions, except ounces and per ounce figures)
Mining and processing	$96.2		$90.6		$387.2		$315.6			$297.0
Royalties	4.8		4.9		21.6		15.6			13.3
Total cash costs		$101.0		$95.5		$408.8		$331.2			$310.3
Gold ounces sold	131,161		126,786		509,879		430,115			389,151
Total cash costs per ounce	$770		$753		$802		$770			$797
Total cash costs	$101.0		$95.5		$408.8		$331.2			$310.3
Corporate and administrative(1)	3.5		4.6		17.4		15.5			16.3
Sustaining capital expenditures(2)	21.4		11.5		63.8		42.7			49.2
Share-based compensation	1.3		1.1		6.6		6.2			10.2
Sustaining exploration	0.9		1.0		4.8		3.9			3.5
Accretion of decommissioning liabilities	0.8		0.7		3.0		2.7			2.1
Realized gains on FX options	—		—		—		(0.8		)	1.6
Total all-in sustaining costs		$128.9		$114.4		$504.4		$401.4			$393.2
Gold ounces sold	131,161		126,786		509,879		430,115			389,151
All-in sustaining costs per ounce	$983		$902		$989		$933			$1,010

⁽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,
	2018			2017			2018			2017			2016
(in millions)
Capital expenditures per cash flow statement		$61.5			$39.2			$221.5			$162.5			$146.5
Less: non-sustaining capital expenditures at:
Young-Davidson	(12.3		)	(8.3		)	(50.8		)	(46.2		)	(54.6		)
Mulatos	(9.3		)	(8.1		)	(28.1		)	(38.4		)	(24.5		)
Island Gold	(8.8		)	(3.1		)	(45.9		)	(3.1		)	—
Corporate and other	(9.7		)	(8.2		)	(32.9		)	(32.1		)	(18.2		)
Sustaining capital expenditures		$21.4			$11.5			$63.8			$42.7			$49.2

Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
(in millions, except ounces and per ounce figures)
Mining and processing	$38.7		$35.1		$149.0		$125.9
Royalties	1.0		1.1		3.6		4.4
Total cash costs		$39.7		$36.2		$152.6		$130.3
Gold ounces sold	51,944		52,475		185,593		197,937
Total cash costs per ounce	$764		$690		$822		$658
Total cash costs	$39.7		$36.2		$152.6		$130.3
Sustaining capital expenditures	10.8		8.7		35.8		34.1
Exploration	0.1		0.1		0.2		0.4
Accretion of decommissioning liabilities	—		0.1		0.2		0.2
Total all-in sustaining costs		$50.6		$45.1		$188.8		$165.0
Gold ounces sold	51,944		52,475		185,593		197,937
Mine-site all-in sustaining costs per ounce	$974		$859		$1,017		$834

32

2018Management’s Discussion and Analysis

Mulatos Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
(in millions, except ounces and per ounce figures)
Mining and processing	$28.7		$34.9		$125.9		$112.9
Royalties	2.1		3.2		11.8		10.6
Total cash costs		$30.8		$38.1		$137.7		$123.5
Gold ounces sold	38,819		50,006		175,104		159,276
Total cash costs per ounce	$793		$762		$786		$775
Total cash costs	$30.8		$38.1		$137.7		$123.5
Sustaining capital expenditures	2.5		0.9		7.2		5.5
Exploration	0.3		0.4		2.6		1.9
Accretion of decommissioning liabilities	0.6		0.5		2.2		2.1
Total all-in sustaining costs		$34.2		$39.9		$149.7		$133.0
Gold ounces sold	38,819		50,006		175,104		159,276
Mine-site all-in sustaining costs per ounce	$881		$798		$855		$835

Island Gold Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
(in millions, except ounces and per ounce figures)
Mining and processing	$15.5			$4.1	$56.0			$4.1
Royalties	1.7		0.6		6.2		0.6
Total cash costs		$17.2		$4.7		$62.2		$4.7
Gold ounces sold	30,199		11,720		105,520		11,720
Total cash costs per ounce	$570			$401	$589			$401
Total cash costs	$17.2		$4.7		$62.2		$4.7
Sustaining capital expenditures	8.0		1.7		20.2		1.7
Total all-in sustaining costs		$25.2		$6.4		$82.4		$6.4
Gold ounces sold	30,199		11,720		105,520		11,720
Mine-site all-in sustaining costs per ounce	$834			$546	$781			$546

El Chanate Total Cash Costs and Mine-site AISC Reconciliation
	Three Months Ended December 31,				Years Ended December 31,
	2018		2017		2018		2017
(in millions, except ounces and per ounce figures)
Mining and processing	$13.3		$16.5		$56.3		$72.7
Total cash costs		$13.3		$16.5		$56.3		$72.7
Gold ounces sold	10,199		12,585		43,662		61,182
Total cash costs per ounce	$1,304		$1,311		$1,289		$1,188
Total cash costs	$13.3		$16.5		$56.3		$72.7
Sustaining capital expenditures	0.1		0.2		0.6		1.4
Accretion of decommissioning liabilities	0.2		0.1		0.6		0.4
Total all-in sustaining costs		$13.6		$16.8		$57.5		$74.5
Gold ounces sold	10,199		12,585		43,662		61,182
Mine-site all-in sustaining costs per ounce	$1,333		$1,335		$1,317		$1,218

33

2018Management’s Discussion and Analysis

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,
	2018			2017			2018			2017
Net (loss) earnings		($71.5	)		($4.7	)		($72.6	)		$26.6
Add back:
Finance expense	0.2			1.1			3.0			6.6
Amortization	42.1			41.1			166.6			125.6
Impairment of El Chanate inventory	64.0			—			64.0			—
Loss on redemption of senior secured notes	—			—			—			29.1
Deferred income tax expense (recovery)	8.8			6.0			16.9			(16.3		)
Current income tax (recovery) expense	(0.6		)	4.3			17.3			11.9
EBITDA		$43.0			$47.8			$195.2			$183.5

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

34

2018Management’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 mineral reserves of it's mines and the portion of mineral resources expected to be ultimately converted to reserves. The estimation of quantities of mineral reserves and mineral 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. Mineral reserve estimates are used in the calculation of depletion expense and to calculate the recoverable amount of a CGU, and to forecast the expected life of a 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.

35

2018Management’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, 2018, or for December 31, 2017.

Accounting Policies and Changes

The Company adopted the following amendments to accounting standards, effective January 1, 2018:

The Company has adopted IFRS 15, Revenue from Contracts with Customers ("IFRS 15") as of January 1, 2018. IFRS 15 covers principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The Company elected to apply IFRS 15 using a modified retroactive approach by recognizing the cumulative effect of initially adopting IFRS 15 as an adjustment to the opening balance sheet through equity at January 1, 2018. The adoption of IFRS 15 resulted in no impact to the consolidated financial statements as the timing of revenue recognition on gold sales is unchanged.

The Company has adopted IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration. The interpretation clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Company has evaluated the impact of applying IFRIC 22, and has concluded that the adoption of the standard had no material impact on the consolidated financial statements.

Future accounting standard changes, not effective as of December 31, 2018:

In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16"). The objective of IFRS 16 is to recognize substantially all leases on balance sheet for lessees. IFRS 16 requires lessees to recognize a "right-of-use" asset and a lease liability calculated using a prescribed methodology. The effective date of IFRS 16 is for annual periods beginning on or after January 1, 2019. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company will adopt IFRS 16 for the annual period beginning January 1, 2019 using the modified retrospective approach which does not require restatement of comparative periods. Instead, the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the beginning of 2019.  The Company elected to apply the practical expedient to grandfather its previous assessment of which contracts are, or contain, leases. The Company does not expect IFRS 16 to have a significant impact to the balance sheet, however will result in the recognition of additional right of use assets and lease liabilities on the balance sheet, and a corresponding increase in depreciation and interest expense. The Company also expects cash flows from operating activities to increase under IFRS 16 as lease payments for substantially all leases will be recorded as financing outflows in the consolidated statement of cash flows as opposed to operating cash flows. The Company has substantially completed its assessment of existing operating leases and will finalize its assessment and report more detailed information in its first quarter 2019 interim 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 Company does not expect the adoption of the Interpretation to have a material impact to the consolidated financial statements.

On December 12, 2017 the IASB issued narrow-scope amendments to three standards as part of its annual improvements process. The amendments are effective on or after January 1, 2019. Each of the amendments has its own specific transition requirements.

Amendments were made to the following standards:

• IFRS 3 Business Combinations and IFRS 11 Joint Arrangements - to clarify how an entity accounts for increasing its interest in a joint operation that meets the definition of a business;

• IAS 12 Income Taxes - to clarify that all income tax consequences of dividends are recognized consistently with the transactions that generated the distributable profits - i.e. in profit or loss, OCI, or equity; and

• IAS 23 Borrowing Costs - to clarify that specific borrowings - i.e. funds borrowed specifically to finance the construction of a qualifying asset - should be transferred to the general borrowings pool once the construction of the qualifying asset has been completed. They also clarify that an entity includes funds borrowed specifically to obtain an asset other than a qualifying asset as part of general borrowings.

The Company does not anticipate the adoption of these standard amendments to have an impact on the consolidated financial statements.

On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations, that seek to clarify whether a transaction results in an asset or a business acquisition. The amendments include an election to use a concentration test. This is a simplified assessment that results in an asset acquisition if substantially all of the fair value of the gross assets is concentrated in a single

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2018Management’s Discussion and Analysis

identifiable asset or a group of similar identifiable assets. If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendments apply to businesses acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The Company does not anticipate the adoption of the amendment to have an impact on the consolidated financial statements.

Internal Control over Financial Reporting

Management is responsible for the design, implementation 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 internal control over financial reporting as of December 31, 2018. 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, 2018.

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 year ended December 31, 2018 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, 2018 and have concluded that these disclosure controls and procedures were appropriately designed and operating effectively as at December 31, 2018.

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. You should carefully consider the risks and uncertainties described below as well as the other information contained and incorporated by reference in this MD&A.

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.

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,

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2018Management’s Discussion and Analysis

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, Canadian dollars ,Mexican pesos and Turkish lira 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 certain 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.

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.

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2018Management’s Discussion and Analysis

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 2018 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 or Mulatos 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 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.

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2018Management’s Discussion and Analysis

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. 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, 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

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2018Management’s Discussion and Analysis

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. 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 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

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2018Management’s Discussion and Analysis

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 requirements that certain contracts be denominated in Turkish Lira, 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 Kirazlý Project in Turkey. The Company received its GSM (Business Opening and Operation) permit on July 25, 2018 granted by the Çanakkale Governorship. The Company is awaiting its required operating license, despite assurances from the Republic of Turkey that it is forthcoming. 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 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 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 of 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 the Company’s assets that are located outside of Canada.

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2018Management’s Discussion and Analysis

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.

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.

43

2018Management’s Discussion and Analysis

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.

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

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. 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

44

2018Management’s Discussion and Analysis

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.

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.

45

2018Management’s Discussion and Analysis

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.

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

46

2018Management’s Discussion and Analysis

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.

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

47

2018Management’s Discussion and Analysis

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.

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, 2018). 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.

48

2018Management’s Discussion and Analysis

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; 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, Island Gold, 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.

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.

49

XML

Document and Entity Information Document	12 Months Ended
	Dec. 31, 2018
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	2018
Document Fiscal Period Focus	FY
Amendment Flag	false
Document Period End Date	Dec. 31, 2018

XML

Consolidated Statements of Financial Position - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 206.0	$ 200.8
Equity securities	7.8	35.8
Amounts receivable (note 6)	40.5	41.0
Inventory (note 7)	110.2	161.2
Other current assets	15.5	14.4
Total Current Assets	380.0	453.2
Non-Current Assets
Long-term inventory (note 7)	30.0	68.7
Mineral property, plant and equipment (note 8)	2,813.3	2,753.4
Other non-current assets	41.9	45.0
Total Assets	3,265.2	3,320.3
Current Liabilities
Accounts payable and accrued liabilities (note 9)	118.7	101.0
Income taxes payable	6.2	12.2
Total Current Liabilities	124.9	113.2
Non-Current Liabilities
Deferred income taxes (note 11)	491.5	477.0
Decommissioning liabilities (note 10)	44.9	44.6
Other non-current liabilities	1.6	4.3
Total Liabilities	662.9	639.1
E Q U I T Y
Share capital (note 12)	3,705.2	3,691.7
Contributed surplus	87.3	89.5
Warrants	3.9	4.0
Accumulated other comprehensive (loss) income	(9.2)	13.0
Deficit	(1,184.9)	(1,117.0)
Total Equity	2,602.3	2,681.2
Total Liabilities and Equity	$ 3,265.2	$ 3,320.3

XML

Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Profit or loss [abstract]
OPERATING REVENUES	$ 651.8	$ 542.8
COST OF SALES
Mining and processing	387.2	315.6
Impairment of El Chanate inventory (note 7)	64.0	0.0
Royalties (note 19)	21.6	15.6
Amortization	166.6	125.6
Cost of sales	639.4	456.8
EXPENSES
Exploration	11.0	8.3
Corporate and administrative	17.4	15.5
Share-based compensation (note 12)	6.6	6.2
Total expenses	674.4	486.8
(LOSS) EARNINGS FROM OPERATIONS	(22.6)	56.0
Finance expense	(3.0)	(6.6)
Foreign exchange loss	(4.4)	5.0
Other loss (note 13)	(8.4)	(3.1)
Loss on redemption of senior secured notes	0.0	(29.1)
(LOSS) EARNINGS BEFORE INCOME TAXES	(38.4)	22.2
INCOME TAXES (note 11)
Current income tax expense	(17.3)	(11.9)
Deferred income tax (expense) recovery	(16.9)	16.3
NET (LOSS) EARNINGS	(72.6)	26.6
Items that may be subsequently reclassified to net earnings:
Unrealized (loss) gain on currency hedging instruments, net of taxes	(7.4)	6.0
Unrealized loss on fuel hedging instruments, net of taxes	(0.5)	0.0
Items that will not be reclassified to net earnings:
Unrealized (loss) gain on equity securities, net of taxes	(1.8)	6.6
Total other comprehensive (loss) income	(9.7)	12.6
COMPREHENSIVE (LOSS) INCOME	$ (82.3)	$ 39.2
(LOSS) EARNINGS PER SHARE (note 12)
- basic (usd per share)	$ (0.19)	$ 0.09
- diluted (usd per share)	$ (0.19)	$ 0.09
Weighted average number of common shares outstanding (000's)
- basic (in shares)	389,816	305,521
- diluted (in shares)	389,816	309,021

