Alamos Gold Reports Second Quarter 2024 Results

Core Viewpoint - Alamos Gold Inc. reported record production and free cash flow in Q2 2024, driven by strong operational performance and lower costs, positioning the company for significant growth and value creation through ongoing exploration and expansion initiatives [2][18][19]. Financial Performance - The company produced a record 139,100 ounces of gold, exceeding guidance of 123,000 to 133,000 ounces, resulting in record quarterly revenue of $332.6 million, a 27% increase from Q2 2023 [3][5]. - Free cash flow reached $106.9 million, reflecting a more than 300% increase from Q1 2024, supported by strong mine-site cash flow from all operations [3][18]. - Adjusted net earnings for Q2 were $96.9 million, or $0.24 per share, while reported net earnings were $70.1 million, or $0.18 per share [3][5]. Operational Highlights - The company sold 140,923 ounces of gold at an average realized price of $2,336 per ounce, marking the second consecutive quarter of record revenue [3][5]. - Cash and cash equivalents increased by 31% to $313.6 million, with the company remaining debt-free at the end of Q2 [3][22]. - The integration of the recently acquired Magino mine is expected to create significant synergies and enhance production capabilities [19][20]. Cost Management - Cost of sales was $172.6 million, or $1,225 per ounce, in line with full-year guidance, while total cash costs decreased to $830 per ounce, a 9% reduction from Q1 2024 [3][5]. - All-in sustaining costs (AISC) were reported at $1,096 per ounce, down 13% from Q1 2024, driven by higher grades at Island Gold and Young-Davidson [3][5]. Growth Initiatives - The Phase 3+ Expansion at Island Gold is progressing well, expected to be completed in the first half of 2026, which will significantly enhance free cash flow growth [18][19]. - Exploration success at Young-Davidson and Island Gold is anticipated to drive further increases in high-grade Mineral Reserves and Resources [21][22]. ESG and Community Engagement - The company published its 2023 ESG Report, highlighting progress in environmental, social, and governance performance [12]. - Alamos continues to engage with local communities through various support initiatives, including infrastructure investments and health care [11][12].