Alamos reports lower-than-guided 2025 gold production

The company said fourth-quarter production was consistent with the September quarter, but lower-than-planned output from the Island Gold district and Young-Davidson mine weighed on full-year results. Severe winter weather in late December disrupted access to sites and affected mining and processing rates.

“Our fourth-quarter production totalled 141 500 oz, consistent with the third quarter but below guidance due to lower-than-planned production from our Canadian operations. Mining and processing rates were lower than expected due to severe winter weather late in December which impacted access to the sites, as well as other operational challenges. Despite these challenges, we delivered a record quarter and year financially and made significant progress on our growth initiatives,” said president and CEO John McCluskey.

Island Gold produced 60 000 oz in the fourth quarter and 250 400 oz for the year, compared with revised guidance of 260 000 oz to 270 000 oz. Young-Davidson produced 41 500 oz in the December quarter and 153 400 oz for the year, while the Mulatos district contributed 40 000 oz in the quarter and 141 600 oz for the year.

Despite the lower production, Alamos delivered record financial results, benefiting from strong gold prices. The company sold 142 149 oz of gold in the fourth quarter at an average realised price of $3 997/oz, generating record quarterly revenue of $568-million, inclusive of silver sales.

For the full year, gold sales of 531 230 oz at an average realised price of $3 372/oz delivered record yearly revenue of $1.8-billion.

The realised gold price in the quarter was below the London PM Fix, reflecting the delivery of the final 12 346 oz into a gold prepayment facility executed in July 2024 at a prepaid price of $2 524/oz. Alamos confirmed that the 2024 prepayment obligation had now been fully completed.

Strong margins and cash generation lifted the company’s cash position to $623-million at the end of December 2025, up from $463-million at the end of the September quarter and $327-million at the end of 2024. Alamos said this reflected ongoing free cash flow generation while continuing to reinvest in growth, reduce debt and increase shareholder returns.

During the quarter, the company repaid $50-million of debt inherited from Argonaut Gold, reducing outstanding borrowings to $200-million on its credit facility at year-end.

Alamos also eliminated half of its 2026 legacy Argonaut gold hedges in the fourth quarter, repurchasing and cancelling forward sales contracts covering 50 000 oz at an average price of $1 821/oz. The cost of eliminating the hedges was $113.5-million, at an effective price of about $4 091/oz, increasing the company’s exposure to prevailing gold prices.

Shareholder returns increased during the year, with Alamos repurchasing 928 729 shares in November for $28.8-million. For the full year, the company bought back 1 326 929 shares for $38.8-million and returned a record $81-million to shareholders through dividends and buybacks.

Looking ahead, McCluskey said the company expected a marked operational improvement in 2026, underpinned by growth from the Island Gold district.

“From an operational perspective, this past year was not reflective of our long-term track record, nor our strong outlook. We expect a substantial improvement from our operations in 2026 and low-cost growth from the Island Gold District to drive production significantly higher over the next several years. As we will be outlining in the Island Gold District Expansion Study next month, we expect this growth to continue with a clear path to one-million ounces of annual production by the end of the decade,” he said.

Alamos plans to release its Island Gold district expansion study, updated three-year production and operating guidance, and its year-end mineral reserve and resource update in February.