Alamos Gold Reports Second Quarter 2025 Results Stronger production and lower costs drive record cash flow from operations and solid free cash flow of $85 million while funding growth
Alamos Gold Inc.
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823 Toronto, Ontario M5J 2T3 Telephone: (416) 368-9932 or 1 (866) 788-8801
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Reports Second Quarter 2025 Results Stronger production and lower costs drive record cash flow from operations and solid free cash flow of $85 million while funding growth
Toronto, Ontario (July 30, 2025) - 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 paid1, 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 flow1 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 costs1 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 sharebased compensation expense. Costs are expected to decrease further through the second half of the year
1 | Alamos Gold Inc
- 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 perounce basis
- Reported net earnings for the quarter were $159.4 million, or $0.38 per share
- Adjusted net earnings1 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.
2 | Alamos Gold Inc
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 $260.2 $180.9 $405.6 $308.1 amortization (2)
Cash provided by operating activities before changes in working $232.9 $191.1 $364.3 $326.5 capital and taxes paid (2)
| 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
137,200 139,100 262,200 274,800 Gold production (ounces)
135,027 140,923 252,610 273,772 Gold sales (ounces)
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 $1,486 $1,225 $1,567 $1,265 (includes amortization) (1)
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)
$344.9 $327.2 Cash and cash equivalents (4)
(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) Sustaining finance leases at Island Gold District are not included as additions to mineral property, plant and equipment in cash flows used in investing activities.
(4) Cash and cash equivalents in the comparatives reflect the balance as at December 31, 2024.
(5) Average realized gold price for the three and six months ended June 30, 2025 included the delivery of ounces into the gold prepayment facility based on the prepaid price of $2,524 per ounce.
(6) Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
3 | Alamos Gold Inc
| 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 |
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.
4 | Alamos Gold Inc
Environment, Social and Governance Summary Performance
Health and Safety
- Total recordable injury frequency rate1 ("TRIFR") of 0.65 in the second quarter, a 56% decrease from 1.49 in the first quarter of 2025
- Lost time injury frequency rate1 ("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 17th 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.
5 | Alamos Gold Inc
Outlook and Strategy
| 2025 Guidance (4) | |||||
| Island Gold | Young- | Mulatos | Lynn Lake | ||
| District | Davidson | District | 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.
The Company’s objective is to operate a sustainable business model that supports growing returns to all stakeholders over the long-term, through growing production, expanding margins, and increasing profitability. This includes a balanced approach to capital allocation focused on generating strong ongoing free cash flow while reinvesting in high-return internal growth opportunities, and supporting higher returns to shareholders.
During the second quarter, the Company continued to execute on this strategy across a number of fronts. Production increased 10% to 137,200 ounces, while AISC decreased 18% from the first quarter, reflecting stronger performances from all three operations. Through higher production, lower costs and the higher realized gold price, the Company generated record quarterly revenues, cash flow from operations, and a substantial increase in free cash flow to $84.6 million while continuing to reinvest in high-return growth.
A further increase in production is expected in the third quarter to between 145,000 and 155,000 ounces, with total cash costs expected to decrease 5% and a slight decrease in AISC from the second quarter, reflecting the timing of sustaining capital. This is expected to be driven by higher milling rates at Young-Davidson, and the Island Gold District, and the recovery of higher-grade ore stacked in the latter part of the second quarter at La Yaqui Grande. Milling rates within the Magino mill continue to improve following the installation of the redesigned liner and bolt configuration within the SAG mill. Reflecting the improved milling rates, the Island Gold mill was shut down mid-July with higher-grade underground ore now being processed within the larger and more productive Magino mill.
A more significant increase in production and decrease in costs is expected in the fourth quarter driven by higher underground mining rates at Island Gold, as well as higher grades at Young-Davidson and La Yaqui Grande. Given the strong growth expected into the second half of the year, the Company remains on track to achieve full year production guidance.
Reflecting the higher than budgeted share-based compensation expense through the first half of the year, higher royalty expenses, 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. This included the revaluation of previously issued share-based compensation given the significant increase in the share price during the first quarter, and higher royalty expenses reflecting the higher gold price.
Consistent with the updated cost guidance, the Company expects a substantial decrease in costs into the second half of the year, driven by significant production growth. This strong trend of growing production and declining costs is expected to continue over the next several years driven by low-cost growth from the Company's pipeline of highreturn development projects.
