Alamos Gold Inc. (TSX:AGI; NYSE:AGI) announced its financial results for the first quarter ended March 31, 2026, highlighting record cash flow from operations and solid free cash flow of $101.7 million. The company produced 123,900 ounces of gold during the quarter, in line with guidance, driven by strong performance from the Island Gold District.
Financial Highlights
Revenues reached a record $596.7 million, a 79% increase from the first quarter of 2025, supported by an average realized gold price of $4,829 per ounce. Cost of sales totaled $205.5 million, or $1,685 per ounce. Total cash costs were $1,230 per ounce, and all-in sustaining costs (AISC) were $1,862 per ounce, above guidance but expected to decline in the second half of 2026.
Net earnings for the quarter were $191.4 million, or $0.46 per share, while adjusted net earnings were $232.0 million, or $0.55 per share. Cash flow from operating activities reached $242.5 million, including a record $338.0 million before changes in working capital and taxes paid.
Operational Performance
Underground mining rates at Island Gold reached a new record, and milling rates at Magino increased significantly after implementing additional improvements. The company expects a 20% production increase in the second quarter, with further growth in the second half of the year at lower costs.
Alamos Gold sold 121,924 ounces of gold in the quarter. The company also announced a 60% increase in its quarterly dividend to $0.04 per share, paying $16.6 million in dividends during the quarter.
Growth Projects
The Island Gold District Expansion Study, released on February 3, 2026, outlines a long-life operation expected to produce an average of 534,000 ounces annually over the first 10 years starting in 2028, with an average mine-site AISC of $1,025 per ounce. The Phase 3+ Shaft Expansion is progressing well, with shaft sinking completed and construction of the paste plant and administrative complex advancing. Commissioning of the shaft is expected in early 2027.
Year-end 2025 mineral reserves increased 32% to 15.9 million ounces, marking the seventh consecutive year of reserve growth.
Financial Position
Cash and cash equivalents rose to $659.5 million at March 31, 2026, from $623.1 million at the end of 2025. The company used $42.7 million to retire additional legacy gold hedges, eliminating about one-third of the remaining hedges from the Argonaut Gold acquisition. Total liquidity stands at approximately $1.2 billion, providing strong capacity to fund all growth initiatives internally.
John A. McCluskey, President and CEO, commented: "Our first quarter production was in line with guidance, driven by a solid performance from the Island Gold District. We expect all three operations to contribute to a 20% production increase in the second quarter, with further growth in the second half of the year at substantially lower costs."