XML

Consolidated Statements of Changes in Equity - USD ($) $ in Millions	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]	Accumulated other comprehensive income (loss) [member] Fuel Hedging Instruments [Member]	Deficit [member]
Beginning balance at Dec. 31, 2016		$ 2,822.2	$ 70.9	$ 3.5		$ 0.4	$ 0.0	$ 0.0	$ (1,137.6)
Changes in equity [abstract]
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 share-based compensation		2.3
Issuance of shares related to exercise of warrants		0.5
Issuance of shares through flow-through share agreements		8.4
Share-based compensation			6.4
Transfer from contributed surplus of share-based compensation redeemed		1.2	(1.2)
Shares issued related to the merger (note x)			13.4
Exercise of warrants				0.0
Issuance of warrants				0.5
Realized gain on sale of equity securities, reclassified to deficit, net of tax (note 16)						0.0
Unrealized (loss) gain - equity securities, net of taxes						6.6
Unrealized (loss) gain on currency hedging instruments, net of taxes	$ 6.0						6.0	0.0
Dividends (note12(f))									(6.0)
Reclassification of realized gain on sale of equity securities, net of tax (note 16)									0.0
Net (loss) earnings	26.6								26.6
Ending balance at Dec. 31, 2017	2,681.2	3,691.7	89.5	4.0	$ 13.0	7.0	6.0	0.0	(1,117.0)
Changes in equity [abstract]
Issuance of shares related to Richmont acquisition (note 5)		0.0
Issuance of shares through bought deal financing, net of issuance costs and deferred taxes		0.0
Issuance of shares related to share-based compensation		3.5
Issuance of shares related to exercise of warrants		0.6
Issuance of shares through flow-through share agreements		0.0
Share-based compensation			7.2
Transfer from contributed surplus of share-based compensation redeemed		9.4	(9.4)
Shares issued related to the merger (note x)			0.0
Exercise of warrants				(0.2)
Issuance of warrants				0.1
Realized gain on sale of equity securities, reclassified to deficit, net of tax (note 16)						(12.5)
Unrealized (loss) gain - equity securities, net of taxes						(1.8)
Unrealized (loss) gain on currency hedging instruments, net of taxes	(7.4)						(7.4)	(0.5)
Dividends (note12(f))									(7.8)
Reclassification of realized gain on sale of equity securities, net of tax (note 16)									12.5
Net (loss) earnings	(72.6)								(72.6)
Ending balance at Dec. 31, 2018	$ 2,602.3	$ 3,705.2	$ 87.3	$ 3.9	$ (9.2)	$ (7.3)	$ (1.4)	$ (0.5)	$ (1,184.9)

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Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH PROVIDED (USED IN) BY OPERTING ACTIVITIES
Net (loss) earnings for the period	$ (72.6)	$ 26.6
Adjustments for items not involving cash:
Amortization	166.6	125.6
Foreign exchange loss (gain)	4.4	(5.0)
Current income tax expense	17.3	11.9
Deferred income tax expense (recovery)	16.9	(16.3)
Share-based compensation	6.6	6.2
Finance expense	3.0	6.6
Impairment of El Chanate inventory	64.0	0.0
Loss on redemption of senior secured notes	0.0	29.1
Other items (note 14)	5.5	(1.4)
Changes in working capital and taxes received or paid (note 14)	2.2	(19.8)
Cash flows from (used in) operating activities	213.9	163.5
INVESTING ACTIVITIES
Mineral property, plant and equipment	(221.5)	(162.5)
Cash received from the acquisition of Richmont (note 5)	0.0	46.2
Proceeds from sale of equity securities	24.9	(6.7)
Other	0.0	3.6
Cash flows from (used in) investing activities	(196.6)	(119.4)
FINANCING ACTIVITIES
Net proceeds from bought deal financing	0.0	239.1
Repayment of senior secured notes	0.0	(327.2)
Repayment of debt and equipment financing obligations	(4.1)	(4.4)
Interest paid	0.0	(12.2)
Credit facility transaction fees	(0.8)	(2.1)
Proceeds received from the exercise of stock options and warrants	3.9	3.5
Dividends paid	(7.8)	(6.0)
Proceeds from issuance of flow-through shares	0.0	11.7
Cash flows from (used in) financing activities	(8.8)	(97.6)
Effect of exchange rates on cash and cash equivalents	(3.3)	2.1
Increase (decrease) in cash and cash equivalents	5.2	(51.4)
Cash and cash equivalents - beginning of year	200.8	252.2
CASH AND CASH EQUIVALENTS - END OF YEAR	$ 206.0	$ 200.8

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Nature of Operations

12 Months Ended

Dec. 31, 2018

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, 2018

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 20, 2019.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

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
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
Patricia Mining Corp.	Holding company	Canada
Alamos Gold Holdings Inc.	Holding company	Canada
Alamos Gold Holdings Coöperatief U.A.	Holding company	Netherlands
Alamos Gold Holdings B.V.	Holding company	Netherlands

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

(d) Revenue recognition

Revenue from the sale of gold, including refined metal, dore and gold concentrate, is recognized when control over the metal is transferred to the customer. Transfer of control generally occurs when the refined metal, dore, or gold concentrate has been accepted by the customer. Once the customer has accepted the metals, control has typically been transferred and the customer is able to direct the use of and obtain substantially all of the remaining benefits from the metals. On transfer of control, revenue and related costs can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Company as payment is received on the date of or within a few days of transfer of control.

(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 (loss) earnings 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	3-7 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 (loss) earnings as the excess of the carrying amount over the recoverable amount (refer to note 3 (j) for definition of 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) Income.

(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 (Loss) Income.

(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

For financial assets measured at amortized cost, the impairment model under IFRS 9, Financial Instruments ("IFRS 9"), reflects expected credit losses. 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.

(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 (Loss) Income.

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 Comprehensive (Loss) Income 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 to 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) (Loss) earnings per share

Basic (loss) earnings per share is calculated based on the weighted average number of common shares and common share equivalents outstanding for the period. Diluted (loss) earnings 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’s financial instruments are classified and subsequently measured as follows:

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

The Company's accounting policy for financial instruments is 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 classified or designated as at fair value through profit and loss: 1) the Company’s objective 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 is not recycled to profit or loss, rather transfered to deficit. The Company has elected to account for equity securities within this manner.

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

Financial liabilities, including 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 against the United States Dollars ("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-hedging derivative financial instruments are included in net earnings or loss as non-hedging 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 accounting standards and amendments to accounting standards, effective January 1, 2018:

The Company has adopted IFRS 15, Revenue from Contracts with Customers ("IFRS 15") as of January 1, 2018. IFRS 15 covers principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The Company elected to apply IFRS 15 using a modified retroactive approach by recognizing the cumulative effect of initially adopting IFRS 15 as an adjustment to the opening balance sheet through equity at January 1, 2018. The adoption of IFRS 15 resulted in no impact to the consolidated financial statements as the timing of revenue recognition on gold sales is unchanged.

The Company has adopted IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration. The interpretation clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Company has evaluated the impact of applying IFRIC 22, and has concluded that the adoption of the standard had no material impact on the consolidated financial statements.

(v) Standards issued but not yet adopted

Standards issued, but not yet adopted include:

In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16"). The objective of IFRS 16 is to recognize substantially all leases on balance sheet for lessees. IFRS 16 requires lessees to recognize a "right-of-use" asset and a lease liability calculated using a prescribed methodology. The effective date of IFRS 16 is for annual periods beginning on or after January 1, 2019. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company will adopt IFRS 16 for the annual period beginning January 1, 2019 using the modified retrospective approach which does not require restatement of comparative periods. Instead, the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the beginning of 2019.  The Company elected to apply the practical expedient to grandfather its previous assessment of which contracts are, or contain, leases. The Company does not expect IFRS 16 to have a significant impact to the balance sheet, however will result in the recognition of additional right of use assets and lease liabilities on the balance sheet, and a corresponding increase in depreciation and interest expense. The Company also expects cash flows from operating activities to increase under IFRS 16 as lease payments for substantially all leases will be recorded as financing outflows in the consolidated statement of cash flows as opposed to operating cash flows. The Company has substantially completed its assessment of existing operating leases and will finalize its assessment and report more detailed information in its first quarter 2019 interim 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 Company does not expect the adoption of the Interpretation to have a material impact to the consolidated financial statements.

On December 12, 2017 the IASB issued narrow-scope amendments to three standards as part of its annual improvements process. The amendments are effective on or after January 1, 2019. Each of the amendments has its own specific transition requirements.

Amendments were made to the following standards:

• IFRS 3 Business Combinations and IFRS 11 Joint Arrangements - to clarify how an entity accounts for increasing its interest in a joint operation that meets the definition of a business;

• IAS 12 Income Taxes - to clarify that all income tax consequences of dividends are recognized consistently with the transactions that generated the distributable profits - i.e. in profit or loss, OCI, or equity; and

• IAS 23 Borrowing Costs - to clarify that specific borrowings - i.e. funds borrowed specifically to finance the construction of a qualifying asset - should be transferred to the general borrowings pool once the construction of the qualifying asset has been completed. They also clarify that an entity includes funds borrowed specifically to obtain an asset other than a qualifying asset as part of general borrowings.

The Company does not anticipate the adoption of these standard amendments to have an impact on the consolidated financial statements.

On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations, that seek to clarify whether a transaction results in an asset or a business acquisition. The amendments include an election to use a concentration test. This is a simplified assessment that results in an asset acquisition if substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets. If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendments apply to businesses acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The Company does not anticipate the adoption of the amendment to have an impact on the consolidated financial statements.

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Critical Accounting Estimates and Judgements

12 Months Ended

Dec. 31, 2018

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 mineral reserves of it's mines and the portion of mineral resources expected to be ultimately converted to reserves. The estimation of quantities of mineral reserves and mineral 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. Mineral reserve estimates are used in the calculation of depletion expense and to calculate the recoverable amount of a CGU, and to forecast the expected life of a mine.

• The Company forecasts prices of commodities, exchange rates, production costs, discount rates, and recovery rates. These estimates may change the economic status of mineral reserves and may result in mineral reserves and mineral 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 CGUs at December 31, 2018, or for December 31, 2017.

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Acquisition of Richmond Mines Ltd. Acquisition of Richmond Mines Ltd.

12 Months Ended

Dec. 31, 2018

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 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. Richmont owned and operated the Island Gold mine in Ontario, Canada.

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.

During the year, the Company finalized the purchase price allocation, which did not result in any adjustment to the preliminary values allocated to the net assets acquired.

The following table summarizes the final fair value of the total consideration transferred from Alamos shareholders and the fair value of identified assets acquired and liabilities assumed:

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

12 Months Ended

Dec. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Amounts Receivable

6. AMOUNTS RECEIVABLE

	December 31, 2018	December 31, 2017
Sales tax receivables
Canada	$10.6	$6.4
Mexico	17.5	26.5
Other	3.4	0.9
Concentrate receivable	2.3	3.2
Other receivables	6.7	4.0
	$40.5	$41.0

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, 2018

Disclosure of inventories [Abstract]

Inventory

7. INVENTORY

	December 31, 2018		December 31, 2017
In-process precious metals	$53.6		$131.6
Ore in stockpiles	35.4		44.1
Parts and supplies	45.7		41.5
Dore, refined precious metals and gold in concentrate	5.5		12.7
	140.2		229.9
Less: Long-term inventory	(30.0	)	(68.7	)
	$110.2		$161.2

Long term inventory consists of heap leach and long-term stockpiles which are expected to be recovered after one year.

The amount of inventories recognized in mining and processing costs for the year ended December 31, 2018 was $393.1 million (December 31, 2017 - $323.3 million). The amount of inventories recognized in amortization costs for the year ended December 31, 2018 was $166.6 million (December 31, 2017 - $125.6 million).

For the year ended December 31, 2018, the Company wrote down $64.0 million of heap leach inventory at El Chanate, of which $62.5 million related to mining and processing costs and $1.5 million related to amortization. The Company ceased mining activities at El Chanate during 2018 and has begun residual leaching the heap leach pad. An analysis of the recoverability of the ounces in inventory on the heap leach pad was conducted as of December 31, 2018. The Company estimated that approximately 51,900 ounces were not expected to be economically recovered, resulting in an impairment charge of $64.0 million ($49.9 million after-tax).

