Alamos Gold Reports Second Quarter 2025 Results
Alamos Gold (NYSE:AGI) reported strong Q2 2025 financial results, with production of 137,200 ounces of gold, up 10% from Q1. The company achieved record quarterly revenues of $438.2 million and record cash flow from operations of $199.5 million.
Key financial metrics include net earnings of $159.4 million ($0.38 per share) and free cash flow of $85 million. Total cash costs were $1,075 per ounce, while all-in sustaining costs (AISC) decreased 18% to $1,475 per ounce. The company updated its 2025 cost guidance, with AISC now expected between $1,400-$1,450 per ounce.
The company successfully completed the transition to processing Island Gold ore through the Magino mill in July, with the Base Case Life of Mine plan projecting average annual gold production of 411,000 ounces starting in 2026. Alamos maintains a strong financial position with $344.9 million in cash and returned $21 million to shareholders through dividends and share buybacks.
Alamos Gold (NYSE:AGI) ha riportato solidi risultati finanziari per il secondo trimestre 2025, con una produzione di 137.200 once d'oro, in aumento del 10% rispetto al primo trimestre. L'azienda ha raggiunto ricavi trimestrali record di 438,2 milioni di dollari e un flusso di cassa operativo record di 199,5 milioni di dollari.
I principali indicatori finanziari includono un utile netto di 159,4 milioni di dollari (0,38 dollari per azione) e un flusso di cassa libero di 85 milioni di dollari. I costi totali in contanti sono stati di 1.075 dollari per oncia, mentre i costi sostenuti totali (AISC) sono diminuiti del 18%, attestandosi a 1.475 dollari per oncia. L'azienda ha aggiornato le previsioni di costo per il 2025, con un AISC ora previsto tra 1.400 e 1.450 dollari per oncia.
La società ha completato con successo a luglio la transizione al trattamento del minerale Island Gold attraverso il mulino Magino, con il piano Base Case Life of Mine che prevede una produzione media annua di oro di 411.000 once a partire dal 2026. Alamos mantiene una solida posizione finanziaria con 344,9 milioni di dollari in contanti e ha restituito 21 milioni di dollari agli azionisti tramite dividendi e riacquisto di azioni.
Alamos Gold (NYSE:AGI) reportó sólidos resultados financieros en el segundo trimestre de 2025, con una producción de 137,200 onzas de oro, un aumento del 10% respecto al primer trimestre. La compañía alcanzó ingresos trimestrales récord de 438,2 millones de dólares y un flujo de caja operativo récord de 199,5 millones de dólares.
Las métricas financieras clave incluyen ganancias netas de 159,4 millones de dólares (0,38 dólares por acción) y flujo de caja libre de 85 millones de dólares. Los costos totales en efectivo fueron de 1,075 dólares por onza, mientras que los costos totales sostenidos (AISC) disminuyeron un 18% a 1,475 dólares por onza. La compañía actualizó su guía de costos para 2025, con un AISC ahora esperado entre 1,400 y 1,450 dólares por onza.
La empresa completó con éxito en julio la transición para procesar el mineral Island Gold a través del molino Magino, con el plan Base Case Life of Mine que proyecta una producción anual promedio de oro de 411,000 onzas a partir de 2026. Alamos mantiene una sólida posición financiera con 344,9 millones de dólares en efectivo y devolvió 21 millones de dólares a los accionistas mediante dividendos y recompra de acciones.
Alamos Gold (NYSE:AGI)는 2025년 2분기 강력한 재무 실적을 보고했으며, 금 생산량은 137,200 온스로 1분기 대비 10% 증가했습니다. 회사는 분기별 매출 기록 4억 3,820만 달러와 영업 현금 흐름 기록 1억 9,950만 달러를 달성했습니다.
주요 재무 지표로는 순이익 1억 5,940만 달러(주당 0.38달러)와 자유 현금 흐름 8,500만 달러가 포함됩니다. 총 현금 비용은 온스당 1,075달러였으며, 전부 지속 비용(AISC)은 18% 감소하여 온스당 1,475달러를 기록했습니다. 회사는 2025년 비용 가이던스를 업데이트하여 AISC를 온스당 1,400~1,450달러로 예상하고 있습니다.
회사는 7월에 Island Gold 광석을 Magino 제련소를 통해 처리하는 전환을 성공적으로 완료했으며, 기본 수명 계획(Base Case Life of Mine)에서는 2026년부터 연평균 금 생산량 411,000 온스를 예상하고 있습니다. Alamos는 3억 4,490만 달러의 현금을 보유하며, 배당금과 자사주 매입을 통해 주주에게 2,100만 달러를 환원했습니다.
Alamos Gold (NYSE:AGI) a annoncé de solides résultats financiers pour le deuxième trimestre 2025, avec une production de 137 200 onces d'or, en hausse de 10 % par rapport au premier trimestre. La société a réalisé un chiffre d'affaires trimestriel record de 438,2 millions de dollars et un flux de trésorerie opérationnel record de 199,5 millions de dollars.
Les principaux indicateurs financiers comprennent un bénéfice net de 159,4 millions de dollars (0,38 dollar par action) et un flux de trésorerie disponible de 85 millions de dollars. Le coût total en espèces s'est élevé à 1 075 dollars par once, tandis que les coûts totaux soutenus (AISC) ont diminué de 18 % pour atteindre 1 475 dollars par once. La société a mis à jour ses prévisions de coûts pour 2025, avec un AISC désormais attendu entre 1 400 et 1 450 dollars par once.
La société a réussi en juillet la transition vers le traitement du minerai Island Gold via l'usine Magino, avec le plan de vie de mine de base prévoyant une production annuelle moyenne d'or de 411 000 onces à partir de 2026. Alamos maintient une solide position financière avec 344,9 millions de dollars en liquidités et a reversé 21 millions de dollars aux actionnaires sous forme de dividendes et de rachats d'actions.
Alamos Gold (NYSE:AGI) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit einer Goldproduktion von 137.200 Unzen, was einem Anstieg von 10 % gegenüber dem ersten Quartal entspricht. Das Unternehmen erzielte rekordverdächtige Quartalserlöse von 438,2 Millionen US-Dollar und einen Rekord-Cashflow aus dem operativen Geschäft von 199,5 Millionen US-Dollar.
Wichtige Finanzkennzahlen umfassen Nettoeinnahmen von 159,4 Millionen US-Dollar (0,38 US-Dollar je Aktie) und einen freien Cashflow von 85 Millionen US-Dollar. Die gesamten Barkosten lagen bei 1.075 US-Dollar pro Unze, während die All-in Sustaining Costs (AISC) um 18 % auf 1.475 US-Dollar pro Unze sanken. Das Unternehmen aktualisierte seine Kostenschätzung für 2025, wobei die AISC nun zwischen 1.400 und 1.450 US-Dollar pro Unze erwartet werden.
Das Unternehmen hat im Juli erfolgreich den Übergang zur Verarbeitung von Island Gold-Erz durch die Magino-Mühle abgeschlossen, wobei der Basisfall-Lebensdauerplan eine durchschnittliche jährliche Goldproduktion von 411.000 Unzen ab 2026 prognostiziert. Alamos hält eine starke finanzielle Position mit 344,9 Millionen US-Dollar in bar und gab 21 Millionen US-Dollar an die Aktionäre durch Dividenden und Aktienrückkäufe zurück.
- Record quarterly revenues of $438.2 million and record cash flow from operations of $199.5 million
- Strong free cash flow of $85 million, up significantly from -$20.1 million in Q1 2025
- Gold production increased 10% from Q1 to 137,200 ounces
- AISC decreased 18% to $1,475 per ounce from Q1 2025
- Cash position increased 19% to $344.9 million
- Base Case Life of Mine plan projects 411,000 ounces annual production starting 2026
- Increased 2025 cost guidance with AISC now between $1,400-$1,450 per ounce
- Slower start to the year at Magino and Young-Davidson operations
- Average realized gold price ($3,223/oz) was below London PM Fix price due to prepayment facility obligations
- Higher than budgeted share-based compensation and royalty expenses impacting costs
Insights
Alamos Gold posted record operating cash flow and strong free cash flow despite raising cost guidance due to higher gold prices and earlier operational challenges.
Alamos Gold delivered a solid Q2 2025 marked by strengthening operational performance and robust financial results. Production reached 137,200 ounces, up 10% quarter-over-quarter, while all-in sustaining costs (AISC) decreased 18% to $1,475 per ounce. This operational improvement combined with high gold prices generated record quarterly operating cash flow of $199.5 million and free cash flow of $84.6 million despite ongoing growth investments.
The financial highlight is the substantial margin expansion driven by both higher gold prices and lower costs. Revenue hit a record $438.2 million with gold sold at an average price of $3,223 per ounce, below market price due to deliveries into a prepayment facility. Net earnings reached $159.4 million ($0.38 per share), while adjusted net earnings were $144.1 million ($0.34 per share).
However, Alamos has raised its 2025 cost guidance, with AISC now expected between $1,400-$1,450 per ounce, a 12% increase from previous guidance. About 40% of this increase stems from external factors including share-based compensation revaluation (due to higher share price) and increased royalty expenses (due to higher gold prices).
The cash position strengthened to $344.9 million, up 19% from Q1, maintaining the company's strong balance sheet with $844.9 million in total liquidity. Alamos returned $21 million to shareholders through share repurchases and dividends.
Looking ahead, Alamos expects continued production growth and further cost improvements in the second half of 2025. The company highlighted its Island Gold District Base Case Life of Mine Plan, projecting average annual production of 411,000 ounces starting in 2026 at an attractive AISC of $915 per ounce. The recently completed transition to processing Island Gold ore through the larger Magino mill (completed mid-July) should contribute to future cost improvements and production growth.
Stronger production and lower costs drive record cash flow from operations and solid free cash flow of
All amounts are in United States dollars, unless otherwise stated.
TORONTO, July 30, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended June 30, 2025.
“Production increased
“A key contributor to this improvement will be the Island Gold District where we successfully completed the transition to processing Island Gold ore through the larger and more productive Magino mill mid-July. As outlined in the Base Case Life of Mine plan issued last month, the Island Gold District will be a driver of our growing production and declining costs over the next several years. We also believe there is further upside to come. Through a larger expansion of the district, we see excellent potential to grow our consolidated production to approximately one million ounces per year, underpinning one of the strongest growth profiles in the sector,” Mr. McCluskey added.
