Alamos Gold (AGI) Q2 2026 earnings summary

Executive summary

• Q2 2026 gold production rose 5% sequentially to 130,600 oz, driven by record performance at Island Gold District, offsetting lower output at Young-Davidson and Mulatos, but down year-over-year due to operational challenges.

• Free cash flow was $144 million, supporting $67 million in shareholder returns via buybacks and dividends, with H1 2026 returns already surpassing 2025 levels.

• Eliminated all remaining 2026 gold hedges at a cost of $92 million, increasing exposure to higher gold prices.

• Major growth projects, including Island Gold expansion, Magino Mill, Lynn Lake, and PDA, are progressing on schedule and within budget.

• Seismic event at Young-Davidson and slower leach cycles at La Yaqui Grande led to a 12% reduction in full-year production guidance and an 18% increase in cost guidance.

Financial highlights

• Quarterly revenue was $594 million from 130,800 oz gold sold at an average price of $4,504/oz, up 36% year-over-year.

• Net earnings were $270 million ($0.64/share); adjusted net earnings were $248 million ($0.59/share), both up over 70% year-over-year.

• Operating cash flow before working capital was $287 million ($0.68/share); capital spending totaled $181 million, including $36 million sustaining, $130 million growth, and $15 million exploration.

• Ended the quarter with $637 million in cash and ~$1.2 billion in total liquidity.

• Free cash flow was $144 million in Q2; $245 million in H1, with 90% returned to shareholders or used to reduce hedge exposure.

Outlook and guidance

• 2026 consolidated production guidance revised down 12% to 510,000–560,000 oz due to seismic event at Young-Davidson and delayed recoveries at La Yaqui Grande.

• All-in sustaining cost guidance increased 18% to $1,775–$1,875/oz; total cash cost guidance up to $1,175–$1,275/oz.

• Capital expenditure guidance for 2026 increased to $945–1,035 million, mainly for sustaining capital at Young-Davidson.

• Expect stronger production and lower costs in 2027 and beyond, targeting 1 million oz annual gold production by 2030.