Alamos Gold Reports Third Quarter 2025 Results

2025-10-29

TSX - Toronto Stock Exchange · Gold · Canada

Growing production and margins drive record quarterly free cash flow of $130 million

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

TORONTO, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today reported its financial results for the quarter ended September 30, 2025.

“We delivered a number of new financial records in the third quarter including record free cash flow of $130 million, while continuing to fund our high-return growth projects. This was driven by a further increase in production to 141,700 ounces and significant margin expansion,” said John A. McCluskey, President and Chief Executive Officer.

“Given unplanned downtime of the Magino mill at the end of September, and lower expected underground grades from Island Gold due to a seismic event in October, we are revising our 2025 production guidance lower by approximately 6%. These challenges are short-term and are not reflective of our strong outlook, nor our long-term track record. We expect a significant improvement starting in the fourth quarter with an 18% increase in production, and a 5% decrease in costs,” Mr. McCluskey added.

Third Quarter 2025 Operational and Financial Highlights

Produced 141,700 ounces of gold, a 3% increase from the second quarter of 2025 reflecting stronger performances from both Mulatos and the Island Gold District. Third quarter production was slightly below the low end of quarterly guidance of 145,000 ounces, reflecting one week of unplanned downtime within the Magino mill due to a capacitor failure within the electrical house, which occurred during the last week of September Subsequent to quarter end, a seismic event occurred underground at Island Gold on October 17th. Mining activities continue at budgeted rates; however, this has delayed access to higher grade stopes in one mining front. As a result, grades mined are expected to be lower in the fourth quarter than budgeted. Combined with the unplanned downtime at the end of September at the Magino mill, the Company is updating its 2025 production guidance to a range of 560,000 to 580,000 ounces, a 6% decrease from original guidance (based on the mid-point) Fourth quarter production is expected to increase 18% (based on the mid-point) to between 157,000 and 177,000 ounces, the strongest quarter of the year, reflecting a substantial improvement across all three operations Generated record free cash flow 1 of $130.3 million, while continuing to reinvest in high-return growth projects including the Phase 3+ Expansion, Lynn Lake, and PDA. This was a 54% increase from the second quarter of 2025, reflecting strong contributions from all three operations. At current gold prices, the Company expects strong ongoing free cash flow generation through the remainder of 2025, with significant growth starting in 2026 reflecting higher production and lower costs Sold 136,473 ounces of gold at an average realized price of $3,359 per ounce, generating record quarterly revenues of $462.3 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. The Company delivered 75% of the committed ounces under the facility during the first nine months of 2025 Cash flow from operating activities increased to a record $265.3 million (including $275.3 million before changes in working capital and taxes paid 1 , or $0.65 per share), a 33% increase from the second quarter of 2025 reflecting strong margin expansion through higher gold prices and lower costs