6 | Alamos Gold Inc
The Phase 3+ Expansion at Island Gold is expected to be a significant driver of near term production growth and further decrease in costs in 2026. As outlined in the Base Case LOM Plan for the Island Gold District, the expansion is expected to transform the operation into one of the largest, lowest-cost, and most profitable gold mines in Canada with significant upside potential. The shaft sink has advanced to a depth of 1,265 m, 92% of its ultimate planned depth. The mill expansion, paste plant and powerline project are all advancing well with the overall expansion expected to be completed in the second half of 2026.
Post completion of the Phase 3+ Expansion, production from the Island Gold District is expected to increase to average 411,000 ounces per year at mine-site AISC of $915 per ounce over the initial 12 years (refer to the press release dated June 23, 2025 for more details). This is expected to drive consolidated production to a range of 680,000 to 730,000 ounces in 2027, a 17% increase from the mid-point of 2025 guidance, at 18% lower AISC. A further increase in production and decrease in costs is expected with the startup of production from Lynn Lake. With average annual production of 176,000 ounces over its first 10 years at first quartile mine-site AISC, Lynn Lake is expected to increase consolidated production to approximately 900,000 ounces per year.
Given ongoing wildfires that continue to impact communities across northern Manitoba, the ramp up of construction activities on the Lynn Lake project has been temporarily paused. Assuming the resumption of construction activities during the third quarter of 2025, the Company expects the completion of the Lynn Lake project in the second half of 2028. This represents an approximate six-month delay from the previous schedule given the loss of the majority of the summer construction season.
Longer-term, there is excellent potential to increase consolidated production to approximately one million ounces per year through a further expansion of the Island Gold District. The Expansion Study for the Island Gold District remains on track to be released in the fourth quarter of 2025 and is expected to demonstrate the significant upside potential to the Base Case LOM Plan. The Expansion Study is expected to include a larger Mineral Reserve, through ongoing Mineral Resource conversion, and will evaluate a potential expansion of the mill to between 18,000 and 20,000 tpd, supporting higher underground mining rates from Island Gold, and open pit mining and processing rates from Magino.
Capital spending in 2025 will be focused on the ramp up of construction activities at Lynn Lake and PDA, as well as the final full year of spending on the Phase 3+ Expansion. Capital spending is expected to increase modestly into 2026 with lower capital at the Island Gold District offset by the ramp up in spending on Lynn Lake and PDA. In 2027, capital spending is expected to decrease relative to 2026 driven by significantly lower capital at the Island Gold District, and the completion of construction of PDA. A further decrease in capital is expected after the completion of construction of Lynn Lake.
The global exploration budget for 2025 is $72 million, a 16% increase from $62 million spent in 2024, and the largest in the Company's history reflecting broad based exploration success across its assets. The Company continues to demonstrate its long-term track record of value creation through exploration with 2024 year-end Global Mineral Reserves (as updated in June 2025) increasing 50% to 16.0 million ounces (312 mt grading 1.59 g/t Au) compared to the end of 2023. This reflected an initial Mineral Reserve at Burnt Timber and Linkwood, ongoing exploration success and Mineral Resource conversion at Island Gold, as well as the addition of Magino. Mineral Reserves have now increased for six consecutive years for a cumulative increase of 65% over that time frame.
The Company remains well positioned to fund its high-return growth projects internally with strong ongoing free cash flow, $344.9 million of cash and cash equivalents at the end of the second quarter of 2025, and $844.9 million of total liquidity. At current gold prices, the Company expects to continue generating strong free cash flow while funding its growth projects, with significant increases following the completion of the Phase 3+ Expansion in 2026, PDA in 2027, and Lynn Lake in 2028.