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Mineral Property, Pland and Equipment

12 Months Ended

Dec. 31, 2018

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, 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
Additions	123.4		73.4	15.3	14.4		226.5
Transfer (i)	—		98.6	—	(98.6	)	—
Disposals	(8.8	)	—	—	—		(8.8	)
At December 31, 2018	$1,217.6		$2,290.3	$95.8	$242.7		$3,846.4
Accumulated amortization and impairment charges
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
Amortization	72.4		88.1	—	—		160.5
Disposals	(2.7	)	—	—	—		(2.7	)
At December 31, 2018	$403.6		$618.1	$5.1	$6.3		$1,033.1
Net carrying value
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6		$2,753.4
At December 31, 2018	$814.0		$1,672.2	$90.7	$236.4		$2,813.3

The net carrying values by segment (note 15) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$608.9	$744.7	$90.7	—	$1,444.3
Mulatos	115.6	95.8	—	—	211.4
Island Gold	79.5	720.6	—	—	800.1
El Chanate	1.5	0.8	—	—	2.3
Kirazlı (i)	3.2	110.3	—	—	113.5
Corporate and other	5.3	—	—	236.4	241.7
At December 31, 2018	$814.0	$1,672.2	$90.7	$236.4	$2,813.3
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

(i) Kirazlı Project

On July 25, 2018, the Company received the GSM (Business Opening and Operation) permit. With receipt of the permit, the costs associated with Kirazlı were transferred from the exploration and evaluation category to the depletable category.

Other

The carrying value of construction in progress at December 31, 2018 was $120.7 million (December 31, 2017 - $64.4 million).

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Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Accounts Payable and Accrued Liabilities

9. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31, 2018		December 31, 2017
Trade accounts payable and accrued liabilities	$104.4		$87.3
Royalties payable	4.8		4.9
Share-based compensation liability	1.6		4.5
Current portion of equipment financing obligations	2.6		4.2
Derivative liabilities (note 16)	5.3		0.1
		$118.7		$101.0

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Decommissioning Liabilities

12 Months Ended

Dec. 31, 2018

Asset Retirement Obligation Disclosure1 [Abstract]

Decommissioning Liabilities

10. 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, 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
Reclamation expenditures	(0.9	)
Accretion expense	3.0
Revisions to expected discounted cash flows	(1.8)
Balance – December 31, 2018	$44.9

The majority of the expenditures are expected to occur between 2021 and 2036. The discount rates used in discounting the estimated reclamation and closure cost obligations were between 2.3% and 8.4% for the year ended December 31, 2018 (2017 – 2.3% and 7.6%), and the inflation rate used was between 2.0% and 4.2% for the year ended December 31, 2018 (2017 – 2.0% and 4.0%).

The total undiscounted value of the decommissioning liabilities at December 31, 2018 was $53.4 million (2017 - $53.2 million).

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Income Taxes

12 Months Ended

Dec. 31, 2018

Disclosure of income tax [Abstract]

Income Taxes

11. INCOME TAXES

The following table represents the major components of income tax expense (recovery) recognized in net (loss) earnings for the years ended December 31, 2018 and 2017:

	December 31, 2018	December 31, 2017
Current income tax expense	$17.3	$11.9
Deferred income tax expense (recovery)	16.9	(16.3	)
Income tax expense (recovery) recognized in net (loss) earnings	$34.2	($4.4	)

The statutory tax rate for 2018 was 25.0% (2017 – 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) earnings for the years ended December 31, 2018 and 2017:

	December 31, 2018		December 31, 2017
(Loss) earnings before income taxes	($38.4	)	$22.2
Statutory tax rate	25.0	%	25.0	%
Expected income tax (recovery) expense based on above rates	($9.6	)	$5.6
Effect of higher tax rates in foreign jurisdictions	(2.4	)	0.3
Non-deductible expenses	4.4		4.9
Impact of local mining taxes	6.0		2.2
Impact of foreign exchange	28.8		(22.5	)
Impact of renouncement of flow through share expenditures	0.3		2.6
Withholding tax	1.2		1.3
Change in unrecognized temporary differences	5.2		2.6
Other	0.3		(1.4	)
Income tax (recovery) expense	$34.2		($4.4	)

The following table reflects the change in deferred income tax liability at December 31, 2018 and December 31, 2017:

	December 31, 2018		December 31, 2017
Balance, beginning of year	$477.0		$291.0
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	—		201.5
Deferred income tax expense (recovery) recognized in net (loss) earnings	16.9		(16.3	)
Deferred income tax (recovery) expense recognized in OCI	(2.4	)	3.5
Deferred income tax recovery recognized in equity	—		(2.7	)
Balance, end of year	$491.5		$477.0

The following reflects the deferred income tax liability at December 31, 2018 and December 31, 2017:

	December 31, 2018		December 31, 2017
Accounting value of mineral property, plant and equipment in excess of tax value	$446.8		$409.0
Accounting value of inventories in excess of tax value	13.8		34.7
Other taxable temporary differences	64.3		58.6
Non-capital losses carried forward	(33.4	)	(25.3	)
Deferred income tax liability	$491.5		$477.0

The Company has Canadian tax losses of $92.8 million expiring between 2024 and 2038, Mexican tax losses of $39.8 million expiring between 2019 and 2028, United States tax losses of $19.6 million expiring between 2028 and 2037, as well as Turkish tax losses of $4.3 million expiring between 2019 and 2023.

The Company has unrecognized deferred income tax assets at December 31, 2018 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 $81.9 million (December 31, 2017 -$77.8 million).

At December 31, 2018, the Company has unrecognized deferred income tax liabilities on taxable temporary differences of $13.4 million (December 31, 2017 - $6.1 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, 2018

Disclosure of share capital, reserves and other equity interest [Abstract]

Share Capital

12. 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, 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	1,301,535	8.4
Outstanding at December 31, 2017	389,101,550	$3,691.7
Shares issued through:
Share-based compensation plans	1,984,698	12.9
Exercise of warrants	163,955	0.6
Outstanding at December 31, 2018	391,250,203	$3,705.2

(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.

Normal Course Issuer Bid

On December 24, 2018, a Normal Course Issuer Bid ("NCIB") was initiated permitting the Company to purchase for cancellation up to 25,513,043 Class A Common Shares (“Common Shares”), representing 10% of the Company’s public float of the Common Shares. The Company may purchase Common Shares under the NCIB over the next twelve-month period beginning December 24, 2018 and ending December 23, 2019. Any purchases made under the NCIB will be effected through the facilities of the TSX, alternative Canadian trading systems and/or the New York Stock Exchange.

As at December 31, 2018, the Company has not purchased and cancelled any Common Shares.

Subsequent to year end, the Company purchased and cancelled 2,444,352 common shares at a cost of $10.0 million or $4.07 per share.

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, and employees 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, 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
Granted	1,009,100		6.56
Exercised	(1,984,698	)	2.40
Expired	(2,798,292	)	12.70
Outstanding at December 31, 2018	6,655,455		$7.38

During the year ended December 31, 2018, the weighted average share price at the date of exercise for stock options exercised was CAD $5.89 per share (for the year ended December 31, 2017: CAD $9.99 per share).

(i) Stock options granted

During the year ended December 31, 2018, the Company granted 1,009,100 stock options (year ended December 31, 2017 - 578,490). 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, 2018		December 31, 2017
Weighted average share price at grant date (CAD$)	$6.56		$9.62
Risk-free rate	1.88% - 2.06%		0.91% - 1.35%
Expected dividend yield	0.70	%	0.70	%
Expected stock price volatility (based on historical volatility)	57	%	57	%
Expected life of option (months)	42 - 84		36 - 84
Weighted average per share fair value of stock options granted (CAD$)	$3.11		$4.27

Stock options outstanding and exercisable as at December 31, 2018:

	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	213,108	2.67	0.04	213,108	2.67
$3.01 - $7.00	2,668,070	4.97	4.52	1,136,011	4.18
$7.01 - $11.00	3,159,640	8.24	1.66	2,773,982	8.05
$11.01 - $15.00	249,777	13.15	0.67	249,777	13.15
$15.01 - $19.00	364,860	16.42	0.56	364,860	16.42
	6,655,455	$7.38	2.65	4,737,738	$7.79

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, 2018 and 2017:

	Restricted share units ("RSU")		Stock appreciation rights ("SAR")		Deferred share units ("DSU")	Performance share units ("PSU")
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
Granted	611,717		—		164,808	440,420
Forfeited	(99,939	)	(482,533	)	—	(56,684	)
Settled	(445,016	)	(63,800	)	—	—
Outstanding units, December 31, 2018	1,567,696		509,192		645,413	983,441

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 at the option of the Company. The Company has historically equity settled these instruments.

e) (Loss) earnings 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 (loss) earnings 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,
	2018			2017
Net (loss) earnings	($72.6		)	$26.6
Weighted average number of common shares outstanding (in thousands)	389,816			305,521
Basic (loss) earnings per share		($0.19	)		$0.09
Dilutive effect of potential common share equivalents (in thousands)	—			3,500
Diluted weighted average number of common shares outstanding (in thousands)	389,816			309,021
Diluted (loss) earnings per share		($0.19	)		$0.09

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 $6.44 for the year ended December 31, 2018 (2017 - CAD $9.40), 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)	2018	2017
Stock options	6,655	2,920
Warrants	5,215	12,232
	11,870	15,152

(f)    Dividends

On April 30 and October 30, 2018, the Company paid a dividend of $0.01 per share or $3.9 million, for a total of $7.8 million in 2018.

(g)    Share purchase warrants

The Company has the following share purchase warrants ("Warrants"), outstanding as at December 31, 2018 related to past acquisitions:

	Number of warrants	Common shares issuable	Exercise price	Expiry date
	(000s)	(000s)	CAD
AGI.WT.A	5,215	5,215	$10.00	January 7, 2019
	5,215	5,215

On August 30, 2018, 7,167,000 warrants expired. The warrants previously traded under the ticker AGI.WT. The company recorded a $0.1 million gain upon the expiry.

Subsequent to year end, on January 7, 2019, 5,215,000 warrants with the ticker AGI.WT.A expired unexercised.

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Other Gain (Loss)

12 Months Ended

Dec. 31, 2018

Other Gain (Loss) [Abstract]

Other (Loss) Gain

13. OTHER LOSS

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

	December 31,		December 31,
	2018		2017
Reduction of obligation to renounce flow-through exploration expenditures	$0.6		$2.3
Unrealized loss on non-hedging derivatives	(0.4	)	(0.3	)
Loss on disposal of assets	(6.1	)	(1.9	)
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	(2.5	)	1.9
	($8.4	)	($3.1	)

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Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2018

Disclosure of Cash Flow Statement [Abstract]

Supplemental Cash Flow Information

14. SUPPLEMENTAL CASH FLOW INFORMATION

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

	December 31,		December 31,
	2018		2017
Amounts receivable	($7.9	)	$14.0
Inventory	13.9		(15.9	)
Advances and prepaid expenses	(7.2	)	(4.3	)
Accounts payable and accrued liabilities	7.6		(12.1	)
Income taxes paid	(4.2	)	(1.5	)
	$2.2		($19.8	)
Interest received	$2.8		$2.5

Other items for the years ended:

	December 31,			December 31,
	2018			2017
Unrealized loss on non-hedging derivatives		$0.4			$0.3
Payment for reclamation activities	(0.9		)	—
Reduction of obligation to renounce flow-through exploration expenditures	(0.6		)	(2.3		)
Loss on disposal of assets	6.1			1.9
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	0.5			3.3
	$5.5			($1.4		)

XML

Segmented Information

12 Months Ended

Dec. 31, 2018

Disclosure of entity's operating segments [Abstract]

Segmented Information

15. 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, 2018
	Young-Davidson	Mulatos	Island Gold	El Chanate		Corporate/other1		Total
Operating revenues	$236.3	$223.3	$135.1	$57.1		—		$651.8
Cost of sales
Mining and processing	149.0	125.9	56.0	56.3		—		387.2
Impairment of El Chanate inventory	—	—	—	64.0		—		64.0
Royalties	3.6	11.8	6.2	—		—		21.6
Amortization	82.4	35.4	44.3	4.5		—		166.6
	235.0	173.1	106.5	124.8		—		639.4
Expenses
Exploration	—	7.5	1.4	—		2.1		11.0
Corporate and administrative	—	—	—	—		17.4		17.4
Share-based compensation	—	—	—	—		6.6		6.6
Earnings (loss) from operations	$1.3	$42.7	$27.2	($67.7	)	($26.1	)	($22.6	)
Finance expense								(3.0	)
Foreign exchange loss								(4.4	)
Other loss								(8.4	)
Loss before income taxes								($38.4	)

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

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								(6.6	)
Foreign exchange gain								5.0
Other loss								(3.1	)
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.

(b) Segment assets and liabilities

The following table presents the segment assets and liabilities:

	Total Assets		Total liabilities
	December 31, 2018	December 31, 2017	December 31, 2018	December 31, 2017
Young-Davidson	$1,569.4	$1,580.9	$272.3	$243.4
Mulatos	366.9	356.5	95.4	100.3
Island Gold	876.2	849.6	236.3	222.5
El Chanate	35.9	111.4	5.9	24.3
Corporate/other	416.8	421.9	53.0	48.6
Total assets and liabilities	$3,265.2	$3,320.3	$662.9	$639.1

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Financial Instruments and Risk Management

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about financial instruments [abstract]

Financial Instruments and Risk Management

16. 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, 2018. 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, 2018			December 31, 2017
	Level 1	Level 2		Level 1		Level 2
Financial assets
Fair value through profit or loss
Gold options	—	—		—		0.5
Fair value through OCI
Equity securities	7.8	—		35.8		—
Currency hedging derivative instruments	—	—		—		5.0
Financial liabilities
Fair value through profit or loss
Share purchase warrants	—	—		(0.1	)	—
Gold options	—	(0.1	)	—		—
Fair value through OCI
Currency hedging derivative instruments	—	(4.7	)	—		—
Fuel options	—	(0.5	)	—		—
	$7.8	($5.3	)	$35.7		$5.5

The methods of measuring financial assets and liabilities have not changed during the year ended December 31, 2018. 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.