Second Quarter 2025 Operational and Financial Highlights
- Produced 137,200 ounces of gold, consistent with quarterly guidance and a
10% increase from the first quarter of 2025 reflecting stronger performances from all three operations. With further increases expected in the third and fourth quarter, the Company remains on track to achieve full year production guidance - Sold 135,027 ounces of gold at an average realized price of
$3,223 per ounce, generating record quarterly revenues of$438.2 million . The average realized gold price was below the London PM Fix price, reflecting the delivery of 12,346 ounces into the gold prepayment facility executed in July 2024 based on the prepaid price of$2,524 per ounce - Record cash flow from operating activities totaled
$199.5 million (including$232.9 million before changes in working capital and taxes paid1, or$0.55 per share), a151% increase from the first quarter of 2025 reflecting the strong operating performance and margin expansion through higher gold prices and lower costs - Generated strong free cash flow1 of
$84.6 million , while continuing to reinvest in high-return growth projects including the Phase 3+ Expansion, Lynn Lake, and PDA. This was a significant increase from negative free cash flow of$20.1 million in the first quarter of 2025, reflecting a solid contribution from all three operations. The Company expects strong ongoing free cash flow at current gold prices through the remainder of 2025 with significant growth starting in 2026 reflecting higher production and lower costs - Total cash costs1 of
$1,075 per ounce and all-in sustaining costs ("AISC")1 of$1,475 per ounce decreased10% and18% , respectively, from the first quarter of 2025, driven by stronger production and lower share-based compensation expense. Costs are expected to decrease further through the second half of the year - Reflecting the higher than budgeted share-based compensation expense through the first half of the year, higher royalty expense, and slower start to the year at Magino and Young-Davidson, the Company has increased its 2025 cost guidance. Full year total cash costs are now expected to be between
$975 and$1,025 per ounce, and AISC between$1,400 and$1,450 per ounce. This represents a12% increase in AISC guidance with approximately40% of the increase attributable to external factors including the revaluation of previously issued share-based compensation with the higher share price, and higher royalty expenses given the increased gold price - Cost of sales of
$200.7 million , or$1,486 per ounce, decreased10% from the first quarter of 2025 on a per-ounce basis - Reported net earnings for the quarter were
$159.4 million , or$0.38 per share - Adjusted net earnings1 were
$144.1 million , or$0.34 per share. Adjusted net earnings includes adjustments for unrealized losses on commodity hedge derivatives, net of tax, of$17.1 million , adjustments for unrealized foreign exchange gains recorded within deferred taxes and foreign exchange loss totaling$34.3 million , and other adjustments of$1.9 million - Cash and cash equivalents increased
19% from the first quarter of 2025 to$344.9 million at June 30, 2025. The Company remains in a strong net cash position and is well-positioned to internally fund all of its growth initiatives with strong ongoing free cash flow and$844.9 million of total liquidity - Returned
$21 million to shareholders. This included the repurchase of 0.4 million shares at a cost of$10.0 million ($25.11 per share), and payment of the$10.6 million quarterly dividend ($0.02 5 per share) - In response to the devastating wildfires impacting communities across northern Manitoba, Alamos partnered with two other mining companies, collectively donating CAD
$1.25 million to the Canadian Red Cross to support emergency relief and rebuilding efforts. This contribution will help the residents and Indigenous communities in which the three companies operate that have been affected by the wildfires. In addition, Alamos Gold is establishing a$250,000 Wildfire Support Fund, administered by the Dreamcatchers Committee which will support community rebuilding efforts in the community of Lynn Lake - Announced the Base Case Life of Mine Plan ("Base Case LOM Plan") completed on the Island Gold District, outlining a long-life operation that is expected to become one of the largest, lowest-cost, and most profitable gold mines in Canada. The Base Case LOM Plan outlines average annual gold production of 411,000 ounces starting in 2026, at average mine-site AISC of
$915 per ounce over the initial 12 years. The Company expects to outline significant upside potential to the Base Case LOM within an expansion study ("Expansion Study"), which is expected to be completed in the fourth quarter of 2025 - Provided an exploration update at Island Gold where drilling continues to extend high-grade gold mineralization across the Island Gold Deposit, as well as within several hanging wall and footwall structures, highlighting the significant near-mine upside potential. Additionally, the regional exploration program has been successful in intersecting high-grade gold mineralization at the past-producing Cline-Pick and Edwards mines, located seven kilometres from the Magino Mill, highlighting longer-term opportunities for further growth
- Shaft sinking at Island Gold reached 1,265 metres ("m") in the second quarter, or
92% of the planned depth. In addition, a groundbreaking ceremony was held for the 115 kV power line project in partnership with Batchewana First Nation. When completed in 2026, it will connect the entire site to grid power, providing clean energy and further reducing the Island Gold District Greenhouse Gas (“GHG”) emissions intensity to well below the industry average - Announced a binding agreement to sell the option to earn
100% interest in the non-core Quartz Mountain Gold Project (“Quartz Mountain”), located in Oregon, to Q-Gold Resources Ltd. (TSXV:QGR) (“Q-Gold”) for total consideration of up to$21 million and a9.9% equity interest in Q-Gold. The transaction is expected to close in the second half of 2025
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
Highlight Summary
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Financial Results (in millions) | ||||
| Operating revenues | ||||
| Cost of sales (1) | ||||
| Earnings from operations | ||||
| Earnings before income taxes | ||||
| Net earnings | ||||
| Adjusted net earnings (2) | ||||
| Adjusted earnings before interest, taxes, depreciation and amortization (2) | ||||
| Cash provided by operating activities before changes in working capital and taxes paid (2) | ||||
| Cash provided by operating activities | ||||
| Capital expenditures (sustaining) (2) | ||||
| Sustaining finance leases (3) | $— | $— | ||
| Capital expenditures (growth) (2) | ||||
| Capital expenditures (capitalized exploration) | ||||
| Free cash flow (2)(3) | ||||
| Operating Results | ||||
| Gold production (ounces) | 137,200 | 139,100 | 262,200 | 274,800 |
| Gold sales (ounces) | 135,027 | 140,923 | 252,610 | 273,772 |
| Per Ounce Data | ||||
| Average realized gold price (5) | ||||
| Average spot gold price (London PM Fix) | ||||
| Cost of sales per ounce of gold sold (includes amortization) (1) | ||||
| Total cash costs per ounce of gold sold (2) | ||||
| All-in sustaining costs per ounce of gold sold (2) | ||||
| Share Data | ||||
| Earnings per share, basic | ||||
| Earnings per share, diluted | ||||
| Adjusted earnings per share, basic (2) | ||||
| Weighted average common shares outstanding (basic) (000’s) | 420,474 | 398,275 | 420,445 | 397,546 |
| Financial Position (in millions) | ||||
| Cash and cash equivalents (4) | ||||
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
(3) Sustaining finance leases at Island Gold District are not included as additions to mineral property, plant and equipment in cash flows used in investing activities.
(4) Cash and cash equivalents in the comparatives reflect the balance as at December 31, 2024.
(5) Average realized gold price for the three and six months ended June 30, 2025 included the delivery of ounces into the gold prepayment facility based on the prepaid price of
(6) Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Gold production (ounces) | ||||
| Island Gold District (7) | 64,400 | 41,700 | 123,600 | 75,100 |
| Young-Davidson | 38,700 | 44,000 | 74,100 | 84,100 |
| Mulatos District (8) | 34,100 | 53,400 | 64,500 | 115,600 |
| Gold sales (ounces) | ||||
| Island Gold District (7) | 63,958 | 39,766 | 117,346 | 73,896 |
| Young-Davidson | 38,214 | 45,057 | 73,689 | 84,867 |
| Mulatos District (8) | 32,855 | 56,100 | 61,575 | 115,009 |
| Cost of sales (in millions) (1) | ||||
| Island Gold District (7) | ||||
| Young-Davidson | ||||
| Mulatos District (8) | ||||
| Cost of sales per ounce of gold sold (includes amortization) (1) | ||||
| Island Gold District (7) | ||||
| Young-Davidson | ||||
| Mulatos District (8) | ||||
| Total cash costs per ounce of gold sold (2) | ||||
| Island Gold District (7) | ||||
| Young-Davidson | ||||
| Mulatos District (8) | ||||
| Mine-site all-in sustaining costs per ounce of gold sold (2)(3) | ||||
| Island Gold District (7) | ||||
| Young-Davidson | ||||
| Mulatos District (8) | ||||
| Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2) | ||||
| Island Gold District (4)(7)(9) | ||||
| Young-Davidson (5) | ||||
| Mulatos District (6)(8) | ||||
| Other | ||||
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Includes capitalized exploration at Island Gold District of
(5) Includes capitalized exploration at Young-Davidson of
(6) Includes capitalized exploration at Mulatos District of
(7) The Island Gold District includes Island Gold and Magino mines for the three and six months ended June 30, 2025. Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
(8) The Mulatos District includes Mulatos and La Yaqui Grande mines.
(9) Sustaining capital expenditures for Island Gold District include certain finance leases classified as sustaining.
Environment, Social and Governance Summary Performance
Health and Safety
- Total recordable injury frequency rate1 ("TRIFR") of 0.65 in the second quarter, a
56% decrease from 1.49 in the first quarter of 2025 - Lost time injury frequency rate1 ("LTIFR") of 0.08 in the second quarter
- Alamos had eight recordable injuries across its sites and one lost time injury
- Year-to-date TRIFR of 1.01 is a significant improvement from the prior year and LTIFR of 0.08
Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company’s overarching commitment is to have all employees and contractors return Home Safe Every Day.
Environment
- Six minor reportable spills occurred in the second quarter
- Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits
All six reportable spills were minor, promptly remediated at the time of occurrence, and are not expected to have any lasting impact on the natural environment.
The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects. This includes investing in new initiatives to reduce the Company's environmental footprint with the goal of minimizing the impacts of its activities.
