Alamos Gold Reports Fourth Quarter and Annual 2025 Production

Core Viewpoint - Alamos Gold Inc. reported its fourth quarter and annual production results for 2025, highlighting operational challenges that led to production below guidance, but achieved record financial performance and significant cash flow generation [2][4][28]. Production Results - Fourth quarter gold production totaled 141,500 ounces, consistent with the third quarter but below guidance due to lower production from Canadian operations impacted by severe winter weather and operational challenges [2][4]. - For the full year 2025, total gold production reached 545,400 ounces, which was below the revised guidance of 560,000 to 580,000 ounces [4][28]. - The Island Gold District produced 60,000 ounces in Q4 2025, down from 66,800 ounces in Q3 2025, and 250,400 ounces for the full year, slightly below the low-end of revised guidance [4][7]. Financial Performance - The company achieved record quarterly revenues of $568 million from the sale of 142,149 ounces of gold at an average realized price of $3,997 per ounce [4][28]. - Full year sales totaled 531,230 ounces of gold at an average realized price of $3,372 per ounce, generating record annual revenues of $1.8 billion [4][28]. - Cash and cash equivalents increased to $623 million by the end of 2025, up from $463 million at the end of Q3 2025, reflecting strong free cash flow generation [28][33]. Debt and Shareholder Returns - The company reduced its outstanding debt to $200 million, having repaid $50 million during Q4 2025 [28][29]. - A record $81 million was returned to shareholders in 2025 through dividends and share buybacks, including the repurchase of 928,729 shares at a cost of $28.8 million in Q4 [30][31]. Operational Challenges - Mining and processing rates were lower than expected due to severe winter weather in late December, which affected access to sites and operational efficiency [2][4][8]. - The Island Gold District faced challenges with underground mining rates averaging 1,157 tonnes per day in Q4, impacted by rehabilitation work and weather-related downtime [8][10]. Future Outlook - The company expects substantial operational improvements in 2026, with a clear path to achieving one million ounces of annual production by the end of the decade [3][9]. - The Island Gold District Expansion Study is set to be outlined in February 2026, which will provide updated three-year production and operating guidance [1][9].