John McCluskey has been at the helm of Alamos Gold (NYSE:AGI) for over two decades, leading the firm from a junior explorer to a successful mid-tier Canadian producer.
After Q3 earnings, he sat down with Benzinga to discuss the company’s history, future, and outlook for one of the hottest gold markets in history.
Lessons From A Mining Legend
Alamos’ origins date back to the 1980s, when McCluskey met Chester Milar, a future mining hall of famer and pioneer in heap leaching gold production.
"I was just out of school and came to help Chester in a proxy battle against Adolf Lundin at Glamis Gold. We were successful in convincing shareholders, and Chester retained control," he recalls.
"I thought about going back to school, but Chester convinced me to work for him. Staying there made me a lot of money," McCluskey admits.
Through the prolonged bear market, Millar and McCluskey kept an eye on interesting projects, finally setting their eye on the Mulatos District in Sonora, Mexico. The firm purchased the asset for $10 million, at a time when the gold price was hovering around $300 per ounce.
"It was a tough start. We had a million-dollar market cap. When I officially took over the reins in 2005, it was about $15 million," McCluskey reminisced.
Through grit, determination, and effective management, the firm has a $13 billion market capitalization twenty years later. Yet, in a healthy bull market, considerable value remains to be unlocked.
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The Hottest Market Since the 1970s
The last time the gold market was this hot, McCluskey was still in college. In 2025, the gold is up 51% year to date, the second-best year since 1979. Alamos stock has largely mirrored that move, rising about 58% in the same period.
Despite a very different world nearly five decades later, McCluskey sees the same perils looming around.
"The biggest risk remains capital destruction. Money chasing assets that have no value, or no potential to become quality mines," he says, adding that the risk is even more pronounced with ongoing volatility.
Commenting on the recent management changes at industry leaders, McCluskey notes that they involve completely different situations.
"Newmont's CEO succession was well-planned and executed. Barrick's? Not so much. There were disagreements that led to the CEO’s departure. The news coming out on the same day was a pure coincidence."
Although management changes can stir up the market, given the sheer size of these companies, he believes this will not happen in the industry right now.
"We might see some short-term volatility, but the situation will normalize," he says.
Road To A Million
Alamos experienced minor setbacks in 2025, as seismic events and production downtime resulted in lowered guidance. Still, the management remains optimistic about the current internal prospects.
The plans include both material improvements of existing assets and exploration projects in Canada. To join the senior producer club, production must reach one million ounces, which it plans to achieve by 2030. However, the firm wants to keep its long-earned reputation as a cost-conscious producer.
"Our current priority is the expansion of Island Gold. The acquisition of Argonaut and its permitting would allow us to increase underground production," McClusky notes, clarifying the combined annualized production of around 550,000 ounces.
"At $1,000 all-in-sustaining-costs, it makes it one of the biggest and most profitable gold mines in Canada, if not the world," he says while expecting the full documentation in early 2026.
A well-timed acquisition unlocked significant value, but the firm is now not in a rush to make any further purchases.
"Nothing on the market right now is better than what we're currently building," he says, placing the priority on current projects and the ongoing exploration program.
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