Equity Securities

As at December 31, 2018, the Company held shares in Monarques Gold Corp. that had a value of $7.3 million. The Company also has other investments valued at $0.5 million.

During the first quarter of 2018, the Company disposed of its investment in AuRico Metals as it was acquired by a third party for CAD$1.80 per share. The Company received $22.2 million in proceeds on its investment, resulting in a gain of $13.7 million, based on an average cost of CAD$0.72 per share. Also in the first quarter, the Company disposed of its position in Corex Gold for $2.7 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. The tax impact of these gains were $1.8 million. These gains were transferred from accumulated other comprehensive income to deficit.

Revolving Credit Facility

In the third quarter of 2018, the Company completed the extension of its existing undrawn revolving credit facility (the "Facility") of $400.0 million to September 20, 2022 from September 20, 2021 at similar terms and conditions to those existing previously. The Facility bears interest at a 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, 2018, the Company is in compliance with the covenants and the Facility is fully undrawn.

The Company incurred costs of $0.8 million in 2018 to extend the Facility (2017 - $2.1 million). These costs are amortized into net earnings over the term of the Facility.

Derivative Instruments

The fair value of derivative instruments is as follows:

	December 31,		December 31,
	2018		2017
Derivatives designated as hedging instruments
Currency hedging derivative instruments	($4.7	)	$5.0
Fuel options	(0.5	)	—
	(5.2	)	5.0
Derivatives not designated as hedging instruments
Gold options	($0.1	)	$0.5
Share purchase warrants liability	—		(0.1	)
	($0.1	)	$0.4

Currency derivative instruments

The Company enters into option and forward contracts to hedge 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, 2018, the Company has 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). Cash flows in relation to the designated hedged item and hedging instrument are matched since the foreign currency option and forward contracts (hedging instrument) matures during the same month as the operational cash flows (hedged item) are expected to be incurred. The correlation between the foreign exchange rate of the hedged item and the hedging instrument is 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 using one unit of both the hedged and hedging item respectively.

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

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, 2018 and 2017 recorded in accumulated other comprehensive income is:

	December 31,		December 31,
	2018		2017
Balance, beginning of the period	$6.0		—
Unrealized (loss) gains on currency instruments	(5.9	)	11.2
Less: realized gains on CAD currency instruments	(3.9	)	(2.2	)
Less: realized gains on MXN currency instruments	—		(1.3	)
Deferred income tax related to hedging instrument	2.4		(1.7	)
	($1.4	)	$6.0

For the year ended December 31, 2018, 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, 2018:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)	Forward price (USD/CAD)
2019	Collars	342.0	1.30	1.35	N/A
2019	Forwards	9.0	N/A	N/A	1.34

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2019	Collars	1,380.0	19.50	22.07

The fair value of these contracts was a liability of $4.7 million at December 31, 2018 (December 31, 2017 - asset of $5.0 million). For the year ended December 31, 2018, the Company realized gains of $3.9 million on the foreign currency contracts (for the year ended December 31, 2017 - realized gains of $4.3 million).

Gold option contracts

As at December 31, 2018, 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 $1,250 per ounce and a maximum average realized gold price of $1,377 per ounce, regardless of the movement in gold prices during 2019.

The following gold collar contracts are outstanding as of December 31, 2018:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2019	15,000	$1,250	$1,377

The fair value of these contracts was a liability of $0.1 million at December 31, 2018 (December 31, 2017 - asset of $0.5 million). The options mature through out 2018.

For the year ended December 31, 2018, the Company realized a gain of $3.9 million related to the settlement of option contracts (for the year ended December 31, 2017 - realized losses of $0.6 million). Total unrealized losses for the year ended December 31, 2018 was $0.6 million (for the year ended December 31, 2017 - unrealized gain of $2.6 million). The Company has elected to not apply hedge accounting to the gold option contracts, with changes in fair value recorded in net earnings.

Fuel option contracts

The Company enters into option contracts to hedge against the risk of an increase in the price of diesel fuel. These option contracts are for the purchase of New York Harbour Ultra Low Sulfur Diesel ("ULSD") contracts, which settle on a monthly basis, and the Company believes this is an appropriate manner of managing price risk.

During the year ended December 31, 2018, the Company has designated options as cash flow hedges for the highly probable consumption of diesel. 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 the hedging instrument. In order to assess the economic relationship between rack ULSD price and the NY Harbour ULSD benchmark, the Company considered both qualitative and quantitative factors. Cash flows in relation to the designated hedged item and hedging instrument are matched since the NY Harbour ULSD option contracts (hedging instrument) expires during the same month as the operational cash flows (hedged item) are expected to be incurred. The correlation between the hedged item and the hedging instrument is 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 the diesel price risk that is hedged with a NY Harbour ULSD hedging instrument using one unit of both the hedged and hedging item respectively.

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

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.

As at December 31, 2018, the Company has hedged 2.74 million gallons of diesel at a range of $1.83 to $2.09 per gallon.

For the year ended December 31, 2018, the Company has an unrealized loss of $0.5 million recorded in accumulated other comprehensive loss related to the fuel hedges. The Company did not recognize any ineffectiveness on the hedging instruments.

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, 2018, 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, 2018 by $63.0 million (2017 - $54.3 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, 2018 would have increased or reduced other comprehensive (loss) income by $0.8 million (2017 - $3.5 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 future cash flows attributable to changes in market interest rates. The interest rate on the Facility is variable, however, the Facility was undrawn as at December 31, 2018.

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 $2.1 million in interest earned by the Company. The Company has not entered into any derivative contracts to manage this risk.

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 or deterioration 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, 2018	December 31, 2017
Impact of a 10% change in foreign exchange rates
Canadian dollar	$1.4	$7.8
Mexican peso	2.1	1.5

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, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Cash and cash equivalents	$26.8		$43.1		$10.8		$7.1
Equity securities	7.8		35.8		—		—
Amounts receivable	11.9		7.4		21.4		22.0
Other monetary assets	33.0		47.8		5.9		—
Accounts payable and accrued liabilities	(69.1	)	(56.1	)	(16.8	)	(14.7	)
Total exposure to currency risk	10.4		78.0		21.3		14.4

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, 2018		December 31, 2017
Cash and cash equivalents		$206.0		$200.8
Concentrate receivable	2.3		3.2
Trade receivables	5.7		4.0
Total financial instrument exposure to credit risk	$214.0		$208.0

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	3.1	1.5	0.7	0.6	5.9
Accounts payable and accrued liabilities	118.7	—	—	—	118.7
Decommissioning liability	—	6.4	—	47.0	53.4
Contract mining	31.9	32.0	—	—	63.9
Capital commitments	24.5	—	—	—	24.5
	$178.2	$39.9	$0.7	$47.6	$266.4

Contractual obligations exist with respect to royalties (note 19); 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.

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Management of Capital

12 Months Ended

Dec. 31, 2018

Disclosure of objectives, policies and processes for managing capital [abstract]

Management of Capital

17. 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, 2018, total managed capital was $2,602.3 million (2017 - $2,681.2 million).

	December 31, 2018	December 31, 2017
Shareholder's equity	$2,602.3	$2,681.2

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, 2018

Disclosure of related party [Abstract]

Related Party Transactions

18. 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:	2018	2017
Short-term employee benefits	6.1	8.8
Share-based payments	4.9	4.5
	$11.0	$13.3

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, 2018

Disclosure of additional information [Abstract]

Commitments

19. COMMITMENTS

Capital commitments

As of December 31, 2018, the Company has $24.5 million in committed capital purchases (December 31, 2017 - $21.8 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, 2018, the royalty was paid or accrued on approximately 1.97 million ounces of applicable gold production. Royalty expense related to the third party royalty was $10.6 million for the year ended December 31, 2018 (2017 - $9.6 million). In addition, royalty expense includes the 0.5% Extraordinary Mining Duty, which totaled $1.2 million for the year ended December 31, 2018, payable to the Mexican government (2017- $1.0 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, 2018, the Company recorded a royalty expense of $3.5 million (2017 - $3.9 million). In addition, other royalties related to production at Young-Davidson totaled $0.1 million for the year ended December 31, 2018 (2017 - $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 year ended December 31, 2018, the Company recorded a royalty expense of $6.2 million related to production at Island Gold (2017 - $0.6 million).

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 is also subject to a 2% state royalty on production in Turkey based on current gold prices, subject to certain deductions. No payments have been made, as the projects are not in production.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

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
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
Patricia Mining Corp.	Holding company	Canada
Alamos Gold Holdings Inc.	Holding company	Canada
Alamos Gold Holdings Coöperatief U.A.	Holding company	Netherlands
Alamos Gold Holdings B.V.	Holding company	Netherlands

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

Revenue recognition

Revenue recognition

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	3-7 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 (loss) earnings 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	3-7 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 (loss) earnings as the excess of the carrying amount over the recoverable amount (refer to note 3 (j) for definition of 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) Income.

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 (Loss) Income.

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 (Loss) Income.

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 Comprehensive (Loss) Income 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 to 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) earnings per share

Basic (loss) earnings per share is calculated based on the weighted average number of common shares and common share equivalents outstanding for the period. Diluted (loss) earnings 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’s financial instruments are classified and subsequently measured as follows:

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

The Company's accounting policy for financial instruments is 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 classified or designated as at fair value through profit and loss: 1) the Company’s objective 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 is not recycled to profit or loss, rather transfered to deficit. The Company has elected to account for equity securities within this manner.

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

Financial liabilities, including 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 against the United States Dollars ("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-hedging derivative financial instruments are included in net earnings or loss as non-hedging 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 accounting standards and amendments to accounting standards, effective January 1, 2018:

The Company has adopted IFRS 15, Revenue from Contracts with Customers ("IFRS 15") as of January 1, 2018. IFRS 15 covers principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. The Company elected to apply IFRS 15 using a modified retroactive approach by recognizing the cumulative effect of initially adopting IFRS 15 as an adjustment to the opening balance sheet through equity at January 1, 2018. The adoption of IFRS 15 resulted in no impact to the consolidated financial statements as the timing of revenue recognition on gold sales is unchanged.

The Company has adopted IFRIC Interpretation 22, Foreign Currency Transactions and Advance Consideration. The interpretation clarifies which date should be used for translation when a foreign currency transaction involves an advance payment or receipt. The Company has evaluated the impact of applying IFRIC 22, and has concluded that the adoption of the standard had no material impact on the consolidated financial statements.

Standards issued but not yet adopted

Standards issued, but not yet adopted include:

In January 2016, the IASB issued IFRS 16, Leases ("IFRS 16"). The objective of IFRS 16 is to recognize substantially all leases on balance sheet for lessees. IFRS 16 requires lessees to recognize a "right-of-use" asset and a lease liability calculated using a prescribed methodology. The effective date of IFRS 16 is for annual periods beginning on or after January 1, 2019. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company will adopt IFRS 16 for the annual period beginning January 1, 2019 using the modified retrospective approach which does not require restatement of comparative periods. Instead, the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the beginning of 2019.  The Company elected to apply the practical expedient to grandfather its previous assessment of which contracts are, or contain, leases. The Company does not expect IFRS 16 to have a significant impact to the balance sheet, however will result in the recognition of additional right of use assets and lease liabilities on the balance sheet, and a corresponding increase in depreciation and interest expense. The Company also expects cash flows from operating activities to increase under IFRS 16 as lease payments for substantially all leases will be recorded as financing outflows in the consolidated statement of cash flows as opposed to operating cash flows. The Company has substantially completed its assessment of existing operating leases and will finalize its assessment and report more detailed information in its first quarter 2019 interim 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 Company does not expect the adoption of the Interpretation to have a material impact to the consolidated financial statements.

On December 12, 2017 the IASB issued narrow-scope amendments to three standards as part of its annual improvements process. The amendments are effective on or after January 1, 2019. Each of the amendments has its own specific transition requirements.

Amendments were made to the following standards:

• IFRS 3 Business Combinations and IFRS 11 Joint Arrangements - to clarify how an entity accounts for increasing its interest in a joint operation that meets the definition of a business;

• IAS 12 Income Taxes - to clarify that all income tax consequences of dividends are recognized consistently with the transactions that generated the distributable profits - i.e. in profit or loss, OCI, or equity; and

• IAS 23 Borrowing Costs - to clarify that specific borrowings - i.e. funds borrowed specifically to finance the construction of a qualifying asset - should be transferred to the general borrowings pool once the construction of the qualifying asset has been completed. They also clarify that an entity includes funds borrowed specifically to obtain an asset other than a qualifying asset as part of general borrowings.

The Company does not anticipate the adoption of these standard amendments to have an impact on the consolidated financial statements.

On October 22, 2018, the IASB issued amendments to IFRS 3 Business Combinations, that seek to clarify whether a transaction results in an asset or a business acquisition. The amendments include an election to use a concentration test. This is a simplified assessment that results in an asset acquisition if substantially all of the fair value of the gross assets is concentrated in a single identifiable asset or a group of similar identifiable assets. If a preparer chooses not to apply the concentration test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendments apply to businesses acquired in annual reporting periods beginning on or after January 1, 2020. Earlier application is permitted. The Company does not anticipate the adoption of the amendment to have an impact on the consolidated financial statements.

