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Mar 31
Alamos Gold Q1 2025 Earnings Report
Reported Q1 2025 financial and operational results
Key Takeaways
Alamos Gold Inc. reported a solid first quarter in 2025, with production meeting the low end of guidance. Revenue increased significantly driven by higher realized gold prices and the inclusion of the Magino mine. While costs were higher than the prior year period, primarily due to the inclusion of Magino and increased share-based compensation, the company remains on track to meet full-year production guidance and expects costs to decrease in the remainder of the year. The company continues to advance its high-return growth projects and maintains a strong liquidity position.
Gold production in Q1 2025 was 125,000 ounces, meeting the low end of quarterly guidance.
Revenue increased by 20% to $333.0 million in Q1 2025, primarily due to higher realized gold prices and the inclusion of the Magino mine.
Adjusted earnings per share for Q1 2025 were $0.14.
The company generated $64.1 million in free cash flow in Q1 2025, with a strong cash and cash equivalents balance of $289.5 million at the end of the quarter.
Alamos Gold
Alamos Gold
Alamos Gold Revenue by Segment
Revenue by Segment
Island Gold District Revenue
CapyFin.comYoung-Davidson Revenue
CapyFin.comMulatos District Revenue
CapyFin.com Forward Guidance
Alamos Gold Inc. expects stronger production and lower costs in the remainder of 2025, driven by increased milling rates at Magino and higher grades at Young-Davidson and La Yaqui Grande. The company remains on track to achieve its full-year production guidance and expects AISC to decrease significantly. Advancement of high-return growth projects, including the Phase 3+ Expansion, Lynn Lake, and PDA, is expected to drive significant production growth and lower costs over the next several years, with a long-term target of one million ounces per year.
Positive Outlook
- Expected stronger production in Q2 and the second half of 2025, remaining on track for full-year guidance.
- Expected approximately 20% decrease in AISC in Q2, with further decreases expected in the remainder of the year.
- Phase 3+ Expansion at Island Gold on track for completion in H1 2026, expected to drive higher production and significantly lower costs.
- Construction activities ramping up on Lynn Lake and PDA projects, contributing to steady growth towards 900,000 ounces per year run rate.
- Excellent potential to grow production to one million ounces per year through further expansion of the Island Gold District.
- Strong free cash flow generation expected through the remainder of 2025 and significantly increasing after project completions.
Challenges Ahead
- Monitoring full-year cost guidance due to higher share-based compensation and royalty costs, impacted by factors outside the Company's control.
- Potential impact from tariffs introduced by the United States and potential retaliatory tariffs on input costs.
- Capital spending expected to increase modestly into 2026 with ramp up in spending on Lynn Lake and PDA.
- Unrealized losses on forward contracts inherited from Argonaut impacting net earnings.
- Cash flow in 2025 impacted by planned delivery of ounces into the gold prepayment facility with no associated cash flow in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income