ALAMOS GOLD INC (AGI): Financial results for Q2 2026
ALAMOS GOLD INC (AGI) furnished an SEC Form 6-K — earnings release. TRADING SYMBOL: TSX:AGI NYSE:AGI Alamos Gold Inc. Brookfield Place, 181 Bay Street, Suite 3910, P.O. Box #823 Toronto, Ontario M5J 2T3 Telephone: (416) 368-9932 or 1 (866) 788-8801 All amounts are in United States dollars, unless otherwise stated. Alamos Gold Reports Second Quart
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data that can affect valuation models and short‑term trading decisions.
Market read
The report updates production and cost guidance for a mid‑cap gold miner, influencing sector sentiment and potentially the broader gold market.
What to watch
The impact of the seismic event at Young‑Davidson and the retirement of legacy hedges could have longer‑term cost benefits not fully reflected in the guidance.
Alamos Gold reported $594.1 million of operating revenues and $270.4 million of net earnings in Q2 2026, while lowering 2026 production guidance to 510,000 - 560,000 ounces and increasing cost guidance following operational disruption at Young-Davidson.
Higher realized gold prices lifted revenue, earnings, operating cash flow and free cash flow, and the Island Gold District delivered record production. However, Young-Davidson's June seismic event and slower-than-expected recovery at La Yaqui Grande drove reductions to full-year production guidance and increases to total cash cost and AISC guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenuesother | $594.1 million | – | 36% increase |
| Cost of salesother | $231.9 million | – | 16% higher |
| Mining and processing costsother | $164.8 million | – | 17% higher |
| Royalty expenseother | $6.8 million | – | – |
| Amortizationother | $49.5 million, or $378 per ounce sold | – | 6% lower |
| Earnings from operationsother | $357.3 million | – | 65% higher |
| Earnings before income taxesother | $410.0 million | – | – |
| Net earningsother | $270.4 million | – | – |
| Adjusted net earningsnon-GAAP | $247.6 million | – | – |
| Adjusted EBITDAnon-GAAP | $423.8 million | – | – |
| Earnings per share, basicother | $0.64 | – | – |
| Earnings per share, dilutedother | $0.64 | – | – |
| Adjusted earnings per share, basicnon-GAAP | $0.59 | – | – |
| Weighted average common shares outstanding, basicother | 419,694 (000’s) | – | – |
| Gold productionother | 130,600 ounces | 5% increase | – |
| Gold salesother | 130,834 ounces | – | – |
| Average realized gold priceother | $4,504 per ounce | – | 40% higher |
| Average spot gold price (London PM Fix)other | $4,506 | – | – |
| Cost of sales per ounce of gold sold (includes amortization)other | $1,772 | – | – |
| Total cash costs per ounce of gold soldnon-GAAP | $1,303 | 6% higher | – |
| All-in sustaining costs per ounce of gold soldnon-GAAP | $1,728 | 7% lower | – |
| Cash provided by operating activitiesother | $231.8 million | – | – |
| Cash provided by operating activities before changes in working capital and taxes paidnon-GAAP | $286.9 million | – | – |
| Capital expenditures (sustaining)non-GAAP | $35.6 million | – | – |
| Sustaining finance leasesnon-GAAP | $3.4 million | – | – |
| Capital expenditures (growth)non-GAAP | $130.0 million | – | – |
| Capital expenditures (capitalized exploration)other | $15.0 million | – | – |
| Company-wide free cash flownon-GAAP | $143.5 million | – | – |
| Total mine-site free cash flownon-GAAP | $228.5 million | – | – |
| Cash and cash equivalentsother | $636.9 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Island Gold DistrictRecord quarterly production of 67,500 ounces was driven by underground mining rates of 1,550 tpd and Magino milling rates of nearly 8,900 tpd. | $296.8 million | – | 41% higher |
| Young-DavidsonHigher realized gold prices were partially offset by lower ounces sold; a June seismic event limited access to the 9410 level and two higher-grade stopes. | $150.1 million | – | 19% higher |
| Mulatos DistrictHigher realized gold prices increased revenue, while lower production reflected slower-than-expected recoveries at La Yaqui Grande and a lower contribution from Mulatos residual leaching. | $149.4 million | – | 35% higher |
2026 outlook
- NoteTotal gold production: 510 - 560 (000's ounces)
- NoteIsland Gold District gold production: 290 - 310 (000's ounces)
- NoteYoung-Davidson gold production: 100 - 115 (000's ounces)
- NoteMulatos District gold production: 120 - 135 (000's ounces)
- NoteCost of sales, including amortization: $890
- NoteTotal cash costs: $1,175 - $1,275 per ounce
- NoteIsland Gold District total cash costs: $1,025 - $1,125 per ounce
- NoteYoung-Davidson total cash costs: $1,750 - $1,850 per ounce
- NoteMulatos District total cash costs: $1,050 - $1,150 per ounce
- NoteAll-in sustaining costs: $1,775 - $1,875 per ounce
- NoteIsland Gold District all-in sustaining costs: $1,550-$1,650 per ounce
- NoteYoung-Davidson all-in sustaining costs: $2,500-$2,600 per ounce
- NoteMulatos District all-in sustaining costs: $1,125 - $1,225 per ounce
- NoteTotal sustaining capital: $228 - $255 million
- NoteTotal growth capital: $657 - $720 million
- NoteTotal sustaining and growth capital: $885 - $975 million
- NoteCapitalized exploration: $60 million
- NoteTotal capital expenditures and capitalized exploration: $945 - $1,035 million
- NoteThird quarter 2026 production: 115,000 - 140,000 ounces
- NoteYoung-Davidson second half 2026 total cash costs: approximately $2,100 per ounce
- NoteYoung-Davidson second half 2026 mine-site AISC: $3,300 per ounce
- NotePhase 3+ Shaft commissioning: first quarter of 2027
- NoteMagino mill expansion completion: first quarter of 2028
- NoteLynn Lake first production: first half of 2029
Capital returns
- Returned $67 million to shareholders during the second quarter.
