Alamos Gold (AGI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 gold production of 139,100 ounces, surpassing guidance and driving record free cash flow of $107 million, with revenue reaching $333 million and integration of Magino and Island Gold underway to form a major low-cost Canadian gold operation.

• Completed Argonaut Gold acquisition, integrating Magino and eliminating most inherited hedges, creating one of Canada’s largest and lowest-cost gold mines with over 11 million ounces in reserves/resources and >400,000 oz/year potential post-expansion.

• Company remains debt-free at quarter-end, with cash and equivalents up 31% to $314 million and total liquidity exceeding $550 million.

• Positioned to meet full-year production and cost guidance, with further growth expected from ongoing expansions, exploration, and synergies from Magino integration.

• Strong exploration results at Young-Davidson and Island Gold support resource growth and future upside.

Financial highlights

• Sold 141,000 ounces of gold at an average realized price of $2,336/oz, generating record quarterly revenue of $333 million, up 27% year-over-year.

• Total cash costs were $830/oz and all-in sustaining costs $1,096/oz, down 9% and 13% sequentially; AISC margin rose 54% sequentially.

• Adjusted net earnings were $97 million ($0.24/share), up 63% year-over-year; reported net earnings were $70 million ($0.18/share).

• Operating cash flow before working capital changes reached a record $191 million ($0.48/share), up 38% year-over-year.

• Free cash flow hit a record $107 million, up 74% year-over-year, with all sites generating positive mine site free cash flow.

Outlook and guidance

• On track to achieve full-year 2024 production guidance of 485,000–525,000 ounces (excluding Magino); updated consolidated guidance including Magino to be released in September.

• Q3 2024 production expected at 145,000–155,000 ounces, with costs above current guidance due to Magino integration.

• 2024 AISC guidance (ex-Magino): $1,125–$1,175/oz; total cash costs: $825–$875/oz.

• Long-term production targeted at 900,000 ounces/year by 2027, with potential to reach 1 million ounces/year through further expansions.

• Major capital investments ongoing, including Island Gold Phase 3+ Expansion (60% of $756 million growth capital spent or committed), on track for H1 2026 completion.