Alamos Gold Reports Second Quarter 2025 Results

2025-07-30

TSX - Toronto Stock Exchange · Gold · Canada

Stronger production and lower costs drive record cash flow from operations and solid free cash flow of $85 million while funding growth

All amounts are in United States dollars, unless otherwise stated.

TORONTO, July 30, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended June 30, 2025.

“Production increased 10% from the first quarter, meeting our quarterly guidance, while all-in sustaining costs decreased 18%, reflecting stronger performances across all of our operations. This contributed to record cash flow from operations and a substantial increase in free cash flow to $85 million while continuing to reinvest in growth. We expect further production growth into the second half of the year driven by a combination of higher grades and milling rates, and remain on track to achieve full year production guidance. Given external factors related to our higher share price and gold price, as well as the slower start to the year at Magino and Young-Davidson, we have increased our annual cost guidance. This is not reflective of our long-term outlook with costs expected to continue to improve into the second half of the year, and a more substantial decrease expected over the next several years,” said John A. McCluskey, President and Chief Executive Officer.

“A key contributor to this improvement will be the Island Gold District where we successfully completed the transition to processing Island Gold ore through the larger and more productive Magino mill mid-July. As outlined in the Base Case Life of Mine plan issued last month, the Island Gold District will be a driver of our growing production and declining costs over the next several years. We also believe there is further upside to come. Through a larger expansion of the district, we see excellent potential to grow our consolidated production to approximately one million ounces per year, underpinning one of the strongest growth profiles in the sector,” Mr. McCluskey added.

Second Quarter 2025 Operational and Financial Highlights

Produced 137,200 ounces of gold, consistent with quarterly guidance and a 10% increase from the first quarter of 2025 reflecting stronger performances from all three operations. With further increases expected in the third and fourth quarter, the Company remains on track to achieve full year production guidance Sold 135,027 ounces of gold at an average realized price of $3,223 per ounce, generating record quarterly revenues of $438.2 million. The average realized gold price was below the London PM Fix price, reflecting the delivery of 12,346 ounces into the gold prepayment facility executed in July 2024 based on the prepaid price of $2,524 per ounce Record cash flow from operating activities totaled $199.5 million (including $232.9 million before changes in working capital and taxes paid 1 , or $0.55 per share), a 151% increase from the first quarter of 2025 reflecting the strong operating performance and margin expansion through higher gold prices and lower costs Generated strong free cash flow 1 of $84.6 million, while continuing to reinvest in high-return growth projects including the Phase 3+ Expansion, Lynn Lake, and PDA. This was a significant increase from negative free cash flow of $20.1 million in the first quarter of 2025, reflecting a solid contribution from all three operations. The Company expects strong ongoing free cash flow at current gold prices through the remainder of 2025 with significant growth starting in 2026 reflecting higher production and lower costs Total cash costs 1 of $1,075 per ounce and all-in sustaining costs ("AISC") 1 of $1,475 per ounce decreased 10% and 18%, respectively, from the first quarter of 2025, driven by stronger production and lower share-based compensation expense. Costs are expected to decrease further through the second half of the year Reflecting the higher than budgeted share-based compensation expense through the first half of the year, higher royalty expense, and slower start to the year at Magino and Young-Davidson, the Company has increased its 2025 cost guidance. Full year total cash costs are now expected to be between $975 and $1,025 per ounce, and AISC between $1,400 and $1,450 per ounce. This represents a 12% increase in AISC guidance with approximately 40% of the increase attributable to external factors including the revaluation of previously issued share-based compensation with the higher share price, and higher royalty expenses given the increased gold price Cost of sales of $200.7 million, or $1,486 per ounce, decreased 10% from the first quarter of 2025 on a per-ounce basis Reported net earnings for the quarter were $159.4 million, or $0.38 per share Adjusted net earnings 1 were $144.1 million, or $0.34 per share. Adjusted net earnings includes adjustments for unrealized losses on commodity hedge derivatives, net of tax, of $17.1 million, adjustments for unrealized foreign exchange gains recorded within deferred taxes and foreign exchange loss totaling $34.3 million, and other adjustments of $1.9 million Cash and cash equivalents increased 19% from the first quarter of 2025 to $344.9 million at June 30, 2025. The Company remains in a strong net cash position and is well-positioned to internally fund all of its growth initiatives with strong ongoing free cash flow and $844.9 million of total liquidity Returned $21 million to shareholders. This included the repurchase of 0.4 million shares at a cost of $10.0 million ($25.11 per share), and payment of the $10.6 million quarterly dividend ($0.025 per share) In response to the devastating wildfires impacting communities across northern Manitoba, Alamos partnered with two other mining companies, collectively donating CAD$1.25 million to the Canadian Red Cross to support emergency relief and rebuilding efforts. This contribution will help the residents and Indigenous communities in which the three companies operate that have been affected by the wildfires. In addition, Alamos Gold is establishing a $250,000 Wildfire Support Fund, administered by the Dreamcatchers Committee which will support community rebuilding efforts in the community of Lynn Lake Announced the Base Case Life of Mine Plan ("Base Case LOM Plan") completed on the Island Gold District, outlining a long-life operation that is expected to become one of the largest, lowest-cost, and most profitable gold mines in Canada. The Base Case LOM Plan outlines average annual gold production of 411,000 ounces starting in 2026, at average mine-site AISC of $915 per ounce over the initial 12 years. The Company expects to outline significant upside potential to the Base Case LOM within an expansion study ("Expansion Study"), which is expected to be completed in the fourth quarter of 2025 Provided an exploration update at Island Gold where drilling continues to extend high-grade gold mineralization across the Island Gold Deposit, as well as within several hanging wall and footwall structures, highlighting the significant near-mine upside potential. Additionally, the regional exploration program has been successful in intersecting high-grade gold mineralization at the past-producing Cline-Pick and Edwards mines, located seven kilometres from the Magino Mill, highlighting longer-term opportunities for further growth Shaft sinking at Island Gold reached 1,265 metres ("m") in the second quarter, or 92% of the planned depth. In addition, a groundbreaking ceremony was held for the 115 kV power line project in partnership with Batchewana First Nation. When completed in 2026, it will connect the entire site to grid power, providing clean energy and further reducing the Island Gold District Greenhouse Gas (“GHG”) emissions intensity to well below the industry average Announced a binding agreement to sell the option to earn 100% interest in the non-core Quartz Mountain Gold Project (“Quartz Mountain”), located in Oregon, to Q-Gold Resources Ltd. (TSXV:QGR) (“Q-Gold”) for total consideration of up to $21 million and a 9.9% equity interest in Q-Gold. The transaction is expected to close in the second half of 2025