- Repurchased 1,401,100 shares at a cost of $50 million ($35.70 per share).
- Dividend payment of $17 million (quarterly $0.04 per share).
- $83.6 million distributed thus far in 2026 through dividends and share buybacks.
- Repurchased and eliminated 35,000 ounces of remaining 2026 legacy Argonaut hedges at a cost of $92.3 million for an effective price of approximately $4,458 per ounce.
- Retired 279,000 ounces, or 85%, of the 329,000 ounces of forward contracts inherited from Argonaut, prior to maturity.
What drove it
- The average realized gold price was $4,504 per ounce, 40% higher than the prior year period.
- The Island Gold District produced a record 67,500 ounces, with underground mining rates averaging 1,550 tpd and Magino milling rates averaging 8,862 tpd.
- Island Gold District mine-site free cash flow was $99.9 million, 91% higher than the prior year period.
- A net gain on commodity derivatives of $40.3 million was recognized, primarily from the mark-to-market revaluation of 2027 legacy Argonaut hedges as gold prices declined during the quarter.
- Mulatos District mine-site free cash flow was $61.2 million, including $26.9 million of cash tax payments.
- PDA growth capital spending was $21.0 million; the project remains on budget and on track for completion in mid-2027.
Concerns
- The Young-Davidson seismic event damaged infrastructure and limited access to the 9410 level and two higher-grade stopes that were supplying approximately 2,500 tpd of ore.
- Young-Davidson mining rates are expected to average approximately 5,000 tpd for the remainder of 2026.
- Young-Davidson production guidance was reduced to 100,000 - 115,000 ounces, and mine-site AISC guidance was raised to $2,500-$2,600 per ounce.
- Slower-than-expected recoveries at La Yaqui Grande, a longer leach cycle and increasing pad height reduced Mulatos District production guidance to 120,000 - 135,000 ounces.
- The Company recorded a $10.8 million adjustment to reduce the carrying value of Mulatos leach pad inventory.
- Increased labour inflation, contractor costs, diesel costs and energy costs contributed to higher costs.
What to watch
- Third quarter production is expected to be between 115,000 and 140,000 ounces.
- AISC are expected to increase in the third quarter reflecting lower production and timing of sustaining capital; production is expected to increase in the fourth quarter contributing to lower AISC.
- Island Gold underground mining rates are expected to reach 2,000 tpd by the end of 2026, with a further increase to 2,400 tpd in the first quarter of 2027 following shaft commissioning.
- Magino milling rates averaged approximately 10,000 tpd month to date in July and are expected to remain at similar levels through the second half of 2026.
- Young-Davidson rehabilitation work and enhanced ground support measures are expected to be completed through the second half of 2026.
- The Company plans to evaluate opportunities to be active on its share buyback while balancing other capital allocation priorities, including repurchase of the remaining 50,000 ounces of legacy Argonaut hedges set to mature in 2027.
Balance sheet and cash flow
- Cash and cash equivalents totaled $636.9 million at June 30, 2026.
- The Company reported approximately $1.2 billion of total liquidity.
- Cash flow from operating activities was $231.8 million.
- Cash flow from operating activities before changes in working capital and taxes paid was $286.9 million, or $0.68 per share.
- Company-wide free cash flow was $143.5 million.
- Mineral property, plant and equipment expenditures were $180.6 million.
- The early settlement of legacy Argonaut hedges was $92.3 million.
- The remaining inventory balance on the Mulatos leach pad was $16.0 million as at June 30, 2026.
