Key Points
Production & costs: Alamos produced 124,000 ounces of gold in Q1 and expects Q2 production to rise ~20% as Island Gold ramps and Young‑Davidson recovers, while Q1 AISC was $1,862/oz and is forecast to fall ~5% in Q2 with larger improvements in H2.
Record financials and capital position: The company sold 122,000 oz at an average realized price of $4,829/oz, generating record revenue of $597 million, operating cash flow of $338 million and free cash flow of $102 million, leaving $660 million cash and about $1.2 billion in available liquidity; management raised the dividend 60% and spent $43 million to buy out 15,000 oz of legacy hedges (245,000 of 330,000 oz eliminated).
Island Gold expansion and long‑term outlook: Shaft sinking to 1,381 m is complete and commissioning is on track for early 2027, while a larger expansion study targets average production of 534,000 oz/year from 2028 at an AISC of $1,025/oz, with projected >$1 billion annual free cash flow at $4,500/oz.
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Alamos Gold (NYSE:AGI) reported first-quarter 2026 gold production of 124,000 ounces, which management said was in line with quarterly guidance as stronger performance from the Island Gold District offset lower-than-planned production at the Young-Davidson mine. During the company’s earnings call, executives also pointed to record revenue and cash flow, progress on major growth projects, and expectations for higher production and lower costs later in the year.
Production and cost outlook
President and CEO John McCluskey said the Island Gold District posted a “solid overall quarter” as work advanced on the shaft and larger mill expansion, underground mining rates increased to a new record, and Magino’s milling rates improved “over the past six weeks.” He said the company expects the continued ramp-up at Island Gold, along with improved mining rates and grades at Young-Davidson, to lift second-quarter production by approximately 20%.
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McCluskey added that costs were expected to be elevated in the first quarter relative to first-half guidance. All-in sustaining costs (AISC) were $1,862 per ounce in Q1, and he said they are expected to decrease by about 5% in Q2, with “a more significant improvement” anticipated in the second half due to higher low-cost production from the Island Gold District.
Chief Financial Officer Greg Fisher said the company continues to monitor inflationary pressures, including higher labor, contractor, diesel, and electricity costs. In response to an analyst question, Fisher said the company’s forecast for the Q2 cost improvement assumes spot prices as of March 31, and “the higher rates that we’re seeing now is what we’ve assumed when we talked about that 5% reduction in cost.” He also described diesel as “about 5%” of the…
Source: finance.yahoo.com