(1) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures.

Highlight Summary

| | Three Months Ended June 30, | Six Months Ended June 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Financial Results (in millions) | | | | | | Operating revenues | $438.2 | $332.6 | $771.2 | $610.2 | | Cost of sales (1) | $200.7 | $172.6 | $395.9 | $346.2 | | Earnings from operations | $216.2 | $138.8 | $310.9 | $220.2 | | Earnings before income taxes | $181.6 | $128.2 | $207.3 | $203.8 | | Net earnings | $159.4 | $70.1 | $174.6 | $112.2 | | Adjusted net earnings (2) | $144.1 | $96.9 | $203.9 | $148.1 | | Adjusted earnings before interest, taxes, depreciation and amortization (2) | $260.2 | $180.9 | $405.6 | $308.1 | | Cash provided by operating activities before changes in working capital and taxes paid (2) | $232.9 | $191.1 | $364.3 | $326.5 | | Cash provided by operating activities | $199.5 | $195.0 | $279.1 | $304.4 | | Capital expenditures (sustaining) (2) | $33.5 | $20.9 | $60.3 | $47.4 | | Sustaining finance leases (3) | $4.0 | $— | $8.3 | $— | | Capital expenditures (growth) (2) | $71.6 | $58.8 | $137.9 | $110.4 | | Capital expenditures (capitalized exploration) | $9.8 | $7.9 | $16.4 | $14.3 | | Free cash flow (2)(3) | $84.6 | $107.4 | $64.5 | $132.3 | | Operating Results | | | | | | Gold production (ounces) | 137,200 | 139,100 | 262,200 | 274,800 | | Gold sales (ounces) | 135,027 | 140,923 | 252,610 | 273,772 | | Per Ounce Data | | | | | | Average realized gold price (5) | $3,223 | $2,336 | $3,027 | $2,207 | | Average spot gold price (London PM Fix) | $3,280 | $2,338 | $3,067 | $2,208 | | Cost of sales per ounce of gold sold (includes amortization) (1) | $1,486 | $1,225 | $1,567 | $1,265 | | Total cash costs per ounce of gold sold (2) | $1,075 | $830 | $1,130 | $869 | | All-in sustaining costs per ounce of gold sold (2) | $1,475 | $1,096 | $1,629 | $1,178 | | Share Data | | | | | | Earnings per share, basic | $0.38 | $0.18 | $0.42 | $0.28 | | Earnings per share, diluted | $0.38 | $0.17 | $0.41 | $0.28 | | Adjusted earnings per share, basic (2) | $0.34 | $0.24 | $0.48 | $0.37 | | Weighted average common shares outstanding (basic) (000’s) | 420,474 | 398,275 | 420,445 | 397,546 | | Financial Position (in millions) | | | | | | Cash and cash equivalents (4) | | | $344.9 | $327.2 | | | | | | |