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Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

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
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
Patricia Mining Corp.	Holding company	Canada
Alamos Gold Holdings Inc.	Holding company	Canada
Alamos Gold Holdings Coöperatief U.A.	Holding company	Netherlands
Alamos Gold Holdings B.V.	Holding company	Netherlands

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	3-7 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, 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
Additions	123.4		73.4	15.3	14.4		226.5
Transfer (i)	—		98.6	—	(98.6	)	—
Disposals	(8.8	)	—	—	—		(8.8	)
At December 31, 2018	$1,217.6		$2,290.3	$95.8	$242.7		$3,846.4
Accumulated amortization and impairment charges
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
Amortization	72.4		88.1	—	—		160.5
Disposals	(2.7	)	—	—	—		(2.7	)
At December 31, 2018	$403.6		$618.1	$5.1	$6.3		$1,033.1
Net carrying value
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6		$2,753.4
At December 31, 2018	$814.0		$1,672.2	$90.7	$236.4		$2,813.3

The net carrying values by segment (note 15) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$608.9	$744.7	$90.7	—	$1,444.3
Mulatos	115.6	95.8	—	—	211.4
Island Gold	79.5	720.6	—	—	800.1
El Chanate	1.5	0.8	—	—	2.3
Kirazlı (i)	3.2	110.3	—	—	113.5
Corporate and other	5.3	—	—	236.4	241.7
At December 31, 2018	$814.0	$1,672.2	$90.7	$236.4	$2,813.3
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

Schedule of Investments By Classification

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

Schedule of Recently Issued Standards, Not Yet Adopted

Standards issued, but not yet adopted include:

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Acquisition of Richmond Mines Ltd. (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about business combination [abstract]

Schedule of Asset Acquisitions

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

XML

Amounts Receivable (Tables)

12 Months Ended

Dec. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Schedule of Receivables

	December 31, 2018	December 31, 2017
Sales tax receivables
Canada	$10.6	$6.4
Mexico	17.5	26.5
Other	3.4	0.9
Concentrate receivable	2.3	3.2
Other receivables	6.7	4.0
	$40.5	$41.0

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Inventory (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of inventories [Abstract]

Schedule of Inventory

	December 31, 2018		December 31, 2017
In-process precious metals	$53.6		$131.6
Ore in stockpiles	35.4		44.1
Parts and supplies	45.7		41.5
Dore, refined precious metals and gold in concentrate	5.5		12.7
	140.2		229.9
Less: Long-term inventory	(30.0	)	(68.7	)
	$110.2		$161.2

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Mineral Property, Pland and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

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	3-7 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, 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
Additions	123.4		73.4	15.3	14.4		226.5
Transfer (i)	—		98.6	—	(98.6	)	—
Disposals	(8.8	)	—	—	—		(8.8	)
At December 31, 2018	$1,217.6		$2,290.3	$95.8	$242.7		$3,846.4
Accumulated amortization and impairment charges
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
Amortization	72.4		88.1	—	—		160.5
Disposals	(2.7	)	—	—	—		(2.7	)
At December 31, 2018	$403.6		$618.1	$5.1	$6.3		$1,033.1
Net carrying value
At December 31, 2017	$769.1		$1,588.3	$75.4	$320.6		$2,753.4
At December 31, 2018	$814.0		$1,672.2	$90.7	$236.4		$2,813.3

The net carrying values by segment (note 15) are as follows:

		Mineral property
	Plant and equipment	Depletable	Non-depletable	Exploration and evaluation	Total
Young-Davidson	$608.9	$744.7	$90.7	—	$1,444.3
Mulatos	115.6	95.8	—	—	211.4
Island Gold	79.5	720.6	—	—	800.1
El Chanate	1.5	0.8	—	—	2.3
Kirazlı (i)	3.2	110.3	—	—	113.5
Corporate and other	5.3	—	—	236.4	241.7
At December 31, 2018	$814.0	$1,672.2	$90.7	$236.4	$2,813.3
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

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Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Subclassifications of assets, liabilities and equities [abstract]

Schedule of Accounts Payable and Accrued Liabilities

	December 31, 2018		December 31, 2017
Trade accounts payable and accrued liabilities	$104.4		$87.3
Royalties payable	4.8		4.9
Share-based compensation liability	1.6		4.5
Current portion of equipment financing obligations	2.6		4.2
Derivative liabilities (note 16)	5.3		0.1
		$118.7		$101.0

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Decommissioning Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

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, 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
Reclamation expenditures	(0.9	)
Accretion expense	3.0
Revisions to expected discounted cash flows	(1.8)
Balance – December 31, 2018	$44.9

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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) earnings for the years ended December 31, 2018 and 2017:

	December 31, 2018	December 31, 2017
Current income tax expense	$17.3	$11.9
Deferred income tax expense (recovery)	16.9	(16.3	)
Income tax expense (recovery) recognized in net (loss) earnings	$34.2	($4.4	)

Reconciliation Of Accounting Profit Multiplied By Applicable Tax Rates And Average Effective Tax Rate

The statutory tax rate for 2018 was 25.0% (2017 – 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) earnings for the years ended December 31, 2018 and 2017:

	December 31, 2018		December 31, 2017
(Loss) earnings before income taxes	($38.4	)	$22.2
Statutory tax rate	25.0	%	25.0	%
Expected income tax (recovery) expense based on above rates	($9.6	)	$5.6
Effect of higher tax rates in foreign jurisdictions	(2.4	)	0.3
Non-deductible expenses	4.4		4.9
Impact of local mining taxes	6.0		2.2
Impact of foreign exchange	28.8		(22.5	)
Impact of renouncement of flow through share expenditures	0.3		2.6
Withholding tax	1.2		1.3
Change in unrecognized temporary differences	5.2		2.6
Other	0.3		(1.4	)
Income tax (recovery) expense	$34.2		($4.4	)

Schedule of Change in Deferred Income Tax Liability

The following table reflects the change in deferred income tax liability at December 31, 2018 and December 31, 2017:

	December 31, 2018		December 31, 2017
Balance, beginning of year	$477.0		$291.0
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	—		201.5
Deferred income tax expense (recovery) recognized in net (loss) earnings	16.9		(16.3	)
Deferred income tax (recovery) expense recognized in OCI	(2.4	)	3.5
Deferred income tax recovery recognized in equity	—		(2.7	)
Balance, end of year	$491.5		$477.0

Schedule of Deferred Tax Assets and Liabilities

The following reflects the deferred income tax liability at December 31, 2018 and December 31, 2017:

	December 31, 2018		December 31, 2017
Accounting value of mineral property, plant and equipment in excess of tax value	$446.8		$409.0
Accounting value of inventories in excess of tax value	13.8		34.7
Other taxable temporary differences	64.3		58.6
Non-capital losses carried forward	(33.4	)	(25.3	)
Deferred income tax liability	$491.5		$477.0

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Share Capital (Tables)

12 Months Ended

Dec. 31, 2018

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, 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	1,301,535	8.4
Outstanding at December 31, 2017	389,101,550	$3,691.7
Shares issued through:
Share-based compensation plans	1,984,698	12.9
Exercise of warrants	163,955	0.6
Outstanding at December 31, 2018	391,250,203	$3,705.2

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, 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
Granted	1,009,100		6.56
Exercised	(1,984,698	)	2.40
Expired	(2,798,292	)	12.70
Outstanding at December 31, 2018	6,655,455		$7.38

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, 2018		December 31, 2017
Weighted average share price at grant date (CAD$)	$6.56		$9.62
Risk-free rate	1.88% - 2.06%		0.91% - 1.35%
Expected dividend yield	0.70	%	0.70	%
Expected stock price volatility (based on historical volatility)	57	%	57	%
Expected life of option (months)	42 - 84		36 - 84
Weighted average per share fair value of stock options granted (CAD$)	$3.11		$4.27

Disclosure of number and weighted average remaining contractual life of outstanding share options

Stock options outstanding and exercisable as at December 31, 2018:

	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	213,108	2.67	0.04	213,108	2.67
$3.01 - $7.00	2,668,070	4.97	4.52	1,136,011	4.18
$7.01 - $11.00	3,159,640	8.24	1.66	2,773,982	8.05
$11.01 - $15.00	249,777	13.15	0.67	249,777	13.15
$15.01 - $19.00	364,860	16.42	0.56	364,860	16.42
	6,655,455	$7.38	2.65	4,737,738	$7.79

Stock options outstanding and exercisable by range of exercise prices

Stock options outstanding and exercisable as at December 31, 2018:

	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	213,108	2.67	0.04	213,108	2.67
$3.01 - $7.00	2,668,070	4.97	4.52	1,136,011	4.18
$7.01 - $11.00	3,159,640	8.24	1.66	2,773,982	8.05
$11.01 - $15.00	249,777	13.15	0.67	249,777	13.15
$15.01 - $19.00	364,860	16.42	0.56	364,860	16.42
	6,655,455	$7.38	2.65	4,737,738	$7.79

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, 2018 and 2017:

	Restricted share units ("RSU")		Stock appreciation rights ("SAR")		Deferred share units ("DSU")	Performance share units ("PSU")
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
Granted	611,717		—		164,808	440,420
Forfeited	(99,939	)	(482,533	)	—	(56,684	)
Settled	(445,016	)	(63,800	)	—	—
Outstanding units, December 31, 2018	1,567,696		509,192		645,413	983,441

Schedule of Earnings (loss) per share

	For the years ended December 31,
	2018			2017
Net (loss) earnings	($72.6		)	$26.6
Weighted average number of common shares outstanding (in thousands)	389,816			305,521
Basic (loss) earnings per share		($0.19	)		$0.09
Dilutive effect of potential common share equivalents (in thousands)	—			3,500
Diluted weighted average number of common shares outstanding (in thousands)	389,816			309,021
Diluted (loss) earnings per share		($0.19	)		$0.09

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)	2018	2017
Stock options	6,655	2,920
Warrants	5,215	12,232
	11,870	15,152

Schedule of Share Purchase Warrants

The Company has the following share purchase warrants ("Warrants"), outstanding as at December 31, 2018 related to past acquisitions:

	Number of warrants	Common shares issuable	Exercise price	Expiry date
	(000s)	(000s)	CAD
AGI.WT.A	5,215	5,215	$10.00	January 7, 2019
	5,215	5,215

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Other (Loss) Gain (Tables)

12 Months Ended

Dec. 31, 2018

Other Gain (Loss) [Abstract]

Schedule of Other Nonoperating Income (Expense)

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

	December 31,		December 31,
	2018		2017
Reduction of obligation to renounce flow-through exploration expenditures	$0.6		$2.3
Unrealized loss on non-hedging derivatives	(0.4	)	(0.3	)
Loss on disposal of assets	(6.1	)	(1.9	)
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	(2.5	)	1.9
	($8.4	)	($3.1	)

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2018

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,
	2018		2017
Amounts receivable	($7.9	)	$14.0
Inventory	13.9		(15.9	)
Advances and prepaid expenses	(7.2	)	(4.3	)
Accounts payable and accrued liabilities	7.6		(12.1	)
Income taxes paid	(4.2	)	(1.5	)
	$2.2		($19.8	)
Interest received	$2.8		$2.5

Other items for the years ended:

	December 31,			December 31,
	2018			2017
Unrealized loss on non-hedging derivatives		$0.4			$0.3
Payment for reclamation activities	(0.9		)	—
Reduction of obligation to renounce flow-through exploration expenditures	(0.6		)	(2.3		)
Loss on disposal of assets	6.1			1.9
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	0.5			3.3
	$5.5			($1.4		)

Schedule of Other Significant Noncash Transactions

Other items for the years ended:

	December 31,			December 31,
	2018			2017
Unrealized loss on non-hedging derivatives		$0.4			$0.3
Payment for reclamation activities	(0.9		)	—
Reduction of obligation to renounce flow-through exploration expenditures	(0.6		)	(2.3		)
Loss on disposal of assets	6.1			1.9
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	0.5			3.3
	$5.5			($1.4		)

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Segmented Information (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018
	Young-Davidson	Mulatos	Island Gold	El Chanate		Corporate/other1		Total
Operating revenues	$236.3	$223.3	$135.1	$57.1		—		$651.8
Cost of sales
Mining and processing	149.0	125.9	56.0	56.3		—		387.2
Impairment of El Chanate inventory	—	—	—	64.0		—		64.0
Royalties	3.6	11.8	6.2	—		—		21.6
Amortization	82.4	35.4	44.3	4.5		—		166.6
	235.0	173.1	106.5	124.8		—		639.4
Expenses
Exploration	—	7.5	1.4	—		2.1		11.0
Corporate and administrative	—	—	—	—		17.4		17.4
Share-based compensation	—	—	—	—		6.6		6.6
Earnings (loss) from operations	$1.3	$42.7	$27.2	($67.7	)	($26.1	)	($22.6	)
Finance expense								(3.0	)
Foreign exchange loss								(4.4	)
Other loss								(8.4	)
Loss before income taxes								($38.4	)

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

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								(6.6	)
Foreign exchange gain								5.0
Other loss								(3.1	)
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.