Total cash costs 1 of $973 per ounce were 9% lower than the second quarter of 2025 and in-line with quarterly guidance. All-in sustaining costs ("AISC") 1 of $1,375 per ounce decreased 7% from the second quarter of 2025, driven by the stronger operational performance at the Mulatos District. The Company is reporting total cash costs and AISC excluding the impact of mark-to-market adjustments for the revaluation of previously issued share-based compensation. This provides a better representation of the total costs associated with producing an ounce of gold and eliminates volatility associated with mark-to-market adjustments. Prior year periods have been updated to reflect these changes retrospectively. Mark-to-market adjustments to share-based instruments impact both total cash costs and AISC given the Company allocates these costs to mining and processing costs and share-based compensation expense in the condensed interim consolidated financial statements Total cash costs and AISC are expected to decrease 5% in the fourth quarter reflecting higher production and stronger performances from all three operations. The Company remains on track to achieve annual total cash cost and AISC guidance, which was revised in July Cost of sales of $194.1 million, or $1,422 per ounce, decreased 4% from the second quarter of 2025 on a per-ounce basis Reported net earnings for the quarter were $276.3 million, or $0.66 per share Adjusted net earnings 1 were $155.5 million, or $0.37 per share. Adjusted net earnings includes net-of-tax adjustments for a reversal of impairment of $192.9 million, and unrealized losses on commodity hedge derivatives of $53.8 million, as well as adjustments for unrealized foreign exchange loss recorded within deferred taxes and foreign exchange loss totaling $15.4 million, and other adjustments of $2.9 million Cash and cash equivalents increased 34% from the second quarter of 2025 to $463.1 million at September 30, 2025 reflecting the record free cash flow generation. The Company remains well-positioned to internally fund all of its growth initiatives with strong ongoing free cash flow, net cash of $213.1 million, and $963.1 million of total liquidity Announced the sale of the Company's Turkish development projects, which consist of Kirazlı, Ağı Dağı and Çamyurt, to Tümad Madencilik Sanayi ve Ticaret A.Ş (“Tümad”) for total cash consideration of $470 million. The transaction closed in October upon which Alamos received the first payment of $160 million. The remaining cash payments, totaling $310 million are expected to be received on the first and second anniversaries of the closing of the transaction Closed the sale of the option to earn 100% interest in the non-core Quartz Mountain Gold Project (“Quartz Mountain”), located in Oregon, to Q-Gold Resources Ltd. (“Q-Gold”) in October. Quartz Mountain was sold for total consideration of up to $21 million and a 9.9% equity interest in Q-Gold With a growing cash balance of more than $600 million following the close of the sale of the Turkish projects and Quartz Mountain, the Company expects to reduce existing debt obligations, and will assess opportunities to be active on its share buyback The total recordable injury frequency rate 2 ("TRIFR") was 0.97 in the third quarter, compared to 2.01 in the prior year period. For the first nine months of the year, TRIFR was 0.99, compared to 1.86 in the prior year period Alamos was recognized for the second consecutive year as a TSX30 TM 2025 winner by the Toronto Stock Exchange. The annual ranking recognizes the 30 top performing stocks over a three-year period. Alamos’ share price increased 310% over the trailing three-year period Advanced the Phase 3+ Expansion of the Island Gold District. This included the shaft sink progressing to a depth of 1,350 metres ("m") in the third quarter, or 98% of the planned depth. The Phase 3+ Expansion remains on track for completion in the second half of 2026 Published Alamos’ 2024 Environmental, Social and Governance (“ESG”) Report, outlining the Company’s progress on its ESG performance

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

Highlight Summary

| | Three Months Ended September 30, | Nine Months Ended September 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Financial Results (in millions) | | | | | | Operating revenues | $462.3 | $360.9 | $1,233.5 | $971.1 | | Cost of sales (1) | $194.1 | $204.0 | $590.0 | $550.2 | | Earnings from operations | $455.7 | $183.3 | $766.6 | $403.5 | | Earnings before income taxes | $371.5 | $141.2 | $578.8 | $345.0 | | Net earnings | $276.3 | $84.5 | $450.9 | $196.7 | | Adjusted net earnings (2) | $155.5 | $78.1 | $359.5 | $225.7 | | Adjusted earnings before interest, taxes, depreciation and amortization (2) | $283.5 | $176.2 | $689.1 | $484.3 | | Cash provided by operating activities before changes in working capital and taxes paid (2) | $275.3 | $192.8 | $639.6 | $518.3 | | Cash provided by operating activities | $265.3 | $165.5 | $544.4 | $468.9 | | Capital expenditures (sustaining) (2) | $34.8 | $32.7 | $95.1 | $80.1 | | Sustaining finance leases (3) | $4.3 | $5.4 | $12.6 | $5.4 | | Capital expenditures (growth) (2) | $83.3 | $67.9 | $221.2 | $178.3 | | Capital expenditures (capitalized exploration) | $16.9 | $6.2 | $33.3 | $20.5 | | Free cash flow (2)(3) | $130.3 | $87.5 | $194.8 | $218.8 | | Operating Results | | | | | | Gold production (ounces) | 141,700 | 152,000 | 403,900 | 426,800 | | Gold sales (ounces) | 136,473 | 145,204 | 389,083 | 418,976 | | Per Ounce Data | | | | | | Average realized gold price (5) | $3,359 | $2,458 | $3,144 | $2,294 | | Average spot gold price (London PM Fix) | $3,457 | $2,475 | $3,201 | $2,296 | | Cost of sales per ounce of gold sold (includes amortization) (1) | $1,422 | $1,405 | $1,516 | $1,313 | | Total cash costs per ounce of gold sold (2) | $973 | $984 | $1,065 | $909 | | All-in sustaining costs per ounce of gold sold (2) | $1,375 | $1,359 | $1,499 | $1,226 | | Share Data | | | | | | Earnings per share, basic | $0.66 | $0.20 | $1.07 | $0.49 | | Earnings per share, diluted | $0.65 | $0.20 | $1.07 | $0.48 | | Adjusted earnings per share, basic (2) | $0.37 | $0.19 | $0.86 | $0.56 | | Weighted average common shares outstanding (basic) (000’s) | 420,500 | 417,147 | 420,463 | 404,127 | | Financial Position (in millions) | | | | | | Cash and cash equivalents (4) | | | $463.1 | $327.2 |