| | Three Months Ended June 30, | Six Months Ended June 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Gold production (ounces) | | | | | | Island Gold District (7) | 64,400 | 41,700 | 123,600 | 75,100 | | Young-Davidson | 38,700 | 44,000 | 74,100 | 84,100 | | Mulatos District (8) | 34,100 | 53,400 | 64,500 | 115,600 | | Gold sales (ounces) | | | | | | Island Gold District (7) | 63,958 | 39,766 | 117,346 | 73,896 | | Young-Davidson | 38,214 | 45,057 | 73,689 | 84,867 | | Mulatos District (8) | 32,855 | 56,100 | 61,575 | 115,009 | | Cost of sales (in millions) (1) | | | | | | Island Gold District (7) | $88.3 | $30.7 | $167.8 | $64.1 | | Young-Davidson | $65.2 | $66.7 | $130.3 | $132.1 | | Mulatos District (8) | $47.2 | $75.2 | $97.8 | $150.0 | | Cost of sales per ounce of gold sold (includes amortization) (1) | | | | | | Island Gold District (7) | $1,381 | $772 | $1,430 | $867 | | Young-Davidson | $1,706 | $1,480 | $1,768 | $1,557 | | Mulatos District (8) | $1,437 | $1,340 | $1,588 | $1,304 | | Total cash costs per ounce of gold sold (2) | | | | | | Island Gold District (7) | $1,008 | $493 | $1,035 | $591 | | Young-Davidson | $1,233 | $1,030 | $1,289 | $1,104 | | Mulatos District (8) | $1,017 | $907 | $1,117 | $873 | | Mine-site all-in sustaining costs per ounce of gold sold (2)(3) | | | | | | Island Gold District (7) | $1,410 | $805 | $1,427 | $943 | | Young-Davidson | $1,575 | $1,203 | $1,614 | $1,334 | | Mulatos District (8) | $1,084 | $963 | $1,194 | $933 | | Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2) | | | | | | Island Gold District (4)(7)(9) | $74.4 | $56.1 | $146.7 | $110.7 | | Young-Davidson (5) | $21.4 | $19.0 | $40.2 | $39.2 | | Mulatos District (6)(8) | $3.7 | $7.8 | $7.7 | $11.7 | | Other | $19.4 | $4.7 | $28.3 | $10.5 | | | | | | |

(1) Cost of sales includes mining and processing costs, royalties, and amortization expense. (2) Refer to the “Non-GAAP Measures and Additional GAAP Measures” section of this press release and associated MD&A for a description and calculation of these measures. (3) For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative expense and corporate share-based compensation expense. (4) Includes capitalized exploration at Island Gold District of $5.1 million and $9.0 million for the three and six months ended June 30, 2025 ($3.4 million and $6.9 million for the three and six months ended June 30, 2024 ). (5) Includes capitalized exploration at Young-Davidson of $2.9 million and $4.9 million for the three and six months ended June 30, 2025 ($1.4 million and $2.4 million for the three and six months ended June 30, 2024). (6) Includes capitalized exploration at Mulatos District of $1.8 million and $2.5 million for the three and six months ended June 30, 2025 ($3.1 million and $5.0 million for the three and six months ended June 30, 2024). (7) The Island Gold District includes Island Gold and Magino mines for the three and six months ended June 30, 2025. Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024. (8) The Mulatos District includes Mulatos and La Yaqui Grande mines. (9) Sustaining capital expenditures for Island Gold District include certain finance leases classified as sustaining.

Environment, Social and Governance Summary Performance

Health and Safety

Total recordable injury frequency rate 1 ("TRIFR") of 0.65 in the second quarter, a 56% decrease from 1.49 in the first quarter of 2025 Lost time injury frequency rate 1 ("LTIFR") of 0.08 in the second quarter Alamos had eight recordable injuries across its sites and one lost time injury Year-to-date TRIFR of 1.01 is a significant improvement from the prior year and LTIFR of 0.08

Alamos strives to maintain a safe, healthy working environment for all, with a strong safety culture where everyone is continually reminded of the importance of keeping themselves and their colleagues healthy and injury-free. The Company’s overarching commitment is to have all employees and contractors return Home Safe Every Day.

