Alamos Gold (AGIN) Q3 2026 Earnings Report

The call was broadly positive, supported by record Island Gold operating results, strong free cash flow, substantial shareholder returns, a strong net cash position, and progress on major growth projects. These positives were partly offset by the Island Gold shaft commissioning delay and 5% Phase 3+ capital-cost increase, lower Young-Davidson production following the seismic event, higher costs, lower Mulatos production, and slower-than-planned PDA development. Highlights significantly outweighed the lowlights.

Alamos expects consolidated production to increase 26% in the fourth quarter and remains on track to meet its revised annual guidance and full-year consolidated cost guidance; at Island Gold, underground mining rates are expected to exit the year at 2,000 tons per day, increase to 2,400 tons per day following shaft commissioning in mid-2027, and grades are expected to increase towards the top end of the annual guidance range in the fourth quarter, while costs are expected to decrease significantly in the fourth quarter and milling rates are expected to remain at steady-state levels of 10,000 tons per day until the mill expansion to 20,000 tons per day is complete in 2028, with completion expected in the first quarter of 2028; the Phase 3+ shaft expansion is now scheduled for completion mid-2027 and is expected to cost 5% higher than the $835 million budgeted, with mining rates expected to continue increasing above 2,000 tons per day in the first half of 2027 and ramp up to 2,400 tons per day in the second half of 2027; Young-Davidson is expected to run at about 5,000 tons per day from underground in the fourth quarter, with grades in the 17-18 range, stockpile grades around 0.3-0.4 grams, mill throughput at about 7,000 tons per day, about 300,000 tons of stockpile material, and some stockpile feed continuing in 2027; Mulatos is expected to achieve stronger production in the fourth quarter, with open pit mining at La Yaqui Grande complete in the first half of 2027 and residual leaching contributing through 2027; PDA’s initial capital remains $165 million, mill construction is targeted for completion in mid-2027, and lower production is expected during the second half of 2027; Lynn Lake remains on schedule for completion in the first half of 2029, with production expected to average 186,000 ounces over its first 10 years; and Alamos expects to nearly double its rate of production to approximately one million ounces annually by 2030 at substantially lower costs.