Alamos Gold Reports Fourth Quarter and Year-End 2025 Results

Executive Summary

• Alamos Gold reported Q4 and full-year 2025 financial results, delivering record annual revenues of ~$1.8 billion and record free cash flow of $351.7 million, despite production falling short of guidance due to severe winter weather and operational challenges at its Canadian operations.
• The Company announced a 60% increase in its quarterly dividend to $0.04 per share, effective Q1 2026, reflecting strong cash flow generation and a commitment to returning capital to shareholders.
• Management provided updated 2026-2028 production guidance (projecting 570k-650k oz in 2026 and ~1M oz annually by 2030) alongside significant progress on high-return growth projects, including the Phase 3+ Shaft Expansion, IGD Expansion to 20,000 tpd, Lynn Lake, and PDA.

Key Details

• Financial Performance (Q4 & FY 2025):
• Q4 Revenue: $575.3M; FY Revenue: ~$1.8B (up 34% YoY)
• Q4 Net Earnings: $434.9M ($1.03/share); FY Net Earnings: $885.8M ($2.11/share)
• Q4 Adjusted Net Earnings: $227.6M ($0.54/share); FY Adjusted Net Earnings: $587.1M ($1.40/share)
• Q4 Cash Flow from Operations: $250.9M; FY: $795.3M
• Q4 Free Cash Flow: $156.9M; FY: $351.7M
• Q4 AISC: $1,592/oz; FY AISC: $1,524/oz
• Q4 Total Cash Costs: $1,111/oz; FY: $1,077/oz
• Production Metrics:
• FY 2025 Total Production: 545,400 oz (down 4% YoY)
• Q4 Production: 141,500 oz
• Island Gold District FY: 250,400 oz; Young-Davidson FY: 153,400 oz; Mulatos District FY: 141,600 oz
• Dividend Declaration:
• Quarterly dividend increased by 60% to $0.04 per share, starting Q1 2026.
• 2026-2028 Guidance:
• 2026 Production: 570,000 - 650,000 oz
• 2027 Production: 650,000 - 730,000 oz
• 2028 Production: 755,000 - 835,000 oz
• 2026 AISC Guidance: $1,500 - $1,600/oz
• 2026 Total CapEx: $850M - $940M (excluding $60M capitalized exploration)
• Growth Project Updates:
• Island Gold District (IGD) Expansion: Announced Feb 3, 2026. Expands Magino mill to 20,000 tpd. Expected to produce 534,000 oz/yr over initial 10 years (starting 2028) at $1,025/oz AISC. At $4,500/oz gold, estimated after-tax NPV (5%) is $12.2B. Phase 3+ Shaft is 98% complete (1,350m depth), with completion expected Q4 2026.
• Lynn Lake: Updated plan incorporates BT & Linkwood satellite deposits. Mill capacity increased 13% to 9,000 tpd. Initial capital increased to $937M. Construction ramps up Spring 2026, with first production expected H1 2029. Projected 186,000 oz/yr over 10 years at $829/oz AISC.
• PDA (Mulatos District): Environmental impact assessment amendment approved Jan 2025. On budget/schedule for mid-2027 production. Initial capital estimate remains $165M.
• Asset Sales & M&A:
• Turkish Projects: Sold to Tümad Madencilik for $470M total cash consideration. First payment of $160M received at closing in Oct 2025. Remaining $310M due on first and second anniversaries.
• Quartz Mountain: Option to earn 100% interest sold to Q-Gold Resources for up to $21M + 9.9% equity interest in Q-Gold.
• Hedges & Prepayments:
• Eliminated 50,000 oz of legacy Argonaut hedges in Q4. Cost to eliminate: $113.5M (effective price ~$4,091/oz).
• Funded by $63.5M cash + $50.0M gold sale prepayment for delivery of 12,255 oz in H1 2026 at $4,166/oz.
• Mineral Reserves & Resources:
• Year-end 2025 Mineral Reserves: 15.9M oz (265Mt, 1.87 g/t Au), up 32% YoY.
• Measured & Indicated Resources: 5.5M oz (119Mt, 1.44 g/t Au), up 6%.
• Inferred Resources: 2.0M oz (35Mt, 1.82 g/t Au), down 63% (reflecting successful conversion to Reserves).

Notable Quotes

• “Our full year production was lower than planned and costs higher due to a challenging year at our Canadian operations. Despite these challenges, we established a number of new financial records including record free cash flow of $352 million while investing in our high-return growth initiatives. This included advancing the Phase 3+ Shaft Expansion, delivering a 32% increase in Mineral Reserves, and incorporating that growth into a larger expansion of the Island Gold District,” said John A. McCluskey, President and CEO.
• “Collectively, we expect these growth projects to drive a significant improvement into 2026, and sustained low-cost growth over the next five years to approximately one million ounces annually by 2030. All of this growth is in Canada, and we expect to fund it all internally while generating increasing free cash flow. Reflecting this strong outlook and growing free cash flow, we are pleased to announce a 60% increase in our dividend,” Mr. McCluskey added.