(b) Segment assets and liabilities

The following table presents the segment assets and liabilities:

	Total Assets		Total liabilities
	December 31, 2018	December 31, 2017	December 31, 2018	December 31, 2017
Young-Davidson	$1,569.4	$1,580.9	$272.3	$243.4
Mulatos	366.9	356.5	95.4	100.3
Island Gold	876.2	849.6	236.3	222.5
El Chanate	35.9	111.4	5.9	24.3
Corporate/other	416.8	421.9	53.0	48.6
Total assets and liabilities	$3,265.2	$3,320.3	$662.9	$639.1

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Financial Instruments and Risk Management (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of detailed information about financial instruments [abstract]

Disclosure of fair value measurement of assets

	December 31, 2018			December 31, 2017
	Level 1	Level 2		Level 1		Level 2
Financial assets
Fair value through profit or loss
Gold options	—	—		—		0.5
Fair value through OCI
Equity securities	7.8	—		35.8		—
Currency hedging derivative instruments	—	—		—		5.0
Financial liabilities
Fair value through profit or loss
Share purchase warrants	—	—		(0.1	)	—
Gold options	—	(0.1	)	—		—
Fair value through OCI
Currency hedging derivative instruments	—	(4.7	)	—		—
Fuel options	—	(0.5	)	—		—
	$7.8	($5.3	)	$35.7		$5.5

Disclosure of fair value measurement of liabilities

	December 31, 2018			December 31, 2017
	Level 1	Level 2		Level 1		Level 2
Financial assets
Fair value through profit or loss
Gold options	—	—		—		0.5
Fair value through OCI
Equity securities	7.8	—		35.8		—
Currency hedging derivative instruments	—	—		—		5.0
Financial liabilities
Fair value through profit or loss
Share purchase warrants	—	—		(0.1	)	—
Gold options	—	(0.1	)	—		—
Fair value through OCI
Currency hedging derivative instruments	—	(4.7	)	—		—
Fuel options	—	(0.5	)	—		—
	$7.8	($5.3	)	$35.7		$5.5

Disclosure of detailed information about hedges

The fair value of derivative instruments is as follows:

	December 31,		December 31,
	2018		2017
Derivatives designated as hedging instruments
Currency hedging derivative instruments	($4.7	)	$5.0
Fuel options	(0.5	)	—
	(5.2	)	5.0
Derivatives not designated as hedging instruments
Gold options	($0.1	)	$0.5
Share purchase warrants liability	—		(0.1	)
	($0.1	)	$0.4

Disclosure of information about credit exposures designated as measured at fair value through profit or loss

	December 31,		December 31,
	2018		2017
Balance, beginning of the period	$6.0		—
Unrealized (loss) gains on currency instruments	(5.9	)	11.2
Less: realized gains on CAD currency instruments	(3.9	)	(2.2	)
Less: realized gains on MXN currency instruments	—		(1.3	)
Deferred income tax related to hedging instrument	2.4		(1.7	)
	($1.4	)	$6.0

Schedule of Contracts Settled on Monthly Basis

The open contracts, which settle on a monthly basis, are summarized as at December 31, 2018:

Canadian dollar contracts

Period Covered	Contract type	Contracts (CAD$ Millions)	Average minimum rate (USD/CAD)	Average maximum rate (USD/CAD)	Forward price (USD/CAD)
2019	Collars	342.0	1.30	1.35	N/A
2019	Forwards	9.0	N/A	N/A	1.34

Mexican Peso contracts

Period Covered	Contract type	Contracts (MXN Millions)	Average minimum rate (MXN/USD)	Average maximum rate (MXN/USD)
2019	Collars	1,380.0	19.50	22.07

Schedule of Outstanding Derivative Contracts

The following gold collar contracts are outstanding as of December 31, 2018:

Period Covered	Ounces subject to contract	Average purchase put option	Average sold call option
2019	15,000	$1,250	$1,377

Schedule of Foreign Currency Exchange Rate Risk

	December 31, 2018	December 31, 2017
Impact of a 10% change in foreign exchange rates
Canadian dollar	$1.4	$7.8
Mexican peso	2.1	1.5

Disclosure of credit risk exposure

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

	December 31, 2018		December 31, 2017
Cash and cash equivalents		$206.0		$200.8
Concentrate receivable	2.3		3.2
Trade receivables	5.7		4.0
Total financial instrument exposure to credit risk	$214.0		$208.0

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, 2018		December 31, 2017		December 31, 2018		December 31, 2017
Cash and cash equivalents	$26.8		$43.1		$10.8		$7.1
Equity securities	7.8		35.8		—		—
Amounts receivable	11.9		7.4		21.4		22.0
Other monetary assets	33.0		47.8		5.9		—
Accounts payable and accrued liabilities	(69.1	)	(56.1	)	(16.8	)	(14.7	)
Total exposure to currency risk	10.4		78.0		21.3		14.4

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	3.1	1.5	0.7	0.6	5.9
Accounts payable and accrued liabilities	118.7	—	—	—	118.7
Decommissioning liability	—	6.4	—	47.0	53.4
Contract mining	31.9	32.0	—	—	63.9
Capital commitments	24.5	—	—	—	24.5
	$178.2	$39.9	$0.7	$47.6	$266.4

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Management of Capital (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure of objectives, policies and processes for managing capital [abstract]

Schedule of Managed Capital

	December 31, 2018	December 31, 2017
Shareholder's equity	$2,602.3	$2,681.2

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Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2018

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:	2018	2017
Short-term employee benefits	6.1	8.8
Share-based payments	4.9	4.5
	$11.0	$13.3

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Nature of Operations (Details)	Dec. 31, 2018
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, 2018
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	7 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	Nov. 23, 2017 USD ($) shares
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
Share based compensation, acquisitions	$ 12.1
Ordinary shares [member]
Disclosure of detailed information about business combination [line items]
Conversion ratio of shares	1.385

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Acquisition of Richmond Mines Ltd. (Schedule of Asset Acquisition) (Details) - USD ($) $ in Millions	Nov. 23, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net assets acquired
Cash and cash equivalents		$ 206.0	$ 200.8	$ 252.2
Equity securities		7.8	35.8
Mineral property, plant and equipment		2,813.3	2,753.4
Current liabilities		(124.9)	(113.2)
Deferred tax liabilities		$ (491.5)	$ (477.0)
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, 2018	Dec. 31, 2017
Receivables [Line Items]
Other receivables	$ 6.7	$ 4.0
Trade and other current receivables	40.5	41.0
Canada
Receivables [Line Items]
Sales tax receivables	10.6	6.4
Mexico
Receivables [Line Items]
Sales tax receivables	17.5	26.5
Other
Receivables [Line Items]
Sales tax receivables	3.4	0.9
Concentrate receivable	$ 2.3	$ 3.2

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Inventory (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of inventories [Abstract]
In-process precious metals	$ 53.6	$ 131.6
Ore in stockpiles	35.4	44.1
Parts and supplies	45.7	41.5
Dore, refined precious metals and gold in concentrate	5.5	12.7
Inventories	140.2	229.9
Less: Long-term inventory	(30.0)	(68.7)
Inventory	$ 110.2	$ 161.2

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Inventory (Narrative) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) oz	Dec. 31, 2017 USD ($)
Inventory [Line Items]
Long-term inventory	$ 30.0	$ 68.7
Mining and processing costs, inventories	393.1	323.3
Amortization costs, Inventories	166.6	$ 125.6
El Chanate [Member]
Inventory [Line Items]
Inventory write-down	$ 64.0
Unrecoverable Ounces | oz	51,900
Impairment loss	$ 64.0
Impairment loss net of tax	49.9
El Chanate [Member] | Mining [Member]
Inventory [Line Items]
Inventory write-down	62.5
El Chanate [Member] | Amortization [Member]
Inventory [Line Items]
Inventory write-down	$ 1.5

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Mineral Property, Pland and Equipment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	$ 2,753.4
Mineral property, plant and equipment	2,753.4		$ 2,813.3
Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	3,628.7	$ 2,678.1
Additions	226.5	179.0
Acquisitions of new entities		774.3
Transfers	0.0
Disposals	(8.8)	(2.7)
Mineral property, plant and equipment	3,628.7	2,678.1	3,846.4
Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	875.3	759.9
Amortization	160.5	116.5
Disposals	(2.7)	(1.1)
Mineral property, plant and equipment	875.3	759.9	1,033.1
Plant and Equipment [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	769.1
Mineral property, plant and equipment	769.1		814.0
Plant and Equipment [Member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	1,103.0	983.6
Additions	123.4	66.4
Acquisitions of new entities		55.7
Transfers	0.0
Disposals	(8.8)	(2.7)
Mineral property, plant and equipment	1,103.0	983.6	1,217.6
Plant and Equipment [Member] | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	333.9	273.4
Amortization	72.4	61.6
Disposals	(2.7)	(1.1)
Mineral property, plant and equipment	333.9	273.4	403.6
Mineral Property - Depletable [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	1,588.3
Mineral property, plant and equipment	1,588.3		1,672.2
Mineral Property - Depletable [Member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	2,118.3	1,343.0
Additions	73.4	56.7
Acquisitions of new entities		718.6
Transfers	98.6
Disposals	0.0	0.0
Mineral property, plant and equipment	2,118.3	1,343.0	2,290.3
Mineral Property - Depletable [Member] | Accumulated depreciation, amortisation and impairment [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	530.0	475.1
Amortization	88.1	54.9
Disposals	0.0	0.0
Mineral property, plant and equipment	530.0	475.1	618.1
Mineral Property - Non-Depletable [Member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	75.4
Mineral property, plant and equipment	75.4		90.7
Mineral Property - Non-Depletable [Member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	80.5	66.2
Additions	15.3	14.3
Acquisitions of new entities		0.0
Transfers	0.0
Disposals	0.0	0.0
Mineral property, plant and equipment	80.5	66.2	95.8
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	320.6
Mineral property, plant and equipment	320.6		236.4
Exploration and evaluation assets [member] | Gross carrying amount [member]
Reconciliation of changes in property, plant and equipment [abstract]
Property, plant and equipment	326.9	285.3
Additions	14.4	41.6
Acquisitions of new entities		0.0
Transfers	(98.6)
Disposals	0.0	0.0
Mineral property, plant and equipment	326.9	285.3	242.7
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

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Mineral Property, Pland and Equipment (Net Value Carrying Values) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	$ 2,813.3	$ 2,753.4
Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	814.0	769.1
Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	1,672.2	1,588.3
Mineral Property - Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	90.7	75.4
Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	236.4	320.6
Operating segments [member] | Young-Davidson [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	1,444.3	1,432.0
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	608.9	589.5
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	744.7	767.1
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	90.7	75.4
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	211.4	212.0
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	115.6	112.9
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	95.8	99.1
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	800.1	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	79.5	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	720.6	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	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	0.0
Operating segments [member] | El Chanate [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	2.3	6.1
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	1.5	4.1
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	0.8	2.0
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
Operating segments [member] | Kirazli Segment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	113.5
Operating segments [member] | Kirazli Segment [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	3.2
Operating segments [member] | Kirazli Segment [Member] | Mineral Property - Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	110.3
Operating segments [member] | Kirazli Segment [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] | Kirazli Segment [Member] | Exploration and evaluation assets [member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	0.0
Corporate and other [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	241.7	328.4
Corporate and other [Member] | Plant and Equipment [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Mineral property, plant and equipment	5.3	7.8
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	$ 236.4	$ 320.6

XML

Mineral Property, Pland and Equipment (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about property, plant and equipment [line items]
Construction in progress	$ 120.7	$ 64.4

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Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Subclassifications of assets, liabilities and equities [abstract]
Trade accounts payable and accrued liabilities	$ 104.4	$ 87.3
Royalties payable	4.8	4.9
Share-based compensation liability (note 16)	1.6	4.5
Current portion of equipment financing obligations	2.6	4.2
Derivative liabilities (note 20)	5.3	0.1
Accounts payable and accrued liabilities	$ 118.7	$ 101.0

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Decommissioning Liabilities (Details) - Provision for decommissioning, restoration and rehabilitation costs [member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of changes in other provisions [abstract]
Beginning balance	$ 44.6	$ 39.6
Liability assumed on acquisition		2.4
Reclamation, Care and Maintenance Expenses	0.9	0.1
Accretion expense	3.0	2.6
Revisions to expected discounted cash flows	(1.8)	0.1
Ending balance	$ 44.9	$ 44.6

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Decommissioning Liabilities (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Asset Retirement Obligation Disclosure [Line Items]
Estimated reclamation discount rate	2.30%	2.30%
Closure cost obligations discount rate	8.40%	7.60%
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	4.20%	4.00%
Provision for decommissioning, restoration and rehabilitation costs [member]
Asset Retirement Obligation Disclosure [Line Items]
Asset retirement obligation, undiscounted value	$ 53.4	$ 53.2

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Income Taxes (Components of tax expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of income tax [Abstract]
Current income tax expense	$ 17.3	$ 11.9
Deferred income tax expense (recovery)	16.9	(16.3)
Income tax expense (recovery) recognized in net (loss) earnings	$ 34.2	$ (4.4)

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Income Taxes (Tax Reconciliation) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of income tax [Abstract]
(Loss) earnings before income taxes		$ 22.2
Statutory tax rate	25.00%	25.00%
Expected income tax (recovery) expense based on above rates	$ (9.6)	$ 5.6
Effect of higher tax rates in foreign jurisdictions	(2.4)	0.3
Non-deductible expenses	4.4	4.9
Impact of local mining taxes	6.0	2.2
Impact of foreign exchange	28.8	(22.5)
Impact of renouncement of flow through share expenditures	0.3	2.6
Withholding tax	1.2	1.3
Change in unrecognized temporary differences	5.2	2.6
Other	0.3	(1.4)
Income tax expense (recovery) recognized in net (loss) earnings	$ 34.2	$ (4.4)

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Income Taxes (Schedule of Change in Deferred Income Tax Liabilities) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of changes in deferred tax liability (asset) [abstract]
Balance, beginning of year	$ 477.0	$ 291.0
Deferred income tax liability recognized on Richmont Mines acquisition (note 5)	0.0	201.5
Deferred income tax expense (recovery) recognized in net (loss) earnings	16.9	(16.3)
Deferred income tax (recovery) expense recognized in OCI	(2.4)	3.5
Deferred income tax recovery recognized in equity	0.0	(2.7)
Balance, end of year	$ 491.5	$ 477.0

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Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Non-capital losses carried forward	$ (491.5)	$ (477.0)
Deferred income tax liability	491.5	477.0	$ 291.0
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	446.8	409.0
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	13.8	34.7
Other taxable temporary differences
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deferred tax assets	64.3	58.6
Non-capital losses carried forward
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Non-capital losses carried forward	$ (33.4)	$ (25.3)

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of temporary difference, unused tax losses and unused tax credits [line items]
Deductible temporary differences for which no deferred tax asset is recognised	$ 81.9	$ 77.8
Unrecognized tax liabilities	13.4	$ 6.1
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	92.8
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	39.8
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	19.6
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	$ 4.3