7 | Alamos Gold Inc
Second Quarter 2025 Results
Island Gold District Financial and Operational Review
| Three Months Ended June 30, | Six Months Ended June 30, | ||
|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 |
Gold production (ounces) 64,400 41,700 123,600 75,100 Gold sales (ounces) 63,958 39,766 117,346 73,896
Financial Review (in millions)
| Operating Revenues | $210.8 | $93.1 | $362.8 | $164.1 |
| Cost of sales(1) | $88.3 | $30.7 | $167.8 | $64.1 |
| Earnings from operations | $120.8 | $60.4 | $192.2 | $97.3 |
| Cash provided by operating activities | $122.7 | $70.8 | $209.6 | $111.7 |
| Capital expenditures (sustaining)(2) | $20.1 | $12.2 | $35.6 | $25.7 |
| Lease payments (sustaining)(2),(5) | $4.0 | $— | $8.3 | $— |
| Capital expenditures (growth)(2) | $45.2 | $40.5 | $93.8 | $78.1 |
| Capital expenditures (capitalized exploration)(2) | $5.1 | $3.4 | $9.0 | $6.9 |
| Mine-site free cash flow(2),(5) | $52.3 | $14.7 | $71.2 | $1.0 |
| Cost of sales, including amortization per ounce of gold sold(1) | $1,381 | $772 | $1,430 | $867 |
| Total cash costs per ounce of gold sold(2) | $1,008 | $493 | $1,035 | $591 |
| Mine-site all-in sustaining costs per ounce of gold sold(2),(3) | $1,410 | $805 | $1,427 | $943 |
Island Gold Mine Underground Operations
| Tonnes of ore mined | 113,182 | 94,837 | 223,408 | 201,574 |
| Tonnes of ore mined per day | 1,244 | 1,042 | 1,234 | 1,108 |
| Average grade of gold(4) | 11.48 | 14.14 | 11.49 | 12.23 |
| Metres developed | 2,122 | 1,598 | 4,280 | 3,375 |
Mill Operations
| Tonnes of ore processed | 118,738 | 92,703 | 227,804 | 199,918 |
| Tonnes of ore processed per day | 1,305 | 1,019 | 1,259 | 1,098 |
| Average grade of gold(4) | 11.44 | 14.39 | 11.40 | 12.38 |
| Contained ounces milled | 43,666 | 42,895 | 83,504 | 79,546 |
| Average recovery rate | 98% | 98% | 98% | 98% |
Magino Mine Open Pit Operations
| Tonnes of ore mined - open pit(7) | 1,251,029 | — | 2,315,899 | — |
| Tonnes of ore mined per day | 13,748 | — | 12,795 | — |
| Total waste mined - open pit(8) | 3,893,410 | — | 7,339,538 | — |
| Total tonnes mined - open pit | 5,144,439 | — | 9,655,437 | — |
| Waste-to-ore ratio(8) | 3.11 | — | 3.17 | — |
| Average grade of gold(4) | 0.82 | — | 0.79 | — |
Mill Operations
| Tonnes of ore processed | 765,423 | — | 1,416,576 | — |
| Tonnes of ore processed per day | 8,411 | — | 7,826 | — |
| Average grade of gold processed(4) | 0.94 | — | 0.90 | — |
| Contained ounces milled | 23,082 | — | 41,002 | — |
| Average recovery rate | 95% | — | 94% | — |
(1) Cost of sales includes mining and processing costs, royalties, and amortization.
(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) Grams per tonne of gold.
(5) Mine-site free cash flow does not include lease payments which are classified as cash flows used in financing activities on the condensed interim consolidated financial statements.
(6) Comparative prior year period figures do not include the Magino mine, as the acquisition of the Magino mine was completed on July 12, 2024.
(7) Includes ore stockpiled during the periods.
(8) Total waste mined includes operating waste and capitalized stripping.
8 | Alamos Gold Inc
The Island Gold District produced 64,400 ounces in the second quarter of 2025, a 54% increase from the prior year period, driven by the inclusion of the Magino mine, which was acquired in July 2024, as well as an increase in tonnes processed from Island Gold underground. Production also increased 9% from the first quarter of 2025 driven by higher milling rates within both the Island Gold and Magino mills. Production is expected to increase through the remainder of the year reflecting higher mining and processing rates.
Island Gold Operational Review
Underground mining rates averaged 1,244 tpd in the second quarter, a 19% increase over the prior year period and consistent with guidance. Grades mined averaged 11.48 g/t Au, consistent with annual guidance and 19% lower than in the prior year period.
Mill throughput averaged 1,305 tpd and mill recoveries averaged 98% during the second quarter, also consistent with annual guidance. With higher grade underground ore now being processed within the larger and more productive Magino mill as of mid-July, the Island Gold mill will be transitioned to care and maintenance in the third quarter and gold in circuit inventory will be drawn down.
Magino Operational Review
Total mining rates averaged 56,532 tpd during the second quarter, including 13,748 tpd of ore, up 13% and 16% respectively, from the first quarter. Mining rates of ore were slightly below annual guidance with the focus on waste stripping during the month of June. Mining rates are expected to increase in the second half of the year to be consistent with annual guidance of 14,800 tpd of ore.
