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, up 27% year-over-year.

• Completed Argonaut Gold acquisition, integrating Magino and Island Gold to form a major low-cost Canadian gold operation with over 11 million ounces in reserves and resources, and eliminated most inherited hedge contracts.

• Remained debt-free at quarter-end with cash and equivalents up 31% to $314 million, and drew $250 million post-quarter to repay Argonaut's debt.

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

• Completed acquisition of Orford Mining, adding the Qiqavik project in Quebec.

Financial highlights

• Sold 141,000 ounces of gold at an average realized price of $2,336/oz, generating record quarterly revenue of $333 million.

• Total cash costs were $830/oz and all-in sustaining costs $1,096/oz, both down year-over-year; AISC margin rose 54% sequentially.

• Adjusted net earnings were $97 million ($0.24/share), up 63% year-over-year; reported net earnings were $70 million ($0.18/share).

• Operating cash flow before working capital changes reached a record $191 million ($0.48/share), with free cash flow at $107 million.

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

Outlook and guidance

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

• Q3 2024 production expected at 145,000–155,000 ounces, with Magino integration impacting costs.

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

• Major capital investments in Island Gold Phase 3+ Expansion, with 60% of $756 million growth capital spent or committed; on track for H1 2026 completion.

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