Community
Ongoing charitable donations, sponsorships, medical support and infrastructure investments were provided to local communities, including:
- Alamos, Vale Base Metals, and Hudbay Minerals collectively contributed CAD
$1.25 million to the Canadian Red Cross to support emergency relief and rebuilding efforts for those impacted by the wildfires in Northern Manitoba - Committed
$250,000 t o a Wildfire Support Fund, administered by the Dreamcatchers Committee which will support community rebuilding efforts in the community of Lynn Lake, Manitoba - Provided local community support near the Mulatos District including medical services, road maintenance, water distribution and student scholarships
The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company.
Governance and Disclosure
- Mulatos was awarded the Empresa Socialmente Responsable award for the 17th consecutive year in recognition of the mine’s ethical and sustainable practices
- Published Alamos’ 2024 Report on Conformance to the Responsible Gold Mining Principles ("RGMP") in accordance with the World Gold Council’s RGMP framework
- Published Alamos’ 2024 Report on Modern Slavery in accordance with Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act
- Published Alamos’ Extractive Sector Transparency Measures Act 2024 Annual Report, outlining payments made to governments in Canada and abroad related to our activities on a country and project basis
The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company’s commitment to sustainable development.
(1) Frequency rate is calculated as incidents per 200,000 hours worked.
Outlook and Strategy
| 2025 Guidance(4) | |||||
| Island Gold District | Young-Davidson | Mulatos District | Lynn Lake | Total | |
| Gold production (000's ounces) | 275 - 300 | 175 - 190 | 130 - 140 | — | 580-630 |
| Cost of sales, including amortization (in millions) (3) | |||||
| Previous cost of sales, including amortization (in millions) (3) | |||||
| Total cash costs ($ per ounce) (1) | — | ||||
| Previous total cash costs ($ per ounce) (1) | — | ||||
| All-in sustaining costs ($ per ounce) (1)(2) | — | ||||
| Previous all-in sustaining costs ($ per ounce) (1)(2) | — | ||||
| Capital expenditures (in millions) | |||||
| Sustaining capital (1) | — | ||||
| Growth capital (1) | |||||
| Total sustaining and growth capital (1) | |||||
| Capitalized exploration (1) | |||||
| Total capital expenditures and capitalized exploration (1) | |||||
(1) Refer to the "Non-GAAP Measures and Additional GAAP" section of this press release and associated MD&A for a description of these measures.
(2) Total consolidated all-in sustaining costs include corporate and administrative, and share based compensation expenses. Individual mine-site all-in sustaining costs do not include an allocation of corporate and administrative expense, and corporate share-based compensation expenses.
(3) Cost of sales includes mining and processing costs, royalties, and amortization expense, and sliver by-product credits, and is calculated based on the mid-point of total cash costs guidance.
(4) Previous guidance was issued on January 13, 2025. Cost guidance was revised on July 30, 2025. Production and capital guidance remain unchanged.
The Company’s objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term, through growing production, expanding margins, and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while re-investing in high-return internal growth opportunities, and supporting higher returns to shareholders.
During the second quarter, the Company continued to execute on this strategy across a number of fronts. Production increased
A further increase in production is expected in the third quarter to between 145,000 and 155,000 ounces, with total cash costs expected to decrease
A more significant increase in production and decrease in costs is expected in the fourth quarter driven by higher underground mining rates at Island Gold, as well as higher grades at Young-Davidson and La Yaqui Grande. Given the strong growth expected into the second half of the year, the Company remains on track to achieve full year production guidance.
Reflecting the higher than budgeted share-based compensation expense through the first half of the year, higher royalty expenses, and slower start to the year at Magino and Young-Davidson, the Company has increased its 2025 cost guidance. Full year total cash costs are now expected to be between
Consistent with the updated cost guidance, the Company expects a substantial decrease in costs into the second half of the year, driven by significant production growth. This strong trend of growing production and declining costs is expected to continue over the next several years driven by low-cost growth from the Company's pipeline of high-return development projects.
The Phase 3+ Expansion at Island Gold is expected to be a significant driver of near term production growth and further decrease in costs in 2026. As outlined in the Base Case LOM Plan for the Island Gold District, the expansion is expected to transform the operation into one of the largest, lowest-cost, and most profitable gold mines in Canada with significant upside potential. The shaft sink has advanced to a depth of 1,265 m,
Post completion of the Phase 3+ Expansion, production from the Island Gold District is expected to increase to average 411,000 ounces per year at mine-site AISC of
Given ongoing wildfires that continue to impact communities across northern Manitoba, the ramp up of construction activities on the Lynn Lake project has been temporarily paused. Assuming the resumption of construction activities during the third quarter of 2025, the Company expects the completion of the Lynn Lake project in the second half of 2028. This represents an approximate six-month delay from the previous schedule given the loss of the majority of the summer construction season.
Longer-term, there is excellent potential to increase consolidated production to approximately one million ounces per year through a further expansion of the Island Gold District. The Expansion Study for the Island Gold District remains on track to be released in the fourth quarter of 2025 and is expected to demonstrate the significant upside potential to the Base Case LOM Plan. The Expansion Study is expected to include a larger Mineral Reserve, through ongoing Mineral Resource conversion, and will evaluate a potential expansion of the mill to between 18,000 and 20,000 tpd, supporting higher underground mining rates from Island Gold, and open pit mining and processing rates from Magino.
Capital spending in 2025 will be focused on the ramp up of construction activities at Lynn Lake and PDA, as well as the final full year of spending on the Phase 3+ Expansion. Capital spending is expected to increase modestly into 2026 with lower capital at the Island Gold District offset by the ramp up in spending on Lynn Lake and PDA. In 2027, capital spending is expected to decrease relative to 2026 driven by significantly lower capital at the Island Gold District, and the completion of construction of PDA. A further decrease in capital is expected after the completion of construction of Lynn Lake.
The global exploration budget for 2025 is
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow,
Second Quarter 2025 Results
Island Gold District Financial and Operational Review
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Gold production (ounces) | 64,400 | 41,700 | 123,600 | 75,100 | ||||
| Gold sales (ounces) | 63,958 | 39,766 | 117,346 | 73,896 | ||||
| Financial Review (in millions) | ||||||||
| Operating Revenues | ||||||||
| Cost of sales (1) | ||||||||
| Earnings from operations | ||||||||
| Cash provided by operating activities | ||||||||
| Capital expenditures (sustaining) (2) | ||||||||
| Lease payments (sustaining) (2),(5) | $— | $— | ||||||
| Capital expenditures (growth) (2) | ||||||||
| Capital expenditures (capitalized exploration) (2) | ||||||||
| Mine-site free cash flow (2),(5) | ||||||||
| Cost of sales, including amortization per ounce of gold sold (1) | ||||||||
| Total cash costs per ounce of gold sold (2) | ||||||||
| Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | ||||||||
| Island Gold Mine | ||||||||
| Underground Operations | ||||||||
| Tonnes of ore mined | 113,182 | 94,837 | 223,408 | 201,574 | ||||
| Tonnes of ore mined per day | 1,244 | 1,042 | 1,234 | 1,108 | ||||
| Average grade of gold (4) | 11.48 | 14.14 | 11.49 | 12.23 | ||||
| Metres developed | 2,122 | 1,598 | 4,280 | 3,375 | ||||
| Mill Operations | ||||||||
| Tonnes of ore processed | 118,738 | 92,703 | 227,804 | 199,918 | ||||
| Tonnes of ore processed per day | 1,305 | 1,019 | 1,259 | 1,098 | ||||
| Average grade of gold (4) | 11.44 | 14.39 | 11.40 | 12.38 | ||||
| Contained ounces milled | 43,666 | 42,895 | 83,504 | 79,546 | ||||
| Average recovery rate | 98 | % | 98 | % | 98 | % | 98 | % |
| Magino Mine | ||||||||
| Open Pit Operations | ||||||||
| Tonnes of ore mined - open pit (7) | 1,251,029 | — | 2,315,899 | — | ||||
| Tonnes of ore mined per day | 13,748 | — | 12,795 | — | ||||
| Total waste mined - open pit (8) | 3,893,410 | — | 7,339,538 | — | ||||
| Total tonnes mined - open pit | 5,144,439 | — | 9,655,437 | — | ||||
| Waste-to-ore ratio (8) | 3.11 | — | 3.17 | — | ||||
| Average grade of gold (4) | 0.82 | — | 0.79 | — | ||||
| Mill Operations | ||||||||
| Tonnes of ore processed | 765,423 | — | 1,416,576 | — | ||||
| Tonnes of ore processed per day | 8,411 | — | 7,826 | — | ||||
| Average grade of gold processed (4) | 0.94 | — | 0.90 | — | ||||
| Contained ounces milled | 23,082 | — | 41,002 | — | ||||
| Average recovery rate | 95 | % | — | 94 | % | — | ||
(1) Cost of sales includes mining and processing costs, royalties, and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Grams per tonne of gold.
(5) Mine-site free cash flow does not include lease payments which are classified as cash flows used in financing activities on the condensed interim consolidated financial statements.
(6) Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
(7) Includes ore stockpiled during the periods.
(8) Total waste mined includes operating waste and capitalized stripping.
The Island Gold District produced 64,400 ounces in the second quarter of 2025, a
Island Gold Operational Review
Underground mining rates averaged 1,244 tpd in the second quarter, a
Mill throughput averaged 1,305 tpd and mill recoveries averaged
Magino Operational Review
Total mining rates averaged 56,532 tpd during the second quarter, including 13,748 tpd of ore, up
Milling rates continued to improve in the second quarter with throughput increasing
Milling rates have continued to increase into the third quarter following additional planned improvements. This included the installation of a redesigned liner and bolt configuration within the SAG mill which was completed during the second week of July. Following the liner change, milling rates increased to average approximately 9,500 tpd through the second half of July. Milling rates are expected to continue increasing to targeted rates of 11,200 tpd during the third quarter.
Since the introduction of higher grade underground ore within the Magino mill in mid July, recoveries of the blended ore have been consistent with expectations.