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Share Capital (Share Capital) (Details) - USD ($) $ in Millions		12 Months Ended
	Feb. 09, 2017	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of number of shares outstanding [abstract]
Beginning balance		$ 2,681.2
Shares issued through:
Equity financing (in shares)	31,450,000
Ending balance		$ 2,602.3	$ 2,681.2
Issued capital [member]
Reconciliation of number of shares outstanding [abstract]
Number of shares outstanding		389,101,550.00	267,076,495.000
Beginning balance		$ 3,691.7	$ 2,822.2
Shares issued through:
Acquisitions (shares)			88,398,804
Acquisitions		$ 0.0	$ 615.3
Equity financing (in shares)			31,450,000
Equity financing			$ 241.8
Share-based employment compensation plans (in shares)		1,984,698	542,250.0
Share-based compensation plans		$ 12.9	$ 3.5
Exercise of warrants (in shares)		163,955	332,466.0
Exercise of warrants		$ 0.6	$ 0.5
Flow-through share financing (in shares)			1,301,535
Flow-through share financing			$ 8.4
Number of shares outstanding		391,250,203.000	389,101,550.00
Ending balance		$ 3,705.2	$ 3,691.7

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Share Capital (Equity Financing) (Details) $ / shares in Units, $ in Millions		2 Months Ended	3 Months Ended	12 Months Ended
	Feb. 09, 2017 USD ($) $ / shares shares	Mar. 08, 2019 USD ($) $ / shares shares	Dec. 31, 2018 $ / shares	Dec. 31, 2017 $ / shares
Equity Financing [Line Items]
Equity financing (in shares) | shares	31,450,000
Share price (usd per share) | (per share)	$ 7.95		$ 6.44	$ 9.40
Gross proceeds from equity financing	$ 250.0
Transaction costs, equity financing	10.9
Repurchased and canceled (in shares) | shares		2,444,352
Repurchased and canceled		$ 10.0
Repurchased and canceled (usd per share) | $ / shares		$ 4.07
Equity Financing [Member]
Equity Financing [Line Items]
Deferred tax assets	$ 2.7

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Share Capital (Employee LTI plan and share purchase plan) (Details)	12 Months Ended
	Dec. 31, 2018
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%

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Share Capital (Stock Options) (Details)	12 Months Ended
	Dec. 31, 2018 CAD ($) shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 CAD ($) shares	Dec. 31, 2017 USD ($) shares
Disclosure of share capital, reserves and other equity interest [Abstract]
Number of options outstanding | shares	10,429,345	10,429,345	9,511,636	9,511,636
Granted | shares	1,009,100	1,009,100	578,490	578,490
Conversion shares | shares			2,863,146	2,863,146
Exercised | shares	(1,984,698)	(1,984,698)	(510,673)	(510,673)
Expired | shares	(2,798,292)	(2,798,292)	(2,013,254)	(2,013,254)
Number of options outstanding | shares	6,655,455	6,655,455	10,429,345	10,429,345
Weighted average exercise price of share options outstanding (CAD$)	$ 7.94		$ 10.87
Weighted average exercise price of share options granted (CAD$)		$ 6.56		$ 9.62
Weighted average exercise price of share options conversion of Carlisle options to Alamos (CAD$)				3.53
Weighted average exercise price of share options exercised (CAD$)		$ 2.40		$ 6.23
Weighted average exercise price of share options expired (CAD$)	12.70		16.42
Weighted average exercise price of share options outstanding (CAD$)	7.38		7.94
Weighted average share price for share options in share-based payment arrangement exercised during period at date of exercise (CAD$)	$ 5.89		$ 9.99

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Share Capital (Fair Value Assumptions) (Details)	12 Months Ended
	Dec. 31, 2018 USD ($) month shares	Dec. 31, 2017 CAD ($) month shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Granted | shares	1,009,100	578,490
Weighted average share price at grant date (CAD$)	$ 6.56	$ 9.62
Expected dividend yield	0.70%	0.70%
Expected stock price volatility (based on historical volatility)	57.00%	57.00%
Weighted average per share fair value of stock options granted (CAD$)	$ 3.11	$ 4.27
Bottom of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Risk-free rate	1.88%	0.91%
Expected life of option (months)	42	36
Top of range [member]
Disclosure of terms and conditions of share-based payment arrangement [line items]
Risk-free rate	2.06%	1.35%
Expected life of option (months)	84	84

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Share Capital (Schedule of Stock Options Range for Outstanding and Exercisable Shares) (Details)	Dec. 31, 2018 CAD ($) shares year	Dec. 31, 2018 USD ($) shares year	Dec. 31, 2017 CAD ($) shares	Dec. 31, 2016 CAD ($) shares
Disclosure of number and weighted average remaining contractual life of outstanding share options [line items]
Number of options outstanding (in shares) | shares	6,655,455	6,655,455	10,429,345	9,511,636
Outstanding weighted average exercise price (CAD per share)	$ 7.38		$ 7.94	$ 10.87
Weighted average remaining contractual life of options outstanding (years) | year	2.65	2.65
Number of options exercisable (in shares) | shares	4,737,738	4,737,738
Exercisable weighted average exercise price (CAD per share))	$ 7.79
$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	213,108	213,108
Outstanding weighted average exercise price (CAD per share)	$ 2.67
Weighted average remaining contractual life of options outstanding (years) | year	0.04	0.04
Number of options exercisable (in shares) | shares	213,108	213,108
Exercisable weighted average exercise price (CAD per share))	$ 2.67
$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	2,668,070	2,668,070
Outstanding weighted average exercise price (CAD per share)	$ 4.97
Weighted average remaining contractual life of options outstanding (years) | year	4.52	4.52
Number of options exercisable (in shares) | shares	1,136,011	1,136,011
Exercisable weighted average exercise price (CAD per share))	$ 4.18
$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	3,159,640	3,159,640
Outstanding weighted average exercise price (CAD per share)	$ 8.24
Weighted average remaining contractual life of options outstanding (years) | year	1.66	1.66
Number of options exercisable (in shares) | shares	2,773,982	2,773,982
Exercisable weighted average exercise price (CAD per share))	$ 8.05
$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	249,777	249,777
Outstanding weighted average exercise price (CAD per share)	$ 13.15
Weighted average remaining contractual life of options outstanding (years) | year	0.67	0.67
Number of options exercisable (in shares) | shares	249,777	249,777
Exercisable weighted average exercise price (CAD per share))	$ 13.15
$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	364,860	364,860
Outstanding weighted average exercise price (CAD per share)	$ 16.42
Weighted average remaining contractual life of options outstanding (years) | year	0.56	0.56
Number of options exercisable (in shares) | shares	364,860	364,860
Exercisable weighted average exercise price (CAD per share))	$ 16.42
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, 2018	Dec. 31, 2017
Restricted share units (RSU)
Disclosure of classes of share capital [line items]
Shares outstanding	1,500,934	1,410,192
Granted	611,717	499,560
Conversion of Richmont units to Alamos units (note 5)		112,774
Forfeiture	(99,939)	(171,452)
Settled	(445,016)	(350,140)
Shares outstanding	1,567,696	1,500,934
Stock appreciation rights (SAR)
Disclosure of classes of share capital [line items]
Shares outstanding	1,055,525	1,489,575
Granted	0	0
Conversion of Richmont units to Alamos units (note 5)		0
Forfeiture	(482,533)	(316,074)
Settled	(63,800)	(117,976)
Shares outstanding	509,192	1,055,525
Deferred share units (DSU)
Disclosure of classes of share capital [line items]
Shares outstanding	480,605	378,345
Granted	164,808	102,260
Conversion of Richmont units to Alamos units (note 5)		0
Forfeiture	0	0
Settled	0	0
Shares outstanding	645,413	480,605
Performance share units (PSU)
Disclosure of classes of share capital [line items]
Shares outstanding	599,705	424,253
Granted	440,420	269,780
Conversion of Richmont units to Alamos units (note 5)		0
Forfeiture	(56,684)	(65,451)
Settled	0	(28,877)
Shares outstanding	983,441	599,705

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Share Capital (Earnings (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of share capital, reserves and other equity interest [Abstract]
Net (loss) earnings	$ (72.6)	$ 26.6
Weighted average number of common shares outstanding (in shares)	389,816	305,521
Basic loss per share (usd per share)	$ (0.19)	$ 0.09
Dilutive effect of potential common share equivalents (in shares)	0	3,500
Diluted weighted average number of common shares outstanding (in shares)	389,816	309,021
Diluted loss per share (usd per share)	$ (0.19)	$ 0.09

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Share Capital (Antidilutive Securities) (Details) shares in Thousands		3 Months Ended	12 Months Ended
	Feb. 09, 2017 $ / shares	Dec. 31, 2018 $ / shares	Dec. 31, 2018 shares	Dec. 31, 2017 $ / shares shares
Earnings per share [line items]
Share price (cad per share) | (per share)	$ 7.95	$ 6.44		$ 9.40
Antidilutive securities			11,870	15,152
Employee Stock Option1 [Member]
Earnings per share [line items]
Antidilutive securities			6,655	2,920
Warrants [Member]
Earnings per share [line items]
Antidilutive securities			5,215	12,232

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Share Capital (Dividends) (Details) - USD ($) $ / shares in Units, $ in Millions		12 Months Ended
	Apr. 28, 2017	Dec. 31, 2018
Disclosure of share capital, reserves and other equity interest [Abstract]
Dividends paid, ordinary shares	$ 3.9	$ 7.8
Dividends paid, ordinary shares per share		$ 0.01

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Share Capital (Share Purchase Warrants) (Details) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2018 USD ($)	Dec. 31, 2018 $ / shares shares	Jan. 07, 2019 shares	Aug. 30, 2018 shares
Disclosure of classes of share capital [line items]
Number of warrants (in shares)		5,215,000
Common shares issuable (in shares)		5,215,000
Warrants expired			5,215,000	7,167,000
Gains on derivatives | $	$ 0.1
Warrants - Carlisle [Member]
Disclosure of classes of share capital [line items]
Number of warrants (in shares)		5,215,000
Common shares issuable (in shares)		5,215,000
Exercise price (CAD per share) | $ / shares		$ 10.00

XML

Other (Loss) Gain (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Other Gain (Loss) [Abstract]
Reduction of obligation to renounce flow-through exploration expenditures	$ 0.6	$ 2.3
Unrealized gains on non-hedged derivatives	(0.4)	(0.3)
Fair value adjustment on prepayment option embedded derivative	0.9	0.0
Loss on disposal of assets	(6.1)	(1.9)
Reclamation, care and maintenance	0.0	(3.8)
Transaction costs	0.0	(1.3)
Other	(2.5)	1.9
Other gains (losses)	$ (8.4)	$ (3.1)

XML

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of Cash Flow Statement [Abstract]
Amounts receivable	$ (7.9)	$ 14.0
Inventory	13.9	(15.9)
Advances and prepaid expenses	(7.2)	(4.3)
Accounts payable and accrued liabilities	7.6	(12.1)
Income taxes (paid) refunded	(4.2)	(1.5)
Increase (decrease) in working capital	2.2	(19.8)
Interest received, classified as investing activities	$ 2.8	$ 2.5

XML

Supplemental Cash Flow Information (Other Non-cash Items) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of Cash Flow Statement [Abstract]
Unrealized loss on non-hedging derivatives	$ 0.4	$ 0.3
Payment for reclamation activities	(0.9)	0.0
Reduction of obligation to renounce flow-through exploration expenditures	(0.6)	(2.3)
Loss on disposal of assets	6.1	1.9
Payment of transaction costs incurred by Richmont Mines (note 5)	0.0	(5.9)
Share-based payments related to Richmont Mines transaction (note 5)	0.0	1.3
Other non-cash items	0.5	3.3
Other adjustments for non-cash items	$ 5.5	$ (1.4)

XML

Segmented Information (Narrative) (Details)	Dec. 31, 2018 geographical_area
Disclosure of entity's operating segments [Abstract]
Number of geographical areas	2

XML

Segmented Information (Segment revenues and results) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of operating segments [line items]
Operating revenues	$ 651.8	$ 542.8
Cost of sales
Cost of sales	387.2	315.6
Impairment of El Chanate inventory	64.0
Royalties	21.6	15.6
Amortization	166.6	125.6
Cost of sales	639.4	456.8
Expenses
Exploration	11.0	8.3
Corporate and administrative	17.4	15.5
Share-based compensation	6.6	6.2
(LOSS) EARNINGS FROM OPERATIONS	(22.6)	56.0
Finance expense	(3.0)	(6.6)
Foreign exchange loss	(4.4)	5.0
Other loss	(8.4)	(3.1)
Loss on redemption of senior secured notes	0.0	(29.1)
(LOSS) EARNINGS BEFORE INCOME TAXES	(38.4)	22.2
Operating segments [member] | Young-Davidson [Member]
Disclosure of operating segments [line items]
Operating revenues	236.3	249.7
Cost of sales
Cost of sales	149.0	125.9
Impairment of El Chanate inventory	0.0
Royalties	3.6	4.4
Amortization	82.4	83.1
Cost of sales	235.0	213.4
Expenses
Exploration	0.0	0.0
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
(LOSS) EARNINGS FROM OPERATIONS	1.3	36.3
Operating segments [member] | Mulatos [Member]
Disclosure of operating segments [line items]
Operating revenues	223.3	201.4
Cost of sales
Cost of sales	125.9	112.9
Impairment of El Chanate inventory	0.0
Royalties	11.8	10.6
Amortization	35.4	29.5
Cost of sales	173.1	153.0
Expenses
Exploration	7.5	6.7
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
(LOSS) EARNINGS FROM OPERATIONS	42.7	41.7
Operating segments [member] | Island Gold [Member]
Disclosure of operating segments [line items]
Operating revenues	135.1	14.9
Cost of sales
Cost of sales	56.0	4.1
Impairment of El Chanate inventory	0.0
Royalties	6.2	0.6
Amortization	44.3	8.7
Cost of sales	106.5	13.4
Expenses
Exploration	1.4	0.0
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
(LOSS) EARNINGS FROM OPERATIONS	27.2	1.5
Operating segments [member] | El Chanate [Member]
Disclosure of operating segments [line items]
Operating revenues	57.1	76.8
Cost of sales
Cost of sales	56.3	72.7
Impairment of El Chanate inventory	64.0
Royalties	0.0	0.0
Amortization	4.5	4.3
Cost of sales	124.8	77.0
Expenses
Exploration	0.0	0.0
Corporate and administrative	0.0	0.0
Share-based compensation	0.0	0.0
(LOSS) EARNINGS FROM OPERATIONS	(67.7)	(0.2)
Corporate and other [Member]
Expenses
Exploration	2.1	1.6
Corporate and administrative	17.4	15.5
Share-based compensation	6.6	6.2
(LOSS) EARNINGS FROM OPERATIONS	$ (26.1)	$ (23.3)

