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Jun 30
Alamos Gold Q2 2025 Earnings Report
Alamos Gold reported stronger production and lower costs, leading to record cash flow from operations and solid free cash flow of $85 million, while continuing to fund growth initiatives.
Key Takeaways
Alamos Gold Inc. delivered a strong second quarter in 2025, with gold production increasing 10% quarter-over-quarter and all-in sustaining costs decreasing by 18%. This performance resulted in record quarterly revenues of $438.2 million, record cash flow from operations of $216.2 million, and a substantial increase in free cash flow to $84.6 million. The company is on track to meet its full-year production guidance despite an increase in annual cost guidance due to external factors and a slower start at some mines.
Gold production increased by 10% from the first quarter of 2025, reaching 137,200 ounces, meeting quarterly guidance.
All-in sustaining costs decreased by 18% from the first quarter, reflecting improved performance across all operations.
The company generated record quarterly revenues of $438.2 million and record cash flow from operations of $216.2 million.
Free cash flow significantly increased to $84.6 million, enabling continued reinvestment in high-return growth projects.
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 expects further production growth and decreasing costs into the second half of 2025, driven by higher grades and milling rates. The company remains on track to achieve full-year production guidance, though cost guidance has been increased due to external factors and a slower start at some mines. Long-term, the company anticipates significant production growth and cost reductions from its development projects.
Positive Outlook
- Expected production increase to between 145,000 and 155,000 ounces in Q3 2025, with further significant increase in Q4.
- Total cash costs expected to decrease by 5% in Q3 2025, with a more substantial decrease in costs expected in the second half of the year.
- Island Gold District's Phase 3+ Expansion is on schedule for completion in H2 2026, expected to significantly increase production and lower costs.
- Lynn Lake project, despite temporary pause, is expected to increase consolidated production to approximately 900,000 ounces per year upon completion in H2 2028.
- PDA project construction activities are ramping up, with first production anticipated mid-2027, contributing to low-cost production.
Challenges Ahead
- Annual cost guidance for 2025 has been increased due to higher share-based compensation, royalty expenses, and slower start at Magino and Young-Davidson.
- Lynn Lake project completion is delayed by approximately six months to H2 2028 due to ongoing wildfires in northern Manitoba.
- Young-Davidson mining rates were below annual guidance in Q2 due to ground water inflow and power outages.
- Mulatos District production in Q2 was lower than prior year due to timing of recovery of ounces and lower contribution from residual leaching.
- Capital expenditures for Lynn Lake in 2025 may vary depending on the timing of construction restart, and initial capital estimate may increase due to delays and inflation.