Island Gold District Financial Review
Revenues of
Cost of sales of
Total cash costs were
Total capital expenditures were
Mine-site free cash flow was
Young-Davidson Financial and Operational Review
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Gold production (ounces) | 38,700 | 44,000 | 74,100 | 84,100 | ||||
| Gold sales (ounces) | 38,214 | 45,057 | 73,689 | 84,867 | ||||
| Financial Review (in millions) | ||||||||
| Operating Revenues | ||||||||
| Cost of sales (1) | ||||||||
| Earnings from operations | ||||||||
| Cash provided by operating activities | ||||||||
| Capital expenditures (sustaining) (2) | ||||||||
| Capital expenditures (growth) (2) | ||||||||
| Capital expenditures (capitalized exploration) (2) | ||||||||
| Mine-site free cash flow (2) | ||||||||
| Cost of sales, including amortization per ounce of gold sold (1) | ||||||||
| Total cash costs per ounce of gold sold (2) | ||||||||
| Mine-site all-in sustaining costs per ounce of gold sold (2),(3) | ||||||||
| Underground Operations | ||||||||
| Tonnes of ore mined | 654,317 | 717,565 | 1,262,918 | 1,384,627 | ||||
| Tonnes of ore mined per day | 7,190 | 7,885 | 6,977 | 7,608 | ||||
| Average grade of gold (4) | 2.01 | 2.18 | 2.01 | 2.07 | ||||
| Metres developed | 2,203 | 2,186 | 4,335 | 4,100 | ||||
| Mill Operations | ||||||||
| Tonnes of ore processed | 639,368 | 725,647 | 1,238,583 | 1,391,425 | ||||
| Tonnes of ore processed per day | 7,026 | 7,974 | 6,843 | 7,645 | ||||
| Average grade of gold (4) | 2.05 | 2.18 | 2.03 | 2.07 | ||||
| Contained ounces milled | 42,203 | 50,832 | 80,967 | 92,442 | ||||
| Average recovery rate | 91 | % | 90 | % | 91 | % | 90 | % |
(1) Cost of sales includes mining and processing costs, royalties and amortization.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Grams per tonne of gold.
Operational review
Young-Davidson produced 38,700 ounces of gold in the second quarter,
Mining rates averaged 7,190 tpd in the second quarter, a
Milling rates averaged 7,026 tpd in the second quarter, below the annual guidance of 8,000 tpd and a
Processed grades averaged 2.05 g/t Au in the second quarter,
Financial Review
Revenues increased to
Cost of sales of
Total cash costs of
Capital expenditures in the second quarter totaled
Young-Davidson continues to generate strong ongoing mine-site free cash flow, including a record
Mulatos District Financial and Operational Review
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Gold production Mulatos (ounces) | 34,100 | 53,400 | 64,500 | 115,600 | ||||
| Gold sales (ounces) | 32,855 | 56,100 | 61,575 | 115,009 | ||||
| Financial Review (in millions) | ||||||||
| Operating Revenues | ||||||||
| Cost of sales (1) | ||||||||
| Earnings from operations | ||||||||
| Cash provided by operating activities | ||||||||
| Capital expenditures (sustaining) (2) | ||||||||
| Capital expenditures (growth) (2) | ||||||||
| Capital expenditures (capitalized exploration) (2) | ||||||||
| Mine-site free cash flow (2) | ||||||||
| Cost of sales, including amortization per ounce of gold sold (1) | ||||||||
| Total cash costs per ounce of gold sold (2) | ||||||||
| Mine site all-in sustaining costs per ounce of gold sold (2),(3) | ||||||||
| La Yaqui Grande Mine | ||||||||
| Open Pit Operations | ||||||||
| Tonnes of ore mined - open pit | 1,015,236 | 1,021,703 | 2,010,049 | 2,007,918 | ||||
| Total waste mined - open pit | 4,133,651 | 3,878,149 | 8,219,525 | 7,955,059 | ||||
| Total tonnes mined - open pit | 5,148,887 | 4,899,852 | 10,229,574 | 9,962,977 | ||||
| Waste-to-ore ratio | 4.07 | 3.80 | 4.09 | 3.96 | ||||
| Crushing and Heap Leach Operations | ||||||||
| Tonnes of ore stacked | 1,016,437 | 1,019,938 | 2,039,020 | 2,001,678 | ||||
| Average grade of gold processed (4) | 1.54 | 1.46 | 1.14 | 1.39 | ||||
| Contained ounces stacked | 50,280 | 48,019 | 74,890 | 89,418 | ||||
| Average recovery rate | 52 | % | 87 | % | 62 | % | 103 | % |
| Ore crushed per day (tonnes) | 11,200 | 11,200 | 11,300 | 11,000 | ||||
(1) Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
(3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense.
(4) Grams per tonne of gold.
Mulatos District Operational Review
The Mulatos District achieved a significant milestone during the second quarter producing its three millionth ounce of gold. Production totaled 34,100 ounces in the second quarter, a
La Yaqui Grande produced 26,100 ounces in the second quarter,
Stacking rates averaged 11,200 tpd in the second quarter, exceeding annual guidance but are expected to average 10,500 tpd in the third quarter with the onset of the rainy season. Contained ounces stacked increased to 50,280 ounces, driven by significant increase in grades in the quarter. The recovery rate of
Mulatos commenced residual leaching in December 2023 and produced 8,000 ounces in the second quarter, in-line with expectations. The operation is expected to benefit from ongoing gold production at decreasing rates through the remainder of 2025.
Mulatos District Financial Review
Revenues of
Cost of sales decreased to
Total cash costs of
Capital expenditures totaled
The Mulatos District generated mine-site free cash flow of
Second Quarter 2025 Development Activities
Island Gold (Ontario, Canada)
Phase 3+ Expansion
In 2022, the Company announced the Phase 3+ Expansion at Island Gold to 2,400 tpd from the current rate of 1,200 tpd, which includes various infrastructure investments. These include the installation of a shaft, paste plant, as well as accelerated development to support the higher mining rates. Following the completion of the expansion in 2026, the operation will transition from trucking ore and waste up the ramp to skipping ore and waste to surface through the new shaft infrastructure, driving production higher and costs significantly lower.
On June 23, 2025, the Company announced the Base Case LOM Plan with the total growth capital estimate for the Phase 3+ Expansion revised to
In addition, the Company is evaluating the addition of a pebble crusher and auxiliary mill to the Magino mill to support the expansion to 12,400 tpd. This would represent a potential scope change at an additional cost of approximately
During the second quarter of 2025, the Company spent
- Shaft sinking advanced to a depth of 1,265 m by the end of the second quarter
- Completed cladding and roofing for the shaft bin house
- Completed bulk earthworks for the Magino mill expansion to 12,400 tpd, with the footprint sized to accommodate a further potential expansion up to 20,000 tpd
- Detailed engineering for the larger Magino mill expansion is ongoing and expected to be completed by early 2026
- Paste plant construction over
70% complete - Completed the earthworks for the new administrative complex located adjacent to the shaft infrastructure
- Advanced lateral development to support higher mining rates with the Phase 3+ Expansion
- Advanced work on the 115kV power line project in partnership with Batchewana First Nation, including holding a groundbreaking ceremony in June
The Phase 3+ Expansion is on schedule to be completed in the second half of 2026.
| (in US$M) Growth capital (including indirects and contingency) | P3+ Estimate June 20251 | Spent to date1,2 | Committed to date1 | % of Spent & Committed | |
| Shaft & Shaft Surface Complex | 324 | 234 | 40 | 85 | % |
| Mill Expansion | 67 | 40 | 23 | 94 | % |
| Paste Plant | 60 | 30 | 10 | 67 | % |
| Power Upgrade | 38 | 31 | 7 | 100 | % |
| General Indirect Costs | 91 | 65 | 4 | 76 | % |
| Total Growth Capital | 83 | % | |||
| Underground Equipment, Infrastructure & Accelerated Development | 255 | 177 | — | 69 | % |
| Total Growth Capital (including Accelerated Spend) | 79 | % | |||
- Reflects updated initial capital estimates released in June 2025 as part of the Base Case LOM Plan, based on USD/CAD exchange
$0.73 :1 in 2025 and$0.74 :1 in 2026 and 2027. Spent to date based on average USD/CAD of$0.73 :1 since the start of 2022. Committed to date based on the spot USD/CAD rate as at June 30, 2025 of$0.73 :1. - Amount spent to date accounted for on an accrual basis, including working capital movements.
Island Gold shaft site area - July 2025
Island Gold paste plant - July 2025
Island Gold 1265L shaft station with galloway (depth of 1,265 m) - July 2025
Lynn Lake (Manitoba, Canada)
On January 13, 2025, the Company announced a positive construction decision on the Lynn Lake project. With the approval of the Closure Plan in January 2025, the required permitting and pre-construction conditions have been met allowing for the start of construction on the Lynn Lake project. During the first quarter of 2025, the Company also signed an Impact Benefit Agreement ("IBA") with Mathias Colomb Cree Nation ("MCCN"). The Company now has IBAs in place with both of the First Nation communities proximate to the Lynn Lake project.
Given ongoing wildfires that continue to impact communities across northern Manitoba, the ramp up of construction activities on the Lynn Lake project has been temporarily paused. Assuming the resumption of construction activities during the third quarter of 2025, the Company expects the completion of the Lynn Lake project in the second half of 2028. This represents an approximate six-month delay from the previous schedule given the loss of the majority of the summer construction season. With average annual production of 176,000 ounces over its first ten years at first quartile mine-site AISC, Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year.
Growth capital spending at Lynn Lake was initially estimated to be between
On February 13, 2025, the Company reported positive results of an internal economic study completed on its Burnt Timber and Linkwood satellite deposits located in proximity to the Lynn Lake project. The 2023 Study for Lynn Lake was based only on the Gordon and MacLellan deposits which are to be mined over the first 11 years, with the processing of lower grade stockpiled ore for the remainder of the 17-year mine life. The Burnt Timber and Linkwood deposits are expected to provide a source of additional mill feed to the Lynn Lake project starting in year 12, deferring the lower grade stockpiles until later in the mine plan. This is expected to extend the mine life of the combined Lynn Lake project to 27 years, increase longer term production rates, and enhance its economics as a low-capital, high-return satellite project.