| | Three Months Ended September 30, | Nine Months Ended September 30, | | | | | 2025 | 2024 | 2025 | 2024 | | Gold production (ounces) | | | | | | Island Gold District (7) | 66,800 | 57,300 | 190,400 | 132,400 | | Young-Davidson | 37,900 | 44,200 | 112,000 | 128,300 | | Mulatos District (8) | 37,000 | 50,500 | 101,500 | 166,100 | | Gold sales (ounces) | | | | | | Island Gold District (7) | 62,011 | 53,445 | 179,357 | 127,341 | | Young-Davidson | 37,406 | 42,966 | 111,095 | 127,833 | | Mulatos District (8) | 37,056 | 48,793 | 98,631 | 163,802 | | Cost of sales (in millions) (1) | | | | | | Island Gold District (7) | $83.4 | $71.9 | $251.2 | $136.0 | | Young-Davidson | $65.2 | $63.9 | $195.5 | $196.0 | | Mulatos District (8) | $45.5 | $68.2 | $143.3 | $218.2 | | Cost of sales per ounce of gold sold (includes amortization) (1) | | | | | | Island Gold District (7) | $1,345 | $1,345 | $1,401 | $1,068 | | Young-Davidson | $1,743 | $1,487 | $1,760 | $1,533 | | Mulatos District (8) | $1,228 | $1,398 | $1,453 | $1,332 | | Total cash costs per ounce of gold sold (2) | | | | | | Island Gold District (7) | $964 | $988 | $1,002 | $758 | | Young-Davidson | $1,200 | $1,033 | $1,248 | $1,080 | | Mulatos District (8) | $761 | $937 | $971 | $892 | | Mine-site all-in sustaining costs per ounce of gold sold (2)(3) | | | | | | Island Gold District (7) | $1,432 | $1,405 | $1,420 | $1,137 | | Young-Davidson | $1,476 | $1,406 | $1,555 | $1,358 | | Mulatos District (8) | $831 | $1,002 | $1,045 | $954 | | Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2) | | | | | | Island Gold District (4)(7)(9) | $92.8 | $76.5 | $239.5 | $187.2 | | Young-Davidson (5) | $20.2 | $25.6 | $60.4 | $64.8 | | Mulatos District (6)(8) | $11.2 | $3.1 | $18.9 | $14.8 | | Other | $15.1 | $7.0 | $43.4 | $17.5 |

(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 $9.6 million and $20.3 million for the three and nine months ended September 30, 2025 ($3.8 million and $10.7 million for the three and nine months ended September 30, 2024 ). (5) Includes capitalized exploration at Young-Davidson of $4.2 million and $9.1 million for the three and nine months ended September 30, 2025 ($1.5 million and $3.9 million for the three and nine months ended September 30, 2024). (6) Includes capitalized exploration at Mulatos District of $7.6 million and $10.1 million for the three and nine months ended September 30, 2025 ($0.9 million and $5.9 million for the three and nine months ended September 30, 2024). (7) The Island Gold District includes Island Gold and Magino mines for the three and nine months ended September 30, 2025. Comparative figures reflect the inclusion of the Magino Mine as of its acquisition 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

