Alamos Gold Sets Multiple Financial Records in Q3: Free Cash Flow Hits $130M Amid Operational Challenges and Robust Expansion Plans
Record Free Cash Flow, Higher Revenues, and Solid Margins Highlight Q3
Alamos Gold (TSX: AGI, NYSE: AGI) delivered a record-breaking third quarter in 2025, with free cash flow reaching $130.3 million and quarterly revenues surging to $462.3 million. This financial strength comes even as gold production for the quarter reached 141,700 ounces—just below the low end of quarterly guidance, largely due to one week of unplanned downtime at the Magino mill in September.
Strong operational performances across the Island Gold District and Mulatos offset production challenges, while total cash costs fell 9% from Q2 to $973 per ounce, and all-in sustaining costs (AISC) decreased 7% to $1,375 per ounce.
| Key Metric | Q3 2025 | Q2 2025 | Q3 2024 |
|---|---|---|---|
| Free Cash Flow (USD million) | $130.3 | $84.5 | $87.5 |
| Operating Revenues (USD million) | $462.3 | $407.5 | $360.9 |
| Gold Production (oz) | 141,700 | 137,700 | 152,000 |
| Total Cash Costs ($/oz) | $973 | $1,069 | $984 |
| All-in Sustaining Costs ($/oz) | $1,375 | $1,474 | $1,359 |
| Average Realized Gold Price ($/oz) | $3,359 | $3,068 | $2,458 |
| Net Earnings (USD million) | $276.3 | $106.7 | $84.5 |
Short-Term Headwinds but Upbeat on Fourth Quarter Outlook
The company revised its 2025 production guidance downward by about 6% (now targeting 560,000–580,000 ounces for the year), due to both the aforementioned downtime at Magino and lower anticipated grades from the Island Gold mine following a seismic event in October. Management expects these setbacks to be temporary, with fourth quarter production anticipated to rebound sharply—up 18% (midpoint) to 157,000–177,000 ounces—as mining rates and mill performance normalize and high-grade recovery accelerates at Mulatos and Young-Davidson.
Robust Financial Position and Capital Discipline Support Growth Pipeline
With cash and cash equivalents at $463.1 million at quarter end and over $600 million following the closure of asset sales, Alamos is positioned to fully fund ongoing expansions. These include the Phase 3+ Expansion at Island Gold (now 98% shaft depth completed), which is expected to transform the district into one of Canada’s most profitable and low-cost gold mining operations by 2026, and the deferred ramp-up at Lynn Lake, now planned for first half of 2029 due to wildfire-related construction delays.
The following table summarizes Q3 capital deployment and liquidity:
| Category | Q3 2025 (USD million) | YTD 2025 (USD million) |
|---|---|---|
| Cash and Equivalents (end of Q3) | $463.1 | - |
| Total Liquidity | $963.1 | - |
| Sustaining Capital Expenditures | $34.8 | $95.1 |
| Growth Capital Expenditures | $83.3 | $221.2 |
Margin Expansion Continues Across Key Mining Districts
Notably, Q3 marked margin expansion across all major operations. Mulatos District saw total cash costs drop to $761 per ounce (vs. $937 last year) and AISC fall to $831 (from $1,002). Island Gold reported $964 total cash cost per ounce, even as mine-site AISC inched up to $1,432 on higher sustaining capex for the expansion. Young-Davidson continued to post reliable free cash flow, supporting its 14-year Mineral Reserve life and reinforcing the company’s sustainable operating model.
Record Earnings and Industry Recognition Add Momentum
Adjusted net earnings reached $155.5 million in Q3, bolstered by operational efficiency and an impairment reversal linked to the sale of Turkish development projects. The company’s industry momentum was further validated by its TSX30™ 2025 win for top share price performance over three years (310% increase), underscoring market confidence in Alamos’s growth strategy.
Production Growth Set to Accelerate as Expansion Projects Near Completion
The completion of the Phase 3+ Expansion in 2026 and startup of Lynn Lake in 2029 are set to lift consolidated annual production by over 20%, with an 18% decrease in consolidated AISC by 2027. Management sees potential to reach nearly 1 million ounces of gold production annually longer-term as ongoing drilling, brownfield expansions, and project execution continue to bear fruit.
| Growth Project | Status / Timeline | 2025E Capital (USD million) |
|---|---|---|
| Island Gold Phase 3+ Expansion | 98% shaft sinking, on track for H2 2026 completion | $270-$300 |
| Lynn Lake Project | Ramp-up in 2026, full completion by H1 2029 | $60-$70 (deferred from earlier plan) |
| PDA (Mulatos District) | First production targeted for mid-2027 | Capex shifted mainly to 2026-2027 |
Environmental and Safety Initiatives Remain in Focus
Alamos reported strong safety metrics with a total recordable injury frequency rate (TRIFR) of 0.97 in Q3 (down from 2.01 last year), continued reclamation activities, and further progress on its ESG agenda, as reflected in its published 2024 ESG Report.
Bottom Line: Long-Term Outlook Reinforced by Strong Cash Generation and Capital Pipeline
Despite short-term operational hurdles, Alamos Gold enters the final quarter of 2025 with record financial strength, momentum from operational improvements, and an ambitious growth pipeline. With Q4 production expected to rebound and capital discipline maintained, the company is well positioned to execute on expansion plans and generate higher shareholder value through 2026 and beyond.
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