Alamos Gold (AGI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 gold production of 139,100 ounces, surpassing guidance and driving record free cash flow of $107 million, with revenue reaching $333 million and significant operational synergies from integrating Magino and Island Gold.

• Completed Argonaut Gold acquisition, integrating Magino and creating a major Canadian gold district with over 11 million ounces in resources and >400,000 oz/year potential post-expansion.

• Eliminated most of Argonaut’s hedge book, increasing exposure to higher gold prices.

• Strong exploration results at Young-Davidson and Island Gold, supporting resource growth and future upside.

• Company remains debt-free at quarter-end, with cash and equivalents up 31% to $314 million.

Financial highlights

• Q2 gold sales of 141,000 ounces at an average realized price of $2,336/oz, generating record revenue of $333 million, up 27% year-over-year.

• Total cash costs of $830/oz and all-in sustaining costs of $1,096/oz, both down year-over-year and quarter-over-quarter.

• Adjusted net earnings of $97 million ($0.24/share), up 63% year-over-year; reported net earnings $70 million.

• Operating cash flow before working capital changes reached a record $191 million; free cash flow hit a record $107 million.

• Cash and cash equivalents increased to $314 million, up 40% year-over-year and 31% from Q1.

Outlook and guidance

• On track to meet full-year 2024 production guidance of 485,000–525,000 ounces (excluding Magino); updated consolidated guidance including Magino to be provided in September.

• Q3 2024 production expected at 145,000–155,000 ounces, with costs above current guidance due to Magino integration.

• Long-term production expected to reach 900,000 ounces/year by 2027, with potential to approach 1 million ounces/year with further expansions.

• Phase 3+ Expansion at Island Gold on track for H1 2026 completion, expected to drive further free cash flow growth.

• Lynn Lake project advancing toward a construction decision in 2025.