Alamos Gold (AGI) Q4 2023 earnings summary

Executive summary

• Record 2023 production reached 529,300 oz, up 15% YoY; revenue was $1.023B, up 25%, and operating cash flow before working-capital changes and taxes paid was $518.9M.

• Free cash flow was $123.8M while $178.1M was invested in Island Gold’s Phase 3+ Expansion; year-end cash was $224.8M, with no debt.

Financial highlights

• FY net earnings were $210.0M and adjusted net earnings were $208.4M, or $0.53/share; FY earnings from operations were $318.1M.

• Q4 revenue was $254.6M, earnings from operations $71.9M, reported net earnings $47.1M, and adjusted net earnings $49.2M, or $0.12/share.

• FY gold sales were 526,258 oz at a realized price of $1,944/oz; total cash costs were $850/oz and AISC was $1,160/oz.

• FY operating cash flow was $472.7M, or $518.9M before working-capital changes and taxes paid; EBITDA was $486.4M.

Outlook and guidance

• 2024 production guidance is 485,000–525,000 oz; total cash costs are guided at $825–$875/oz and AISC at $1,125–$1,175/oz.

• Production guidance is 470,000–510,000 oz for 2025 and 520,000–560,000 oz for 2026; 2026 AISC guidance is $975–$1,075/oz, 11% below the 2024 midpoint.

• Q1 2024 production guidance is 123,000–133,000 oz; cash costs and AISC are expected above annual guidance, with costs trending lower through the year.

• Island Gold 2024 production is expected to rise 16%, with mine-site AISC 12% lower, reflecting higher grades.

• 2024 exploration budget is $62M, up 19% from $52M in 2023; stronger free cash flow is expected from Q2 as costs decline, following a $40M Mexico tax payment in Q1.