XML

Segmented Information (Segment assets and liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of operating segments [line items]
Total Assets	$ 3,265.2	$ 3,320.3
Total liabilities	662.9	639.1
Operating segments [member] | Young-Davidson [Member]
Disclosure of operating segments [line items]
Total Assets	1,569.4	1,580.9
Total liabilities	272.3	243.4
Operating segments [member] | Mulatos [Member]
Disclosure of operating segments [line items]
Total Assets	366.9	356.5
Total liabilities	95.4	100.3
Operating segments [member] | Island Gold [Member]
Disclosure of operating segments [line items]
Total Assets	876.2	849.6
Total liabilities	236.3	222.5
Operating segments [member] | El Chanate [Member]
Disclosure of operating segments [line items]
Total Assets	35.9	111.4
Total liabilities	5.9	24.3
Corporate and other [Member]
Disclosure of operating segments [line items]
Total Assets	416.8	421.9
Total liabilities	$ 53.0	$ 48.6

XML

Financial Instruments and Risk Management (Equity Securities) (Details) $ / shares in Units, $ in Millions		3 Months Ended			12 Months Ended
	Feb. 09, 2017 $ / shares	Dec. 31, 2018 USD ($) $ / shares	Mar. 31, 2018 $ / shares	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 $ / shares
Disclosure of detailed information about financial instruments [line items]
Share price (cad per share) | (per share)	$ 7.95	$ 6.44				$ 9.40
Proceeds from sales of investment property					$ 1.8
Monarques Gold Corp [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets available-for-sale		$ 7.3			7.3
Other Investments [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets available-for-sale		$ 0.5			$ 0.5
AuRico Metals [Member]
Disclosure of detailed information about financial instruments [line items]
Share price (cad per share) | $ / shares			$ 1.80
Proceeds from sales of investment property				$ 22.2
Gains on disposals of investments				13.7
Investment cost per share (cad per share) | $ / shares			0.72
Corex Gold Corp [Member]
Disclosure of detailed information about financial instruments [line items]
Share price (cad per share) | $ / shares			0.13
Proceeds from sales of investment property				2.7
Gains on disposals of investments				$ 0.6
Investment cost per share (cad per share) | $ / shares			$ 0.10

XML

Financial Instruments and Risk Management (Revolving Credit Facility) (Details)		12 Months Ended
	Sep. 21, 2017 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revolving Credit Facility [Member]
Debt and Financing Obligations [Line Items]
Line of credit facility, maximum borrowing capacity	$ 400,000,000.0
Minimum interest coverage ratio	3.0
Maximum net leverage ratio	3.5
Borrowing costs incurred		$ 800,000	$ 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

Financial Instruments and Risk Management (Fair Value for Assets and Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of fair value measurement of assets [line items]
Financial assets	$ 3,265.2	$ 3,320.3
Financial liabilities	(662.9)	(639.1)
Level 1 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Fair value, net asset (liability)	7.8	35.7
Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Fair value, net asset (liability)	(5.3)	5.5
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	0.0	(0.1)
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	(0.1)	0.0
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	0.0	0.5
Fair value through OCI | 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 OCI | Currency Derivative Instruments [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities	(4.7)	0.0
Fair value through OCI | Fuel Options [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 OCI | Fuel Options [Member] | Level 2 [member] | Recurring fair value measurement [member]
Disclosure of fair value measurement of assets [line items]
Financial liabilities	(0.5)	0.0
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	7.8	35.8
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	$ 0.0	$ 5.0

XML

Financial Instruments and Risk Management (Fair Value And Presentation in the Balance Sheet) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		$ 0.4
Financial liabilities, at fair value	$ (0.1)
Derivatives [member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		5.0
Financial liabilities, at fair value	(5.2)
Derivatives [member] | Currency Hedging Derivative Instruments [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		5.0
Financial liabilities, at fair value	(4.7)
Derivatives [member] | Fuel Options [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		0.0
Financial liabilities, at fair value	(0.5)
Derivatives [member] | Gold Options [Member]
Disclosure of detailed information about financial instruments [line items]
Financial assets, at fair value		0.5
Financial liabilities, at fair value	$ (0.1)
Derivatives [member] | Share Purchase Warrants [Member]
Disclosure of detailed information about financial instruments [line items]
Financial liabilities, at fair value		$ (0.1)

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, 2018	Dec. 31, 2017
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Balance, beginning of the period	$ 6.0	$ 0.0
Unrealized (loss) gains on currency instruments	(5.9)	11.2
Deferred income tax related to hedging instrument	2.4	(1.7)
Balance, June 30, 2017	(1.4)	6.0
CAD Currency Instruments [Member]
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Unrealized (loss) gains on currency instruments	(3.9)	(2.2)
MXN Currency Instruments [Member]
Reconciliation of changes in allowance account for credit losses of financial assets [abstract]
Unrealized (loss) gains on currency instruments	$ 0.0	$ (1.3)

XML

Financial Instruments and Risk Management (Currency Contracts) (Details) $ / shares in Units, $ in Millions, $ in Millions, $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2018 CAD ($)	Dec. 31, 2018 $ / shares	Dec. 31, 2018 USD ($)	Dec. 31, 2018 $ / $	Dec. 31, 2018 $ / $	Dec. 31, 2018 MXN ($)
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value			$ 0.4
Financial liabilities, at fair value						$ 0.1
Gains (losses) on change in fair value of derivatives	$ 0.1
Collars and Forwards [Member]
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value						$ 4.7
Financial liabilities, at fair value			5.0
Gains (losses) on change in fair value of derivatives		$ 3.9	$ (4.3)
2019 [member] | Collars [Member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Notional amount				$ 342.0					$ 1,380.0
2019 [member] | Forward contract [member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Notional amount				$ 9.0
Forward price (usd per cad) | $ / shares					$ 1.34
Bottom of range [member] | 2019 [member] | Collars [Member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Average rate of hedging instrument							1950.00%	130.00%
Top of range [member] | 2019 [member] | Collars [Member] | Currency risk [member]
Disclosure of detailed information about hedged items [line items]
Average rate of hedging instrument							2207.00%	135.00%

XML

Financial Instruments and Risk Management (Unrealized Gains (Losses) on Foreign Currency Contracts) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about hedged items [line items]
Unrealized gains	$ 0.4	$ 0.3

XML

Financial Instruments and Risk Management (Gold Option Contracts) (Details) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2018 USD ($)	Dec. 31, 2018 USD ($) $ / oz oz	Dec. 31, 2017 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	$ 0.1
Unrealized gains		$ 0.4	0.3
Gold Options [Member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Financial assets, at fair value		0.1	0.5
Gains (losses) on change in fair value of derivatives		(3.9)	(0.6)
Unrealized gains		$ 0.6	$ 2.6
Gold Options [Member] | 2018 [member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Ounces subject to contract | oz		15,000
Purchase Put Options [Member] | Gold Options [Member] | 2018 [member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Average realized price per ounce | $ / oz		1,250
Sold Call Option [Member] | Gold Options [Member] | 2018 [member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Average realized price per ounce | $ / oz		1,377

XML

Financial Instruments and Risk Management (Fuel Option Contracts) (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)
Disclosure of detailed information about hedged items [line items]
Gains (losses) on change in fair value of derivatives	$ 100
Fuel Options [Member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Derivative, notional amount		$ 2,740
Gains (losses) on change in fair value of derivatives		$ (500)
Bottom of range [member] | Fuel Options [Member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Average price of hedging instrument		1.83
Top of range [member] | Fuel Options [Member] | Commodity price risk [member]
Disclosure of detailed information about hedged items [line items]
Average price of hedging instrument		2.09

XML

Financial Instruments and Risk Management (Market Price Risk) (Details) $ in Millions	1 Months Ended	12 Months Ended
	Aug. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 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	$ 0.1
Unrealized gains		$ 0.4	0.3
Market risk [member]
Disclosure of detailed information about hedged items [line items]
Potential percentage change in value		1000.00%
Impact on other comprehensive income		$ 0.8	3.5
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		$ 63.0	$ 54.3
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

XML

Financial Instruments and Risk Management (Interest Rate Risk) (Details) - Interest rate risk [member] $ in Millions	12 Months Ended
	Dec. 31, 2018 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	$ 2.1

XML

Financial Instruments and Risk Management (Foreign Currency Exchange Rate Risk) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of nature and extent of risks arising from financial instruments [line items]
Total financial instrument exposure to credit risk	$ 214.0	$ 208.0
Financial liabilities, at fair value	0.1
Unrealized gains	$ 0.4	0.3
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	$ 10.4	78.0
Impact on pre-tax earnings	1.4	7.8
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	21.3	14.4
Impact on pre-tax earnings	2.1	1.5
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	206.0	200.8
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	26.8	43.1
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	10.8	7.1
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	7.8	35.8
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	5.7	4.0
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	11.9	7.4
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	21.4	22.0
Other monetary assets [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	33.0	47.8
Other monetary assets [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	5.9	0.0
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	(69.1)	(56.1)
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	$ (16.8)	$ (14.7)

XML

Financial Instruments and Risk Management (Credit Risk) (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	$ 214.0	$ 208.0
Cash and Cash Equivalents [Member]
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	206.0	200.8
Concentrate Receivable [Member]
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	2.3	3.2
Trade receivables [member]
Disclosure of detailed information about financial instruments [line items]
Total financial instrument exposure to credit risk	$ 5.7	$ 4.0

XML

Financial Instruments and Risk Management (Contractual Commitments) (Details) $ in Millions	Dec. 31, 2018 USD ($)
Disclosure of detailed information about financial instruments [abstract]
Operating and financing leases, less than 1 year	$ 3.1
Operating and financing leases, 2-3 years	1.5
Operating and financing leases, 4-5 years	0.7
Operating and financing leases, more than 5 years	0.6
Operating and financing leases, total	5.9
Accounts payable and accrued liabilities, less than 1 year	118.7
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	118.7
Decommissioning liability, less than 1 year	0.0
Decommissioning liability, 2-3 years	6.4
Decommissioning liability, 4-5 years	0.0
Decommissioning liability, more than 5 years	47.0
Decommissioning liability, total	53.4
Contract mining, less than 1 year	31.9
Contract mining, 2-3 years	32.0
Contract mining, 4-5 years	0.0
Contract mining, more than 5 years	0.0
Contract mining, total	63.9
Capital commitments, less than 1 year	24.5
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	24.5
Contractual obligation, less than 1 year	178.2
Contractual obligation, 2-3 years	39.9
Contractual obligation, 4-5 years	0.7
Contractual obligation, more than 5 years	47.6
Contractual obligation, total	$ 266.4

XML

Financial Instruments and Risk Management (Available for Sale Financial Assets) (Details) $ in Millions	Dec. 31, 2018 USD ($)
Monarques Gold Corp [Member]
Investment [Line Items]
Financial assets available-for-sale	$ 7.3
Other Investments [Member]
Investment [Line Items]
Financial assets available-for-sale	$ 0.5

XML

Management of Capital (Details) - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Disclosure of objectives, policies and processes for managing capital [abstract]
Shareholder's equity	$ 2,602.3	$ 2,681.2
Managed capital	$ 2,602.3	$ 2,681.2

XML

Related Party Transactions (Details) - Company's directors and executive team [member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disclosure of transactions between related parties [line items]
Short-term employee benefits	$ 6.1	$ 8.8
Share-based payments	4.9	4.5
Amounts payable, related party transactions	$ 11.0	$ 13.3

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Commitments (Details) oz in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($) oz	Dec. 31, 2017 USD ($)
Commitments [Line Items]
Capital purchases commitments	$ 24.5	$ 21.8
Royalties	21.6	15.6
Royal Gold [Member]
Commitments [Line Items]
Extraordinary mining duty tax	1.2	1.0
Island Gold [Member]
Commitments [Line Items]
Royalties	$ 6.2
Production Royalty [Member] | Royal Gold [Member]
Commitments [Line Items]
Royalty rate	5.00%
Quantity of production subject to royalty | oz	2,000
Actual production quantity | oz	1,970
Royalties	$ 10.6	9.6
Net Smelter Royalty [Member] | AuRico Metals [Member]
Commitments [Line Items]
Royalty rate	1.50%
Royalties	$ 3.5	3.9
Net Smelter Royalty [Member] | Island Gold [Member]
Commitments [Line Items]
Royalty rate	2.00%
Other Royalties [Member] | AuRico Metals [Member]
Commitments [Line Items]
Royalties	$ 0.1	$ 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	2.00%
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%