The two deposits are expected to produce an average of 83,000 ounces of gold per year over a 10 year mine life. By leveraging mining equipment and planned processing infrastructure at Lynn Lake, the project is expected to be developed for low initial capital of
Development spending (excluding exploration) was
PDA (Sonora, Mexico)
On September 4, 2024, the Company reported the results of the development plan for the PDA project located within the Mulatos District. PDA is a higher-grade underground deposit adjacent to the Mulatos open pit and will benefit from the use of existing crushing infrastructure from Cerro Pelon, supporting lower initial capital and project execution risk.
On January 29, 2025, the Company announced it has been granted approval of an amendment to its existing environmental impact assessment (Manifestación de Impacto Ambiental) by Mexico’s Secretariat of Environment and Natural Resources, allowing for the start of construction on the PDA project. Construction activities on PDA are expected to begin ramping up in the third quarter of 2025. Capital spending on PDA is expected to total
As outlined in the 2024 development plan, PDA is expected to produce an average of 127,000 ounces per year over the first four years and 104,000 ounces over the current mine life (based on Mineral Reserves as at December 31, 2023). Total cash costs are expected to average
Reflecting the low cost structure and low initial capital, PDA is expected to be a high-return project with significant exploration upside. PDA has an estimated after-tax IRR of
Development spending (excluding exploration) was
Kirazlı (Çanakkale, Türkiye)
On October 14, 2019, the Company suspended all construction activities on its Kirazlı project following the Turkish government's failure to grant a routine renewal of the Company’s mining licenses, despite the Company having met all legal and regulatory requirements for their renewal. In October 2020, the Turkish government refused the renewal of the Company’s Forestry Permit. The Company had been granted approval of all permits required to construct Kirazlı including the Environmental Impact Assessment approval, Forestry Permit, and GSM (Business Opening and Operation) permit, and certain key permits for the nearby Ağı Dağı and Çamyurt Gold Mines. These permits were granted by the Turkish government after the project earned the support of the local communities and passed an extensive multi-year environmental review and community consultation process.
On April 20, 2021, the Company announced that its Netherlands wholly-owned subsidiaries Alamos Gold Holdings Coöperatief U.A, and Alamos Gold Holdings B.V. (“Subsidiaries”) would be filing an investment treaty claim against the Republic of Türkiye for expropriation and unfair and inequitable treatment. The claim was filed under the Netherlands-Türkiye Bilateral Investment Treaty (“Treaty”). Alamos Gold Holdings Coöperatief U.A. and Alamos Gold Holdings B.V. had their claim against the Republic of Türkiye registered on June 7, 2021 with the International Centre for Settlement of Investment Disputes (World Bank Group).
Bilateral investment treaties are agreements between countries to assist with the protection of investments. The Treaty establishes legal protections for investment between Türkiye and the Netherlands. The Subsidiaries directly own and control the Company’s Turkish assets. The Subsidiaries invoking their rights pursuant to the Treaty does not mean that they relinquish their rights to the Turkish project, or otherwise cease the Turkish operations. The Company will continue to work towards a constructive resolution with the Republic of Türkiye.
The Company incurred
Second Quarter 2025 Exploration Activities
Island Gold District (Ontario, Canada)
A total of
As announced on June 23, 2025, Mineral Reserves at Island Gold underground increased
Reflecting the conversion to Mineral Reserves, Inferred Mineral Resources decreased
A total of 41,500 m of underground drilling is planned in 2025 with a focus on defining new Mineral Reserves and Resources in proximity to existing production horizons and infrastructure. This includes drilling across the strike extent of the main Island Gold deposit (E1E and C-Zones), as well as within a growing number of newly defined hanging-wall and footwall zones.
Additionally, 18,000 m of surface exploration drilling has been budgeted targeting the area between the Island Gold and Magino deposits, as well as the down-plunge extension of the Island Gold deposit, below a depth of 1,500 m. Included within sustaining capital, 30,800 m of underground delineation drilling is planned and focused on the ongoing conversion of the large Mineral Resource base to Mineral Reserves.
Magino’s exploration program has been incorporated into the broader Island Gold District budget which totals
The regional exploration program at the Island Gold District includes 10,000 m of surface drilling, consistent with the 2024 program. The focus will be following up on high-grade mineralization intersected at the Cline-Pick and Edwards deposits located approximately seven km northeast of the Island Gold mine. Drilling will also be completed at the Island Gold North Shear target, and to the east and along strike from the Island Gold mine to test the extension of the E1E-zone.
During the second quarter, 12,635 m of underground exploration drilling was completed in 53 holes, and 1,893 m of surface drilling was completed in one hole at Island Gold. Additionally, 11,173 m of underground delineation drilling was completed in 40 holes, focused on in-fill drilling to convert Mineral Resources to Mineral Reserves. A surface delineation program also commenced during the quarter, targeting Mineral Resource-to-Reserve conversion in the lower portion of Island East. To support this effort, 4,713 m were drilled in two holes. Furthermore, a total of 93 meters of underground exploration drift development was completed during the second quarter.
At Magino, 12,008 m of surface drilling was completed in 23 holes during the second quarter, focused on in-fill drilling to convert Mineral Resources to Mineral Reserves.
The regional exploration drilling program continued during the second quarter, with 4,273 m completed in 15 holes targeting mineralization at the past-producing Cline-Pick and Edwards mines.
As detailed in the June 2025 exploration update, the program continues to have broad based success with drilling extending high-grade gold mineralization across the Island Gold Deposit, as well as within several hanging wall and footwall structures, highlighting the significant near-mine upside potential. Additionally, the regional exploration program has been successful in intersecting high-grade gold mineralization at the past-producing Cline-Pick and Edwards mines highlighting longer-term opportunities for further growth.
Total exploration expenditures during the second quarter of 2025 were
Young-Davidson (Ontario, Canada)
A total of
To support the program, 500 m of underground exploration development is planned, including 400 m to establish a hanging wall exploration drift to the south, from the 9620 level. As of June 30, 2025, 300 m had been completed in the hanging wall drift and is expected to be completed in the third quarter. This will allow for drill platforms with more optimal locations and orientations to test the higher grade mineralization discovered in the hanging wall.
The regional program includes 6,000 m of drilling focused on evaluating the Otisse NE target, located approximately three km northeast of Young-Davidson. A comprehensive data compilation project will also commence in 2025 for the Wydee and Matachewan projects, which were acquired in the third quarter of 2024, and located to the west and east of Young-Davidson, respectively.
During the second quarter, two underground exploration drills completed 5,009 m in nine holes from the 9440 and 9500 levels. Drilling is targeting syenite-hosted mineralization as well as continuing to test mineralization in the hanging wall sediments and mafic-ultramafic stratigraphy.
Total exploration expenditures during the second quarter of 2025 were
Mulatos District (Sonora, Mexico)
A total of
Ongoing exploration success at PDA in 2024 drove a
The planned addition of a mill to process higher-grade sulphides has created new opportunities for growth within the Mulatos District. This includes Cerro Pelon, where drilling in 2024 followed up on wide high-grade underground oxide and sulphide intersections previously drilled below the pit. The 2024 program was successful in defining an initial Measured and Indicated Mineral Resource at Cerro Pelon totaling 104,000 ounces, grading 4.49 g/t Au. Cerro Pelon remains open in multiple directions and will be a focus of the 2025 exploration program as a significant opportunity for further growth. As the deposit is located within trucking distance of the planned PDA mill, this represents upside to the PDA project.
During the second quarter, exploration activities continued at PDA and the near-mine area with 7,791 m of drilling completed in 27 holes. The focus was on infill drilling the GAP-Victor portion as well as the eastern extent of the PDA zone.
Drilling continued at Cerro Pelon with the focus on evaluating the high-grade sulphide potential to the north of the historical open pit. A total of 6,744 m in 24 holes were completed in the second quarter. Additionally, 6,273 m was drilled in 23 holes, testing greenfield targets across the property.
Total exploration expenditures during the second quarter of 2025 were
Lynn Lake (Manitoba, Canada)
A total of
As reported on February 18, 2025, total Mineral Reserves for the Lynn Lake District increased
Burnt Timber and Linkwood are satellite deposits to the Lynn Lake project and are expected to provide additional mill feed. An internal economic study on Burnt Timber and Linkwood was released on February 13, 2025, outlining an attractive, low capital, high-return project. Burnt Timber and Linkwood are expected to extend the mine life of the Lynn Lake project, increase longer term rates of production, and enhance the overall economics. The combined mine life of the Lynn Lake project is expected to increase to 27 years, up from the 17 years outlined in the 2023 Study.
The 2025 surface exploration program was completed in the first quarter. The focus was on Mineral Resource expansion drilling at both Burnt Timber and Linkwood, with 7,268 m completed in 41 holes.
Exploration spending totaled
Qiqavik (Quebec, Canada)
A total of
Qiqavik is a camp-scale property covering 60,400 ha in the Cape Smith Greenstone Belt in Nunavik, Quebec. The Qiqavik project covers 50 km of strike covering prospective gold hosting environments and several major crustal-scale structures such as the Qiqavik break and the Bergeron fault. Early-stage exploration completed to date indicates that high-grade gold occurrences are controlled by structural splays off the Qiqavik break.
The 2025 exploration program will focus on drilling prospective targets identified in 2024 through detailed geological mapping, prospecting, till sampling, and a high-resolution Lidar survey with photo imagery. A total of 7,000 m of helicopter supported surface drilling is planned with two rigs and focused on testing the highest priority target areas. The program will also focus on advancing other targets across the belt with ongoing geological mapping, drone magnetics, prospecting, and additional till sampling.
Exploration activities in the second quarter were focused on continued data interpretation to support targeting ahead of the summer drill program. At the end of the second quarter, the camp had been set up and drills were mobilized to site for the start of the summer drill program.
Exploration spending totaled
Review of Second Quarter Financial Results
During the second quarter of 2025, the Company sold 135,027 ounces of gold for record operating revenues of
The average realized gold price in the second quarter was
Cost of sales (which includes mining and processing costs, royalties, and amortization expense) were
Mining and processing costs were
Total cash costs of
Royalty expense was
Amortization of
The Company recognized earnings from operations of
As at June 30, 2025, the Company held forward contracts that were acquired as part of the acquisition of Argonaut. These legacy contracts, totaling 100,000 ounces in 2026 and 50,000 ounces in 2027, have an average forward price of
The Company reported net earnings of
(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.