Milling rates continued to improve in the second quarter with throughput increasing 16% from the first quarter to average 8,411 tpd in the Magino mill. Grades processed during the second quarter of 0.94 g/t Au were up 9% from the first quarter and consistent with annual guidance.
Milling rates have continued to increase into the third quarter following additional planned improvements. This included the installation of a redesigned liner and bolt configuration within the SAG mill which was completed during the second week of July. Following the liner change, milling rates increased to average approximately 9,500 tpd through the second half of July. Milling rates are expected to continue increasing to targeted rates of 11,200 tpd during the third quarter.
Since the introduction of higher grade underground ore within the Magino mill in mid July, recoveries of the blended ore have been consistent with expectations.
Island Gold District Financial Review
Revenues of $210.8 million in the second quarter were 126% higher than the prior year period, driven by higher realized gold prices and an increase in ounces sold given the acquisition of Magino in July 2024. Similarly, revenues of $362.8 million during the first half of the year were 121% higher than the prior year period.
Cost of sales of $88.3 million in the second quarter and $167.8 million for the first half of the year were 188% and 162% higher than the comparative periods, respectively, due to the increase in ounces sold. On a per ounce basis, cost of sales were 79% and 65% higher in the second quarter and first half of the year, respectively, as compared to the prior year comparative periods, due to the inclusion of relatively higher cost ounces from Magino in 2025.
Total cash costs were $1,008 per ounce and mine-site AISC were $1,410 per ounce in the second quarter, slightly lower than the first quarter. This was driven by higher processing rates and grades at Magino, partially off-set by the higher contribution of Magino ounces to Island Gold District production. For the first half of the year, total cash costs of $1,035 per ounce and mine-site AISC of $1,427 per ounce were above the annual guidance range, driven by lower mill throughput at Magino. Given higher costs at Magino in the first half of the year, mine-site AISC guidance for the full year has been increased to between $1,225 and $1,275 per ounce. Costs are expected to trend lower through the remainder of the year reflecting higher milling rates within the Magino mill and increasing underground mining rates at Island Gold, both driving lower unit operating costs for the district.
9 | Alamos Gold Inc
Total capital expenditures were $74.4 million in the second quarter, including $45.2 million of growth capital and $5.1 million of capitalized exploration. Growth capital spending remained primarily focused on the Phase 3+ Expansion, including shaft site infrastructure, paste plant, and shaft sinking. The shaft sink advanced to a depth of 1,265 m at the end of the second quarter, 92% of its ultimate planned depth. The shaft sink is scheduled to be completed late 2025, with initial production from the shaft infrastructure expected in the second half of 2026. Additionally, bulk earthworks were completed for the expansion of the Magino mill to 12,400 tpd. The expansion of the Magino mill is expected to be completed in the second half of 2026, to coincide with the completion of the Phase 3+ Expansion at Island Gold.
Mine-site free cash flow was $52.3 million in the second quarter and $71.2 million in the first half of the year, net of the significant capital investment related to the Phase 3+ Expansion and exploration. At current gold prices, the Island Gold District is expected to continue self-funding the Phase 3+ Expansion and a robust exploration program, with significant free cash flow growth expected in 2026 onwards following the completion of the expansion.
10 | Alamos Gold Inc
Young-Davidson Financial and Operational Review
| Three Months Ended June 30, | Six Months Ended June 30, | ||
|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 |
Gold production (ounces) 38,700 44,000 74,100 84,100 Gold sales (ounces) 38,214 45,057 73,689 84,867
Financial Review (in millions)
| Operating Revenues | $126.1 | $106.1 | $227.3 | $188.8 |
| Cost of sales(1) | $65.2 | $66.7 | $130.3 | $132.1 |
| Earnings from operations | $60.0 | $38.6 | $95.1 | $55.4 |
| Cash provided by operating activities | $80.1 | $59.1 | $138.1 | $93.9 |
| Capital expenditures (sustaining)(2) | $12.9 | $7.7 | $23.6 | $19.3 |
| Capital expenditures (growth)(2) | $5.6 | $9.9 | $11.7 | $17.5 |
| Capital expenditures (capitalized exploration)(2) | $2.9 | $1.4 | $4.9 | $2.4 |
| Mine-site free cash flow(2) | $58.7 | $40.1 | $97.9 | $54.7 |
| Cost of sales, including amortization per ounce of gold sold(1) | $1,706 | $1,480 | $1,768 | $1,557 |
| Total cash costs per ounce of gold sold(2) | $1,233 | $1,030 | $1,289 | $1,104 |
| Mine-site all-in sustaining costs per ounce of gold sold(2),(3) | $1,575 | $1,203 | $1,614 | $1,334 |
Underground Operations
| Tonnes of ore mined | 654,317 | 717,565 | 1,262,918 | 1,384,627 |
| Tonnes of ore mined per day | 7,190 | 7,885 | 6,977 | 7,608 |
| Average grade of gold(4) | 2.01 | 2.18 | 2.01 | 2.07 |
| Metres developed | 2,203 | 2,186 | 4,335 | 4,100 |
Mill Operations
| Tonnes of ore processed | 639,368 | 725,647 | 1,238,583 | 1,391,425 |
| Tonnes of ore processed per day | 7,026 | 7,974 | 6,843 | 7,645 |
| Average grade of gold(4) | 2.05 | 2.18 | 2.03 | 2.07 |
| Contained ounces milled | 42,203 | 50,832 | 80,967 | 92,442 |
| Average recovery rate | 91% | 90% | 91% | 90% |
corporate share-based compensation expense.
