Alamos Gold Posts Record Cash Flow in Q2 2025 Amid Strong Production and Lower Costs

Alamos Gold reported a 10% increase in Q2 2025 production and an 18% reduction in all-in sustaining costs, resulting in record cash flow from operations and $85 million in free cash flow. The company anticipates further production growth and cost reductions in the second half of the year, driven by improvements in the Island Gold District and other operations. Analysts rate Alamos Gold a Buy with a C$20.50 price target.

Alamos Gold (NYSE: AGI) reported robust financial results for the second quarter of 2025, highlighting significant improvements in production and cost efficiency. The company's Q2 production reached 137,200 ounces of gold, a 10% increase from the first quarter, driven by operational enhancements and higher gold prices. Despite raising its annual cost guidance due to external factors such as higher share prices and royalty expenses, Alamos Gold achieved record operating cash flow of $199.5 million and free cash flow of $85 million.

Key financial highlights include net earnings of $159.4 million ($0.38 per share) and an adjusted net earnings figure of $144.1 million ($0.34 per share). The company's total cash position strengthened to $344.9 million, up 19% from the first quarter, while returning $21 million to shareholders through dividends and share buybacks. Alamos Gold's all-in sustaining costs (AISC) decreased by 18% to $1,475 per ounce, with the company projecting average annual production of 411,000 ounces starting in 2026 at an attractive AISC of $915 per ounce.

The transition to processing Island Gold ore through the Magino mill, completed in mid-July, is expected to contribute to future cost improvements and production growth. Analysts have rated Alamos Gold a "Buy" with a C$20.50 price target, reflecting confidence in the company's growth prospects and operational efficiency.

[1] https://www.stocktitan.net/news/AGI/alamos-gold-reports-second-quarter-2025-2rk2z81f3jg6.html