Alamos Gold Reports Second Quarter 2024 Results

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Download Press Release PDF Format (opens in new window) PDF 924 KB

Source: https://s24.q4cdn.com/779615370/files/doc_financials/2024/q2/Alamos-Gold-Q2-2024-Earnings-Release-_-Final.pdf
Published: 2026-05-01T12:00:44+00:00
Fetched: 2026-05-05T09:13:25.311+00:00
Source artifact: 1eb50d36-ce2a-45b1-bc64-4187f62e4160
Normalizer input: text

## Content

# Download Press Release PDF Format (opens in new window) PDF 924 KB
TRADING SYMBOL: TSX:AGI NYSE:AGI
Alamos Gold Inc.
Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823
Toronto, Ontario M5J 2T3
Telephone: (416) 368-9932 or 1 (866) 788-8801
All amounts are in United States dollars, unless otherwise stated.
Alamos Gold Reports Second Quarter 2024 Results
Record production and lower costs drive record free cash flow of $107 million
Toronto, Ontario (July 31, 2024) - Alamos Gold Inc. (TSX:AGI; NYSE:AGI) (“Alamos” or the “Company”) today
reported its financial results for the quarter ended June 30, 2024.
“Alamos delivered a record performance in the second quarter. Production exceeded quarterly guidance, increasing
to a record 139,100 ounces. Combined with lower costs, this drove a number of financial records including free
cash flow of $107 million,” said John A. McCluskey, President and Chief Executive Officer. “We also continue to
create value through exploration and our various growth initiatives. The Phase 3+ Expansion is progressing well,
and the integration of Island Gold with our recently acquired Magino mine is well underway. We expect the
integration of the two operations to drive substantial synergies and unlock significant longer-term upside potential
supported by the broad-based exploration success we are seeing across the Island Gold District. We remain well
positioned to achieve full year guidance, and deliver significant production growth, at declining costs over the next
several years,” Mr. McCluskey added.
Second Quarter 2024 Operational and Financial Highlights
• Produced a record 139,100 ounces of gold, exceeding quarterly guidance of 123,000 to 133,000 ounces,
driven by strong performances from Island Gold and La Yaqui Grande. With the solid first half performance,
the Company is well positioned to achieve full year production and cost guidance
• Sold 140,923 ounces of gold at an average realized price of $2,336 per ounce, generating record quarterly
revenue of $332.6 million. This represented a 27% increase from the second quarter of 2023 and marked
the second consecutive quarter of record revenue
• Record free cash flow1 of $106.9 million, reflecting strong mine-site free cash flow from all three operations,
including quarterly free cash flow of $69.9 million at Mulatos and record quarterly free cash flow from
Young-Davidson of $40.1 million. This was a significant increase from consolidated free cash flow of $24.4
million in the first quarter of 2024, while continuing to fund the Phase 3+ Expansion at Island Gold
• Record cash flow from operating activities of $194.5 million (including $190.6 million, or $0.48 per share
before changes in working capital1), an 80% increase from the first quarter of 2024 reflecting strong
operating performance and margin expansion
• Cost of sales of $172.6 million or $1,225 per ounce were in line with full year guidance
• Total cash costs1 of $830 per ounce and all-in sustaining costs ("AISC"1) of $1,096 per ounce decreased
9% and 13%, respectively, from the first quarter of 2024, driven by higher grades at both Island Gold and
Young-Davidson
• Adjusted net earnings1 for the second quarter were $96.9 million, or $0.24 per share1. Adjusted net earnings
includes adjustments for net unrealized foreign exchange losses recorded within deferred taxes and foreign
exchange of $15.9 million, and other adjustments, net of taxes totaling $10.9 million. Reported net earnings