Associated Documents
This press release should be read in conjunction with the Company’s consolidated financial statements for the three-month period ended June 30, 2025 and associated Management’s Discussion and Analysis (“MD&A”), which are available from the Company's website, www.alamosgold.com, in the "Investors" section under "Reports and Financials", and on SEDAR+ (www.sedarplus.ca) and EDGAR (www.sec.gov).
Reminder of Second Quarter 2025 Results Conference Call
The Company's senior management will host a conference call on Thursday, July 31, 2025 at 10:00 am ET to discuss the second quarter 2025 results. Participants may join the conference call via webcast or through the following dial-in numbers:
| Toronto and International: | (416) 406-0743 |
| Toll free (Canada and the United States): | (800) 898-3989 |
| Participant passcode: | 2513100# |
| Webcast: | www.alamosgold.com |
A playback will be available until August 31, 2025 by dialling (905) 694-9451 or (800) 408-3053 within Canada and the United States. The pass code is 5228302#. The webcast will be archived at www.alamosgold.com.
Qualified Persons
Chris Bostwick, FAusIMM, Alamos’ Senior 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 press release.
About Alamos
Alamos is a Canadian-based intermediate gold producer with diversified production from three operations in North America. This includes the Island Gold District and Young-Davidson mine in northern Ontario, Canada, and the Mulatos District in Sonora State, Mexico. Additionally, the Company has a strong portfolio of growth projects, including the Phase 3+ Expansion at Island Gold, and the Lynn Lake project in Manitoba, Canada. Alamos employs more than 2,400 people and is committed to the highest standards of sustainable development. The Company’s shares are traded on the TSX and NYSE under the symbol “AGI”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
| Scott K. Parsons | |
| Senior Vice-President, Corporate Development & Investor Relations | |
| (416) 368-9932 x 5439 | |
| Khalid Elhaj | |
| Vice President, Business Development & Investor Relations | |
| (416) 368-9932 x 5427 | |
| ir@alamosgold.com | |
The TSX and NYSE have not reviewed and do not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
This release contains or incorporates by reference “forward-looking statements” and “forward-looking information” as defined under applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, which address events, results, outcomes or developments that the Company expects to occur are, or may be deemed, to be, forward-looking statements and are based on expectations, estimates and projections as at the date of this press release. Forward-looking statements are generally, but not always, identified by the use of forward-looking terminology such as "expect", “assume”, "believe", "anticipate", "intend", "objective", "estimate", “potential”, "prospective", "forecast", “target”, "goal", "aim", “on track”, "on pace", “outlook”, “continue”, “ongoing”, “plan” or variations of such words and phrases and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved or the negative connotation of such terms.
Such statements in this release include, but may not be limited to, guidance and expectations pertaining to: gold production; production potential; mining, processing, milling, and production rates; gold grades; gold prices; foreign exchange rates; free cash flow, mine-site free cash flow, total cash costs, all-in sustaining costs, mine-site all-in sustaining costs, capital expenditures, total sustaining and growth capital, capitalized exploration, budgets, tax rates and the payment of taxes, IRR, NPV; total liquidity; returns to stakeholders; impacts of inflation; mine plans; mine life; Mineral Reserve life; Mineral Reserves and Resources; exploration potential, budgets, focuses, programs, targets, and projected results; funding of growth initiatives; the Company's approach to reduction of its environmental footprint, greenhouse gas emissions, and related investments in new initiatives; the Company's climate change strategy and goals; community relations, engagement activities, and initiatives; corporate governance; synergies resulting from the integration of the Magino and Island Gold operations; processing of ore from Island Gold through the Magino mill; expansion of the Magino mill; increases to production, value of operation, and decreases to costs resulting from the intended completion of the Phase 3+ Expansion at Island Gold; intended infrastructure investments in, method of funding for, and timing of the completion of, the Phase 3+ Expansion; Island Gold District Expansion Study; construction activities, capital spending and timing of initial production with respect to the Lynn Lake project and the PDA project; initial underground Mineral Resource at Cerro Pelon; the Burnt Timber and Linkwood deposits near the Lynn Lake project; growing production, expanding margins, and increases in profitability; the sale of Quartz Mountain to Q-Gold, the total consideration payable under the transaction agreement and the expected timing of the closing of the transaction; as well as other general 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, cost estimates, sufficiency of working capital for future commitments and other statements that express management’s expectations or estimates of future plans and performance.
Alamos cautions that forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by the Company at the time of making such statements, are inherently subject to significant business, economic, technical, legal, 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 and undue reliance should not be placed on such statements and information.
Risk factors that may affect Alamos’ ability to achieve the expectations set forth in 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 which may be impacted by unscheduled maintenance, weather issues, labour and contractor availability and other operating or technical difficulties); operations may be exposed to illnesses, diseases, epidemics and pandemics, the impact of any illness, disease, epidemic or pandemic on the broader market and the trading price of the Company's shares; provincial and federal orders or mandates (including with respect to mining operations generally or auxiliary businesses or services required for the Company’s operations) in Canada, Mexico, the United States and Türkiye; the duration of any regulatory responses to any illness, disease, epidemic or pandemic; government and the Company’s attempts to reduce the spread of any illness, disease, epidemic or pandemic which may affect many aspects of the Company's operations including the ability to transport personnel to and from site, contractor and supply availability and the ability to sell or deliver gold doré bars; fluctuations in the price of gold or certain other commodities such as, diesel fuel, natural gas, and electricity; changes in foreign exchange rates (particularly CAD, MXN, USD and Turkish lira); the impact of inflation and any tariffs, trade barriers and/or regulatory costs; changes in the Company's credit rating; any decision to declare a quarterly dividend; employee and community relations; litigation and administrative proceedings (including but not limited to the investment treaty claim announced on April 20, 2021 against the Republic of Türkiye by the Subsidiaries) and any resulting court or arbitral decision(s); disruptions affecting operations; availability of and increased costs associated with mining inputs and labour; delays with the Phase 3+ Expansion project at the Island Gold mine, construction of the 115kV powerline, construction of the Lynn Lake Project, construction of the PDA project, and/or the development or updating of mine plans; changes with respect to the intended method of accessing and mining the deposit at PDA and changes related to the intended method of processing any ore from the deposit of PDA; risks associated with the start-up of new mines; the risk that the Company’s mines may not perform as planned; the risk that the closing conditions for the completion of the sale of Quartz Mountain may not be met; 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 and maintaining necessary licenses and permits, including the necessary licenses, permits, authorizations and/or approvals from the appropriate regulatory authorities for the Company’s development stage and operating assets; labour and contractor availability (and being able to secure the same on favourable terms); contests over title to properties; expropriation or nationalization of property; inherent risks and hazards associated with mining and mineral processing including environmental hazards, industrial hazards, industrial accidents, unusual or unexpected formations, pressures and cave-ins; changes in national and local government legislation, controls or regulations in Canada, Mexico, Türkiye, the United States and other jurisdictions in which the Company does or may carry on business in the future; increased costs and risks related to the potential impact of climate change; failure to comply with environmental and health and safety laws and regulations; disruptions in the maintenance or provision of required infrastructure and information technology systems; risk of loss due to sabotage, protests and other 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 litigation against the Republic of Türkiye, described above, results from the actions of the Turkish government in respect of the Company’s projects in the Republic of Türkiye. Such litigation is a mitigation effort and may not be effective or successful. If unsuccessful, the Company’s projects in Türkiye may be subject to resource nationalism and further expropriation; the Company may lose any remaining value of its assets and gold mining projects in Türkiye and its ability to operate in Türkiye. Even if the litigation is successful, there is no certainty as to the quantum of any damages award or recovery of all, or any, legal costs. Any resumption of activities in Türkiye by the Company, or even retaining control of its assets and gold mining projects in Türkiye can only result from agreement with the Turkish government. The investment treaty claim described in this press release may have an impact on foreign direct investment in the Republic of Türkiye which may result in changes to the Turkish economy, including but not limited to high rates of inflation and fluctuation of the Turkish Lira which may also affect the Company’s relationship with the Turkish government, the Company’s ability to effectively operate in Türkiye, and which may have a negative effect on overall anticipated project values.
Additional risk factors and details with respect to risk factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this release are set out in the Company's latest 40-F/Annual Information Form under the heading “Risk Factors”, which is available on the SEDAR+ website at www.sedarplus.ca or on EDGAR at www.sec.gov. The foregoing should be reviewed in conjunction with the information, risk factors and assumptions found in this release.
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.
Cautionary Note to U.S. Investors Concerning Measured, Indicated and Inferred Resources
Measured, Indicated and Inferred Resources: All resource and reserve estimates included in this press release or documents referenced in this press release have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended ("CIM Standards"). NI 43-101 is a rule developed by the Canadian Securities Administrators, which established standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Mining disclosure in the United States was previously required to comply with SEC Industry Guide 7 (“SEC Industry Guide 7”) under the United States Securities Exchange Act of 1934, as amended. The SEC has adopted final rules, to replace SEC Industry Guide 7 with new mining disclosure rules under sub-part 1300 of Regulation S-K of the U.S. Securities Act (“Regulation S-K 1300”) which became mandatory for U.S. reporting companies beginning with the first fiscal year commencing on or after January 1, 2021. Under Regulation S-K 1300, the SEC now recognizes estimates of “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources”. In addition, the SEC has amended its definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” to be substantially similar to international standards.
Investors are cautioned that while the above terms are “substantially similar” to CIM Definitions, there are differences in the definitions under Regulation S-K 1300 and the CIM Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under NI 43-101 would be the same had the Company prepared the mineral reserve or mineral resource estimates under the standards adopted under Regulation S-K 1300. U.S. investors are also cautioned that while the SEC recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under Regulation S-K 1300, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. Mineralization described using these terms has a greater degree of uncertainty as to its existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any measured mineral resources, indicated mineral resources, or inferred mineral resources that the Company reports are or will be economically or legally mineable.
International Financial Reporting Standards: The consolidated financial statements of the Company have been prepared by management in accordance with IFRS, as issued by the IASB (note 2 and 3 to the consolidated financial statements for the year ended December 31, 2024). 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.
