Alamos Gold (TSX:AGI) delivered its fourth consecutive quarter of record revenues to open 2026, as a sharp run-up in gold prices more than compensated for cost pressures and a modest dip in sales volumes.
The intermediate gold producer reported first quarter revenues of $596.7 million, edging past the $575.3 million booked in Q4 2025 and up 79% from a year earlier. The lift came almost entirely from price, Alamos realized $4,829 per ounce, compared with $3,998 in Q4 and $2,802 in the prior-year period.
Net earnings landed at $191.4 million, or $0.46 per share. That figure trails the $434.9 million reported in Q4 2025, though last quarter’s number was inflated by a $226.7 million after-tax gain on the sale of assets. On an adjusted basis, Q1 net earnings of $232.0 million, or $0.55 per share, came in slightly ahead of Q4’s $227.6 million.
Cash flow from operations climbed to $242.5 million, with free cash flow of $101.7 million generated even after $82.0 million in cash taxes and continued heavy spending on growth projects. The company finished March with $659.5 million in cash, up from $623.1 million at year-end, and maintained roughly $1.2 billion in total liquidity.
On the back of those numbers, the board lifted the quarterly dividend by 60% to $0.04 per share. Alamos also retired about a third of the legacy gold hedges inherited from its Argonaut acquisition, paying $42.7 million to eliminate 15,000 ounces priced at $1,821, a deliberate move to capture more upside from current prices.
Production totaled 123,900 ounces, in line with quarterly guidance but down from roughly 142,000 ounces in Q4 2025. Strong output from the Island Gold District offset weaker performance at Young-Davidson, where lower grades and ore-pass rehabilitation work weighed on mining rates.
Costs ran hot. Cost of sales came in at $205.5 million, or $1,685 per ounce, up from $1,544 per ounce in Q4. Total cash costs of $1,230 per ounce and all-in sustaining costs of $1,862 per ounce both climbed from Q4 levels of $1,111 and $1,592 respectively, and sat above the top end of first half guidance. Management attributes the increase to higher royalties tied to the gold price, labour and energy inflation, and elevated sustaining capital spending tied to the Island Gold District expansion.
That cost trajectory is the issue worth watching. Alamos expects AISC to ease roughly 5% in Q2 and decline more meaningfully in the second half as Island Gold mining rates ramp up and Young-Davidson recovers. Production is guided to climb to between 145,000 and 155,000 ounces in Q2, keeping full year guidance of 570,000 to 650,000 ounces in reach.
On the project front, shaft sinking at the Island Gold Phase 3+ Expansion reached its planned 1,381-metre depth, with commissioning still targeted for early 2027. Capital spending is set to range between $850 million and $940 million in 2026, weighted toward the Island Gold District buildout and the Lynn Lake project.
Alamos Gold last traded at $54.84 on the TSX.
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