TORONTO, July 31, 2024 (GLOBE NEWSWIRE) -- 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
Paid dividends of $10.0 million, or $0.025 per share for the quarter
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