AGI — Alamos Gold Inc.

AGI Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Production: 124,000 ounces of gold, meeting quarterly guidance.
• Revenue: Record quarterly revenues of $597 million from the sale of 122,000 ounces at an average realized price of $4,829 per ounce.
• Costs: All-in sustaining costs (AISC) were $1,862 per ounce, expected to decrease by approximately 5% in Q2.
• 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), with adjusted net earnings at $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: Strong performance with underground mining rates reaching a record 1,423 tonnes per day. Expansion study indicates potential for significant future cash flow and profitability.
• Young-Davidson: Production of 30,000 ounces, with expectations of improved mining and milling rates moving forward.
• Mulatos District: Produced 32,700 ounces, with strong free cash flow of $61 million, funding ongoing projects and exploration.
• PDA Project: Construction on track for mid-2027 production, expected to extend the Mulatos mine life significantly.
• Dividend Increase: Announced a 60% increase in dividends in February, with plans for further shareholder returns.

3. Forward Guidance and Outlook:

• Production Growth: Targeting 800,000 ounces annually by 2028, with further growth to 1 million ounces by 2030.
• Cost Management: Anticipated cost reductions through increased production and operational efficiencies, particularly at Island Gold and Magino.
• Future Catalysts: Completion of the Phase III+ shaft expansion and Magino mill expansion expected to enhance production capacity and reduce costs.

4. Challenges and Points of Concern:

• Cost Pressures: Ongoing inflationary pressures, particularly in labor and contractor costs, are being monitored. Diesel prices, while manageable, remain a concern for the broader industry.
• Young-Davidson Performance: Lower-than-expected production due to maintenance delays and mining dilution, though improvements are anticipated in Q2.
• Hedging Strategy: Continued elimination of legacy Argonaut Gold hedges, with 245,000 out of 330,000 ounces repurchased, remains a tactical focus.

5. Notable Q&A Insights:

• Island Gold Mining Rates: The ramp-up to 2,000 tonnes per day is not critically dependent on the area affected by seismic issues, which have been rehabilitated.
• Young-Davidson Grades: Expected to return to guidance levels in Q2 after Q1 dilution issues.
• Cost Management Strategies: Focus on increasing mining rates and optimizing mill throughput to mitigate inflationary pressures.
• Share Buyback Plans: Management is considering more active share buybacks in Q2 due to strong free cash flow and current share price underperformance.
• Magino Mill Costs: Connecting to grid power is expected to lower costs by approximately $5 per tonne when fully operational.

This summary encapsulates AGI's financial performance, strategic initiatives, future outlook, and challenges faced during Q1 2026, providing a clear overview for stakeholders.