were $70.1 million, or $0.18 per share
• Cash and cash equivalents increased 31% from the first quarter of 2024 to $313.6 million on June 30, 2024.
This was net of a $36.9 million private placement into Argonaut Gold ("Argonaut") in April, and ongoing
investment in the Phase 3+ Expansion. The Company was debt-free as the end of the second quarter.
Subsequent to quarter-end, the Company drew down $250 million on its credit facility to extinguish
Argonaut's term loan, revolving credit facility and gold prepaid advance of 10,000 ounces, all inherited as
part of the acquisition
1 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
• Paid dividends of $10.0 million, or $0.025 per share for the quarter
• Provided an exploration update at Young-Davidson having intersected a new style of higher-grade gold
mineralization from the mid mine, in zones within the hanging wall of the Young-Davidson deposit. These
zones are located between 10 and up to 200 metres (“m”) south of existing infrastructure and Mineral
Reserves and Resources, highlighting the upside potential with grades intersected well above the current
Mineral Reserve grade of 2.31 g/t of gold
• Announced the completion of the acquisition of Argonaut on July 12, 2024. As part of the acquisition,
Alamos acquired Argonaut’s Magino mine, located adjacent to Alamos’ Island Gold mine in Ontario,
Canada. Argonaut’s assets in the United States and Mexico have been spun out as a newly created junior
gold producer named Florida Canyon Gold Inc. (“Florida Canyon Gold”) of which the Company owns an
equity interest of 19.9%
• Completed a gold sale prepayment agreement (“gold prepayment”) on July 15, 2024 for total consideration
of $116 million in exchange for the delivery of 49,384 ounces in 2025. The proceeds of the gold prepayment
were used to eliminate gold forward sale contracts, previously entered into by Argonaut, totaling 179,417
ounces in 2024 and 2025 with an average price of $1,838 per ounce. The transaction has eliminated more
than half of the Argonaut hedge book and associated mark-to-market liability, while providing significantly
increased exposure to rising gold prices
• Provided a comprehensive exploration update at Island Gold where exploration drilling continues to extend
high-grade gold mineralization across the Island Gold Deposit, as well as within several hanging wall and
footwall structures. Delineation and definition drilling has also defined wide, higher-grade zones within the
Island East area. The success on both fronts is expected to drive further growth in high-grade Mineral
Reserves and Resources with the 2024 year end update
• Published Alamos’ 2023 ESG Report, outlining the Company’s progress on its ESG performance
Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and
.(1)
calculation of these measures.
2 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Highlight Summary
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Financial Results (in millions)
Operating revenues $332.6 $261.0 $610.2 $512.5
Cost of sales (1) $172.6 $157.8 $346.2 $313.0
Earnings from operations $138.8 $88.6 $220.2 $163.6
Earnings before income taxes $128.2 $92.1 $203.8 $164.3
Net earnings $70.1 $75.1 $112.2 $123.5
Adjusted net earnings (2) $96.9 $59.3 $148.1 $104.7
Earnings before interest, taxes, depreciation and $180.5 $138.9 $306.2 $258.8
amortization (2)
Cash provided by operations before working capital and taxes $190.6 $138.3 $325.5 $265.5
paid (2)
Cash provided by operating activities $194.5 $141.8 $303.4 $236.1
Capital expenditures (sustaining) (2) $20.9 $23.4 $47.4 $50.3
Capital expenditures (growth) (2) $58.8 $49.8 $110.4 $101.8
Capital expenditures (capitalized exploration) $7.9 $7.0 $14.3 $11.9
Free cash flow (2) $106.9 $61.6 $131.3 $72.1
Operating Results
Gold production (ounces) 139,100 136,000 274,800 264,400
Gold sales (ounces) 140,923 131,952 273,772 264,620
Per Ounce Data
Average realized gold price $2,336 $1,978 $2,207 $1,937
