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Sep 30
Alamos Gold Q3 2025 Earnings Report
Alamos Gold reported record free cash flow and revenues in Q3 2025, driven by increased gold production and margin expansion, despite revising down full-year production guidance due to unplanned mill downtime and a seismic event.
Key Takeaways
Alamos Gold delivered a strong third quarter in 2025, achieving record free cash flow of $130.3 million and record revenues of $462.3 million. This performance was fueled by a 3% increase in gold production to 141,700 ounces and significant margin expansion. However, the company revised its 2025 production guidance lower by approximately 6% due to unplanned downtime at the Magino mill and lower expected underground grades from Island Gold following a seismic event.
Achieved record free cash flow of $130.3 million, a significant increase from the prior year, driven by higher production and gold prices.
Reported record quarterly revenues of $462.3 million, up 28% from the prior year, primarily due to higher realized gold prices.
Increased gold production to 141,700 ounces, a 3% increase from the previous quarter, with strong performances from Mulatos and Island Gold District.
Revised 2025 production guidance lower by approximately 6% to 560,000-580,000 ounces due to Magino mill downtime and lower Island Gold grades, but anticipates an 18% increase in Q4 production.
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 has revised its 2025 production guidance downwards due to recent operational challenges but anticipates a strong rebound in the fourth quarter with increased production and lower costs. The company remains focused on advancing high-return growth projects, including the Phase 3+ Expansion at Island Gold and the PDA project, which are expected to drive significant production growth and cost reductions in the coming years. The Lynn Lake project timeline has been delayed due to wildfires, impacting 2025 capital expenditures.
Positive Outlook
- Fourth quarter production is expected to increase 18% to between 157,000 and 177,000 ounces, making it the strongest quarter of the year.
- Total cash costs and AISC are expected to decrease 5% in the fourth quarter, keeping full-year costs in line with revised guidance.
- Phase 3+ Expansion at Island Gold is on schedule for completion in the second half of 2026, expected to significantly increase production and lower costs in 2026.
- Island Gold District production is projected to average 411,000 ounces per year at mine-site AISC of $915 per ounce over the initial 12 years post-expansion.
- Consolidated production is expected to increase to a range of 680,000 to 730,000 ounces in 2027, a 24% increase from revised 2025 guidance, at 18% lower AISC.
Challenges Ahead
- 2025 production guidance has been revised lower by approximately 6% to a range of 560,000 to 580,000 ounces due to unplanned Magino mill downtime and lower Island Gold grades.
- The Lynn Lake project completion is now expected in the first half of 2029, delayed from the second half of 2028, due to wildfires impacting construction activities.
- Consolidated 2025 capital guidance has been decreased by 10% to between $539 million and $599 million, mainly reflecting the delay in Lynn Lake activities.
- Lower grades are expected to be mined at Island Gold in the fourth quarter due to a seismic event deferring access to higher-grade stopes.
- The company is evaluating the impact of the Lynn Lake project delay and three years of inflation on initial capital estimates, with an updated estimate expected in Q1 2026.