Alamos Gold (AGI) Q1 2025 earnings summary

Executive summary

• Produced 125,000 ounces of gold in Q1 2025, at the low end of guidance, with Island Gold offsetting lower output at Young-Davidson and Magino; production and cost improvements expected in Q2 and H2 2025.

• Revenues rose 20% year-over-year to $333 million, driven by higher realized gold prices and the inclusion of Magino; average realized gold price was $2,802/oz, up 35% year-over-year.

• Adjusted net earnings were $60 million ($0.14/share), up 17% year-over-year, while reported net earnings fell to $15 million due to unrealized losses on derivatives.

• Free cash flow was negative $20 million, impacted by $53 million in cash taxes, gold prepayment settlements, and share-based compensation; cash and equivalents stood at $290 million.

• Major project milestones included the Lynn Lake construction decision, a 31% increase in mineral reserves to 14 million ounces, and the sale of the non-core Quartz Mountain Gold Project.

Financial highlights

• Sold 118,000 ounces at an average realized price of $2,802/oz, generating $333 million in revenue.

• Adjusted net earnings: $60 million in Q1 2025, up from $51 million in Q1 2024; net earnings: $15 million, down 64% year-over-year.

• Operating cash flow before working capital was $131 million; capital spending totaled $100 million.

• Free cash flow was negative $20 million, impacted by $53 million in cash taxes and prepayment settlements.

• Cash and cash equivalents: $290 million at quarter-end; total liquidity near $800 million.

Outlook and guidance

• Q2 2025 production expected to rise to 135,000–150,000 ounces, with further increases in H2 2025; annual guidance of 580,000–630,000 ounces reaffirmed.

• AISC expected to decrease by ~20% in Q2, with further reductions through year-end; cost guidance being monitored due to higher share-based compensation and royalties.

• Multi-year growth plan targets 900,000 ounces/year by 2028, with potential to reach 1 million ounces/year longer-term, driven by Canadian projects.

• Free cash flow expected to strengthen through 2025 and accelerate post-2026 as growth projects come online.

• Capital spending in 2025 focused on Phase 3+ Expansion, Lynn Lake, and PDA; exploration budget increased 16% to $72 million.