Toronto- and New York-listed Alamos Gold has reported record quarterly free cash flow for the third quarter, driven by higher production and margins, but trimmed its 2025 production guidance by 6% following unplanned mill downtime and a seismic event at its Island Gold mine.

“We delivered a number of new financial records in the third quarter including record free cash flow of $130-million, while continuing to fund our high-return growth projects. This was driven by a further increase in production to 141 700 oz and significant margin expansion,” president and CEO John McCluskey said.

Alamos now expects 2025 production of 560 000 oz to 580 000 oz, down from previous guidance, after a capacitor failure caused a week of downtime at the Magino mill in late September and a seismic event on October 17 delayed access to higher-grade stopes at Island Gold.

“Given unplanned downtime of the Magino mill at the end of September, and lower expected underground grades from Island Gold due to a seismic event in October, we are revising our 2025 production guidance lower by approximately 6%,” McCluskey said. “These challenges are short-term and are not reflective of our strong outlook, nor our long-term track record. We expect a significant improvement starting in the fourth quarter with an 18% increase in production, and a 5% decrease in costs.”

QUARTERLY PERFORMANCE
Gold production rose 3% quarter-on-quarter to 141 700 oz, mainly on stronger output from Mulatos and Island Gold. The company sold 136 473 oz at an average realised price of $3 359/oz, generating record revenue of $462.3-million.

Operating cash flow hit a record $265.3-million, while total cash costs fell 9% from the previous quarter to $973/oz. All-in sustaining costs (AISC) declined 7% to $1 375/oz, driven by stronger performance at the Mulatos District.

Net earnings rose to $276.3-million, or $0.66 a share, compared with adjusted net earnings of $155.5-million, or $0.37 a share. Cash and cash equivalents climbed 34% from the previous quarter to $463.1-million at end-September.

Fourth-quarter output is expected to increase 18% to between 157 000 oz and 177 000 oz as operations normalize. Alamos said total cash costs and AISC should fall about 5% in the quarter, keeping the company on track to meet full-year cost guidance.

At current gold prices, Alamos expects continued strong free cash flow generation through 2025 and “significant growth starting in 2026” as production rises and costs decline.

During the quarter, the company completed the sale of its Turkish projects – Kirazlı, Ağı Dağı and Çamyurt – to Tümad Madencilik for $470-million, receiving an initial $160-million payment in October. The remaining $310-million is due over the next two years.

Alamos also closed the sale of its Quartz Mountain gold project, in Oregon, to Q-Gold Resources for up to $21-million and a 9.9% equity stake in Q-Gold.

Following these transactions, Alamos’ cash balance has grown to more than $600-million, and the company said it plans to reduce debt and may consider share buybacks.

Further, the miner reported that the Phase 3+ Expansion of the Island Gold District advanced with shaft sinking reaching 1 350 m – 98% of planned depth – keeping the project on track for completion in the second half of 2026.