Alamos Gold (TSX: AGI) posted a paradoxical second quarter: revenue leapt 32% YoY to $438.2 million from Q2 2024’s $332.6 million, driven by a 38% jump in the realized gold price to $3,223 per ounce and a 10% production rebound.
Alongside, cost of sales rose 16% YoY to $200.7 million, compressing the cost-of-sales margin to 54% from 48% last year. Total cash costs also ballooned 30% YoY to $1,075 per ounce and AISC spiked 35% to $1,475 per ounce.
Operating income almost doubled YoY to $216.2 million this quarter. This led to net earnings rising 128% YoY to $159.4 million (or $0.38 per share) from $70.1 million last year (or $0.17 per share)
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Adjusted EBITDA grew 44% YoY to $260.2 million, while adjusted net earnings advanced 49% to $144.1 million.
Operating cash flow inched up 2% YoY to $199.5 million, flipping free cash flow to a positive $84.6 million from a Q1 deficit. Capital spending stayed at $122 million, concentrated on the Island Gold Phase 3+ expansion and other growth projects.
Net cash rose 5% from year-end to $344.9 million, leaving liquidity at $845 million. Derivative liabilities, however, swelled to $234 million — up eight-fold since December.
Production totaled 137,200 ounces, virtually flat YoY. The Island Gold District contributed 64,400 ounces at $1,410 AISC per ounce (up 75% YoY), Young-Davidson 38,700 ounces at $1,575 AISC per ounce, and Mulatos 34,100 ounces at $1,084 AISC per ounce.
The company maintained its 580,000-630,000 ounces full-year output target but now sees higher costs across all mines. Total cash cost guidance rises to $975–$1,025 per ounce (from $875–$925 per ounce), AISC jumps to $1,400–$1,450 per ounce (from $1,250–$1,300 per ounce), and expected cost of sales climbed to around $865 million (previously $805 million).
Beyond the numbers, Alamos repurchased $10 million of shares, paid a $10.6 million dividend, and donated $1.25 million to wildfire relief. It also agreed to monetize its non-core Quartz Mountain project for up to $21 million and a 9.9% stake in Q-Gold Resources.
Alamos Gold last traded at $25.37 on the TSX.
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