Alamos Gold Reports Second Quarter 2025 Results

Core Viewpoint - Alamos Gold Inc. reported strong operational and financial performance for Q2 2025, with a 10% increase in gold production and a significant reduction in costs, leading to record cash flow from operations and free cash flow of $85 million while continuing to invest in growth initiatives [2][31][34]. Financial Performance - Produced 137,200 ounces of gold, a 10% increase from Q1 2025, meeting quarterly guidance [4][48]. - Sold 135,027 ounces of gold at an average realized price of $3,223 per ounce, generating record quarterly revenues of $438.2 million [4][55]. - Record cash flow from operating activities totaled $199.5 million, a 151% increase from Q1 2025 [4][31]. - Generated strong free cash flow of $84.6 million, a significant increase from negative free cash flow of $20.1 million in Q1 2025 [4][31]. - Total cash costs decreased to $1,075 per ounce and all-in sustaining costs (AISC) decreased to $1,475 per ounce, reflecting a 10% and 18% reduction respectively from Q1 2025 [4][34]. Production and Cost Guidance - Increased annual cost guidance due to higher share-based compensation and royalty expenses, with total cash costs now expected between $975 and $1,025 per ounce and AISC between $1,400 and $1,450 per ounce [34][35]. - Anticipates further production growth in H2 2025 driven by higher grades and milling rates, remaining on track to achieve full-year production guidance [2][33]. Growth Initiatives - The Island Gold District is expected to be a key contributor to production growth and cost reduction, with plans to expand production to approximately one million ounces per year [3][40]. - The Base Case Life of Mine Plan outlines average annual gold production of 411,000 ounces starting in 2026 at an average mine-site AISC of $915 per ounce [7][38]. - Capital expenditures for growth projects, including the Phase 3+ Expansion and Lynn Lake, are expected to increase, with a total capital spending forecast of $599 to $699 million for 2025 [27][41]. Community and Environmental Initiatives - Alamos Gold partnered with other mining companies to donate CAD$1.25 million to support emergency relief for communities affected by wildfires in Northern Manitoba [7][26]. - Established a $250,000 Wildfire Support Fund to aid community rebuilding efforts in Lynn Lake [7][26]. - The company maintains a commitment to environmental sustainability and community engagement through various initiatives [21][22].