Non-GAAP Measures and Additional GAAP Measures
The Company has included certain non-GAAP financial measures to supplement its condensed interim consolidated financial statements for the three and six months ended June 30, 2025, 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 paid;
- company-wide free cash flow;
- total mine-site free cash flow;
- mine-site free cash flow;
- total cash costs per ounce of gold sold;
- AISC per ounce of gold sold;
- Mine-site AISC per ounce of gold sold;
- sustaining and non-sustaining capital expenditures; and
- adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA")
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 to the measures are duly 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 gains or losses
- Items included in other loss
- Unrealized gain or loss on commodity derivatives
- Certain non-recurring items
- Foreign exchange gain or loss recorded in deferred tax expense
- The income and mining tax impact of items included in other loss
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.
| (in millions) | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Net earnings | ||||||||
| Adjustments: | ||||||||
| Foreign exchange loss (gain) | 6.6 | (0.3 | ) | 6.2 | 0.6 | |||
| Unrealized loss on commodity derivatives, net of tax | 17.1 | 0.3 | 63.4 | 1.4 | ||||
| Other loss | 2.1 | 10.6 | 3.2 | 13.9 | ||||
| Unrealized foreign exchange (gain) loss recorded in deferred tax expense | (40.9 | ) | 16.2 | (43.0 | ) | 19.7 | ||
| Other income and mining tax adjustments | (0.2 | ) | — | (0.5 | ) | 0.3 | ||
| Adjusted net earnings | ||||||||
| Adjusted earnings per share - basic | ||||||||
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 cash taxes to cash flow from operating activities. “Cash flow from operating activities before changes in working capital and cash taxes” is a non-GAAP financial measure with no standard meaning under IFRS. The following table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | ||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2025 | 2024 | 2025 | 2024 | |
| Cash flow from operating activities | ||||
| Add: Changes in working capital and taxes paid | 33.4 | (3.9) | 85.2 | 22.1 |
| Cash flow from operating activities before changes in working capital and taxes paid | ||||
Company-wide Free Cash Flow
“Company-wide free cash flow" is a non-GAAP performance measure calculated from cash flow from operating activities, less mineral property, plant and equipment expenditures and non-recurring costs. 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 June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| Cash flow from operating activities (1) | 279.1 | |||||||
| Less: mineral property, plant and equipment expenditures | (114.9 | ) | (87.6 | ) | (214.6 | ) | (172.1 | ) |
| Company-wide free cash flow | ||||||||
Mine-site Free Cash Flow
"Mine-site free cash flow" is a non-GAAP financial performance measure calculated as cash flow from operating mine-sites, less mine-site 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.
| Consolidated Mine-Site Free Cash Flow | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions) | ||||||||
| Cash flow from operating activities | ||||||||
| Add: operating cash flow used by non-mine site activity (1) | 62.2 | 13.1 | 132.1 | 33.5 | ||||
| Cash flow from operating mine-sites | ||||||||
| Mineral property, plant and equipment | ||||||||
| Less: capital expenditures from development projects, and corporate | (19.4 | ) | ( | ) | (28.3 | ) | (10.5 | ) |
| Capital expenditure and capital advances from mine-sites | ||||||||
| Total mine-site free cash flow | ||||||||
| Island Gold District Mine-Site Free Cash Flow | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions) | ||||||||
| Cash flow from operating activities (1) | ||||||||
| Mineral property, plant and equipment expenditures | (70.4 | ) | (56.1 | ) | (138.4 | ) | (110.7 | ) |
| Mine-site free cash flow | ||||||||
| Young-Davidson Mine-Site Free Cash Flow | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions) | ||||||||
| Cash flow from operating activities (1) | ||||||||
| Mineral property, plant and equipment expenditures | (21.4 | ) | (19.0 | ) | (40.2 | ) | (39.2 | ) |
| Mine-site free cash flow | ||||||||
| Mulatos District Mine-Site Free Cash Flow | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions) | ||||||||
| Cash flow from operating activities | ||||||||
| Mineral property, plant and equipment expenditure | (3.7 | ) | (7.8 | ) | (7.7 | ) | (11.7 | ) |
| Mine-site free cash flow | ||||||||
(1) Cash from operating activities for the Canadian operations excludes the impact of the 12,346 ounces and 24,692 ounces delivered into the gold prepayment arrangement for the three and six months ended June 30, 2025. The non-cash adjustment to reflect the settlement of the gold prepayment arrangement is included in Company-wide Free Cash Flow.
(2) Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
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 operating activities. 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 operating activities 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 corporate 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. Non-sustaining capital expenditures are expenditures primarily incurred at development projects and costs related to major projects at existing operations, where these projects will materially benefit the mine site. Capitalized exploration expenditures are expenditures that meet the IFRS definition for capitalization, and are incurred to further expand the known Mineral Reserves and Resources at existing operations or development projects. 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 operating activities 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.
| Total Cash Costs and AISC Reconciliation - Company-wide | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions, except ounces and per ounce figures) | ||||||||
| Mining and processing | ||||||||
| Silver by-product credits | (2.9 | ) | (3.3 | ) | (6.4 | ) | (6.0 | ) |
| Royalties | 7.6 | 3.0 | 12.4 | 5.6 | ||||
| Total cash costs | ||||||||
| Gold ounces sold | 135,027 | 140,923 | 252,610 | 273,772 | ||||
| Total cash costs per ounce | ||||||||
| Total cash costs | ||||||||
| Corporate and administrative (1) | 10.0 | 7.4 | 20.0 | 15.3 | ||||
| Sustaining capital expenditures (3) | 33.5 | 20.9 | 60.3 | 47.4 | ||||
| Sustaining finance leases | 4.0 | — | 8.3 | — | ||||
| Interest on sustaining finance leases | 1.3 | — | 1.3 | — | ||||
| Share-based compensation | 2.5 | 6.2 | 30.4 | 16.1 | ||||
| Sustaining exploration | 0.5 | 1.0 | 1.1 | 1.8 | ||||
| Accretion of decommissioning liabilities | 2.2 | 2.0 | 4.6 | 4.0 | ||||
| Total all-in sustaining costs | ||||||||
| Gold ounces sold | 135,027 | 140,923 | 252,610 | 273,772 | ||||
| All-in sustaining costs per ounce | ||||||||
(1) Corporate and administrative expenses exclude expenses incurred at development properties.
(2) Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
(3) 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 expenditures for the periods are as follow
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions) | ||||||||
| Mineral property, plant and equipment expenditures | ||||||||
| Less: non-sustaining capital expenditures at: | ||||||||
| Island Gold District | (50.3 | ) | (43.9 | ) | (102.8 | ) | (85.0 | ) |
| Young-Davidson | (8.5 | ) | (11.3 | ) | (16.6 | ) | (19.9 | ) |
| Mulatos District | (3.2 | ) | (6.8 | ) | (6.6 | ) | (9.3 | ) |
| Corporate and other | (19.4 | ) | (4.7 | ) | (28.3 | ) | (10.5 | ) |
| Sustaining capital expenditures | ||||||||
| Island Gold District Total Cash Costs and Mine-site AISC Reconciliation | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions, except ounces and per ounce figures) | ||||||||
| Mining and processing | ||||||||
| Silver by-product credits | (0.5 | ) | (0.2 | ) | (0.9 | ) | (0.4 | ) |
| Royalties | 4.1 | 0.8 | 6.9 | 1.5 | ||||
| Total cash costs | ||||||||
| Gold ounces sold | 63,958 | 39,766 | 117,346 | 73,896 | ||||
| Mine-site total cash costs per ounce | ||||||||
| Total cash costs | ||||||||
| Sustaining capital expenditures | 20.1 | 12.2 | 35.6 | 25.7 | ||||
| Sustaining finance leases | 4.0 | — | 8.3 | — | ||||
| Interest on sustaining finance | 1.3 | — | 1.3 | — | ||||
| Accretion of decommissioning liabilities | 0.3 | 0.2 | 0.7 | 0.3 | ||||
| Total all-in sustaining costs | ||||||||
| Gold ounces sold | 63,958 | 39,776 | 117,346 | 73,896 | ||||
| Mine-site all-in sustaining costs per ounce | ||||||||
| Young-Davidson Total Cash Costs and Mine-site AISC Reconciliation | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions, except ounces and per ounce figures) | ||||||||
| Mining and processing | ||||||||
| Silver by-product credits | (0.6 | ) | (0.7 | ) | (1.3 | ) | (1.3 | ) |
| Royalties | 1.9 | 1.5 | 3.5 | 2.8 | ||||
| Total cash costs | ||||||||
| Gold ounces sold | 38,214 | 45,057 | 73,689 | 84,867 | ||||
| Mine-site total cash costs per ounce | ||||||||
| Total cash costs | ||||||||
| Sustaining capital expenditures | 12.9 | 7.7 | 23.6 | 19.3 | ||||
| Accretion of decommissioning liabilities | 0.2 | 0.1 | 0.3 | 0.2 | ||||
| Total all-in sustaining costs | ||||||||
| Gold ounces sold | 38,214 | 45,057 | 73,689 | 84,867 | ||||
| Mine-site all-in sustaining costs per ounce | ||||||||
| Mulatos District Total Cash Costs and Mine-site AISC Reconciliation | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| 2025 | 2024 | 2025 | 2024 | |||||
| (in millions, except ounces and per ounce figures) | ||||||||
| Mining and processing | ||||||||
| Silver by-product credits | (1.9 | ) | (2.4 | ) | (4.3 | ) | (4.3 | ) |
| Royalties | 1.6 | 0.7 | 2.0 | 1.3 | ||||
| Total cash costs | ||||||||
| Gold ounces sold | 32,855 | 56,100 | 61,575 | 115,009 | ||||
| Mine-site total cash costs per ounce | ||||||||
| Total cash costs | ||||||||
| Sustaining capital expenditures | 0.5 | 1.0 | 1.1 | 2.4 | ||||
| Sustaining exploration | — | 0.4 | — | 1.0 | ||||
| Accretion of decommissioning liabilities | 1.7 | 1.7 | 3.6 | 3.5 | ||||
| Total all-in sustaining costs | �� | |||||||
| Gold ounces sold | 32,855 | 56,100 | 61,575 | 115,009 | ||||
| Mine-site all-in sustaining costs per ounce | ||||||||
Adjusted EBITDA
Adjusted EBITDA represents net earnings before interest, taxes, depreciation, and amortization and removes the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period. The measure also removes the impact of non-cash items such as impairment loss charges or reversals, and realized and unrealized gains or losses on derivative financial instruments. Adjusted 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.