Average spot gold price (London PM Fix) $2,338 $1,976 $2,208 $1,933
Cost of sales per ounce of gold sold
(includes amortization) (1) $1,225 $1,196 $1,265 $1,183
Total cash costs per ounce of gold sold (2) $830 $847 $869 $834
All-in sustaining costs per ounce of gold sold (2) $1,096 $1,112 $1,178 $1,144
Share Data
Earnings per share, basic $0.18 $0.19 $0.28 $0.31
Earnings per share, diluted $0.17 $0.19 $0.28 $0.31
Adjusted earnings per share, basic (2) $0.24 $0.15 $0.37 $0.27
Weighted average common shares outstanding (basic) (000’s) 398,275 395,346 397,546 394,657
Financial Position (in millions)
Cash and cash equivalents $313.6 $224.8
(1)
Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2)
Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and
calculation of these measures.
3 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Gold production (ounces)
Young-Davidson 44,000 45,200 84,100 90,200
Island Gold 41,700 30,500 75,100 63,400
Mulatos District (7) 53,400 60,300 115,600 110,800
Gold sales (ounces)
Young-Davidson 45,057 43,570 84,867 89,246
Island Gold 39,766 28,183 73,896 61,910
Mulatos District 56,100 60,199 115,009 113,464
Cost of sales (in millions) (1)
Young-Davidson $66.7 $59.3 $132.1 $121.2
Island Gold $30.7 $27.6 $64.1 $58.5
Mulatos District $75.2 $70.9 $150.0 $133.3
Cost of sales per ounce of gold sold (includes amortization) (1)
Young-Davidson $1,480 $1,361 $1,557 $1,358
Island Gold $772 $979 $867 $945
Mulatos District $1,340 $1,178 $1,304 $1,175
Total cash costs per ounce of gold sold (2)
Young-Davidson $1,030 $955 $1,104 $948
Island Gold $493 $678 $591 $651
Mulatos District $907 $847 $873 $843
Mine-site all-in sustaining costs per ounce of gold sold (2),(3)
Young-Davidson $1,203 $1,212 $1,334 $1,222
Island Gold $805 $1,072 $943 $1,016
Mulatos District $963 $894 $933 $903
Capital expenditures (sustaining, growth, and capitalized exploration) (in millions) (2)
Young-Davidson (4) $19.0 $13.5 $39.2 $30.9
Island Gold (5) $56.1 $54.7 $110.7 $111.7
Mulatos District (6) $7.8 $6.5 $11.7 $12.2
Other $4.7 $5.5 $10.5 $9.2
(1)
Cost of sales includes mining and processing costs, royalties, and amortization expense.
(2)
Refer to the “Non-GAAP Measures and Additional GAAP Measures” disclosure at the end of this press release and associated MD&A for a description and
calculation of these measures.
(3)
For the purposes of calculating mine-site all-in sustaining costs, the Company does not include an allocation of corporate and administrative and share based
compensation expenses.
(4)
Includes capitalized exploration at Young-Davidson of $1.4 million and $2.4 million for the three and six months ended June 30, 2024 ($1.2 million and $2.6 million
for the three and six months ended June 30, 2023).
(5)
Includes capitalized exploration at Island Gold of $3.4 million and $6.9 million for the three and six months ended June 30, 2024 ($3.0 million and $5.4 million for
the three and six months ended June 30, 2023).
(6)
Includes capitalized exploration at Mulatos District of $3.1 million and $5.0 million for the three and six months ended June 30, 2024 ($2.8 million and $3.9 million
for the three and six months ended June 30, 2023).
(7)
The Mulatos District includes La Yaqui Grande and Mulatos.
4 | Alamos Gold Inc
TRADING SYMBOL: TSX:AGI NYSE:AGI
Environment, Social and Governance Summary Performance
Health and Safety
• Total recordable injury frequency rate1 ("TRIFR") of 1.76 in the second quarter, down from 1.79 in the first
quarter
• Lost time injury frequency rate1 ("LTIFR") of 0.20 in the second quarter as compared to nil in the first quarter
• Year-to-date TRIFR of 1.78 and LTIFR of 0.10
During the second quarter of 2024, Alamos had 18 recordable injuries across its sites including two lost time injuries
(“LTI”).
Alamos strives to maintain a safe, healthy working environment for all, with a strong safety cult

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]