(4) Grams per tonne of gold.
Operational review
Young-Davidson produced 38,700 ounces of gold in the second quarter, 9% higher than the first quarter reflecting higher mining rates and slightly higher grades processed. Relative to the prior year period, production decreased 12% due to lower mining rates and grades.
Mining rates averaged 7,190 tpd in the second quarter, a 6% improvement over the first quarter but below the annual guidance of 8,000 tpd, and a 9% decrease compared to the prior year period. Higher than average snowfall and precipitation led to a significantly higher than normal spring melt resulting in increased inflow of ground water into the underground mine. This impacted the ability to skip ore to surface, resulting in nearly a week of unplanned downtime to the shaft in May. Additionally, mining rates were impacted by power outages caused by storms in the region. Mining rates are expected to improve in the third quarter following the completion of a planned five-day shutdown for rope changes within the Northgate shaft in July. Mining rates are expected to further improve to targeted levels of 8,000 tpd in the fourth quarter.
Milling rates averaged 7,026 tpd in the second quarter, below the annual guidance of 8,000 tpd and a 12% decrease compared to the prior year period, primarily due to lower underground mining rates. Milling rates were slightly below mining rates within the second quarter due to a regional weather related power outage late in the quarter.
Processed grades averaged 2.05 g/t Au in the second quarter, 6% lower than the prior year period and consistent with the low-end of full year guidance. Grades mined are expected to average similar levels in the third quarter of 2025 and increase towards the upper end of full year guidance in the fourth quarter. Combined with higher mining
11 | Alamos Gold Inc
and processing rates, this is expected to drive stronger production through the remainder of the year. Mill recoveries averaged 91% for the second quarter, in-line with annual guidance.
Financial Review
Revenues increased to $126.1 million in the second quarter, 19% higher than the prior year period, driven by higher realized gold prices, partially offset by lower ounces sold. For the first half of the year, revenues of $227.3 million were 20% higher than the prior year, driven by the same factors as with the second quarter.
Cost of sales of $65.2 million in the second quarter were 2% lower than the prior year period, reflecting lower tonnes processed and ounces sold, partially offset by ongoing labour inflation. Cost of sales of $130.3 million for the first half of the year were 1% lower than the comparative period, driven by the same factors as with the second quarter.
Total cash costs of $1,233 per ounce and mine-site AISC of $1,575 per ounce in the second quarter were higher than the prior year period, primarily due to higher unit costs, given the lower mining and processing rates, as well as lower grades processed. Total cash costs of $1,289 per ounce and mine-site AISC of $1,614 per ounce for the first half of year were higher than the comparative period, driven by the same factors as the second quarter. As a result of higher unit costs incurred in the first half of the year, mine-site AISC guidance for the full year has been increased to between $1,550 and $1,600 per ounce. Costs are expected to decrease through the remainder of the year reflecting higher mining rates and grades.
Capital expenditures in the second quarter totaled $21.4 million, including $12.9 million of sustaining capital and $5.6 million of growth capital. Additionally, $2.9 million was invested in capitalized exploration during the quarter. Capital expenditures, inclusive of capitalized exploration, totaled $40.2 million for the first half of 2025.
Young-Davidson continues to generate strong ongoing mine-site free cash flow, including a record $58.7 million in the second quarter and $97.9 million for the first half of the year. The operation is well-positioned to generate record free cash flow in 2025 and strong ongoing free cash flow over the long-term at current gold prices.
12 | Alamos Gold Inc