TRIFR 1 of 0.97 in the third quarter Lost time injury frequency rate 1 ("LTIFR") of 0.08 in the third quarter Alamos had 12 recordable injuries across its sites and one lost time injury in the third quarter Year-to-date TRIFR of 0.99 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

Five reportable spills occurred in the third quarter One reportable effluent exceedance Continued reclamation activities at Mulatos for the Cerro Pelon, El Victor and San Carlos pits

All five reportable spills were promptly addressed at the time of occurrence, and are not expected to have any lasting impact on the natural environment. The effluent exceedance was due to elevated nitrate concentrations in the open pit water at the Magino mine, which is in the process of being addressed with no impact to the 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

Alamos continued to provide charitable donations, sponsorships, medical support and infrastructure investments within its local communities, including:

Cash donations to the Haileybury and New Liskeard food banks Committed CAD$43,000 to the Blanche River Health Foundation to support the installation of emergency room waiting clocks at Englehart and Kirkland Lake BRH sites, providing accurate and timely information to patients Provided new fitness equipment for the Elk Lake Recreation Centre to promote community wellbeing Sponsorship of multiple events and teams, including the Canadian Mining Games Supported student development through the Young Mining Professionals Scholarships initiative Ongoing support within 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

The Mulatos District was awarded the prestigious Silver Helmet trophy for excellence in health and safety, for the third time since 2022, recognizing its outstanding management systems and performance Released the 2024 ESG Report, highlighting progress on ESG performance across the Company's operations, projects and offices Completed annual submissions to the Carbon Disclosure Project and S&P Global’s Corporate Sustainability Assessment, outlining ESG and climate performance

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) | 260 - 270 | 160 - 165 | 140 - 145 | — | 560 - 580 | | Previous gold production (000's ounces) | 275 - 300 | 175 - 190 | 130 - 140 | — | 580 - 630 | | Cost of sales, including amortization _(in millions) _(3) | | | | | $865 | | Total cash costs _($ per ounce) _(1) | $875 - $925 | $1,150 - $1,200 | $925 - $975 | — | $975 - $1,025 | | All-in sustaining costs _($ per ounce) _(1)(2) | $1,225 - $1,275 | $1,550 - $1,600 | $1,025 - $1,075 | — | $1,400 - $1,450 | | Capital expenditures (in millions) | | | | | | | Sustaining capital (1) | $80 - $85 | $55 - $60 | $3 - $5 | — | $138 - $150 | | Growth capital (1) | $270 - $300 | $15 - $20 | $17 - $20 | $60 - $70 | $362 - $410 | | _Previous growth capital _(1) | $270 - $300 | $15 - $20 | $37 - $40 | $100 - $120 | $422 - $480 | | Total sustaining and growth capital (1) | $350 - $385 | $70 - $80 | $20 - $25 | $60 - $70 | $500 - $560 | | Previous 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 | $26 - $31 | $64 - $74 | $539 - $599 | | Previous total capital expenditures and capitalized exploration (1) | $370 - $405 | $79 - $89 | $46 - $51 | $104 - $124 | $599 - $669 |

(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, amortization expense, and silver by-product credits, and is calculated based on the mid-point of total cash costs guidance. (4) Initial annual guidance was issued on January 13, 2025. Cost guidance was revised on July 30, 2025, and production and capital guidance was revised on October 29, 2025.

Earlier from B2Gold Corp.

Alamos Gold Announces Closing of the Sale of its Turkish Development Projects 2025-10-27
Alamos Gold Announces Closing of Quartz Mountain Project Sale 2025-10-22
GFG Announces C$4.0 Million Flow-Through Private Placement 2025-10-16