Environment

Six minor reportable spills occurred in the second quarter Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits

All six reportable spills were minor, promptly remediated at the time of occurrence, and are not expected to have any lasting impact on the natural environment.

The Company is committed to preserving the long-term health and viability of the natural environment that surrounds its operations and projects. This includes investing in new initiatives to reduce the Company's environmental footprint with the goal of minimizing the impacts of its activities.

Community

Ongoing charitable donations, sponsorships, medical support and infrastructure investments were provided to local communities, including:

Alamos, Vale Base Metals, and Hudbay Minerals collectively contributed CAD$1.25 million to the Canadian Red Cross to support emergency relief and rebuilding efforts for those impacted by the wildfires in Northern Manitoba Committed $250,000 to a Wildfire Support Fund, administered by the Dreamcatchers Committee which will support community rebuilding efforts in the community of Lynn Lake, Manitoba Provided local community support near the Mulatos District including medical services, road maintenance, water distribution and student scholarships

The Company believes that excellence in sustainability provides a net benefit to all stakeholders. The Company continues to engage with local communities to understand local challenges and priorities. Ongoing investments in local infrastructure, health care, education, cultural and community programs remain a focus of the Company.

Governance and Disclosure

Mulatos was awarded the Empresa Socialmente Responsable award for the 17 th consecutive year in recognition of the mine’s ethical and sustainable practices Published Alamos’ 2024 Report on Conformance to the Responsible Gold Mining Principles ("RGMP") in accordance with the World Gold Council’s RGMP framework Published Alamos’ 2024 Report on Modern Slavery in accordance with Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act Published Alamos’ Extractive Sector Transparency Measures Act 2024 Annual Report, outlining payments made to governments in Canada and abroad related to our activities on a country and project basis

The Company maintains the highest standards of corporate governance to ensure that corporate decision-making reflects its values, including the Company’s commitment to sustainable development.

(1) Frequency rate is calculated as incidents per 200,000 hours worked.

Outlook and Strategy

| 2025 Guidance (4) | | | | | | | | Island Gold District | Young-Davidson | Mulatos District | Lynn Lake | Total | | Gold production ( 000's ounces) | 275 - 300 | 175 - 190 | 130 - 140 | — | 580-630 | | Cost of sales, including amortization _(in millions) _(3) | | | | | $865 | | _Previous cost of sales, including amortization (in millions) _(3) | | | | | $805 | | Total cash costs _($ per ounce) _(1) | $875 - $925 | $1,150 - $1,200 | $925 - $975 | — | $975 - $1,025 | | _Previous total cash costs ($ per ounce) _(1) | $725 - $775 | $1,075 - $1,125 | $925 - $975 | — | $875 - $925 | | All-in sustaining costs _($ per ounce) _(1)(2) | $1,225 - $1,275 | $1,550 - $1,600 | $1,025 - $1,075 | — | $1,400 - $1,450 | | _Previous all-in sustaining costs ($ per ounce) _(1)(2) | $1,100 - $1,150 | $1,390 - $1,440 | $1,025 - $1,075 | — | $1,250 - $1,300 | | Capital expenditures (in millions) | | | | | | | Sustaining capital (1) | $80 - $85 | $55 - $60 | $3 - $5 | — | $138 - $150 | | Growth capital (1) | $270 - $300 | $15 - $20 | $37 - $40 | $100 - $120 | $422 - $480 | | Total sustaining and growth capital (1) | $350 - $385 | $70 - $80 | $40 - $45 | $100 - $120 | $560 - $630 | | Capitalized exploration (1) | $20 | $9 | $6 | $4 | $39 | | Total capital expenditures and capitalized exploration (1) | $370 - $405 | $79 - $89 | $46 - $51 | $104 - $124 | $599 - $699 | | | | | | | |

(1) Refer to the "Non-GAAP Measures and Additional GAAP" section of this press release and associated MD&A for a description of these measures. (2) Total consolidated all-in sustaining costs include corporate and administrative, and share based compensation expenses. Individual mine-site all-in sustaining costs do not include an allocation of corporate and administrative expense, and corporate share-based compensation expenses. (3) Cost of sales includes mining and processing costs, royalties, and amortization expense, and sliver by-product credits, and is calculated based on the mid-point of total cash costs guidance. (4) Previous guidance was issued on January 13, 2025. Cost guidance was revised on July 30, 2025. Production and capital guidance remain unchanged.