AGI — Alamos Gold Inc.

Summary of AGI Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Production: 124,000 ounces, meeting quarterly guidance; strong performance from the Island Gold District.
• Sales: 122,000 ounces sold at an average realized price of $4,829 per ounce, resulting in record quarterly revenues of $597 million.
• Costs: All-in sustaining costs (AISC) were $1,862 per ounce, expected to decrease by approximately 5% in Q2.
• Margins: AISC margins nearly tripled year-over-year to approximately $3,000 per ounce.
• Cash Flow: Record operating cash flow of $338 million ($0.80 per share) and free cash flow of $102 million.
• Net Earnings: Reported net earnings of $191 million ($0.46 per share); adjusted net earnings were $232 million ($0.55 per share).
• Liquidity: Cash position increased to $660 million, with $1.2 billion in available liquidity.

2. Strategic Updates and Business Highlights

• Island Gold District: Achieved record underground mining rates of over 1,400 tonnes per day; expansion study indicates potential for significant future cash flow.
• Growth Initiatives: Continued ramp-up of the Magino mill and completion of the Phase III+ shaft expansion at Island Gold, expected to enhance production and reduce costs.
• Exploration Success: 32% increase in year-end mineral reserves to 16 million ounces, with significant growth at the Island Gold District.
• Dividend Increase: Announced a 60% increase in dividends in February, with plans for further shareholder returns.

3. Forward Guidance and Outlook

• Production Growth: Anticipate a 20% increase in Q2 production, targeting 800,000 ounces annually by 2028 and 1 million ounces by 2030.
• Cost Management: Expect costs to decrease significantly in the second half of 2026 due to increased low-cost production from Island Gold.
• Operational Improvements: Continued focus on productivity enhancements across all operations to mitigate inflationary pressures.

4. Bad News, Challenges, or Points of Concern

• Young-Davidson Performance: Produced 30,000 ounces, lower than planned due to lower mining and milling rates; challenges included maintenance downtime and mining dilution.
• Cost Pressures: Ongoing inflationary pressures, particularly in labor and contractor costs, though manageable within current guidance.
• Hedging Strategy: Continued elimination of legacy Argonaut Gold hedges, with 245,000 out of 330,000 ounces repurchased; remaining contracts pose a risk if gold prices fluctuate.

5. Notable Q&A Insights

• Island Gold Rehabilitation: Minor rehabilitation work is ongoing but not critical for achieving targeted mining rates.
• Young-Davidson Grades: Expected to return to guidance levels (1.90 to 2.05 grams per tonne) in Q2 following Q1 dilution issues.
• Cost Management Strategies: Focus on ramping up mining rates and mill throughput to manage costs effectively.
• Capital Allocation: Plans for opportunistic share buybacks in Q2, with a focus on balancing dividends and growth investments.
• Magino Mill Power: Connecting to grid power expected to save about $5 per tonne when fully operational.

This summary encapsulates AGI's financial performance, strategic initiatives, and outlook, while also addressing challenges and insights from the Q&A session.