Alamos Gold 2024: “Record” Free Cash Flow, 86% Jump In Q4 Earnings
Alamos Gold (TSX: AGI) has released its financial and operating results for Q4 and the year ended December 31, 2024, highlighting a new high in annual free cash flow of US$272 million, underpinned by the second consecutive year of record gold production.
Fourth-quarter revenue soared to US$375.8 million, up from US$254.6 million in the same period last year, driven by a higher average realized gold price of US$2,632 per ounce (versus US$1,974 per ounce in Q4 2023), along with higher sales volumes. For the full year, operating revenue climbed 32%, from US$1.02 billion in 2023 to US$1.35 billion in 2024.
Cost of sales grew to US$751.1 million in 2024, up from US$637.7 million in 2023, translating to a jump from US$1,212 per ounce to US$1,341 per ounce. Total cash costs also rose year-over-year from US$850 per ounce to US$927 per ounce.
Net earnings for Q4 2024 reached US$87.6 million, an 86% jump compared to US$47.1 million in Q4 2023. In 2024, net earnings rose by 35%, coming in at US$284.3 million compared to US$210.0 million in the prior year, attributed to higher gold prices and the incorporation of Argonaut Gold’s assets after the acquisition closed in mid-2024.
Annual operating cash flow jumped 40% to US$661.1 million from US$472.7 million reported in 2023. Fourth-quarter operating cash flow also strengthened, reaching US$192.2 million, above the US$124.1 million posted in the same period last year.
The company’s touted record US$272 million in free cash flow for 2024 more than doubles the prior year’s figure of US$123.8 million, despite a rise in capital expenditures—US$417.6 million in 2024 versus US$348.9 million in 2023. This financial flexibility allowed it to service inherited Argonaut debt, sustain a quarterly dividend program of US$0.025 per share, and advance expansion projects.
The year-end balance for cash and cash equivalents stood at US$327.2 million, up from US$224.8 million in 2023. This puts the current assets balance at $648.6 million, while the current liabilities ended at $430.9 million.
Total assets increased to US$5.34 billion at year-end 2024, compared with US$4.00 billion at the close of 2023, mainly due to the integration of Argonaut Gold’s portfolio. Total liabilities also jumped to US$1.75 billion from US$1.08 billion in 2023, reflecting a US$250 million debt draw from the upsized credit facility and additional deferred taxes.
Total gold output reached 567,000 ounces in 2024, a 7% increase from 529,300 ounces in 2023. The Mulatos District contributed 205,000 ounces, surpassing the top end of revised guidance, while Island Gold delivered 155,000 ounces, also exceeding the high-end of annual guidance. Young-Davidson produced 174,000 ounces, down slightly from 185,100 in 2023.
The company forecasts annual gold production to range between 580,000 and 630,000 ounces in 2025, targeting a company-wide production rate approaching 900,000 ounces annually by 2028. Costs and AISC are projected to decline slightly from 2024 levels, particularly in the second half of the year, as Island Gold’s mining rates ramp up and Lynn Lake construction commences in earnest. While ongoing growth initiatives will keep capital spending elevated, the company expects to remain free cash flow positive at current gold prices.
Alamos Gold last traded at $32.28 on the TSX.
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