Adjusted 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 table reconciles this non-GAAP measure to the most directly comparable IFRS measure.
| (in millions) | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| 2025 | 2024 | 2025 | 2024 | ||||
| Net earnings | |||||||
| Adjustments: | |||||||
| Finance expense (income) | 0.1 | (0.1 | ) | — | — | ||
| Amortization | 52.7 | 52.4 | 104.1 | 102.4 | |||
| Unrealized loss on commodity derivatives (1) | 25.8 | 0.4 | 94.2 | 1.9 | |||
| Deferred income tax (recovery) expense | (10.6 | ) | 40.3 | (13.4 | ) | 56.8 | |
| Current income tax expense | 32.8 | 17.8 | 46.1 | 34.8 | |||
| Adjusted EBITDA | |||||||
(1) Adjusted EBITDA has been restated in the prior year comparatives to include the impact of non-cash unrealized gains or losses on derivative financial instruments.
Additional GAAP Measures
Additional GAAP measures are presented on the Company’s condensed interim consolidated financial statements 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 expense/income, foreign exchange loss/gain, other loss, unrealized loss on commodity derivatives and income tax expense
| Unaudited Consolidated Statements of Financial Position, Comprehensive | ||||
| Income, and Cash Flow | ||||
| ALAMOS GOLD INC. | ||||
| Consolidated Statements of Financial Position | ||||
| (Unaudited - stated in millions of United States dollars) | ||||
| June 30, 2025 | December 31, 2024 | |||
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | ||||
| Equity securities | 33.3 | 24.0 | ||
| Amounts receivable | 39.4 | 46.7 | ||
| Inventory | 221.6 | 232.8 | ||
| Other current assets | 20.3 | 17.9 | ||
| Asset held for sale | 10.9 | — | ||
| Total Current Assets | 670.4 | 648.6 | ||
| Non-Current Assets | ||||
| Mineral property, plant and equipment | 4,757.0 | 4,618.0 | ||
| Deferred income taxes | 24.5 | 12.2 | ||
| Inventory | 53.4 | 25.3 | ||
| Other non-current assets | 33.1 | 32.0 | ||
| Total Assets | ||||
| LIABILITIES | ||||
| Current Liabilities | ||||
| Accounts payable and accrued liabilities | ||||
| Derivative liabilities | 77.0 | 9.1 | ||
| Deferred revenue | 59.3 | 116.6 | ||
| Income taxes payable | 23.9 | 50.5 | ||
| Current portion of lease liabilities | 14.1 | 15.2 | ||
| Current portion of decommissioning liabilities | 8.6 | 6.5 | ||
| Total Current Liabilities | 451.0 | 430.9 | ||
| Non-Current Liabilities | ||||
| Deferred income taxes | 763.0 | 760.6 | ||
| Derivative liabilities | 157.3 | 140.0 | ||
| Debt and financing obligations | 250.0 | 250.0 | ||
| Lease liabilities | 16.2 | 21.4 | ||
| Decommissioning liabilities | 143.5 | 145.1 | ||
| Other non-current liabilities | 4.4 | 3.9 | ||
| Total Liabilities | 1,785.4 | 1,751.9 | ||
| EQUITY | ||||
| Share capital | ||||
| Contributed surplus | 87.1 | 89.3 | ||
| Accumulated other comprehensive loss | (19.3 | ) | (37.4 | ) |
| Deficit | (457.4 | ) | (606.2 | ) |
| Total Equity | 3,753.0 | 3,584.2 | ||
| Total Liabilities and Equity | ||||
ALAMOS GOLD INC.
Consolidated Statements of Comprehensive Income
(Unaudited - stated in millions of United States dollars, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2025 | 2024 | 2025 | 2024 | |||||
| OPERATING REVENUES | ||||||||
| COST OF SALES | ||||||||
| Mining and processing | 140.4 | 117.2 | 279.4 | 238.2 | ||||
| Royalties | 7.6 | 3.0 | 12.4 | 5.6 | ||||
| Amortization | 52.7 | 52.4 | 104.1 | 102.4 | ||||
| 200.7 | 172.6 | 395.9 | 346.2 | |||||
| EXPENSES | ||||||||
| Exploration | 8.8 | 7.6 | 14.0 | 12.4 | ||||
| Corporate and administrative | 10.0 | 7.4 | 20.0 | 15.3 | ||||
| Share-based compensation | 2.5 | 6.2 | 30.4 | 16.1 | ||||
| 222.0 | 193.8 | 460.3 | 390.0 | |||||
| EARNINGS FROM OPERATIONS | 216.2 | 138.8 | 310.9 | 220.2 | ||||
| OTHER EXPENSES | ||||||||
| Finance (expense) income | (0.1 | ) | 0.1 | — | — | |||
| Foreign exchange (loss) gain | (6.6 | ) | 0.3 | (6.2) | (0.6) | |||
| Unrealized loss on commodity derivatives | (25.8 | ) | (0.4 | ) | (94.2) | (1.9) | ||
| Other loss | (2.1 | ) | (10.6 | ) | (3.2) | (13.9) | ||
| EARNINGS FROM OPERATIONS | ||||||||
| INCOME TAXES | ||||||||
| Current income tax expense | (32.8 | ) | (17.8 | ) | (46.1) | (34.8) | ||
| Deferred income tax recovery (expense) | 10.6 | (40.3 | ) | 13.4 | (56.8) | |||
| NET EARNINGS | ||||||||
| Items that may be subsequently reclassified to net earnings: | ||||||||
| Net change in fair value of currency hedging instruments, net of taxes | 7.9 | (1.7 | ) | 10.4 | (5.6) | |||
| Net change in fair value of fuel hedging instruments, net of taxes | — | — | — | 0.1 | ||||
| Items that will not be reclassified to net earnings: | ||||||||
| Unrealized gain on equity securities, net of taxes | 4.1 | 15.9 | 8.9 | 18.4 | ||||
| Total other comprehensive income (loss) | ||||||||
| COMPREHENSIVE INCOME | ||||||||
| EARNINGS PER SHARE | ||||||||
| – basic | ||||||||
| – diluted | ||||||||
ALAMOS GOLD INC.
Consolidated Statements of Cash Flows
(Unaudited - stated in millions of United States dollars)
| For three months ended | For six months ended | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2025 | 2024 | 2025 | 2024 | |||||
| CASH PROVIDED BY (USED IN): | ||||||||
| OPERATING ACTIVITIES | ||||||||
| Net earnings for the period | ||||||||
| Adjustments for items not involving cash: | ||||||||
| Amortization | 52.7 | 52.4 | 104.1 | 102.4 | ||||
| Foreign exchange loss (gain) | 6.6 | (0.3 | ) | 6.2 | 0.6 | |||
| Current income tax expense | 32.8 | 17.8 | 46.1 | 34.8 | ||||
| Deferred income tax (recovery) expense | (10.6 | ) | 40.3 | (13.4 | ) | 56.8 | ||
| Share-based compensation | 3.2 | 6.2 | 35.5 | 16.1 | ||||
| Finance expense (income) | 0.1 | (0.1 | ) | 0.0 | — | |||
| Unrealized loss on commodity derivatives | 25.8 | 0.4 | 94.2 | 1.9 | ||||
| Deferred revenue recognized | (31.1 | ) | — | (62.3 | ) | — | ||
| Other items | (6.0 | ) | 4.3 | (20.7 | ) | 1.7 | ||
| Changes in working capital and taxes paid | (33.4 | ) | 3.9 | (85.2 | ) | (22.1 | ) | |
| 199.5 | 195.0 | 279.1 | 304.4 | |||||
| INVESTING ACTIVITIES | ||||||||
| Mineral property, plant and equipment | (114.9 | ) | (87.6 | ) | (214.6 | ) | (172.1 | ) |
| Interest capitalized to mineral property, plant and equipment | (6.9 | ) | — | (8.9 | ) | — | ||
| Repurchase of royalty on Young-Davidson | (2.0 | ) | — | (2.0 | ) | — | ||
| Investment in Argonaut | — | (36.9 | ) | — | (36.9 | ) | ||
| Proceeds from disposition of equity securities | 1.8 | — | 1.8 | — | ||||
| Investment in equity securities | (0.2 | ) | (0.2 | ) | (0.2 | ) | (0.2 | ) |
| Transaction costs of asset acquisitions | — | (1.0 | ) | — | (1.0 | ) | ||
| (122.2 | ) | (125.7 | ) | (223.9 | ) | (210.2 | ) | |
| FINANCING ACTIVITIES | ||||||||
| Dividends paid | (9.6 | ) | (8.4 | ) | (19.3 | ) | (17.1 | ) |
| Repurchase and cancellation of common shares | (10.0 | ) | — | (10.0 | ) | — | ||
| Credit facility transaction and standby fees | (0.3 | ) | (0.5 | ) | (1.9 | ) | (1.9 | ) |
| Proceeds from the exercise of options and warrants | 1.6 | 3.8 | 1.8 | — | ||||
| Lease payments | (4.0 | ) | — | (8.3 | ) | 4.3 | ||
| Proceeds from issuance of flow-through shares | — | 10.5 | — | 10.5 | ||||
| (22.3 | ) | 5.4 | (37.7 | ) | (4.2 | ) | ||
| Effect of exchange rates on cash and cash equivalents | 0.4 | (1.3 | ) | 0.2 | (1.2 | ) | ||
| Net increase in cash and cash equivalents | 55.4 | 73.4 | 17.7 | 88.8 | ||||
| Cash and cash equivalents - beginning of period | 289.5 | 240.2 | 327.2 | 224.8 | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | ||||||||
Photos accompanying this announcement are available at
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FAQ
What were Alamos Gold's (AGI) Q2 2025 earnings?
How much gold did AGI produce in Q2 2025?
What is AGI's updated cost guidance for 2025?
What was Alamos Gold's free cash flow in Q2 2025?
How much cash does Alamos Gold have as of Q2 2025?
What is AGI's production outlook at Island Gold?