Analysis
Alamos generated a substantially stronger financial result in the second quarter as higher gold prices outweighed modestly lower group production. Operating revenues were $594.1 million, up 36% from the prior-year period, while net earnings were $270.4 million and adjusted net earnings were $247.6 million. The average realized gold price was $4,504 per ounce, 40% higher than the prior-year period. Cash flow from operating activities reached $231.8 million and company-wide free cash flow was $143.5 million after $180.6 million of mineral property, plant and equipment expenditures and the early settlement of legacy hedges.
The Island Gold District was the operational bright spot. It produced a record 67,500 ounces, with record underground mining rates of 1,550 tpd and Magino milling rates of 8,862 tpd. Its $296.8 million of operating revenues were 41% higher than the prior-year period and mine-site free cash flow was $99.9 million. The district remains on track for its original production guidance, and management expects rising underground mining and milling rates plus higher underground grades to support additional production through the second half.
Young-Davidson and the Mulatos District constrained the consolidated outlook. Young-Davidson produced 33,000 ounces, 15% below the prior-year period, after a seismic event damaged infrastructure and limited access to higher-grade stopes on the 9410 level. Mining rates are expected to average approximately 5,000 tpd for the remainder of 2026, and the operation's full-year production guidance was reduced to 100,000 - 115,000 ounces. Mulatos District production fell to 30,100 ounces as La Yaqui Grande experienced a longer leach cycle and slower recovery of ounces. The Company also recorded a $10.8 million Mulatos leach-pad inventory adjustment.
The revised full-year outlook reflects the operational disruption and cost pressure. Consolidated production guidance is now 510 - 560 (000's ounces), total cash cost guidance is $1,175 - $1,275 per ounce, and AISC guidance is $1,775 - $1,875 per ounce. The Company expects Q3 production of 115,000 - 140,000 ounces, with higher AISC due to lower production and the timing of sustaining capital, followed by higher production and lower AISC in Q4. Labour inflation, contractor costs, diesel and energy costs remain explicit cost pressures.
Capital allocation combined investment in expansion projects with shareholder returns and hedge retirement. The Company returned $67 million to shareholders through $50 million of repurchases and a $17 million dividend payment, while using $92.3 million to eliminate the remaining 2026 legacy Argonaut hedges. Growth projects remain central to the strategy: the Phase 3+ Shaft is expected to be commissioned in the first quarter of 2027, the Magino mill expansion is targeted for the first quarter of 2028, PDA remains on track for mid-2027 completion, and Lynn Lake first production is expected in the first half of 2029.
Management, verbatim
We produced 130,600 ounces in the second quarter, meeting our revised quarterly guidance, and up 5% from the first quarter. The Island Gold District had a solid quarter from multiple perspectives, including delivering record underground mining rates, milling rates and production. This offset lower than expected production from Mulatos and Young-Davidson. As previously disclosed, we are expecting lower mining rates at Young-Davidson in the second half of 2026 resulting in a temporary reduction in production and increase in costs. We have revised our full year consolidated production and cost guidance with lower production from Young-Davidson the primary driver.
John A. McCluskey, President and Chief Executive Officer
We expect stronger production and significantly lower costs in 2027 driven by improved results from Young-Davidson, as well as low-cost growth from the Island Gold District. In addition to performing well operationally, work on the shaft and mill expansion at the Island Gold District is progressing well with both expected to be key drivers of growing production and declining costs over the next several years.
John A. McCluskey, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating expenses were not reported as a consolidated line item.
- Income tax expense and tax rate were not reported in the provided earnings-release financial summary.
- Debt and net debt were not reported.
- Adjusted diluted earnings per share was not reported.
- Consolidated prior-quarter revenue, earnings, operating cash flow, free cash flow, net earnings and EPS were not reported.
- A separately provided previous earnings release/outlook was not supplied; therefore, no actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Alamos Gold Inc. (TSX:AGI, NYSE:AGI) filed a Form 6‑K with its Q2 2026 earnings, detailing production, cash flow, and updated guidance.
Ticker impact
Alamos Gold reported Q2 2026 results with production, revenue, and revised full-year guidance, a primary earnings disclosure.
Potential short-term volatility with a bias toward downside due to lowered full-year production and cost guidance, but long-term upside if 2027 outlook holds.
The numbers are fresh from the SEC 6‑K filing, providing new data on production, cash flow, and guidance that traders can act on immediately.
Market effects
Gold mining sector may see broader re‑rating as production guidance adjusts across peers.
Canadian mining stocks could be affected by Alamos' revised cost outlook.
Gold price dynamics may be influenced by the company's hedge retirements and cash flow strength.
Counterpoint
Investors might view the lowered 2026 guidance as a buying opportunity if they believe the 2027 outlook and cost reductions will drive higher margins.
Key entities
- companyAlamos Gold Inc.
Gold mining company reporting Q2 2026 results.
- executiveJohn A. McCluskey
President and CEO of Alamos Gold, provided commentary on results and outlook.
